What you need to know about the FCC's new net neutrality proposal
What you need to know about the FCC's new net neutrality proposal
2015-02-04
okay I'm looking at the homepage of the
verge right now and it says we won the
internet back so TL DR the FCC decided
not to mess up the internet for future
generations it's safe from the evil
Internet Service Providers yeah which is
pretty huge news
I mean last year the net neutrality
rules were struck down right the FCC
decided to propose new ones which
everybody thought were awful and would
destroy the Internet and now here we are
basically a year later and looks like
things are gonna be in good shape
it's a classic comeback story so for the
past year the Federal Communications
Commission has been trying to implement
new rules to protect net neutrality
which is a principle that all data on
the Internet no matter who it's going to
or where is coming from should be
treated equally right can't slow it down
just because it's a website you don't
like exactly which is great and
everybody wants that protect it or at
least advocates of net neutrality which
is mostly everybody aside from the big
internet providers right and so the old
net neutrality rules were struck down in
court because they didn't have solid
legal footing and so for the past year
the FCC has been trying to figure out
what the right legal footing is and
today it's come forward and it said it's
going to use title 2 to enforce these
strong net neutrality rules and that's
exactly what net neutrality advocates
have wanted them to do and so this is an
idea about not allowing like slow and
fast lanes on the Internet so there are
going to be three big rules here as far
as net neutrality protections and those
three rules are that internet providers
aren't going to be able to block any web
sites or data or services as long as
they're legal you'll be able to get them
they're not gonna be able to throttle
any websites or data or services and
they're not going to allow paid fast
lanes so no company's gonna be able to
pay their way to make sure that their
stuff goes faster while some other
website some small guy gets slower so
title 2 is something that the FCC has
been using for a long time to regulate
telephone networks it's well established
it it's pretty much something that
covers all communications and when the
internet arrived they made a distinction
between a telephone network and an
information service provider an ISP
which is what a lot of people will call
the telephone company or cable come in
it's giving you the Internet
and they said that they weren't
providing sort of this transit this
communication service they were an
information service and so they be
regulated differently title 2 would
basically bring them back in-house for
the FCC to regulate the same way they
have done for the telephone companies
for decades so that's why people think
it's stronger legal footing for them to
stand on in court we don't know yet if
that's going to be true a lot of
advocates think the title 2 is great but
AT&T and the other you know beginner
providers they think there's a lot of
holes in FCC's argument yeah I mean
they've said well if you're gonna
regulate us you know like you do
telephone carriers then are you gonna
regulate Facebook and Skype and you know
any company that basically is
communication over the Internet and I
think one of the things the FCC made
clear was that they are going to treat
the network operators like a utility but
not the application layer so they won't
try and regulate you know your facebook
chat just because it's a communication
that's happening online that doesn't
mean it falls under title 2 for them and
the really big deal here is that for the
first time the FCC is going to put
mobile internet under title 2 as well
right so previously mobile internet had
just a few net neutrality protections
but it basically still gave you know
wireless carriers like AT&T the ability
to block and throttle to really to some
extent right yeah I mean I feel like
we've written a bunch of articles about
services when it comes to mobile where
you're getting throttled by the company
even though you're paying for unlimited
data and I know that that's actually
gone not just to the SEC but the FTC
so and the FCC actually specifically
calls that out that's something that
won't be allowed they won't be able to
throttle just because you're on a
limited data
and and let your saying you know we
probably won't see instances where for
some reason the face time map is blocked
because the carrier is worried about it
right and the flipside of that is you
know companies like t-mobile we're
trying to entice customers in by saying
oh if you sign up with us you'll get
free music and none of that music will
count against your data cap right so
it's a really controversial and it
sounds like that's probably not going to
fly under these new rules which is
probably a good thing I mean t-mobile's
basically choosing which services are
going to win if Spotify you don't have
to pay for the data you're going to use
Spotify and you're not going to use
whatever little company you do have to
pay for data use for right yeah I mean
that's always been sort of this start up
argument is that if you want innovation
if you want more you know great new
companies you want the next Facebook to
happen you can't give this benefit to
the incumbents by saying oh there's no
data charge increasingly we'll be paying
for things you know by the gigabyte and
so people will be sort of prioritized to
use whatever spree exactly and so the
FCC's new rules are so little bit vague
around this around what will fly and
what won't fly it said that you know
it's happy to have companies go up to it
and say hey is this gonna be okay but as
far as something like sponsored data
goes it has said explicitly that's
definitely not going to be okay and so I
think we probably are gonna see a lot
less of services like that and then you
know I think another thing that was kind
of interesting we saw today was that all
the stock prices for these cable and
telephone companies went up you would
