Winning: The FCC's chairman just announced strong, controversial network neutrality rules

FCC, Tom Wheeler

© Mark Wilson/Getty Images

FCC Chairman Tom Wheeler




  1. Tom Wheeler, the chairman of the Federal Communications Commission, just announced new regulations that will provide strong protections for network neutrality.

  2. The proposal makes use of a controversial legal maneuver called reclassification, which opens the door to regulating internet access as a public utility.

  3. Most Republicans oppose reclassification, and they're working on legislation that would establish limited network neutrality rules without reclassifying.

  4. The FCC is scheduled to vote on the proposal on February 26.


The politics of network neutrality have shifted dramatically

Wheeler has now chosen a legal strategy that he saw as too radical just nine months ago. His original network neutrality proposal, which he released last May, tried to protect network neutrality, the idea that all internet content should be treated equally, without treating internet access as a public utility. Critics argued that these rules were too weak, leaving a big loophole that would allow broadband providers to engage in exactly the kind of discriminatory behavior that network neutrality rules are supposed to prevent.


Network neutrality advocates wanted to regulate broadband providers as public utilities, a step known to insiders as "reclassification." They mounted a successful lobbying campaign, submitting millions of comments to the agency urging a stronger stance. They gained an important ally in November when President Barack Obama endorsed reclassification.


The growing momentum for reclassification spooked Congressional Republicans and their allies in the telecom industry. They worry that reclassification could open the internet up to intrusive regulation in the future. In January, two key Republican leaders announced plans to draft legislation that would protect network neutrality but take reclassification off the table. But so far that proposal has gotten a cold reception from Democrats, who believe they can get what they want on the issue without GOP help.


Wheeler's proposal is unlikely to end the net neutrality fight


The FCC has five commissioners, so Wheeler will need two votes, in addition to his own, to approve his proposal. Those votes will likely come from the other two Democrats on the commission, Mignon Clyburn and Jessica Rosenworcel.


Once the FCC approves the rules, several things could happen. First, companies and groups that dislike the regulation could sue to stop its enforcement. That's what happened after the FCC approved its last round of net neutrality regulations in 2010: Verizon sued, arguing the agency had exceeded its authority. Verizon eventually won its lawsuit. Reclassification is strongly opposed by telecom companies, so expect them to be ready with legal challenges.


At the same time, the FCC will probably face opposition from the Republican Congress. They'll likely grill Wheeler on his new proposal, and they may also try to pass legislation rejecting the new rules. However, it can be expected that such legislation would be vetoed by President Obama.


Finally, everything could change again if a Republican captures the White House in 2016. The new president will appoint a more conservative FCC chairman who could set to work reversing Wheeler's decisions.


Consumers generally connect to the internet one of two ways. They can subscribe to a residential broadband service from a company such as Time Warner Cable. Or they can subscribe to wireless internet access from companies such as Sprint.


These companies have spent billions of dollars laying cables in the ground (in the case of residential internet access) or erecting cell phone towers (for wireless access) to ensure that customers have fast, reliable service.


Network neutrality is the idea that these companies should treat all internet traffic equally. It says your ISP shouldn't be allowed to block or degrade access to certain websites or services, nor should it be allowed to set aside a "fast lane" that allows content favored by the ISP to load more quickly than the rest.


Since the term was coined more than a decade ago, it has been at the center of the debate over internet regulation. Congress, the Federal Communications Commission(FCC), and the courts have all debated whether and how to protect network neutrality.


Advocates argue that network neutrality lowers barriers to entry online, allowing entrepreneurs to create new companies like Google, Facebook, and Dropbox. But critics warn that regulating the broadband market could be counterproductive, discouraging investment in internet infrastructure and limiting the flexibility of ISPs themselves to innovate.


In January, an appeals court invalidated FCC regulations designed to protect network neutrality. The agency is currently considering how to respond.


Consumers generally connect to the internet one of two ways. They can subscribe to a residential broadband service from a company such as Time Warner Cable. Or they can subscribe to wireless internet access from companies such as Sprint.


These companies have spent billions of dollars laying cables in the ground (in the case of residential internet access) or erecting cell phone towers (for wireless access) to ensure that customers have fast, reliable service.


Network neutrality is the idea that these companies should treat all internet traffic equally. It says your ISP shouldn't be allowed to block or degrade access to certain websites or services, nor should it be allowed to set aside a "fast lane" that allows content favored by the ISP to load more quickly than the rest.


Since the term was coined more than a decade ago, it has been at the center of the debate over internet regulation. Congress, the Federal Communications Commission(FCC), and the courtshave all debated whether and how to protect network neutrality.


Advocates argue that network neutrality lowers barriers to entry online, allowing entrepreneurs to create new companies like Google, Facebook, and Dropbox. But critics warn that regulating the broadband market could be counterproductive, discouraging investment in internet infrastructure and limiting the flexibility of ISPs themselves to innovate.


In January, an appeals court invalidated FCC regulations designed to protect network neutrality. The agency is currently considering how to respond.


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