FCC to decide on net neutrality, rules for spectrum auction

|By:, SA News Editor

The Federal Communications Commission is due to vote today on a proposal to formally allow some "commercially reasonable" deals that would enable Internet content companies to pay fees so that their traffic receives priority on the network.

Facebook (FB), Twitter (TWTR) and Google (GOOG, GOOGL) are among those opposed to "pay-for-priority," while Netflix (NFLX) is strongly in favor of net neutrality as well. The latter has reluctantly forged "direct-peering" agreements that remove bottlenecks between networks and ensure that its contents streams more smoothly.

Advocates of net neutrality fear that pay-for-priority will lead to "fast lanes" for corporations that can afford it and slower traffic for others, and some even want Internet providers to be reclassified as utilities, as is the case with telephone operations.

Meanwhile, the FCC is also scheduled to decide on rules for the sale of low-frequency airwaves to wireless carriers, with the regulations expected to limit how much Verizon (VZ) and AT&T (T) can purchase.

Other relevant tickers: CMCSA, TWC, ALLT, LVLT, CCOI, FTR, WIN, CTL, CHTR, CVC, DISH.

This was corrected on 05/15/2014 at 09:32 AM. It was incorrectly indicated that Netflix had signed "pay-for-priority" agreements.