Legal challenges are expected following a US District Appeals Court decision to back the FCC’s Open Internet Order
A U.S. District Appeals Court decision backing the Federal Communications Commission’s Open Internet Order garnered the expected commentary from both sides of the argument. Among telecom-related entities, those comments were decidedly against the court decision, with claims the legal wrangling is likely not over.
“We have always expected this issue to be decided by the Supreme Court, and we look forward to participating in that appeal,” said David McAtee, senior EVP and general counsel for AT&T, whose sentiment was echoed by industry trade association CTIA.
“The wireless industry remains committed to preserving an open internet and will pursue judicial and congressional options to ensure a regulatory framework that provides certainty for consumers, investors and innovators,” said CTIA President and CEO Meredith Attwell Baker.
Analysts also hinted that while the decision was expected, the next step will likely be a further appeals process.
“We believe the industry will take its appeal to the U.S. Supreme Court,” stated Wells Fargo Securities senior analyst Jennifer Fritzsche, noting the decision was not unexpected. “In terms of next steps, we look for the industry to announce its appeal, and would note the process likely will span into a new administration, which might ultimately change the dynamic of the ruling and [net neutrality] rules. The other unknown is whether Congress will step in and act in light of the court’s ruling. … The decision, if it stands, will also impact the pricing and network management tools available to mobile carriers.”
Verizon Communications, which was at the heart of the initial challenge regarding FCC oversight of the internet, has taken a different avenue. The telecom operator earlier this year laid out what it wants to see in terms of a long-standing policy framework.
The carrier stated four points it stands for in terms of its open internet commitment. Those points include rules prohibiting the blocking by internet service provides of lawful content, applications and services; preventing ISPs from intentionally throttling internet traffic based on the traffic’s source, destination or content; prevent the charging of content providers to deliver internet traffic at speeds different from unpaid traffic; and a general conduct standard preventing “unreasonable conduct” by ISPs that harm consumers or competition.
The Competitive Carriers Association took a more mobile-focused view on the decision, asking the FCC to take into account the network management challenges of wireless networks.
“With the court’s decision, today marks the next chapter in regulatory treatment of mobile broadband services that consumers are demanding more and more each day,” said CCA President and CEO Steve Berry. “CCA continues to support the ability of consumers to have access to an open internet and encourages the FCC to allow wireless carriers the ability to reasonably manage their own networks as they find necessary within the confines of the law.”
Some trade groups tied to device manufacturers also came out opposed to the latest court ruling, noting the decision will lead to uncertainty in the market.
“The court’s decision means today’s dynamic, ever-changing internet will face the strict, inflexible rules designed to regulate our grandparents’ phone service,” said Telecommunications Industry Association CEO Scott Belcher. “We continue to believe the FCC has overstepped its authority and we are deeply disappointed by the decision.”
“Today’s decision from the D.C. Circuit creates uncertainty for manufacturers and is a major disincentive to investment in this essential infrastructure,” added Linda Kelly, SVP and general counsel for the National Association of Manufacturers. “The Manufacturers’ Center for Legal Action and the NAM will continue to fight the FCC’s misguided policy – in the courts and in Congress – to ensure manufacturers’ growing technology infrastructure needs can be met.”
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