FCC Net Neutrality Victory, Steep Price Hikes And Free Data Streaming Loss Likely

The Federal Communications Commission won big recently with their Net Neutrality rules, with the federal appeals court in Washington D.C. upholding the move by the agency to classify Internet Service Providers (ISP) as Title II common carrier service providers. The rules will also prevent said ISPs from offering preferential services in exchange for more money. However, one possible consequence of the victory could include higher prices for broadband services, according to an article by Forbes. More than that, it could also result in millions of users losing their free-data streaming services from providers like “T-Mobile.”

According to the study featured in the Forbes article, the main concern by ISP providers with being classified as Title II providers is the possibility of more taxes. This could result in the loss of private investments, which would offset revenue. As a result, the ISPs would need to charge customers more.

More than that, the broad scope of Net Neutrality covers all aspects that can be considered unequal, regardless of whether or not it is benefiting customers. As such, services like “Netflix” movie streaming without data consumption from “T-Mobile” could be axed because it could lead to an imbalance in provider preference, according to The Washington Post.

Because of how the rules have been structured by the FCC, it does not seem like the former would be likely since price hikes would need to be approved once the new system is in place. On the other hand, the latter is quite possible, which would likely disappoint fans of those services.

Bloomberg notes that the fight is not over, though, as providers could still appeal to the Supreme Court in order to overturn the decision. Even so, the fight would be slow-going for any provider that decides to pursue the case since the highest court in the land often rejects cases. It isn’t likely that Congress will jump on the development either, so the ISPs are on their own for this one.