<b><i>Online Extra</b></i>FCC Approves Net Neutrality Proposal

By a 3-to-2 vote, the Federal Communications Commission on Feb. 26 approved a significant change in rules to promote 'net neutrality.'

The Democratic majority on the FCC supported the new rules which relate to access to Internet bandwidth and Web traffic, while Republicans'opposed'them ' as do many telecom and cable providers.

'We will protect the values of an open Internet,' FCC Chairman Tom Wheeler said before the vote was taken. 'Today, history is being made by a majority of this commission as we vote for a fast, fair and open Internet.'

Many Republicans worry the new rules could block innovation involving the Internet. But if the rules are changed, there could be resulting lawsuits.

One important part of the new rules is that telecommunications companies such as Verizon or AT&T could not set up fast lanes to provide faster access to websites if they pay more for the service, according to the proposal. Nor could these companies make certain online content go slower than other items going over networks.

The FCC's new regulations apparently apply to wireless carriers, too, as smartphones and other mobile devices continue to gain popularity. Mobile carriers are among the likely ones to sue over the new rules.

Members of Congress are watching the events play out and the Republican majority could propose relevant legislation.

Last year, an FCC proposal on net neutrality was'rejected'by a federal appeals court. After that, Wheeler and the four other commissioners reached out to the public to get input before Wheeler introduced the new proposed rules. Republicans claim the White House interfered with the workings of the FCC. But some 4 million Americans sent in comments about the proposal.

'Consumers, entrepreneurs, librarians, teachers, doctors, writers, venture capitalists, state officials, edge providers, content providers ' filed comments in our proceeding wanting the FCC to know their views,' FCC Commissioner'Mignon Clyburn'said in September. 'The legal issues are, of course, important but, to me, it puts the cart before the horse. The critical question, as I see it, is first, determining the right policy, and when that is established, then and only then, determine the appropriate legal framework to achieve that result.'

Reaction

The FCC approved the new rules along party lines, and though some have suggested the new rules are like those that regulate utilities or are 'antiquated,' others disagree.

'The talk of the so-called 'utility-type' regulation and 'antiquated' rules is more rhetoric than a substantive argument,' said Pantelis Michalopoulos, head of the technology, Internet and media practice group at Steptoe & Johnson. 'The opponents of net neutrality do not mention any examples of what they mean.'

As envisioned, the new rules aim to prevent blocking, throttling and fast lanes, explained Tom Wheeler, the Democratic chairman of the FCC. 'Consumers must get what they pay for'unfettered access to any lawful content on the Internet,' Wheeler added during Thursday's FCC meeting.

Wheeler specified that broadband networks must be fast, fair and open. He added that under the new rules the open Internet will apply 'equally to both fixed and mobile networks.' 'Mobile wireless networks account for 55% of Internet usage. We cannot have two sets of Internet protections'one fixed and one mobile'when the difference is increasingly anachronistic to consumers,' Wheeler said.

Michalopoulos said the FCC's new rules have gone beyond the position advocated by the White House for net neutrality. But Ajit Pai, a Republican member of the FCC who opposes the new rules, predicted a temporary setback. 'I believe we will win the war,' he added. The new rules could be overturned by Congress, the courts or by a future FCC commission made up of different commissioners, he said. Yet Michalopoulos pointed out that the FCC has done 'a very good job of fortifying' the new rules with a 'body of legal armor' that could likely withstand appellate review.

Opponents to the new rules include Republican members of the FCC and Congress, and telecom and cable television companies. Verizon is among those companies disappointed in the FCC's approval of the new order, claiming the FCC will 'encumber broadband Internet services with badly antiquated regulations.'

The vote was called 'a radical step that presages a time of uncertainty for consumers, innovators and investors,' Michael E. Glover, Verizon senior vice president, public policy and government affairs, said in a statement.

'The FCC ' chose to change the way the commercial Internet has operated since its creation. Changing a platform that has been so successful should be done, if at all, only after careful policy analysis, full transparency, and by the legislature, which is constitutionally charged with determining policy. As a result, it is likely that history will judge today's actions as misguided,' he added.

Robert Freeman, an attorney in the technology, media and communications practice group at' Proskauer Rose, said, 'it is impossible to predict at this stage what impact the new net neutrality rules will have or, indeed, whether they will survive challenges in the courts that are almost certain to come.”

'What we did see leading up to the passage of the rules were clear battle lines being drawn between the incumbent broadband providers (ISPs) [Internet Service Providers] such as Comcast and Verizon and the Internet services (or edge providers) such as Netflix and Facebook,' he added. 'The biggest concern of the ISPs is that the new rules will ultimately lead to some form of price regulation.' To date, the FCC has sought to assure everyone that that won't happen.' But, only time will tell.'

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Ed Silverstein, a graduate of Harvard's Kennedy School of Government, is a veteran writer and editor for magazines, websites and newspapers. This article originally appeared in Law Technology News, an ALM sibling of Internet Law & Strategy.

