FCC introduces net neutrality rules in the US

The Federal Communications Commission (FCC) in the United States has announced that they aim to regulate network management. The proposed regulation states ISPs are not allowed to block applications or internet services, even if the services or applications compete with their own sms and call services.

Last Friday, the Office of Management and Budget (OMB) approved the new rules issued by the FCC. The official publication of the new rules takes place within three weeks. Sixty days after this publication, the new rules enter into force.

Under the new regulatory framework, American ISPs must disclose how they manage their network and what conditions they set to use their network. Moreover, ISPs may not unreasonably discriminate data flows when it comes to sending data.

In the Netherlands, the parliament has adopted amendments to the law on telecommunication that precribe net neutrality on June 22, 2011. Today, the Senate debates on this issue. If the Senate approves the new telecom package, the Netherlands will become the second country in the world (after Chile), where net neutrality is included in the law.

Unlike the American ISPs, Dutch ISPs can not make their custumors pay more for additional internet services such as Skype and WhatsApp, if the new law survives the current debates in Senate.

Opponents of mandated net neutrality believe that the internet is flourishing without rules. Also, ISPs are not happy with the regulation. Regulating net neutrality limits the freedom of the ISPs to manage their own networks and may affect their business if the law prohibits delaying competitor’s services.

Due to a decrease in revenues from SMS and phone call services, Dutch ISPs increased mobile Internet prices. American ISPs can also adjust their pricing for example price differentation may occur for internet speed.

It will be interesting to see which country, after Chile, the Netherlands and the US, will consider prescribing net neutrality by law.

Read more about net neutrality on FutureofCopyright.com:

• Brazilian Ministry of Justice sends new Internet Law to the National Congress
• Chilean telecom regulator starts enforcing new law on net neutrality
• Spanish debate on net neutrality resembles recent Dutch discussions
• Amendments to Dutch Telecom law codify net neutrality and restrict the use of cookies

References: Federal Communication Commission en Reuters

By: Karen Groen