

The US communications regulator insisted on Thursday that allowing tech companies to pay for a "fast lane" to consumers' homes would not threaten the openness of the internet.

The federal communications commission said that it proposed to allow services that take up a large amount of bandwith to pay for preferential treatment. The regulator said that its proposal would include safeguards to protect consumers and to prevent the limiting of competition and free speech.

FCC chairman Tom Wheeler insisted in a blog post on Thursday that the new rules will further the principles of an “open internet.” He wrote: “To be very direct, the proposal would establish that behavior harmful to consumers or competition by limiting the openness of the internet will not be permitted,”

Consumer advocates say the proposed system would inevitably allow rich internet giants such as Netflix, Google and Facebook to maintain their edge over startups because they can pay to ensure faster connections and clearer, uninterrupted video.



It could result in higher prices for consumers who pay for Netflix and similar online services, as the cost of speedier treatment could be passed on. It also could create a new revenue stream for internet service providers (ISPs) like Comcast or Verizon.

Wheeler said three proposals would ensure that consumers were protected:



• All ISPs must transparently disclose to their subscribers and users all relevant information as to the policies that govern their network;



• No legal content may be blocked;

• ISPs may not act in a commercially unreasonable manner to harm the Internet, including favoring the traffic from an affiliated entity.

Critics are especially concerned with the “commercially unreasonable” proviso, which some believe could be widely interpreted to benefit ISPs who want to charge services more to give consumers improved access to their content.

Network providers including Verizon and Time Warner have made voluntary pledges to not restrict access to online content, but some feel without a formal rule the companies are not obliged to follow through with the commitment.

The proposals are being floated to a small commission on Thursday, before being opened to the agency for a vote to formally propose the rules on 15 May The five-member regulatory commission reviewing the proposal may make changes before the May vote. If the agency makes the rules into a formal proposal, the plan will be open to public comment.

The Washington DC circuit court of appeals rejected the FCC’s Open Internet Order in January because it said the agency imposed the rules under the incorrect regulatory framework because it treated ISPs like other telecommunication services, even though they are technically classified as information service providers. The court instructed the FCC to rewrite the rules and it obliged.