FCC Reinstates Net Neutrality Rules: A New Era for Broadband Access and Regulation

Biden signs executive order to reinstate net neutrality in the USA

The US Federal Communications Commission (FCC) has recently approved the reinstatement of net neutrality rules that were previously revoked in 2017 under the Trump administration. This decision will have significant consequences for broadband service providers, who will now have to navigate under more stringent legislation. The new regulations prohibit service providers from blocking or slowing down broadband traffic and from creating paid preferential lanes, measures that align with the original direction of the rules introduced during Obama’s presidency in 2015.

The new rules are part of the Spectrum and National Security Act of 2024, which defines broadband as a telecommunications service under Section 2 of the Communications Act of 1996, giving the FCC greater regulatory power over internet providers. A crucial aspect of these new regulations is protecting sensitive consumer data such as location information, which broadband service providers will no longer be able to sell. The FCC also made it clear that it will exercise its authority over broadband in a targeted manner, avoiding changes to prices, rates or unbundling, to promote continued investment and innovation in the sector. Additionally, the agency now has the power to override state or local policies that conflict with federal rules.

Chairwoman Jessica Rosenworcel, nominated by Biden and a member of the Democratic Party, emphasized the importance of “fast, open and equitable” broadband access necessary to reach 100% of the American population. Despite approval, dissenting voices were heard from GOP Commissioner Brendan Carr who criticized these “1930s-style” regulatory rules, arguing that broadband had thrived even without such constraints. Carr also noted that there was no clear national security gap justifying these new regulations. Opposition is not limited to members of the FCC but also includes operators and industry associations who fear that reinstating net neutrality may hinder growth and innovation.

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