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Net neutrality faces serious setbacks

Wed Apr 7, 5:17 pm ET

First, a primer for the uninitiated on "net neutrality."

Net (as in network) neutrality is the idea that all traffic on the Internet

should be treated equally and more to the point should come at the same

price. Right now, for instance, you don't have to pay more to watch a YouTube

video than you do to check your email, even though the YouTube video eats up

more bandwidth and, in theory, costs your ISP more for you to watch.

Websites and most consumers love the idea of net neutrality.

ISPs, on the other hand, are not fans. In fact, the net neutrality movement

arose as a response to major ISPs' plans to attempt to charge websites and

service providers more for "better" service on their networks. Fail to pay up

and that YouTube video might take twice as long to download ... or it may not

download at all.

ISPs call this the cost of doing business and a necessary reality in an era

where bandwidth isn't growing but the amount of data being pushed through the

available pipes is.

Net neutrality proponents call this extortion.

No matter who is right, things were looking up for net neutrality fans after

the FCC and the Obama administration came out with specific and strongly worded

recommendations and plans that they would push for net neutrality as the Obama

broadband program (100Mbps to everyone!) moved forward.

But the showdown had already begun prior to the Obama era, way back in 2007,

when Comcast, the country's largest cable company, began throttling BitTorrent

downloads, effectively putting a speed limit on how fast they could go. The FCC

put the kibosh on the practice, and ISPs, led by the mammoth Comcast, sued.

Then the FCC announced even more sweeping rules that it planned to enact in the

future.

This week, a major legal ruling was handed down in the Comcast case, and the

tide has now turned in favor of the ISPs. The District of Columbia Court of

Appeals said that the FCC had overstepped its authority in mandating net

neutrality and that ISPs should be free to manage traffic however they see fit,

noting that under current law, the FCC does not have "untrammeled freedom" to

regulate broadband services. (In other words, Congress would have to

specifically grant such powers.) The ruling was unanimous among the three

judges on the panel.

Now net neutrality fans find themselves facing a serious uphill climb. Not only

does the ruling open up the way for now for ISPs to ask websites and

service providers for money; it might also allow them to restrict certain

services from running on their networks entirely. Comcast, for example, may not

want you to watch Hulu on its service, since then you'd have less of a reason

to pay $60 a month for cable TV. It may also be able to ban VOIP services like

Skype, so you'll pony up another $20 for wired telephone service. The dominoes

are already lining up.

What happens now? The FCC has more tricks up its sleeve. As the MSNBC story

above notes, broadband service could be reclassified to fall under the other

heavily regulated telecommunications services that the FCC oversees, but that

would likely result in additional legal wrangling and longer delays for the

broadband plan to go into effect, a so-called nuclear option that would turn

the world of broadband into a bit of a bureaucratic nightmare.

If it doesn't take this route, the FCC will instead have to ask Congress for

the power to implement net neutrality rules as it sees fit, but that's a

political game in a time when Washington seems awfully low on political

capital. Don't rule out an appeal to the Supreme Court, either.

Stay tuned for as long as your Internet service holds out, anyway.

Christopher Null is a technology writer for Yahoo! News.