The FCC wants to make sure that broadband wireless, cable, and telecom companies treat all internet users the same. Two of the agency commissioners said "they thought the FCC should act now to take action on the issue of net neutrality, rather than simply conduct an inquiry into the matter", according to The Wall Street Journal.
This won’t make the issue go away. Cable and telecom companies continue to have an argument that websites and consumers who use more bandwidth should pay for the privilege. YouTube (GOOG) stands as the best example of a large website that hogs broadband pipes. Video takes up more than its fair share of broadband infrastructure, particularly compared to applications like e-mail.
The FCC wants to protect consumers, which may be fair enough. The larger issue is whether the broadband service giants like Comcast (CMCSA) and Verizon (VZ) can convince Congress and the FCC that large web companies should pay for part of the services from which they profit, and profit at the expense of the of cable and telecom folks. Of course, then there is the issue of whether the websites try to pass it on to consumers. Some one has to foot the bill.
That fight is not done yet.
Douglas A. McIntyre can be reached at [email protected]. He does not own securities in companies that he writes about.
Top Gaining Stocks
Top Losing Stocks