Gautham Nagesh

The Federal Communications Commission plans to propose new open Internet rules that would allow content companies to pay Internet service providers for special access to consumers, according to a person familiar with the proposal.

The proposed rules would prevent the service providers from blocking or discriminating against specific websites, but would allow broadband providers to give some traffic preferential treatment, so long as such arrangements are available on "commercially reasonable" terms for all interested content companies. Whether the terms are commercially reasonable would be decided by the FCC on a case-by-case basis.

Companies such as Skype or Netflix that offer phone or video services that rely on broadband connections could take advantage of such arrangements by paying the broadband providers to ensure that their traffic reaches consumers without disruption. Those companies would be paying for preferential treatment on the "last mile" of broadband networks that connects directly to consumers' homes.

The proposal does not address the separate issue of back-end interconnection or peering between content providers and broadband networks.

FCC Chairman Tom Wheeler indicated he planned to issue new open Internet rules in February after a federal court threw out the FCC's previous rules. The court's ruling sketched out a legal pathway through which the FCC could try and achieve the same goals, and Chairman Wheeler has said he plans on following that road map.

Additional Coverage:

FCC, in a Shift, Backs Fast Lanes for Web Traffic (NYTimes)
http://www.nytimes.com/2014/04/24/technology/fcc-new-net-neutrality-rule...

FCC shifts stance on net neutrality rules (FT)
http://www.ft.com/cms/s/0/568be7f6-cb2f-11e3-ba95-00144feabdc0.html

Net neutrality dead for good? FCC may endorse pay-for-play deals (ars technica)
http://arstechnica.com/tech-policy/2014/04/net-neutrality-dead-for-good-...

Google to Netflix Pay-for-Access Deals Said to Be Review by FCC (Bloomberg)
http://www.businessweek.com/news/2014-04-23/fcc-said-to-consider-letting...

FCC proposes allowing streamers to strike ISP deals (USA Today)
http://www.usatoday.com/story/tech/personal/2014/04/23/fcc-net-neutralit...

FCC chairman proposes new net neutrality rules (LA Times)
http://www.latimes.com/business/la-fi-fcc-net-neutrality-20140424,0,5845...

The FCC is planning new net neutrality rules. And they could enshrine pay-for-play. (Washington Post)
http://www.washingtonpost.com/blogs/the-switch/wp/2014/04/23/the-fcc-is-...