Friday, February 27, 2015

Mashable: Winners and Losers on Net Neutrality


Business

Winners and losers: A breakdown of the net neutrality vote

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We're hours away from the Federal Communications Commission's vote on major changes to how the regulator handles broadband Internet and the companies behind it.
Just about every indication is that the FCC will pass the changes on a 3-2 vote, split per usual between the Democratic majority and Republican minority.
A quick reminder: if passed, the proposal would allow the FCC to watch over the broadband industry in a similar fashion to utilities, which are highly regulated. It would also allow the FCC to ensure net neutrality, preventing Internet fast lanes.
This notion has created a sharp division between supporters and critiques. Let's take a look at who is projected to come out on top, starting with...

The losers

Internet Service Providers

Title II is among the worst nightmares of ISPs like Comcast, Verizon and AT&T. Under the new rules, they will be subject to far more regulation and be forced to operate with far more transparency.
The ISPs have argued that Title II regulations will make it borderline impossible to invest in much-needed Internet infrastructure. The move, they have argued, is just bad for business. FCC Chairman Tom Wheeler has rebutted those claims.
There's a silver lining for ISPs. Wheeler has made it clear that the most aggressive pieces of the new regulation — the ability to control pricing and force companies to share their local infrastructure — will not be applied to broadband providers.
That tweak was enough to cheer investors. Shares in broadband providers rose after details of the plan emerged.

Republicans

It's not a huge loss, but it will still sting.
Republicans generally oppose industry regulation, and broadband Internet has been no different. While not necessarily a topic that is going to headline the next election, politicians have slowly been taking sides on the issue.
Ted Cruz, a senator from Texas, had one of the most notable proclamations about net neutrality.
While there had been some talk of Republicans mounting opposition and possibly floating some legislation on the issue, those hopes seem to have flamed out.
Still, anger on the issue continues to percolate among those on the right. Conservative id Matt Drudge summed it up on Tuesday night.

Wireless providers

It came as a bit of a surprise when Wheeler revealed that the new net neutrality proposal would also apply to wireless Internet.
Previous incarnations of net neutrality regulation (there have been two, both struck down by the courts) had only applied to landline Internet. The new plans would change this, bringing the Internet transferred to your phone over wireless networks under the same rules as your home Internet.
This means that some existing deals will come under scrutiny, such as T-Mobile's program that allows users to stream music without it counting against data caps.
It also means that wireless Internet will be under closer scrutiny from the FCC. Wheeler has already shown he is not shy to go after companies. He has already challenged Verizon and T&T on the throttling of user speeds.

Winners

Content providers

If you send stuff over the Internet, you're pretty psyched about this vote.
With the new rules in place, content companies like Netflix and Hulu will have something of a guarantee that they will get fair access to Internet users. Just about every single Internet company in existence wrote a letter or published a blog post in support of net neutrality.
This means that for years ahead, these companies can plan for the future being somewhat secure in the knowledge that they will be able to distribute their content. However, it is important to note that this vote will not put the issue of net neutrality to rest. A new FCC under a different president could roll this change back.

Net neutrality activists

Chalk one up for the activists.
When the FCC first voted to consider new Internet regulation, activists showed up to the meeting and even made it into the FCC's meeting room. They demanded reclassification under Title II, yelling for it even as security removed them from the room.
Since then, they have written letters to just about everybody. A call to action by John Oliver helped. As did support from President Barack Obama.
But here we are. About nine months later and the changes that those activists fought for are poised to be put in place.

President Obama

The president has talked a big game on net neutrality, repeatedly advocating for it in speeches. His actions haven't always given the sense that he was serious about the issue.
The most notable move that called into question the president's commitment to net neutrality also happened to be the most impactful — the appointment of Tom Wheeler as FCC chairman.
Wheeler had previously worked as a lobbyist for the cable and telecom industries, which have generally opposed net neutrality. The choice was roundly criticized by just about everyone except the industry players.
Wheeler is now poised to establish the strictest net neutrality rules ever seen. That's a win for the president.

Lawyers

It is just about a foregone conclusion that this will end up back in court, just like the last two FCC efforts.
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