What net neutrality means to streaming companies
At the FCC’s net neutrality-open internet rules and open meeting/vote 5/15, the Commissioners approved the notice to be opened for comments with a 3-2 vote. The notice includes Chairman Wheeler’s fast lane proposal to allow ISPs to charge more for faster service, but also allows for consideration of regulation of Internet service as common carriers under Title II.
ISPs like Comcast and Verizon will be able to charge companies like Netflix and Amazon for faster access to customers. The FCC rules won’t cover deals like the ones reached earlier this year by Netflix with Comcast and Verizon, in which Netflix agreed to pay for direct connections to the broadband companies’ networks to boost lagging streaming speeds. That’s because Wheeler’s proposal relates only to what broadband companies do with content in the last mile of their networks, where they connect directly to the home.
Obviously for the Pandoras and Netflix of the world, this could be a big deal. We asked around as to the legal and competitive implications if this goes through as it stands and how Title II plays a role.