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October 19, 2023


FCC Adopts Proposed Net Neutrality Rule


On  October 19, 2023, the Federal Communications
Commission  (FCC)  adopted a Notice of Proposed
Rulemaking  (NPRM)   that proposes to reclassify broadband
internet access service (BIAS) as a Title II common carrier
service and reinstate net neutrality rules.
The NPRM   is the FCC's latest action on a subject with a
lengthy regulatory and legal history. This In Focus provides
an overview of net neutrality regulation, a brief discussion
of how the FCC's classification of broadband affects that
regulation, a summary of the NPRM, and a discussion of
potential legal challenges and policy considerations.

Net   Neutrahity Regulation
Net neutrality generally refers to the idea that internet
service providers should neither control how consumers
lawfully use their networks nor discriminate among the
content providers that use their networks. The FCC has
sought to implement net neutrality rules several times, most
recently in 2015. In its 2015 net neutrality order, the FCC
laid out what it called clear, bright-line rules that BIAS
providers were required to follow. Specifically, they were
prohibited from: (1) blocking lawful content,
applications, services, or non-harmful devices; (2)
throttling (i.e., impairing or slowing) lawful internet
traffic on the basis of content, applications, services, or use
of non-harmful devices; and (3) engaging in paid
prioritization, which is defined as favoring some internet
traffic over others in exchange for consideration. The FCC
also imposed a broad catch-all rule referred to as the
general conduct standard. That standard prohibited BIAS
providers from unreasonably interfering with or
disadvantaging users and edge providers (i.e., persons or
companies  providing content and services to a BIAS
provider's subscribers) in accessing or providing the lawful
content, applications, services, or devices of their choice.
The FCC  repealed most of its net neutrality rules, however,
in an order adopted at the end of 2017.

Net   Neutrality and Broad band
C lassification
The FCC's  ability to adopt net neutrality rules depends on
the legal classification of BIAS under the Communications
Act of 1934 (the Act). As amended, the act defines two
mutually exclusive categories of services:
telecommunications services and information services.
While telecommunications  service providers are treated as
highly regulated common carriers under Title II of the act,
the FCC has much  more limited regulatory authority over
information service providers.
The FCC  has alternated between classifying BIAS as a
telecommunications service and an information service.
The U.S. Supreme  Court and U.S. Court of Appeals for the
D.C. Circuit have affirmed the FCC's discretion to make-
and to change-this classification decision. The D.C.


Circuit has also held that the FCC may enact net neutrality
rules only if it has classified BIAS as a telecommunications
service. Currently, per the FCC's 2017 order, BIAS is
classified as an information service.

The   NPRM
The NPRM   proposes to again reclassify BIAS as a
telecommunications service and to reinstate the 2015 net
neutrality rules, including the general conduct standard. As
in 2015, the NPRM  proposes to forbear from applying
many  Title II requirements to BIAS providers. It also
emphasizes that the FCC would not use Title II to
prospectively set the rates BIAS providers can charge.
The NPRM   further asserts that Title II reclassification
would  allow the FCC to further goals other than net
neutrality, including national security, public safety,
network resiliency, and privacy.
National Security. The NPRM   explains that
reclassification would enhance the FCC's ability to respond
to national security threats by subjecting BIAS providers to
authorization requirements under Section 214 of the act.
The FCC  has used this authority to ban several China-
affiliated Title II carriers from operating in the United
States for national security reasons. The NPRM indicates
that the FCC could take similar action with BIAS providers
deemed  to pose a threat to national security.
Public Safety. The NPRM   states that the FCC could use
the reclassification in combination with other statutory
authority to ensure BIAS meets the needs of public safety
entities and individuals when they use those services for
public safety purposes. For example, the agency believes
the proposed reclassification would enable the FCC to
support public safety officials' use of BIAS for public
safety purposes; ensure BIAS is available to the public to
communicate  with first responders during emergency
situations; allow the public to access public safety resources
and information; and provide consumers with the
connections they need to operate home safety and security
systems (such as cameras and window sensors).
Network  Resiliency. The NPRM   tentatively concludes that
reclassifying BIAS as a telecommunications service would
enhance the FCC's ability to ensure the nation's
communications  networks are resilient and reliable. In
particular, the reclassification may allow the FCC to require
that BIAS providers report network outages to the Network
Outage Reporting System  (NORS).  The NPRM   explains
that such reporting requirements could inform the FCC's
network resiliency efforts and give officials greater
transparency during outages.
Privacy. The NPRM   tentatively concludes that
reclassification of BIAS as a telecommunications service
would  support the FCC's goal to safeguard consumers'
privacy and data security. As discussed further in a CRS


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