Top telecoms and telecommunication industry organizations are gearing up to stop the reclassification of the Internet into a Title II public utility by U.S. federal officials and it's likely just the initial battle shot of what's destined to be a long and tenuous fight.
Claiming regulatory financial burdens, as well as investment impact, AT&T, CenturyLink and about half a dozen telecom and cable industry players filed notice Friday to block the Federal Communications Commission's (FCC) move to reclassify the Internet in order to impose greater regulatory oversight and strike down a new standard aimed at stopping Internet service providers (ISPs) from interfering with consumer Web use. The FCC took its reclassification action in early February.
To be clear, the action by the telecoms is not against the "net neutrality" federal officials set in motion with its new rules. Net neutrality, at its simplest definition, stops ISPs from blocking web traffic and offering faster Internet to those willing to pay for such a service. It essentially states every Internet user should have the same access, speed and service of every other Internet user.
According to one report, AT&T claims the new FTC rules, scheduled to go into effect June 12, could cost $400 million in lost revenue.
The FCC will very likely dismiss the telecoms' claims, and the next step by the telecoms and industry groups will be a legal challenge.
The news comes after a year of heated discourse regarding the need for net neutrality and the need for greater oversight of the Internet services industry.
It's just the latest move by Internet industry players, many of which have filed legal actions regarding the regulatory actions. The FCC is requesting those legal actions be heard by the U.S. Court of Appeals for the District of Columbia Circuit. That's of little surprise given the court gave the green light to the FCC to establish the impending new Internet regulations.
The ISPs involved in Friday's filing claim regulatory oversight will hurt the telecom industry financially due to having to comply with new rules and hinder technology innovation due to the costs.
Joining AT&T and CenturyLink are the Wireless Internet Service Providers Association, the National Cable and Telecommunications Association, the USTelecom Association, CTIA-The Wireless Association, and the American Cable Association.