It's hard to unite carriers and net neutrality advocates, but FCC head Tom Wheeler is reportedly working on a plan that'll do it.

Mitch Wagner, Executive Editor, Light Reading

October 31, 2014

3 Min Read
Net Neutrality: Latest Proposal Will Make Everybody Unhappy

In the latest net neutrality proposal, the Federal Communications Commission has reportedly cooked up an idea guaranteed to unite both net neutrality advocates and carriers: They're both going to hate it.

Federal Communications Commission (FCC) head Tom Wheeler is considering a plan to split the Internet, separating the "back-end" connection between carriers and content providers from the "retail" connections between carriers and consumers, according to a report on the Wall Street Journal late Thursday. The FCC would require net neutrality on the back end, classifying it as common carrier, but leave carriers free to cut special deals with consumers.

The proposal would give the FCC authority to police deals between content companies like Netflix Inc. (Nasdaq: NFLX) and broadband providers. Says the Journal:

  • The proposal would leave the door open for broadband providers to offer specialized services for, say, videogamers or online video providers, which require a particularly large amount of bandwidth. The proposal would also allow the commission to explore usage-based pricing at some point, in which consumers are charged based on how much data they use and companies are able to subsidize traffic to their websites or applications.

    While the FCC still believes there should be room for such deals, its latest plan would shift the burden to the broadband providers to prove that the arrangements would be beneficial to consumers and equally available to any company that would like to participate. FCC officials believe reclassification would put them on much stronger legal footing to block such deals when they are anticompetitive.

Carriers, which have resisted any kind of net neutrality regulation, are going to hate this proposal. So will net neutrality advocates, who want to regulate the Internet end to end.

Find out more about key developments related to broadband on Light Reading's dedicated broadband channel.

The proposal as described by the Journal has at least three big unanswered questions:

  • Would this proposal apply to the wired Internet only, or would it also apply to wireless connectivity? The consumer Internet is increasingly becoming a wireless network.

  • The Journal article talks about the connection to the customer as a "retail" connection. What kind of effect would this proposal have on business Internet customers?

  • Would carriers and content providers be allowed to cut deals to provide subsidized connections to consumers where, for example, Facebook pays to allow consumers to connect to Facebook (and only Facebook) for free?

It's difficult to see where this proposal makes sense. Why discriminate between the two ends of Internet connections? It doesn't even make sense politically; carriers aren't going to like this any more than they've liked any other proposal for net neutrality and net neutrality advocates have already started opposition. Either regulate the whole Internet, or none at all.

— Mitch Wagner, Circle me on Google+ Follow me on TwitterVisit my LinkedIn profileFollow me on Facebook, West Coast Bureau Chief, Light Reading. Got a tip about SDN or NFV? Send it to [email protected].

About the Author(s)

Mitch Wagner

Executive Editor, Light Reading

San Diego-based Mitch Wagner is many things. As well as being "our guy" on the West Coast (of the US, not Scotland, or anywhere else with indifferent meteorological conditions), he's a husband (to his wife), dissatisfied Democrat, American (so he could be President some day), nonobservant Jew, and science fiction fan. Not necessarily in that order.

He's also one half of a special duo, along with Minnie, who is the co-habitor of the West Coast Bureau and Light Reading's primary chewer of sticks, though she is not the only one on the team who regularly munches on bark.

Wagner, whose previous positions include Editor-in-Chief at Internet Evolution and Executive Editor at InformationWeek, will be responsible for tracking and reporting on developments in Silicon Valley and other US West Coast hotspots of communications technology innovation.

Beats: Software-defined networking (SDN), network functions virtualization (NFV), IP networking, and colored foods (such as 'green rice').

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