The Republican-backed bill went down in a 46-to-52 vote. The rules are slated to take effect on Nov. 20.
The FCC's network neutrality rules require service providers to be up-front about their network management policies. They can take a lighter touch on wireless services, which are allowed to block some applications from being offered through app stores, but they still must provide access to competitive voice applications.
The rules, voted in last December, also clear the way for consumption-based billing, something that's already prevalent in the wireless world and is starting to take hold with a growing number of broadband service providers.
Why this matters
The FCC dodged this bullet, but many more are being chambered. Verizon Communications Inc. (NYSE: VZ) and MetroPCS Inc. (NYSE: PCS) are challenging the rules in court on grounds that the FCC exceeded its authority, an argument similar to that of the failed bill. Free Press is also suing, because it believes the rules provide less protection for mobile wireless Internet access.
Read up on the rules' twists and turns.
- Verizon Appeals Net Neutrality Rules (Again)
- Free Press Fights Net Neutrality Rules
- Court Tosses Out Net Neutrality Challenge
- The FCC Strikes Back
- MetroPCS Joins Fight Against Net Neutrality Rules
- Verizon Fights Net Neutrality Order
- FCC Votes to Approve Net Neutrality Rules
- Net Neutrality Ruling: FCC Loses, Comcast Wins
— Jeff Baumgartner, Site Editor, Light Reading Cable