Yesterday, April 6, 2010, the US Court of Appeals for the District of Columbia Circuit threw out the FCC’s attempt to police broadband traffic. The FCC was told they did not have the authority under the current law to pass rules telling Internet providers how to manage their networks.
Though many large internet content companies want the government to assure “net neutrality” (which is the centerpiece of President Obama’s technology plan) despite the bandwidth the content consumes, Broadband providers are fighting against this act. As net neutrality would put federal regulations on Web pricing and traffic management, Broadband providers are worried they would no longer be able to make a return on the money they’re investing in their networks, causing a necessary cut on capital spending and jobs.
While the FCC was thwarted yesterday, already they are back at work trying to figure out how they can put their regulations on the internet. One possible move the FCC could pull out would be to classify broadband networks as common carriers under Title 2 of the Communications Act, allowing the federal government to control pricing. This, however, would basically be a self-contradiction by the FCC who just deregulated Internet lines in 2002. The FCC is probably hoping Congress will get involved and change the laws that are keeping the FCC from Internet regulation; however, seeing as it is an election year, this is unlikely.
So it seems the FCC is back to the drawing board, whether they try to change their current National Broadband Plan so it complies better with current laws, use Title 2 to regulate the Internet, or try to convince Congress to pass new legislation allowing them more authority over the Internet, it does seem apparent that current Internet distribution is coming to a change in the next couple of years here.
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