Monday, October 26, 2009

FCC Seeks New Rules for Internet Providers

Congress has enabled the Federal Communications Commission (FCC) to establish rules designed to keep Internet Service Providers (ISPs) from barring content and applications of rival providers in their service areas.

One of the issues at debate is whether government regulation will help or hurt the industry.

Proponents of government rule-making in the industry argue that large telecommunications companies currently have monopolies in the areas they provide service. Laws that would force them to allow competitors to use their broadband networks would bring in competition and innovation by offering alternatives services than those offered by the area's major ISP, they argue.

Those opposed to regulation argue that government involvement in the market will thwart market forces, hurting industry's ability to stay competitive and benefit from innovation through free market enterprise.

One opponent is Arizona Sentator John McCain. Soon after the FCC's intentions were announced, Senator McCain introduced legislation, called the Internet Freedom Act, in effort to stop the FCC from putting rules into effect.

If rules are made and enforced, this could mean changes to the quality and price of Internet service as well as the availability of alternative services currently being blocked by large telecommunications companies. The Atlantic's Daniel Indiviglio asked whether these rules, which many say are geared toward “network neutrality” might lead to usage-based fees rather than the flat rate currently charged by ISPs.

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