FCC Holds The Cards In Net Neutrality

Next month, the Federal Communications Commission is set to vote on how to handle Internet regulation in the United States. Most are expecting FCC chairman Tom Wheeler to classify the Internet as a utility at the February meeting, something big communication companies are firmly against.

Related Link: Who Stands To Profit From Net-Neutrality?

Stifling Growth For Telecom

By classifying the Internet as a public utility much like water or electricity, big telecom companies lose a lot of their ability to grow due to strict rules and regulations that prevent forward momentum. Companies like Verizon Communications Inc. (NYSE: VZ) say implementation of fiber optic technology would have been virtually impossible had they faced the same regulations that utility businesses do.

Equality Issue

But the big issue, both for consumers and Internet service providers, is net neutrality, or the delivery of all Internet websites equally to consumers. Comcast Corporation (NASDAQ: CMCSA) has said it would like to develop new service offerings that provide higher bandwidth to certain companies, something consumers worry would lead to the death of Internet freedom. Labeling the Internet as a public utility would prevent that.

Related Link: Net-Neutrality Vote Slated For February

Obama Turns Down Legislation

Republicans in Washington have been lobbying against making the Internet a utility by trying to pass legislation that prevents companies from favoring one type of content over another, but keeps the Internet from becoming a government regulated entity. However, their efforts may prove to be futile, as President Obama said Thursday that no legislation regarding the Internet was necessary, and that the FCC has the authority to dictate the law governing the Internet.

Without the support of Obama or his party, Republicans will be hard pressed to push forward any legislation before the February 26 vote. Though the FCC has been under pressure to hold off on the vote until a legislative decision has been made, Wheeler released a statement saying he plans to move forward as quickly as possible.