New Internet rule enables ISPs to make more revenue in US

Millions of U.S. broadband customers have started facing the latest internet experience from Monday because Internet Service Providers (ISPs) have new powers to block, throttle or offer paid fast lanes for content companies under the new law.
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This means, Netflix or Amazon can pay extra money to AT&T, Verizon or T-Mobile to run their shows on their network seamlessly or without buffering. The only thing AT&T, Verizon or T-Mobile need to do is to disclose that the “extra speed of the network” is due to a paid arrangement with the content company.

Comcast, AT&T, Verizon or T-Mobile can also slow down the streaming of a content activity on their network under the new guideline.

The new rule means more money for broadband companies. They can improve ARPU from their broadband investments. ISPs will be under the scanner of Federal Trade Commission (FTC) that will be able to investigate if internet providers engage in anti-competitive behavior. FCC does not want to play in this area.

The new internet rules came into effect on Monday in the U.S. after Federal Communications Commission (FCC) repealed the 2015 Obama administration’s much publicised net neutrality rules in December by a 3-2 vote.

Internet companies such as Facebook and Alphabet did not support the latest Internet rule. Democrats in the Republican-controlled Congress are also protesting against the anti-user policies on Donald Trump administration.

Wireless majors such as AT&T, Sprint, T-Mobile and Verizon can give priority to their own movies and TV shows, while hurting rivals such as Amazon, YouTube and start-ups, Associated Press reported.

American ISPs need to just disclose their anti-customer practices such as slowing, blocking or offering “paid prioritization” to some websites under new regulations, according to a Reuters report.

The earlier administration – under President Barack Obama – had asked internet providers to face strict regulations, arguing consumers needed protection from internet provider practices and said internet providers could engage in reasonable conduct.

FCC Chairman Ajit Pai said last week the rollback will ensure more investment by providers and will ensure “better, faster, and cheaper Internet access and more broadband competition to the American people.”

FCC Commissioner Jessica Rosenworcel, a Democrat who voted against the repeal, said on Monday that the decision put the FCC “on the wrong side of history, the wrong side of the law, and the wrong side of the American public.”

On May 16, the U.S. Senate, where Republicans hold only a narrow majority, voted 52 to 47 to overturn the decision by the FCC – which is currently composed of three Republicans and Rosenworcel.

A group of 22 states sued the FCC over the repeal. A federal appeals court in Washington has not set a date for oral arguments.

The revised rules were a win for ISPs, whose practices faced government oversight and FCC investigations under the 2015 order.

Mobile customers are expectig to see more offers like AT&T’s exemption of its DirecTV Now streaming TV service from customers’ mobile data limits. Rival services like Sling TV and Netflix count video against data caps, essentially making them more expensive to watch.

The Internet Association said on Monday that the “internet industry remains committed to restoring net neutrality protections through the courts, legislation, and administrative action. Americans in every state and across the political spectrum support rules that ban ISPs from blocking, throttling, and prioritizing web traffic.”

A group representing major cable companies and TV networks said Monday that “despite a new round of outlandish claims and doomsday predictions from groups dedicated to stoking political controversy, consumers will be able to see for themselves that their internet service will keep working as always has and will keep getting better.”

Comcast, Verizon Communications and AT&T have pledged to not block or discriminate against legal content after the rules expire.

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