What's next for FCC on net neutrality?

What's next for network neutrality and the Federal Communications Commission? Industry insiders and analysts say FCC Chairman Julius Genachowski will go back to square one, where the FCC is faced with a controversial push to re-regulate broadband access by defining it as a telecommunications service.

"Yesterday's end to negotiations simply made it official," wrote Sanford analyst Craig Moffett in a note to investors Friday morning. "It now seems that the FCC is painted into a corner. In a burning building. Made of wood."

In that corner, if Genachowski wants to accomplish his very first policy initiative - net neutrality rules - he won't be able to punt it to Congress. What to watch for is whether the FCC puts its proposal for reclassification on its September meeting agenda. Or, the FCC could just kick the issue down the line and try to postpone making a move hailed by public interest groups but reviled by businesses, instead concentrating on other issues such as retransmission consent and its weakened ability to be a watchdog over indecency in broadcast.

"This puts the chairman back into the role of being regulator instead of a facilitator of business-to-business dialogues," said a source familiar with the FCC and private industry negotiations.

"The premise of the FCC talks was to get a rifle shot deal to take to the Hill that could more easily pass through Congress," said Markham Erickson, president of the Open Internet Coalition, which participated in the FCC talks. "That is unlikely, but the chairman has at his fingertips a number of tools with a robust docket. The agency has to take the ball."