Net Neutrality passes FCC by a vote of 3-2

Federal regulators moved forward on Thursday with a Net neutrality plan to protect openness on the Internet by treating the online world more like heavily regulated telecommunications markets.

New rules from the Federal Communications Commission adopted on a 3-2 vote will prohibit Internet service providers like Comcast (CMCSA) and Verizon Communications (VZ) from discriminating against any web site or online service. That means sites like Netflix (NFLX) or Google’s (GOOGL) YouTube won’t have to pay extra fees or face sluggish connections with their users. And new sites and services will be able to reach everyone on the Internet on the same terms as the big players.

Courts have struck down earlier Net neutrality efforts, saying the FCC lacked authority to impose such rules. So this time around, the FCC chose to categorize high-speed Internet service as a telecommunications service. Consumers have long been guaranteed the right to call any phone number they desire and phone companies have to treat all calls equally.

The agency heard from Chad Dickerson, CEO of the crafts sales web site Etsy, before the vote.

“Without strong rules to prevent discrimination online, the innovation economy would suffer,” Dickerson said. “We charge only 20 cents to list an item on Etsy, and take only 3.5% of every transaction. We couldn't afford to pay for priority access to consumers, yet we know delays of milliseconds have a direct and long term impact on revenue.”

Cable and telecom companies say congestion is due to the Internet companies sending more data. Higher fees are needed to cover the cost of building more capacity, they say.

groomsy wrote:The main changes for broadband providers are as follows:

Broadband access is being reclassified as a telecommunications service, meaning it will be subject to much heavier regulation
Broadband providers cannot block or speed up connections for a fee
Internet providers cannot strike deals with content firms, known as paid prioritisation, for smoother delivery of traffic to consumers
Interconnection deals, where content companies pay broadband providers to connect to their networks, will also be regulated
Firms which feel that unjust fees have been levied can complain to the FCC. Each one will be dealt with on a case by case basis
All of the rules will also apply to mobile providers as well as fixed line providers
The FCC won't apply some sections of the new rules, including price controls