FCC faces Network Neutrality hurdles, questions going forward

Does the Federal Communications Commission have the authority to enforce proposed network neutrality rules?

Last Friday, three federal judges appeared to question the FCC's scope of jurisdiction over ISP services when the agency said in 2008 that Comcast had illegally blocked the Internet file-sharing application BitTorrent. If the court rules against the FCC, the agency weigh options that would give it clear authority as the watchdog of the on-ramps to the Web: Internet service providers.

Among ideas is a broad reclassification of broadband Internet services under phone rules (Title II) that would concretely put ISPs under the scope of the agency. Under Title II, blocking rules would apply and the FCC could pursue its net neutrality rules to clarify how discrimination rules would apply to different kinds of broadband providers. It could also use that classification to more easily reform the Universal Service Fund for phone subsidies into one that also includes greater contributions to broadband. But it would also bring greater attention to potential open-access rules that would require the big providers to unbundle their services to be used by new upstarts who would provide more competition and choice. Some economists and scholars say open access rules correlate with greater broadband penetration and adoption. So far the FCC has been reluctant to address such rules in its broadband plan mandated by Congress and expected to be done by the middle of March. Public interest and consumer advocacy groups say they support a re-classification.