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By a 3-to-2 vote, the Federal Communications Commission on Feb. 26 approved a significant change in rules to promote 'net neutrality.'

The Democratic majority on the FCC supported the new rules which relate to access to Internet bandwidth and Web traffic, while Republicans'opposed'them ' as do many telecom and cable providers.

'We will protect the values of an open Internet,' FCC Chairman Tom Wheeler said before the vote was taken. 'Today, history is being made by a majority of this commission as we vote for a fast, fair and open Internet.'

Many Republicans worry the new rules could block innovation involving the Internet. But if the rules are changed, there could be resulting lawsuits.

One important part of the new rules is that telecommunications companies such as Verizon or AT&T could not set up fast lanes to provide faster access to websites if they pay more for the service, according to the proposal. Nor could these companies make certain online content go slower than other items going over networks.

The FCC's new regulations apparently apply to wireless carriers, too, as smartphones and other mobile devices continue to gain popularity. Mobile carriers are among the likely ones to sue over the new rules.

Members of Congress are watching the events play out and the Republican majority could propose relevant legislation.

Last year, an FCC proposal on net neutrality was'rejected'by a federal appeals court. After that, Wheeler and the four other commissioners reached out to the public to get input before Wheeler introduced the new proposed rules. Republicans claim the White House interfered with the workings of the FCC. But some 4 million Americans sent in comments about the proposal.

'Consumers, entrepreneurs, librarians, teachers, doctors, writers, venture capitalists, state officials, edge providers, content providers ' filed comments in our proceeding wanting the FCC to know their views,' FCC Commissioner'Mignon Clyburn'said in September. 'The legal issues are, of course, important but, to me, it puts the cart before the horse. The critical question, as I see it, is first, determining the right policy, and when that is established, then and only then, determine the appropriate legal framework to achieve that result.'

Reaction

The FCC approved the new rules along party lines, and though some have suggested the new rules are like those that regulate utilities or are 'antiquated,' others disagree.

'The talk of the so-called 'utility-type' regulation and 'antiquated' rules is more rhetoric than a substantive argument,' said Pantelis Michalopoulos, head of the technology, Internet and media practice group at Steptoe & Johnson. 'The opponents of net neutrality do not mention any examples of what they mean.'

As envisioned, the new rules aim to prevent blocking, throttling and fast lanes, explained Tom Wheeler, the Democratic chairman of the FCC. 'Consumers must get what they pay for'unfettered access to any lawful content on the Internet,' Wheeler added during Thursday's FCC meeting.

Wheeler specified that broadband networks must be fast, fair and open. He added that under the new rules the open Internet will apply 'equally to both fixed and mobile networks.' 'Mobile wireless networks account for 55% of Internet usage. We cannot have two sets of Internet protections'one fixed and one mobile'when the difference is increasingly anachronistic to consumers,' Wheeler said.

Michalopoulos said the FCC's new rules have gone beyond the position advocated by the White House for net neutrality. But Ajit Pai, a Republican member of the FCC who opposes the new rules, predicted a temporary setback. 'I believe we will win the war,' he added. The new rules could be overturned by Congress, the courts or by a future FCC commission made up of different commissioners, he said. Yet Michalopoulos pointed out that the FCC has done 'a very good job of fortifying' the new rules with a 'body of legal armor' that could likely withstand appellate review.

Opponents to the new rules include Republican members of the FCC and Congress, and telecom and cable television companies. Verizon is among those companies disappointed in the FCC's approval of the new order, claiming the FCC will 'encumber broadband Internet services with badly antiquated regulations.'

The vote was called 'a radical step that presages a time of uncertainty for consumers, innovators and investors,' Michael E. Glover, Verizon senior vice president, public policy and government affairs, said in a statement.

'The FCC ' chose to change the way the commercial Internet has operated since its creation. Changing a platform that has been so successful should be done, if at all, only after careful policy analysis, full transparency, and by the legislature, which is constitutionally charged with determining policy. As a result, it is likely that history will judge today's actions as misguided,' he added.

Robert Freeman, an attorney in the technology, media and communications practice group at' Proskauer Rose, said, 'it is impossible to predict at this stage what impact the new net neutrality rules will have or, indeed, whether they will survive challenges in the courts that are almost certain to come.”

'What we did see leading up to the passage of the rules were clear battle lines being drawn between the incumbent broadband providers (ISPs) [Internet Service Providers] such as Comcast and Verizon and the Internet services (or edge providers) such as Netflix and Facebook,' he added. 'The biggest concern of the ISPs is that the new rules will ultimately lead to some form of price regulation.' To date, the FCC has sought to assure everyone that that won't happen.' But, only time will tell.'

'

Ed Silverstein, a graduate of Harvard's Kennedy School of Government, is a veteran writer and editor for magazines, websites and newspapers. This article originally appeared in Law Technology News, an ALM sibling of Internet Law & Strategy.

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