Chilly ‘Net Neutrality’ Words for Broadband Providers

[Commentary] February could be a cold month for US broadband providers. On Feb. 26, Federal Communications Commission Chairman Tom Wheeler plans to hold a vote on rules governing network neutrality -- the principle that all Internet content should be treated equally. For wireless and cable companies, that could be the first day of the rest of their lives.

Chairman Wheeler strongly implied he would soon recommend his agency reclassify broadband as a more heavily regulated telecommunications service. The fear among investors is such a change could lead to future regulation of broadband prices. Or there could be a forced unbundling of video and Internet services, cutting into providers’ profit margins and hampering growth. Notably, Chairman Wheeler suggested he would want to require that broadband rates be “just and reasonable” and that his reclassification recommendation would extend to wireless, says Paul Gallant, an analyst with Guggenheim Securities. Chairman Wheeler also came out against paid prioritization of data, although it isn’t clear whether he would push to ban it outright. Also uncertain is where he stands on companies “sponsoring” wireless customers’ data usage.