FCC Adopts Controversial "Open Internet" Regulations -- Challenges Expected

Following months of speculation and amid heavy industry lobbying and threats from Congressional Republicans to roll back any Federal Communications Commission ("FCC") rules, the FCC narrowly adopted "network neutrality" rules for fixed and wireless broadband providers at its December 21, 2010 meeting. In a party-line vote of 3-2, the Commission enacted a series of rules "designed to provide greater clarity and certainty regarding the continued freedom and openness of the Internet." The Report and Order (the "Order") sets forth three precepts to govern the provision of Internet services: (1) transparency; (2) a prohibition against blocking certain content and applications; and (3) no unreasonable discrimination.¹ At the same time, these three rules are tempered by recognition of a provider's need to undertake reasonable network management to avoid outages or broadband unavailability, taking into account the constraints of a particular network architecture and the