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FCC to reportedly allow "fast lane" ISP charges; will Netflix pay?

  • Net neutrality supporters won't like this: The NYT and WSJ report the FCC will propose rules tomorrow that let ISPs charge content providers extra for priority access to their networks. The commission will continue prohibiting ISPs from limiting or blocking individual services.
  • FCC chairman Tom Wheeler has already hinted the commission could make such a move. Today's reports come after an appeals court threw out the FCC's existing neutrality rules in January; Netflix (NFLX) shares fell on the ruling.
  • Netflix, which accounts for a giant chunk of downstream U.S. broadband traffic, recently joined other Internet giants in paying direct peering fees to Comcast; that quickly led to a big improvement in Comcast's Netflix streaming speeds. But Reed Hastings has made it clear he's not thrilled with the deal, and wants tougher neutrality laws imposed.
Comments (23)
  • User 509088
    , contributor
    Comments (1214) | Send Message
     
    the information super highway has become a toll road.
    23 Apr 2014, 08:28 PM Reply Like
  • animesh_raj
    , contributor
    Comment (1) | Send Message
     
    seemingly true, the faster access to content shouldn't be like privilege service for users. what if people latch on their existing wifi connection rather that using the telcos network ???
    24 Apr 2014, 04:24 AM Reply Like
  • Brad Kenagy
    , contributor
    Comments (1903) | Send Message
     
    If this is true, ISPs could the the MLPs of the internet.
    23 Apr 2014, 08:42 PM Reply Like
  • chopchop0
    , contributor
    Comments (3880) | Send Message
     
    Yup. Without the favorable tax consideration and high dividends unfortunately

     

    Long CMCSA
    24 Apr 2014, 02:43 AM Reply Like
  • Philip Marlowe
    , contributor
    Comments (1202) | Send Message
     
    This is horrible. I am afraid this will be profound drag on the leadership the US currently enjoys in technology.
    23 Apr 2014, 08:49 PM Reply Like
  • Jake2992
    , contributor
    Comments (831) | Send Message
     
    The current Supreme Court is one of the most radical in US History. The sooner Scalia or one of the other right wing fascists steps down and is replaced with a more moderate candidate the better off we will all be. Currently the court's right wing segment is a wholly owned subsidiary of the highest corporate bidder. God forbid we get another GOP President, it would likely be the end of the American Empire.
    23 Apr 2014, 08:59 PM Reply Like
  • sethmcs
    , contributor
    Comments (3427) | Send Message
     
    Comments like this makes me wish SA would bring back the dislike button.
    23 Apr 2014, 09:23 PM Reply Like
  • anarchist
    , contributor
    Comments (1518) | Send Message
     
    sethmcs, I agree but Jake2992 still gets a "like" from me. Scalia and his shadow Thomas are right-wing radicals and the sooner we get a moderate Supreme Court the better, these are the same type of ideologists that gave us the decision that a black man was worth 3/4 of a white man and gave Corporations the same rights as an individual.
    23 Apr 2014, 09:50 PM Reply Like
  • JohnBinTN
    , contributor
    Comments (4024) | Send Message
     
    Is the bleeding heart Sotomayor what you would like to see more of? Geez! And Ginsburg would vote that excrement did not smell bad if that was the current liberal line.

     

    Stevens let Obamatax go through, so be thankful for that.
    23 Apr 2014, 10:03 PM Reply Like
  • The Rebel
    , contributor
    Comments (1288) | Send Message
     
    No, it was Roberts.
    23 Apr 2014, 11:06 PM Reply Like
  • Jimbowillie
    , contributor
    Comments (2) | Send Message
     
    Let me guess, you voted for Obama...
    24 Apr 2014, 07:31 AM Reply Like
  • Sakelaris
    , contributor
    Comments (1698) | Send Message
     
    Even if this goes through for now, the ISPs will need to show how they are really being careful with such new powers--lest a new Congress take those powers away from them. I hope those fees are low; moreover, the Comcast TWC merger group needs to be forced into several years of low fee promises as a condition of getting its merger approved.
    23 Apr 2014, 09:29 PM Reply Like
  • Spin63
    , contributor
    Comments (23) | Send Message
     
    I would have expected a more reasoned response to this article from the SA community, considering that most of us are on this web site to improve our ability to make money.

     

    All ISPs are in business to make money. All content providers are in business to make money. If the ISPs decide that they want to provide an advantage to their content over content provided by other content providers, they run a big risk of losing customers, which reduces their ability to make money. If a content provider is sucking up a giant chunk of bandwidth, and they aren’t willing to invest more to improve their product offering to the customer, then they run a big risk of losing customers. The market will find a way, if we just let it.

