US to Start Imposing Net Neutrality Rules After Court Rejects Telecom Challenge

In the prelude to a Presidential election year where consumers' concerns about rising costs of living are an issue, attempts to further restrict internet access without higher fees is not a popular position with anyone but telecom lobbyists. JL

David Crow reports in the Financial Times:

Broadband service companies will be forbidden from blocking or throttling  internet traffic while selling “fast lanes” to other content providers, after the US Court of Appeals for the DC Circuit said a challenge by the telecoms had not satisfied the requirements for a stay of the new rules
The US will start implementing a sweeping overhaul of internet regulation after an attempt by the telecoms industry to delay the introduction of tough new rules was dismissed by an appeals court. Broadband service companies will be forbidden from blocking or throttling some internet traffic while selling “fast lanes” to other content providers, after the US Court of Appeals for the DC Circuit said a challenge by the telecoms sector had not satisfied the requirements for a stay of the new rules.The decision marks a partial victory for President Barack Obama, who shocked the industry last autumn by calling for broadband to be reclassified as a public utility, warning that “gatekeeping would undermine the level playing field essential to the internet’s growth”.

It is also a vindication of the campaign waged by Silicon Valley groups such as Netflix and grassroots digital activists, which had warned the White House that telecoms companies like AT&T, Verizon and Comcast had the power and incentive to distort the internet.

The Federal Communications Commission heeded the president’s wishes and in February unveiled a new “open internet” or net neutrality regime. It was instantly challenged by telecoms companies, which said the US telecoms watchdog did not have the authority to reclassify broadband services.

While the decision paves the way for the new regime to be implemented immediately, it could still eventually be struck down. The court agreed to an expedited review of the case, which both the FCC and its opponents have called for.
Tom Wheeler, FCC chairman, took to Twitter to welcome the development. “Today’s court decision means Open Internet rules will take effect Friday. It’s a good day for consumers and innovators,” he said.
He added: “Blocking, throttling, fast lanes and other efforts to come between consumers and the internet should now be things of the past.”
The National Cable & Telecoms Association, a lobby group, said “being granted a stay is always a long shot” but it was as “confident as ever that we will prevail”.
It added: “We are pleased that the court has agreed to expedite the review of our appeal of the FCC’s misguided decision to impose utility-style regulation on internet networks. We are now ready to get to the merits of the case.”
Telecoms companies deny they are blocking or throttling traffic and say the rules will have little immediate effect, but have warned that the rules will have a chilling effect on investment in broadband infrastructure.