US to propose pay-for-priority Internet standards

The Federal Communications Commission (FCC) is set to propose new Internet rules that would allow Internet service providers to charge content companies for faster delivery of their services over the so-called "last mile" connection to people's homes.
The agency also proposes to enhance government oversight of such deals to ensure that they do not harm competition or limit free speech, according to a senior FCC official familiar with the matter. FCC Chairman Tom Wheeler is scheduled to present the proposed rules to the agency's four other commissioners today.
So-called "net neutrality" rules have been hotly debated among policymakers, Internet providers and content companies such as Netflix. Without regulation, say consumer advocates, giant conglomerates "citing business or political reasons" could limit consumers from freely accessing certain types of content.

The new rules are meant to replace the FCC's open Internet order from 2010, which was struck down by a federal appeals court in January. The US Court of Appeals for the Washington, DC, Circuit affirmed that the FCC had the authority to create open-access rules but said it failed to establish that its 2010 regulations did not overreach.
While the older rules technically allowed for paid priority treatment, it was discouraged. The new rules spell out standards that such deals would have to meet, to be considered "commercially reasonable" and are designed to survive a court challenge in the future.

Under the proposed rules, if such a deal for priority access were challenged, the commission would look at its impact on competition, consumers, free speech and civic engagement, and whether a broadband provider was acting in good faith.
The new rules do not affect the exchange of traffic between networks that form the Internet's backbone. Netflix had called for the FCC to expand its definition of "net neutrality" rules to cover such connections and guarantee that they would be free of charge. Internet providers say they should be allowed to charge content companies when they absorb more traffic than they send back, like in the case of Netflix.

The proposed rules would also restore a previous rule that prohibits Internet service providers from blocking access to websites, which is meant to help Internet startups to succeed and foster the growth of the Internet economy.