FCC moves to ensure 'net neutrality'
The Federal Communications Commission is expected to announce plans next week for regulations that would forbid internet service providers from blocking or favouring content online.
The so-called "net neutrality" rules could be passed by the commission as early as December 15. The move would fulfil a campaign promise by President Barack Obama and infuriate the new Republican majority on Capitol Hill, which has said it would oppose the plan, but would have little power to stop it.
The FCC called the talk "speculative", but industry executives familiar with its plan said they expected regulations to be launched to ensure ISPs could not hinder content delivery.
The rules are expected to be modelled after legislation hammered out earlier this year by Congressman Henry Waxman, the outgoing Democratic chairman of the House energy and commerce committee.
That legislation, which had won support from most big telecom and cable companies but not from Republicans in Congress, would have prohibited wireless carriers from blocking websites and prevented phone and cable groups from "unjustly or unreasonably" discriminating against lawful internet traffic.
Although most telecom and cable companies initially resisted the push by Mr Genachowski and some Democrats to set net neutrality standards, the move could be begrudgingly welcomed by some of them.
If the FCC passes such regulations it would likely defer – at least temporarily – a separate plan endorsed by Mr Genachowski for broadband providers to be subjected to a tighter regulatory regime known as "Title II", which would open the door to price controls and other tough new rules.
The FCC's expected move could also benefit Comcast, the largest US cable operator, as it had feared that it alone would be subject to net neutrality regulations as part of its proposed $30bn takeover of NBC Universal.
Should the FCC instead design an industry-wide policy, that might also speed regulators' review of the NBCU deal, which hinges on how to regulate the fast-growing online video market.
Regulators have focused on whether Comcast could use its network to favour NBC Universal content, or protect cable revenues by hobbling emerging services such as Hulu, the online video site, or Netflix's streamed films.
Disputes between cable system operators and broadcasters over fees for the carriage of their channels have also sparked a debate about whether similar rules should apply to online video sites as to cable and satellite operators.
Opponents argue that this would amount to the FCC regulating the rapidly-evolving online video industry.
Republicans on Capitol Hill responded to Mr Genachowski's expected move with anger. In a letter, 18 members from the House energy committee asked him not to move forward with the plan.
"Reigniting the network neutrality debate will only distract us from [other] work [at the FCC] and further jeopardise investment, innovation, and jobs," they wrote.
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