     

    It disappoints me, but doesn’t surprise me, that Reed Hastings is hoping for a law that reduces the cost to Netflix. Unfortunately, this seems to be the default response to business challenges these days.

     

    Finally, the idea that somehow net neutrality is sacrosanct is silly, really. In Sweden, (which is often used as an example of a country that has done the right thing with the Internet), the ISPs reserve the right to take measures to avoid traffic congestion, including taking action to increase the transfer rate for certain traffic and reduce the transmission rate for other traffic. This is stated in writing in their terms and conditions.

     

    So, let’s all just relax and see what happens.
    23 Apr 2014, 10:01 PM Reply Like
  • kata
    , contributor
    Comments (721) | Send Message
     
    Either way, your bill is going up.
    23 Apr 2014, 10:10 PM Reply Like
  • Philip Marlowe
    , contributor
    Comments (1202) | Send Message
     
    Sure all businesses are there to make money. That statement does not really mean much.

     

    But we have built our powerful economy on the principle that no single business or oligopoly should be allowed to exact a monopoly toll on other businesses or people. The "market will find a way" is a very convenient saying for businesses that are outside of the usual market forces. Wired internet service is a natural monopoly. Everyone knows this, it obvious. We should treat it as such.
    23 Apr 2014, 10:23 PM Reply Like
  • kata
    , contributor
    Comments (721) | Send Message
     
    You mean, price controls? Please tell that to Mayor DeB..., rofl...
    23 Apr 2014, 10:34 PM Reply Like
  • carl2591
    , contributor
    Comments (71) | Send Message
     
    SO how is it in other countries the internet speed is twice ours and the cost is twice lower..

     

    Look at s. korea, japan, germany, etc. too much money at the top of too many corps. How can you justify a 26 million dollar salary for head of CBS or IBM.. how much is too much. basic principles are not running this county,,, greed is.
    23 Apr 2014, 10:49 PM Reply Like
  • M.R. Henderson
    , contributor
    Comments (61) | Send Message
     
    "The commission will continue prohibiting ISPs from limiting or blocking individual services." -- Impossible. If a traffic management company can increase speed by investing in their high-paying highway asset or their low-paying highway, which is it gonna be?

     

    AND... FAST LANE services are ALREADY AVAILABLE from companies like Akamai, which is why I invested in them way on back. Anyone who wants quicker delivery should be forced to use a specialized private network. I thought this was obvious to anyone who understands the function of government, and who also knows these services are already there - at a cost.

     

    So in addition, Akamai (and other specialty internet delivery services) are now worth less, as a slew of competition will be possible from another front.
    23 Apr 2014, 11:04 PM Reply Like
  • dunroamins
    , contributor
    Comments (2) | Send Message
     
    If this goes through, the ISPs should not be allowed to own content; it's as simple as that.
    24 Apr 2014, 03:37 AM Reply Like
  • dunroamins
    , contributor
    Comments (2) | Send Message
     
    If they allow this then ISPs should not be allowed to be content holders; it's as simple as that period.
    24 Apr 2014, 03:37 AM Reply Like
  • Sakelaris
    , contributor
    Comments (1698) | Send Message
     
    My earlier comment above was meant to show moderation as we try to find a way forward. But make no mistake about it--this can be a battle for years, and legislation can always be promoted for strict regulation of ISPs as utilities, especially if they abuse their their customers.

     

    If if a line goes through my property, provides an important service, and is a monopoly or oligopoly, it really is a public utility. The gas and electric people accept that now, although in the past they fought regulation bitterly. It might have to be the same with the ISPs.
    24 Apr 2014, 03:40 AM Reply Like
  • Doc's Trading
    , contributor
    Comments (1671) | Send Message
     
    NFLX..... On recommended short sale at 372-375... lower buy stop from 147.10 to 132.10.... Since I expect a bounce from the 300-315 area aggressive traders may cover half of their positions here at the 323.00 level for a 50 point profit in less than a weeks time.... carry the balance with the recommended stop losses as they are presented here since your now playing with the houses money...
    more later.....
    25 Apr 2014, 04:03 PM Reply Like
  • Doc's Trading
    , contributor
    Comments (1671) | Send Message
     
    NFLX....NFLX..... On recommended short sale at 372-375... lower buy stop from 147.10 to 132.10.... Since I expect a bounce from the 300-315 area aggressive traders may cover half of their positions here at the 323.00 level for a 50 point profit in less than a weeks time.... carry the balance with the recommended stop losses as they are presented here since your now playing with "house" money...
    more later.....
    25 Apr 2014, 04:09 PM Reply Like
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