In a 2016 Federal court ruling, the courts decided that high-speed internet service is a utility. This was a victory for start-up tech firms, microbusinesses and everyday consumers. They all use and depend on the internet on a daily basis. While some Americans cannot afford high-speed internet, many Americans find it difficult to function without it. Therefore, the Federal Communications Commission (F.C.C.) decided high-speed internet is a necessity and the courts agreed. This ruling affirms that high-speed internet is as important as telephones and electrical power in the lives of Americans. It is not a luxury.
The decision from the United States Court of Appeals for the District of Columbia Circuit was made in a case about net neutrality. Net neutrality is a rule that ensures internet service providers deliver the same internet service to all its consumers. This keeps companies who can afford to pay for faster speed and broader service from having an unfair advantage over their competitors who cannot afford it. Without net neutrality broadband providers could allow some content on the web to be delivered at slower speeds. Consumers could be charged extra for better service and have to pay more to be able to receive some content. Only two judges were in agreement. The dissenting Judge, Stephen Williams referred to the rules an “unreasoned patchwork”. He felt that competition in the broadband industry would be jeopardized by the ruling of the F.C.C. Google and Netflix are in favor of the neutrality rules.
When the rule was put in place Ajit Pai was a commissioner with the F.C.C. He was appointed by President Obama in May 2012. Ajit Pai, a Republican commissioner, was outspokenly against the regulation of broadband as a utility from the very beginning. Ajit Pai encouraged cable and telecommunications firms to continue the legal challenges against the rule. Cable, telecommunications and wireless internet providers sued to overturn the regulations put in place by the F.C.C, claiming that the F.C.C. exceeded its authority. This resulted in the 2016 ruling, upholding the decision by the F.C.C. The legal battle is anticipated to continue.
In January 2017, President Trump named Ajit Pai the new Chairman of the F.C.C. Since Mr. Pai took office, the F.C.C. closed an investigation involving T-Mobile, AT&T and Verizon. The investigation was concerning their zero-rating practices. Some view this as the dismantling of net neutrality by the F.C.C.