Tuesday, December 24, 2013

Verizon, ISPs May Get Favorable Net Neutrality Ruling

Looks like the U.S. District Court will call back the Federal Communications Commission's authority to impose broadband Net neutrality regulations on Internet service providers, according to Stifel Nicolaus in a research report. A ruling could come soon, according to analyst Christopher King.

Last September 9, 2013, a 3 judge panel for the U.S. Court of Appeals for the District of Columbia heard oral arguments about Net Neutrality Ruling.

Christopher King an analyst at Stifel Nicolaus, believes that Verizon will be victorious against the FCC in court over network neutrality rules. The ruling will set a standard for industry pricing and services and dictate “if” specific providers could pay for a premium price on the Internet to deliver services faster.

At first, the FCC wants to bar Internet service providers from blocking specific Internet content or the practice of slowing down websites that don’t pay premium fee’s for faster access.

"We believe Verizon and other telco and cable providers could gain new latitude to seek new premium (paid prioritization) deals with Internet edge/content companies," King said in a report earlier this week.

FCC Chairman Tom Wheeler will be forced to re-draft the FCC's Net Neutrality rules based on the court's decision, which could affect today’s “Open Internet” as we know it where all sites are treated equal.