Regulatory classification

MoffettNathanson analyst Craig Moffett says that AT&T-Time Warner's court victory should not be seen as a green light for vertical mergers (ones combining distribution with content), particularly ones involving an ISP and a content company, say Comcast-Fox for instance. Moffett argues that the Department of Justice tried the wrong case by focusing its argument on the combination of the Turner linear networks and distributor DirecTV (owned by AT&T) and the alleged impact on Turner's independent distributors--increased consumer prices to consumers.

A strong network neutrality bill is advancing through the CA legislature, and the Big Intenet service providers (ISPS)–mainly AT&T and Comcast–are working overtime to stop it in its tracks. The bill passed the state Senate on May 30 by a healthy 23 to 12 margin. In the weeks leading up to that vote, lobbyists for the big ISPs tried to spread enough doubt about the bill’s possible implications that lawmakers would simply not vote on it. CA Senate Democrats needed an extra date to find the votes, but they found them, and the bill moved on to the Assembly.

California State Senators Scott Wiener (D-San Francisco) and Kevin de Leon (D-Los Angeles) announced that they are joining their respective network neutrality bills - SB 822 (Wiener) and SB 460 (de Leon) - to form one unified legislative effort to pass strong net neutrality protections in California . The two bills are being formally linked to one another so that both must be signed into law for either to take effect.

Ultimately, the internet could someday look like the current cable model where the internet service provider takes a portion of advertising revenue and subscriber fees. “This would be gradual and would most likely affect new services that would have been free, but we may now have to pay for,” said Marty Puranik, chief executive officer of cloud service provider Atlantic.Net.

Internet service providers are stepping up their fight against a California net neutrality proposal that would explicitly prohibit providers from exempting material from consumers' data caps. The proposed law, approved last month by the state Senate and currently before the Assembly, restores Obama-era net neutrality rules that ban throttling, blocking, and charging higher fees for prioritized delivery. The measure also would explicitly ban "zero-rating" -- or the practice of exempting certain material from data caps.

Comcast has disabled a throttling system that it deployed in 2008 in order to slow down heavy Internet users. Comcast's network is now strong enough that a congestion management system isn't needed, the company says. The system has been "essentially inactive for more than a year," and is now disabled entirely.

In a speech to the Media Institute, USTelecom President Jonathan Spalter said it is time to establish "consistent safeguards" across the entire internet. The key to those consistent safeguards, he suggested, were their broad application, echoing the growing chorus of internet service providers and legislators from both parties that believe mammoth edge players like Facebook and others need minding. "[T]he reality today is the companies making headlines for privacy missteps or blocking content aren’t the ISPs," Spalter said.

Democratic Reps used a House Communications Subcommittee markup of a pirate radio bill to express their opposition to the Federal Communications Commission's rollback of network neutrality rules. Subcommittee Ranking Member Mike Doyle (D-PA) introduced an amendment to the Preventing Illegal Radio Abuse Through Enforcement (PIRATE) Act (HR 5709) that would have replaced the base bill with one that would restore the net neutrality rules just jettisoned.

The dissolution of net neutrality regulations and the AT&T/Time Warner decision could shape the internet for years to come. 

California’s network neutrality bill, SB 822, is often referred to as the “gold standard” of state-based net neutrality laws. The bill tackles the full array of issues the Federal Communications Commission had addressed right up until the end of 2016 before it began repealing net neutrality. One such issue is the discriminatory use of zero rating, where Internet service providers could choose to give users access to certain content for “free”—that is, without digging into their data plans.