Net Neutrality Vote Slated For February

The telecom industry is becoming increasingly unstable as congress battles with the issue of net neutrality. Federal Communications Commission Chairman Tom Wheeler said he plans to announce a proposal for new regulations to govern the Internet as a public utility on February 5. The FCC is set to vote on the new policies on February 26.

What Could This Mean For The Public?

Public support for the Internet to be reclassified as a public utility has been far reaching, because it promotes the idea of net neutrality. By doing so, the government would keep service providers from favoring some types of content over others, or in extreme cases, blocking content from being viewed at all. Many worry that without official legislation, telecom companies will eventually start making deals that increase bandwidth for businesses that pay for it. In that way, they would have a large amount of control over what the public views.

Related Link: Who Stands To Profit From Net Neutrality?

What Could This Mean For Businesses?

Classifying the Internet as a public utility is good news for small businesses and companies that rely on bandwidth strength for their services. Netflix, Inc.’s (NASDAQ: NFLX) streaming service, for example, would suffer if service providers started managing how content is delivered to users.

However, large telecom companies are already making plans to fight the new legislation. Carriers like Verizon Communications Inc. (NYSE: VZ) and Comcast Corporation (NASDAQ: CMCSA) are wary of new rules, saying they hinder their growth as a business. Having the ability to develop new services that give preference to certain groups of industries is something service providers can use to improve their profit margins.

Infrastructure is also a worry for carriers, as the classification as a public utility will bring on more regulation regarding how companies can expand their networks. Both Verizon and AT&T Inc. (NYSE: T) admitted that their recently-developed fiberoptic networks would have been much more difficult to implement, if not impossible, if they had faced more scrutiny from government agencies.