FCC sued by AT&T over net neutrality norms

American wireless carrier AT&T has filed lawsuits challenging net neutrality guidelines by the U.S. Federal Communications Commission (FCC).

In fact, AT&T is the first large telecom service provider in the U.S. to individually appeal against the net neutrality rules which were supported by American President Barack Obama.

Earlier, AT&T said its proposed investment in broadband will be under review due to the latest open internet guidelines. The new net guidelines will discourage telecom operators to offer special broadband tariffs to access content providers or choke the pipe in order to make more money.

Three cable and wireless industry groups have also filed cases against the new web guidelines that will impact the investment of telecom operators in the U.S. broadband market.

The National Cable and Telecommunications Association, CTIA-The Wireless Association and American Cable Association also filed lawsuits in the U.S. Court of Appeals for the D.C. Circuit. USTelecom trade group filed a similar lawsuit on Monday, Reuters reported.

Earlier, Internet service provider Alamo Broadband filed a similar case in the 5th U.S. Circuit Court of Appeals in New Orleans last month.

AT&T data plans

The FCC’s new rules treat Internet service providers as more heavily regulated telecommunications services, more like traditional telephone companies.

AT&T and the groups in their filings said the rules were arbitrary, capricious and against various laws and procedures. AT&T is unhappy because the new rules prevent broadband providers from blocking or slowing any Internet traffic and from striking deals with content companies for smoother delivery to consumers.

“Instead of promoting greater industry investment …the FCC opted to resuscitate a command-and-control regulatory regime, including a process where innovators must first seek permission from the FCC before rolling out new services,” said CTIA President Meredith Attwell Baker.

NCTA’s President Michael Powell said the FCC’s utility style regulation was a cause of concern.

AT&T and other Internet service providers such as Verizon and Comcast have decried the FCC’s new rules stating that they would thwart investment and innovation. But these companies are yet to officially slash their Capex plans.

Meanwhile, FCC chairman Tom Wheeler said he is confident that the net neutrality rules the agency passed last month will survive upcoming challenges in court. He made the prediction Friday speaking at the Ohio State University. Moritz College of Law as part of a Future of Internet Regulation.

On Tuesday, Tom Wheeler said at an industry event in Austin, Texas that telecom and broadband companies would continue to invest in improving and upgrading their services despite the new rules.

Baburajan K
[email protected]