expect it to be the opposite it feels
like the proposal was what net
neutrality advocates asked for and the
opposite of what these guys raising
cable companies for ever basically have
been saying that title two or really
strong net neutrality rules are going to
hamper an innovation get a hamper
investment
and it seems like that's probably a
bluff well yeah I mean the market
certainly thinks so I think the big
thing that we saw was the ISPs are
getting pulled into title two which is
often referred to you people we say oh
hey we're making the internet a utility
we're gonna treat it like the telephone
companies you know which is a utility
closely monitored by the government but
the FCC was very clear to say
we're not going to be regulating any
rates meaning Comcast or Verizon or AT&T
whoever provides the broadband to your
home can still charge you what they
whatever they want and could charge you
for a certain amount per gigabyte and so
I think investors feel like that's
really the future of their business as
we consume more and more data online
we'll end up paying you know for that
data not getting some unlimited plan and
if they can charge what they want you
know that means it'll be a much higher
business FCC has been like very clear
about you know it's utility like but
they're not strictly utilities in the
classic sense there's not going to be
extra taxes or tariffs and like you said
they're not going to be regulating the
rates which is is a big deal for it
basically keeps things as it has been
right I mean the balance that Tom
wheeler had to strike was how do we make
sure none of these sort of boogeymen of
the worst you know dystopian internet
where it's controlled by a few companies
happens and he also had to make sure
that he didn't you know in some way
really cripple these companies or their
ability to you know innovate or invest
in the future you know and we'll see you
know it's probably gonna end up in court
but it seems like with the proposal if
the telco stocks went up and the net
neutrality advocates are cheering you
know you kind of hit that balance and I
know a lot of them are threatening that
they would stop or halt investments I
think was AT&T actually said it was
gonna haul some gigabit investment until
it found out what the new rules were but
sprint I think like a month ago actually
filed with the FCC and said well you
title two and you do it lightly it's
probably gonna be fine right will still
be investment and so that you know
there's a wireless provider saying
exactly what you know everybody expects
is true yeah I mean Verizon said in
their sort of public policy statements
if you guys use title two it'll really
hurt us but when they're talking to
their investors behind closed doors they
say well title two it's actually not
gonna hurt us you know so there's a lot
of you know sort of posturing to try and
get a win on Capitol Hill to try and get
the policies they want implemented in
the end it may not make a big difference
you know the internet will keep growing
and these businesses will continue to
exist so despite all that we're still
pretty certain that one internet
provider or another is going to bring
these mutiny rules to court yeah I think
so I mean I read a bunch of blog posts
from 18 Verizon and they were basically
saying these are the ways you could
avoid going to court you know dear FCC
like if you don't want to end up back in
court why don't you try this and Tom
wheeler kind of threw that in their face
I mean he I think he went with a really
strong proposal
he emphasized title 2 which is what the
hit all asked him not to do and he
followed the lead of President Obama so
the net neutrality advocates I've spoken
to think title 2 is a way stronger case
for them to present them what they did
last time and I expect yeah over the
next year they'll be in court quite
right yeah no you're right and those is
blog posts very much read like threats
to me and the FCC in what it said today
we still haven't seen the full proposal
but what it said today it's trying to
make it abundantly clear that it feels
it is on extremely strongly Google legal
grounds though title 2 is the big story
here it's pulling from a handful of
other areas in order to say we have the
authority to impose these rules we have
the authority to reclassify you and the
FCC is has more success with
classification than applying you know
rules under wonky legal arrangements
right I mean the interesting thing about
today is also that for a lot of people
it feels like a big moral victory you
know we put up a post on the site like
we won back the internet and I know John
Oliver had a couple of shows this year
about this it's such a bizarre arcane
topic you know and yet people get really
fired up about it
it's true and that made a huge deal
that's just it wouldn't exactly say that
was John Oliver but John Oliver
basically crashed their website and
brought a ton of a new attention to the
topic I mean Tom wheeler knows that he's
been called a dingo by John Oliver which
is it's pretty crazy and you know
President Obama definitely seems to have
a pretty huge effect especially all the
continued outpouring of support for
title 2 afterward right like you said it
definitely feels like the
huge net neutrality victory that
advocates have been waiting for for a
year if not longer right I mean you know
there are sort of large global bodies
that consider the internet a human right
and by saying it's a utility we're kind
of moving it towards that it's not
something that's offered to you by a
business it's something that the
government is heavily invested in and
which every citizen you know has a right
to and you know will be protected and
enshrined and the thing is even these
rules aren't going to dramatically
change anything in the short term this
basically is just saying that the
Internet's progression as it's being
moving forward is going to continue
right as we've known it we were asking
them not to mess things up exactly and
these rules hopefully are gonna not miss
things out
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