Earlier today, the Federal Communications Commission (FCC) voted 3-2 along party lines to approve its third attempt at imposing Network Neutrality rules on mass market Broadband Internet Access Services (BIAS). This decision marks a pivotal change in the landscape of internet regulation in the United States. The FCC posted a draft Declaratory Ruling, Order, Report and Order, and Order On Reconsideration on April 4, 2024, but the final document has not been published yet. The effective date of the final document will be 60 days after publication in the Federal Register and will be announced separately.
Background and Implications
Since the FCC’s rollback of broadband oversight in 2017, there has been limited federal regulation over broadband services. The recent vote seeks to reestablish FCC authority over these services, which are crucial for various aspects of daily life including work, healthcare, education, and more. The aim is to protect consumers, ensure fair competition, enhance public safety, and promote national security.
Key Details of the FCC’s Decision
- Reclassification of Services:
- The FCC plans to classify both broadband Internet access service and mobile broadband Internet access service as telecommunications services and commercial mobile services, respectively. This reclassification will provide the FCC with broader authority to enforce regulations that safeguard national security, advance public safety, protect consumers, and facilitate broadband deployment.
- Forbearance Measures:
- Notably, the FCC has decided to forbear from imposing certain traditional telecommunications regulations on BIAS providers. These include no rate regulation, no tariffing, no unbundling of last-mile facilities, and no cost accounting rules.
- Network Neutrality Provisions:
- The FCC will reinstate rules prohibiting blocking, throttling, and paid or affiliated prioritization that could harm the open internet.
- A general conduct standard will be reinstated to prevent unreasonable interference or disadvantages to consumers or edge providers.
- The FCC will employ a case-by-case review to ensure that Internet traffic exchange practices do not undermine the open Internet.
- Enforcement Framework:
- The Commission plans to establish a robust enforcement framework that includes advisory opinions, enforcement advisories, Commission-initiated investigations, and both informal and formal complaint mechanisms.
Exclusion of Universal Service Fund Contributions: An important aspect of the FCC’s decision is the explicit forbearance from imposing Universal Service Fund (USF) contribution obligations on providers of BIAS services. This is a critical factor for BIAS providers, as it limits the financial and administrative burdens that might have been imposed under a different regulatory framework.
The CommLaw Group can Help!
As your legal advisors, we are closely monitoring these developments and are prepared to assist you in understanding how these changes may impact your operations and compliance strategies. We recommend scheduling a consultation to discuss how these new rules might affect your business and to explore proactive steps to align with the new regulatory environment. Our experienced telecom attorneys stand by ready to help answer any questions and ensure that your company does not inadvertently undercomply or overcomply. For net neutrality and all other broadband regulation questions, please contact Jonathan Marashlian at (703) 714-1313 or jsm@commlawgroup.com, or the attorney assigned to your account. For questions about the new disability access obligations of broadband providers, please contact Michal Nowicki at (703) 714-1311 or mjn@commlawgroup.com.
