Net Neutrality U.S.

Sashanka Kumar Sahu

Table of Contents
1 Net Neutrality: Overview

2 Requirements/Provisions

3 Timeline of the Rules

4 Impact of Net Neutrality

5 Consequences of Non-compliance
 Net Neutrality: Overview
Net Neutrality is the principle that individuals should be free to access all content and applications,
1 equally regardless of the source, without internet service providers (ISP) and wireless carriers
discriminating against specific online services or websites

In the U.S., ISPs and Wireless carrier companies such as Comcast, Verizon and AT&T
2 are the worst affected owing to the go ahead signaled by Federal Communications
Commission (FCC) in favor of net neutrality on Feb 26, 2015

- FCC released the specific details of the net neutrality rules on March 12, 2015 and
published the final rule on its net neutrality regulation on April 13, 2015
3
- Net neutrality rules came into effect on June 12, 2015. However, disputes are still in
progress between ISPs and FCC

Entrepreneurs, Startups and Small businesses will be the biggest benefactors of net neutrality
4 rules, as they rely on the open internet to run their businesses

Sources: News articles

 Requirements/Provisions
Key Provisions of the Net Neutrality rule in U.S.

1. FCC reclassified broadband services as telecommunications services (as opposed to

information services), which falls under Title II of the Communications Act of 1934

2. ISPs will not be allowed to block lawful content, applications, services, or non-harmful
devices over the internet

3. ISPs will not be allowed to impair or degrade lawful internet traffic on the basis of internet
content, application, service or use of a non-harmful device

4. ISPs will not be allowed in engage in paid prioritization, where they cannot charge content
providers for priority service to deliver content to consumers

5. Rules will force the ISPs to follow better and transparent billing practices, where the user bills and
marketing materials will include full monthly service charges, all additional fees & surcharges, data caps
with trigger conditions & additional fee structures, and performance characteristics of the network service

Reporting requirements to be followed by ISPs and Mobile broadband providers

1. Should comply with the statutory provision of Section 222 of the Communications Act of 1934,
which demands for protection of privacy/confidentiality of consumers

2. Need to provide transparency to consumers and content providers about the services
received and the network management practices

Sources: News articles, FCC Report

 Timeline of the Rules
Feb. 8, 2004: FCC
announces the principles
for Network Freedom,
which includes access to
content and transparency.
2004 2005
Sept. 23, 2005: FCCs
network freedom
principles are modified to
state that consumers are
entitled to competition
among ISPs and content
providers.
Sources: News articles, FCC Report
April. 6, 2010: A federal Jan. 15, 2014: A federal court Feb. 4: FCC Chairman Tom
court states that the FCC rules that the FCC cannot Wheeler proposes new net
has no authority over ISPs regulate ISPs because they are neutrality rules based on the
from slowing or blocking not common carriers under Communications Act of 1934 and
access to content. Title II of the Communications the Telecommunications Act of
Act of 1934. 1996.
2010 2014 2015
Dec. 23, 2010: FCC Sept. 10, 2014: A day Nov. 10, 2014: Feb. 26: FCC votes 3-
releases the Open of internet slowdown President Barack 2 to adopt rules
Internet Order, which is a is organized by Obama asks the prohibiting the
new set of rules neutrality FCC to declare ISPs blocking and
prohibiting the blocking supporters, with common carriers throttling of internet
and discrimination of thousands of sites under Title II content by service
data symbolically providers.
displaying a loading
symbol and
encouraging visitors
to contact FCC.
 Impact of Net Neutrality
Under Title II, FCC reclassified ISPs & mobile
broadband providers into public utilities
1 As a result, these companies will be highly regulated
than before

Would hinder innovation investments by

2 lowering returns and limit experimentation
with services & business plans
Impact on
ISP & Mobile
Broadband
Providers Decrease the revenues generated by the
3 ISPs because they will not be able to charge
for preferential treatment

4 Rules will potentially impact the infrastructure

investments from ISPs

Impact on Consumers
Wireless service consumers could experience uncertain tax burden as a result of establishment of these
FCC rules
Total taxes applied is estimated to be between $0 to $11 billion

Impact on Content providers/Startups

Internet video, gaming and cloud storage services are few offerings provided by content providers/startups,
which require much faster internet speeds to reach consumers. However, net neutrality would hinder the
business of these companies owing to the bright line provisions
Sources: News articles, Research Studies
 Consequences of Non-compliance
1. According to the net neutrality rules published by FCC, there is no specific mention of any fines or
penalties or any other monetary impacts on the ISPs who do not comply with the rules

2. In the entire 400 pages rules document, only the below mentioned points are mentioned as consequence
of non-compliance:

We conclude that violations of the open Internet rules will be subject to any and all penalties
authorized under the Communications Act and rules, including but not limited to admonishments,
citations, notices of violation, notices of apparent liability, monetary forfeitures and refunds, cease
and desist orders, revocations, and referrals for criminal prosecution

3. It is also mentioned that all imposed penalties will be reviewed on case-by-case basis and applied
appropriately. However, there is no breakdown of penalties to be applied and no details about
the fine amounts to be paid by the companies if they violate the rules

Sources: News articles, Research Studies

Thank You