Verizon Communications Inc (NYSE:VZ) up against the mighty FCC


At the start of this year Verizon Communications Inc (NYSE:VZ) came out with a debate as to how the Federal Government should regulate the internet. Verizon Communications Inc (NYSE:VZ) even won a legal challenge to the existing rules, but it seems like they have threatened their own political position with such a move. Verizon Communications Inc (NYSE:VZ) had stated in January that the FCC doesn’t have any claim to the net neutrality laws and hence should stay away from it. The debate was over FCC’s internet laws posted in 2010.

Net Neutrality actually means that the companies who hold a stake in the infrastructure won’t be able to treat different web activities in a biased way. FCC was criticized by Verizon Communications Inc (NYSE:VZ) for supporting the open internet rules and also a two sided market where certain companies can get favored treatment.

The advocators of strong rules are also favoring Verizon Communications Inc (NYSE:VZ)’s net neutrality stance, with the whole issue now being turned into a popularity contest. Some major companies have rounded up against the cable industry in a bid to debate about the whole issue.

The debate has become fuzzy as nobody is quite sure who has what authority. Some aggressive advocators want the FCC to reclassify the broadband companies as telecommunication services. The court had ruled that the broadband companies cannot be classified as common carriers hence they do not have any role to play in the internet neutrality debate. Opponents are backing FCC claiming that the court had given authority to FCC to pursue any decision or rule.

Verizon Communications Inc (NYSE:VZ) and a few other companies are pro-reclassification claiming that reclassification was something they have been rooting for ever since Verizon Communications Inc (NYSE:VZ) won the court case in January. Problem however is that Broadband firm’s fear reclassification as they think it will give way to new laws that would push them to the back.

Verizon Communications Inc (NYSE:VZ) said that if FCC is going to fight against the reclassification, they will have to provide something significant and something worthy to replace it. Verizon Communications Inc (NYSE:VZ) claims that FCC is afraid that reclassification will give birth to a whole new range of companies that will be bound to obey the laws adhering to neutrality and there will be absolutely no way for special favors.

Critics of the neutrality of internet are concerned about the federal grip over the internet which they can bend always to their own favor. While neutrality advocators claim that neutrality would bring those companies into account that offer things like sponsored packages in order to focus on one special sponsor.

The whole debate is growing obscure and blowing out of proportion. The court ruling brought some justice to the case but it still left a loophole. Everyone is revolving around that loophole with no apparent solution to the problem. It seems like the fight will escalate to another law suit which will end in the court intervening again.