Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Verizon reasserts no plans for Internet 'fast lanes'

Published 10/29/2014, 12:26 PM
Updated 10/29/2014, 12:26 PM
© Reuters A Verizon logo is seen during the International CTIA WIRELESS Conference & Exposition in New Orleans, Louisiana

WASHINGTON (Reuters) - Verizon Communications Inc on Wednesday reasserted that it was not planning to strike any Internet "fast lane" deals that would help some websites load faster than others, in a letter to a top U.S. Senate Judiciary Committee lawmaker.

The committee's chairman, Sen. Patrick Leahy, last week wrote to top U.S. Internet service providers (ISPs) urging them to formally commit to no so-called "paid prioritization" deals in which content companies could pay ISPs to ensure smooth and fast delivery of their traffic.

Verizon on Wednesday wrote back, calling paid prioritization a "phantasm."

"As we have said before, and affirm again here, Verizon has no plans to engage in paid prioritization of Internet traffic," Verizon's general counsel Randal Milch said in the letter.

"Unfortunately, the fever pitch over 'paid prioritization' and 'fast lanes' among advocates of greater Internet regulation is just demagoguery since no major ISP has expressed an interest in offering 'paid prioritization' and all agree that the FCC has a valid legal path to prohibit it."

The Federal Communications Commission has received almost 4 million comments after it proposed new web traffic, or "net neutrality," rules that would prohibit ISPs from blocking content, but suggested allowing some "commercially reasonable" paid prioritization deals.

Other Large ISPs, including Comcast and AT&T, have been asserting that they had no plans for such paid prioritization arrangements and FCC Chairman Tom Wheeler has said he would not tolerate anti-competitive or anti-consumer prioritization deals.

Nonetheless, consumer advocates and other critics are concerned that opening the door for paid prioritization could create "fast lanes" for some content and so relegate other websites and applications to "slow lanes."

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

What some critics have instead requested is for the FCC to reclassify ISPs so they are regulated more like public utilities, which the broadband companies say will hamper investments and innovation.

In its letter on Wednesday, Verizon argued that the FCC has other legal options to prevent harmful paid prioritization without needing to resort to reclassification of ISPs.

The FCC is writing new net neutrality rules after a U.S. appeals court in January struck down their previous version in a case brought by Verizon.

The 2010 net neutrality rules allowed "commercially reasonable" discrimination of traffic, but indicated that the FCC would disapprove of potential "pay-for-priority" deals.

(Reporting by Alina Selyukh; Editing by Chris Reese)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.