FCC votes to go forward with controversial 'fast lane' rules in net neutrality vote


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The Federal Communications Commission has voted to go forward with the proposal of new rules that could let Internet service providers charge content companies for faster and more reliable delivery of their traffic to users.

The controversial 'fast lane' rules has received heavy criticism from many companies that do business online, along with open Internet advocates.

Outside the hearing protesters banged drums and held up signs calling for net neutrality, while at least one was ushered out of the hearing after standing up and yelling at the commissioners.

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Federal Communications Commission (FCC) Chairman Tom Wheeler: The FCC has voted in favor of a proposal to reform net neutrality and could allow Internet service providers to charge for faster and higher-quality service.

Federal Communications Commission (FCC) Chairman Tom Wheeler: The FCC has voted in favor of a proposal to reform net neutrality and could allow Internet service providers to charge for faster and higher-quality service.

WHAT IS NET NEUTRALITY?

Under the plans for priority usage, Netflix would pay extra to use fast lanes to get the maximum amount of bandwith to its customers, and maintain and improve streaming quality and reliability.

This is being heavily criticised by net neutrality campaigners.

At the heart of net neutrality is an open internet in which all data being sent from websites to customers is treated the same, regardless of size or destination.

All this traffic is given the same priority along the same lanes and no site is given preferential treatment.

Although it seems like a fair model, in which sites that use the most bandwith pay the most money, campaigners claim it will drastically impact on industry competition.

For example, Netflix has the money to pay for better service, using the fast lanes, while smaller companies don't.

This means smaller companies may have the same range of content, but because they can't stream at the same quality, they are effectively priced out of the market.

To address these claims, the new rules include a 'competition test'.

ISPs would need to decide if a website meets the critieria to be given priority access and that this bar must be set high enough to protect competition.

The preliminary vote, in which three of agency's commissioners supported the measure and two dissented, moves the so-called 'net neutrality' rules into a formal public comment period.

After the 120-day period ends, the FCC will revise the proposal and vote on a final set of rules.

FCC Chairman Tom Wheeler has said he wants the rules in place by the end of this year.

'Today we take another step in what has been a decade-long effort to protect a free and open Internet,' Wheeler, a Democrat, said before the vote.

 

Under the plans for priority usage, Netflix would pay extra to use fast lanes to get the maximum amount of bandwith to its customers, and maintain and improve streaming quality and reliability.

But the idea of allowing priority access, even if it's regulated by the government, has received heavy criticism from many companies that do business online, along with open Internet advocates.

Outside the hearing protesters banged drums and held up signs calling for net neutrality.

At least one was ushered out of the hearing after standing up and yelling at the commissioners.

Commissioner Michael O'Rielly, who voted no, called the proposed rules a "regulatory boondoggle," arguing that supporters of the rules haven't shown they will help consumers.

And Commissioner Ajit Pai, who also voted no, said the issue would be better decided by Congress than by five unelected officials.

But since the issue has fallen on the commission, he argued that a group of economists from across the country should do peer-reviewed studies and host a series of public hearings to hammer out their differences before a decision is made.

'In short, getting the future of the Internet right is more important than getting this done right now,' Pai said.

Tighe Barry of CodePink (L), along with other demonstrators, protest outside the Federal Communications Commission (FCC). At least one was ushered out of the hearing after standing up and yelling at the commissioners.

Tighe Barry of CodePink (L), along with other demonstrators, protest outside the Federal Communications Commission (FCC). At least one was ushered out of the hearing after standing up and yelling at the commissioners.

A previous set of rules from 2010 was struck down by an appeals court in January after Verizon challenged them.

The FCC says the rules currently proposed follow the blueprint set forth by that court decision.

In addition, the commission will consider the possibility of defining Internet service providers as "common carriers," like telephone companies, which are subject to greater regulation than Internet providers, under Title II of the Communications Act of 1934.

The FCC and Wheeler have so far avoided subjecting cable and telecoms companies to Title II treatment, although Wheeler has said the option remains on the table.

Netflix has found success with original content including House of Cards and Orange is the New Black, as well as the streaming of other TV shows and films.

To stream these shows, it uses a large amount of bandwith - much more than standard text and videos on webpages, for example. 

Under the plans for priority lanes, Netflix would pay extra to use these lanes to get the maximum amount of bandwith to its customers, and maintain or improve the streaming quality and reliability.

Earlier this month Netflix raised its prices in Europe, the UK and the U.S by €1, £1 and $1 respectively.

Customers of Netflix, which has produced shows including House of Cards (pictured), could be charged more to stream programmes if the website chooses to pay more for a better service

Customers of Netflix, which has produced shows including House of Cards (pictured), could be charged more to stream programmes if the website chooses to pay more for a better service

This price rise applies to new customers only, while existing customers will remain on the old price for two years.

FCC chairman Tom Wheeler has broadened the scope of his proposed open internet rules and suggested tougher standards for internet providers who wish to create paid priority fast lanes on their networks.

According to an FCC official, Wheeler made revisions after the commission received 35,000 public comments - many of them expressing outrage.

Wheeler, a Democrat, also tweaked his proposal after the commission's two other Democrats expressed concern.

'The new draft clearly reflects public input the commission has received,' the FCC official said in a statement. 'The draft is explicit that the goal is to find the best approach to ensure the Internet remains open and prevent any practices that threaten it.'

Netflix, which has also released Orange is the New Black, could be made to pay more to use priority fast lanes on ISP networks

Netflix, which has also released Orange is the New Black, could be made to pay more to use priority fast lanes on ISP networks

Among the additions is a provision that would 'presume' it to be illegal for an internet provider to prioritise the traffic of an affiliated service - for example, it would be considered illegal if Comcast tried to give faster treatment to video streams of its subsidiary network, NBC.

However, an internet service provider would be allowed to challenge that 'presumption,' the official said.

In the revised proposal, Wheeler also seeks comment on the possibility of treating broadband providers as so-called 'common carriers' like telephone companies, which are subject to greater regulation than Internet providers, under Title II of the Communications Act of 1934.

The FCC and Wheeler have so far avoided subjecting cable and telecoms companies to Title II treatment, although Wheeler has said the option remains on the table. In the new proposal, he entertains more discussion on it than his initial proposal did.

FCC chairman Tom Wheeler has broadened the scope of his proposed open Internet rules and suggested tougher standards for internet providers who wish to create paid priority fast lanes on their networks

FCC chairman Tom Wheeler has broadened the scope of his proposed open Internet rules and suggested tougher standards for internet providers who wish to create paid priority fast lanes on their networks

The proposal also asks whether all paid-priority fast lanes should be banned outright. The previous version only asks if some paid-priority services should be banned.

Wheeler has faced a torrent of criticism after the earlier proposal made it appear as if he was overhauling the principle of net neutrality, which says internet service providers should not be allowed to discriminate against web traffic depending on its source.

Such discrimination could result if a phone company like AT&T slowed down traffic from phone services like Skype, or if Comcast slowed Netflix video speeds to favour its own online video service, Xfinity.

An earlier set of rules from 2010 was struck down by an appeals court in January after Verizon challenged them.

 



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