For Netflix, One Net Neutrality Issue Remains Unclear

The least settled issue in the government’s new net neutrality rules is the one that put the debate back on the front burner in the first place -- how much carriers like Verizon Communications can charge companies like Netflix to connect with their networks. New Federal Communications Commission rules are expected to be clear on what happens to traffic sent across Internet service providers’ networks: It can’t be blocked or sped up for a fee, and it will be governed by the same regulatory apparatus used to oversee telephone service. But they are far less clear on how much network owners can charge Internet companies to connect with them in the first place.

While the rules would prevent Verizon from charging Netflix for faster service across its network, they will allow it to charge for higher-capacity connections at the front gate. The FCC is dipping a toe into regulating such arrangements by allowing companies to file complaints if they think they’re being treated unfairly. The commission will review the arrangements on a case-by-case basis to determine whether they’re “just and reasonable.” But it hasn’t signaled what sorts of terms might not clear the bar. Even that tentative move is putting the FCC in hotly contested territory.