FCC To Limit Service Provider’s Powers To Auction Bandwidths

Thursday will provide technology-based companies one of their biggest victories. As per reports, the FCC or the Federal Communications Commission will be releasing a new set of rules on the allocation of download speeds to internet users. As per people from the industry, these rules will be robust and impact services providers like Verizon and Cablevision.

Do analyst foresee a momentum shift in FCC?

The anticipated ruling follows a sustained campaign by technology firms. These companies were pitted against extremely high end lobbying undertaken by internet service providers. The end user will feel the potential implication of the ruling. It will play a direct role in the way they experience browsing on a day-to-day basis.

The technology companies are expecting a limitation being placed on the existing practice being followed by the service providers. As per the ruling that will be passed by the FCC, the service provider will be restricted when it comes to allocating download speeds. The current method involves a bidding process where the best speeds go to the individual who submits the highest speed. By placing restrictions on this process, the technology firms will be able to remain in control of what is displayed at the consumer’s end.

Some companies like Mozilla Foundation, Twitter Inc (NYSE:TWTR), and Netflix, Inc. (NASDAQ:NFLX) have openly backed this move. They have advocated strict measures being imposed on the service providers. Other firms have backed them discreetly on this move.

Major players like Google Inc (NASDAQ:GOOGL) and Facebook Inc (NASDAQ:FB) have not intervened in this battle. Google Inc (NASDAQ:GOOGL) which is looking to launch Google Fiber, a company, dedicated to providing internet services, has allowed other companies to bring the topic into public light. On the other hand, companies like International Business Machines Corp. (NYSE:IBM) and Intel Corporation (NASDAQ:INTC) dealing in hardware, have been against such a move.

However, in spite of varied opinions on the same, the technology-based organizations have been able to persuade the Federal Communications Commission to not take a neutral position on this matter.

About the Author

Stinson is US Markets Daily’s Senior Producer for News & Public Affairs.

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