FCC to Launch Net Neutrality Rulemaking

Federal Communications Commission Chairman Julius Genachowski is expected to announce next Monday (Sept. 21, 2009) a proceeding on new "network neutrality" rules that will prevent Internet service providers--both mobile and fixed--from selectively blocking or slowing Web traffic, according to the Wall Street Journal.

The FCC currently has four net neutrality principles, which call on ISPs to treat all legal Internet applications equally. That so far has been interpreted to mean no blocking or slowing of traffic based on business considerations such as the origin of the traffic, with some exceptions.

ISPs are allowed to filter for spam and viruses, for example. Where matters always have been tricky is where traffic shaping in general is used to maintain reasonable network performance at times of peak congestion.

The biggest impact likely will be on wireless networks, which for a variety of reasons have more constraints than wired networks. Initial reporting by the Wall Street Journal, though, suggests the FCC will take those constraints into account.

As the rulemaking unfolds, there will be fierce debate over how to further refine the "non-discrimination" rules while still allowing ISPs to manage peak loads on their networks. The shape of final rules will determine how much change might occur for buyers of Internet access services.

Prices might rise, new quality-of-service tiers might be introduced, or new packages based on type of dominant applications used might be thinkable where they have not generally been used before.

Verizon and other ISPs with fiber-to-home networks might find they have new marketing opportunities, since the networks with the most bandwidth will best be able to avoid any new rules.

All we can say for sure is that a new rulemaking appears to be certain. What rules emerge will depend on how well service providers can demonstrate legitmate network management tasks. Voice networks, for example, do use "busy hour blocking" algorithms.

It appears the FCC does not want any use of blocking as a technique to manage traffic. If so, other mechanisms that either entice users to self regulate, or force them to, will have to be specified.

Look for fireworks.