Wireless carriers see threat from FCC rules

Wireless carriers are clashing with the Federal Communications Commission over proposed regulations that could thwart their ambitions of expanding in the mobile advertising business. The FCC is considering privacy rules that wireless companies say could hurt their ability to compete with the likes of Facebook and Google. The regulatory push comes at a time when Verizon and AT&T are working aggressively to sell ads that accompany their growing array of video products.

“I think the rules as proposed are explicitly structured to lock down providers into providing broadband service and not providing digital advertising,” said Doug Brake, a telecom analyst with the Information Technology and Innovation Foundation.

The credit rating agency Moody’s has warned investors about the potential impact of the FCC’s plan, saying it would be “credit negative” for Internet providers.