Earlier this year, the FCC announced a proposed rule change to the way internet traffic is regulated. In response to this proposed change to net neutrality, the FCC received over a million comments over a five-month period.  This is the largest response the FCC has received in such a short period of time, and the second largest overall, ever.  The only issue to receive more comments was after Janet Jackson’s Super Bowl wardrobe malfunction in 2004.  The majority of comments received are staunchly opposed to the new policy. Now President Obama has weighed in and he is also uncomfortable with the FCC’s plan.

The FCC is deciding whether to allow telecommunication companies, like Verizon and Comcast, to strike deals with content providers, such as Netflix or Amazon, for faster delivery of their products. The President, speaking at the U.S. Africa Business Forum on August 4, 2014, expressed that he’s uncomfortable with the idea of allowing Internet providers to sell fast-lane access to content companies.  The President said:

                 “Well, there are two issues — net neutrality — in the United States, one of the issues around net neutrality is                         whether you are creating different rates or charges for different content providers. That’s the big controversy                         here.You have big, wealthy media companies who might be willing to pay more but then also charge more for                       more spectrum, more bandwidth on the Internet so they can stream movies faster or what have you.

                  And I personally — the position of my administration, as well as I think a lot of companies here is you don’t want                   to start getting a differentiation in how accessible the Internet is to various users.  You want to leave it open so                     that the next Google or the next Facebook can succeed.”

President Obama’s statement highlights the problem many see with this policy, start-ups will not be able to compete with established businesses if they have to pay to compete.

The policy was championed by FCC Chairman Tom Wheeler, who was appointed by Obama.  But the FCC has another option.  It can classify internet as a telecommunication service.  In so doing, regulators could prohibit phone and cable companies from engaging in unjust or unreasonable discrimination against content.  Currently, internet is classified as an information service, a decision made during George W. Bush’s administration and which limits the FCC’s   ability to protect consumers and smaller Internet companies and start-ups.

Stay tuned, we will continue to update you on this important issue.

Read more here: http://www.nytimes.com/2014/08/14/opinion/president-obama-no-internet-fast-lanes.html