What is net neutrality? As FCC chair weighs return, what to know about the internet rule

2024-12-24 09:40:21 source: category:Finance

The initiative to create a fair and open internet −one where your internet service provider doesn’t get block or slow legal traffic, or charge more to deliver some content quicker − is back on the Federal Communication Commission’s radar. 

Chairwoman Jessica Rosenworcel announced last week that open internet access − or net neutrality −was “a necessity for daily life,” and rules needed to be set for internet service providers.

“In the wake of the pandemic and the generational investment in internet access, we have a window to update our policies to make sure that the internet is not only open, but fast and fair, safe and secure,” said Rosenworcel.

The proposal would reclassify broadband under Title II of the Communications Act, which categorizes broadband providers as common carriers under the same framework as telephone providers, according to Public Knowledge, a nonprofit advocates for open internet.

The proposed rules are coming Oct. 19, and the FCC will be seeking comments again.

Net neutrality definition

Net neutrality is the belief that a internet service provider or ISP should give all consumers fair and equal access to legal content and applications. Providers should not favor some, or block others and charge content providers for speedier delivery of their content on "fast lanes," and deliberately slow down content from content providers that compete with ISPs.

Years ago, the hot-button issue even made for a popular segment on the John Oliver’s show Last Week Tonight, where he urged people to visit the FCC’s website to comment on the issue, which generated millions of comments. 

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When was net neutrality repealed?

Net neutrality was repealed in December 2017.

Then FCC Chair Ajit Pai said the repeal would help more American get high-speed internet access, as companies would spend more on building networks "without the overhang of heavy-handed regulation" and this would create jobs.

Net neutrality pros and cons

The FCC argues there are a number of benefits for consumers – the openness establishes basic rules for ISPs so they don’t block legal content, throttle speeds and create “fast lanes” for people who can pay for it.

Reclassifying  broadband under Title II allows the FCC to apply cybersecurity standards, and will require ISPsto notify the FCC and consumers of internet outages.

Advocates and experts also say net neutrality is positive for consumers. 

“It protects consumers from ISPs controlling what you see,” said Chris Lewis, president and chief executive officer at Public Knowledge. “Broadband is an essential communications tool, so we need the rules to be fair.”

Can net neutrality rules affect prices?

Possibly.

Lewis gives the example of streaming services, which create their own websites and apps to access the internet and reach the consumer. While these sites already pay for internet access, broadband providers want to charge an additional user fee that is passed on to consumers, he said. 

“With net neutrality, that fee is prohibited. The savings are indirect, but they’re real,” he said.

Is net neutrality important for the internet infrastructure?

Mallory Knodel, chief technology officer of Center for Democracy and Technology, said old broadband network wires need replacing and ISPs haven’t done a great job maintaining the infrastructure or building it out in an equitable way.

It has lead to a “dirt road effect,” she said, where low-income subscribers end up with deprioritized traffic or a non-functional internet.

With broadband infrastructure needing a lot of work, can net neutrality help?

"Only abstractly," Knodel said. “If net neutrality prevents profit making off of preferential treatment and innovation in traffic shaping, then perhaps it follows that they would put efforts elsewhere, namely into maintenance and building out of the network. I’m any case, the latter has far greater benefits to consumers.”

The argument against net neutrality

Spokespersons from Comcast and AT&T declined to comment on the FCCs decision, and Verizon didn’t respond to emails requesting comment. 

All three companies previously issued statements about their commitment to an “open internet.”

In 2018, Verizon was accused of throttling the Santa Clara County’s unlimited data during the Mendocino wildfires, disrupting their ability to coordinate until they upgraded to an expensive service plan. It resulted in a lawsuit showing the effects of the FCC’s repeal on net neutrality rules.

At the time, a Verizon spokesperson told USA TODAY that the issue was not related to net neutrality court proceedings, but was due to a customer service error, and that Verizon had a practice for removing data restrictions during emergency situations.

Not everyone at the FCC is on board with the decision.  Commissioner Brendan Carr said the Title II reclassification increases government power over the internet and will only increase prices for consumers who have seen their utility prices increase with inflation.

“The American people want more freedom on the Internet −not greater government controls over their online lives,” he said in a prepared statement.

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