Internet providers will not be subjected to so-called "Net neutrality" rules and may experiment with tiered, usage-based pricing and "network management" practices, according to new rules being considered by the Federal Communications Commission this month.
Advocates of Net neutrality had hoped the regulatory agency would mandate Internet service providers treat all traffic equally: one of the Web's founding principles.
Instead, the FCC's Internet regulations adopts many proposals by search and telecom giants Google and Verizon, with the caveat that wireless telephone providers not block competing voice applications.
In a speech, FCC Chairman Julius Genachowski specified that the FCC would permit ISPs to charge heavy bandwidth users even more, creating a tiered pricing structure. ISPs would also be able to charge fees to businesses serving large quantities of data.
The announcement is a victory for Comcast, the nation's largest cable Internet provider, which recently forced a bandwidth toll upon Netflix partner Level 3. The company called Comcast's move "extortion" but agreed to their conditions to prevent any service interruptions.
And of course they will. Meanwhile, Comcast can throttle Netflix traffic or charge extra for all of its customers who use it while allowing traffic from its soon to be acquired Hulu streaming service through as part of its merger with NBC/Universal.
And now that Comcast controls a major chunk of TV and movie content, controls distribution through cable and internet, and is now big enough with millions of customers to extort fees from other content providers and backbone network services, there's really nothing stopping it from charging whatever it wants.
Bend over, America. You're about to get some applied free market as the FCC has completely caved on the issue.
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