US govt reins in cable, telecoms companies


  • TECH
  • Thursday, 26 Feb 2015

ON A TIGHT LEASH: The power of broadbrand providers to control download speeds on the web will be restricted.

WASHINGTON: US regulators are poised to impose the toughest rules yet on Internet service providers, aiming to ensure fair treatment of all web traffic through their networks.

The Federal Communications Commission is expected to approve chairman Tom Wheeler's proposed "net neutrality" rules, regulating broadband providers more heavily than in the past and restricting their power to control download speeds on the web, for instance by potentially giving preference to companies that can afford to pay more.

The vote, expected along party lines with Democrats in favor, comes after a year of jostling between cable and telecom companies and net neutrality advocates, which included web start-ups. It culminated in the FCC receiving a record four million comments and a call from President Barack Obama to adopt the strongest rules possible.

The vote also starts a countdown to lawsuits expected from the industry, which contends regulations will burden their investments and stifle innovation, potentially hurting consumers.

The FCC sought new net neutrality rules after a federal court rejected their previous version in January 2014. The ruling confirmed the agency's authority over broadband but said it had improperly regulated Internet providers as if they were similar to a public utility. That contradicted their official classification as "information services" providers, which are meant to be more lightly regulated.

The agency's new policy would reclassify broadband as more heavily regulated "telecommunications services," more like traditional telephone service.

The shift gives the FCC more authority to police various types of deals between providers such as Comcast Corp and content companies such as Netflix Inc to ensure they are just and reasonable for consumers and competitors.

Internet providers will be banned from blocking or slowing any traffic and from striking deals with content companies, known as paid prioritization, for smoother delivery of traffic to consumers.

The FCC is also expected to expand its authority over so-called interconnection deals, in which content companies such as Netflix Inc pay broadband providers to connect with their networks. The FCC would review complaints on a case-by-case basis.

Wheeler's original proposal pursued a legal path suggested by the court. It stopped short of reclassifying broadband and so had to allow paid prioritisation, prompting a public outcry and later Obama's message.

With the latest draft, Wheeler sought to address some Internet providers' concerns, proposing no price regulations, tariffs or requirements to give competitors access to their networks. — Reuters

Win a prize this Mother's Day by subscribing to our annual plan now! T&C applies.

Monthly Plan

RM13.90/month

Annual Plan

RM12.33/month

Billed as RM148.00/year

1 month

Free Trial

For new subscribers only


Cancel anytime. No ads. Auto-renewal. Unlimited access to the web and app. Personalised features. Members rewards.
Follow us on our official WhatsApp channel for breaking news alerts and key updates!
   

Next In Tech News

Robinhood Crypto gets Wells notice from US SEC
Trump Media dismisses auditor BF Borgers amid SEC fraud charges
Grayscale Bitcoin Trust's shares jump after first inflow since January
Lamborghini bros no more: Crypto is creating a new wealth effect
Amazon driver fatally shoots person trying to steal vehicle at gunpoint, US cops say
Microsoft ties pay for top bosses to meeting cybersecurity goals
JPJ: Bjak not authorised to offer road tax renewal services
TikTok’s boss goes from reserved tech exec to Met Gala chair
The bystander’s role is changing in the era of livestreaming. North Carolina’s standoff shows how
Warren Buffett says AI may be better for scammers than society. And he’s seen how

Others Also Read