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November 12, 2014

US telecom companies to contest Obama’s net neutrality proposal

Telecom companies want paid prioritisation, which is opposed by President Obama.

By CBR Staff Writer

A day after US President Barack Obama asked FCC to impose strict rule to protect net neutrality, the telecommunications industry is reportedly planning to contest the proposal in courts.

Presently, the telecom giants are trying to influence the Federal Communications Commission (FCC), however if their attempt fails, the companies are likely to make an appeal to the Republicans to intervene, reported Reuters.

In his statement, President Obama asked FCC to classify internet under Title II of the Communications Act which allows anyone to enter any communications business.

However, according to reports, Title II will not be able to stop paid prioritisation demanded by telecom giants like Comcast, AT&T, and Verizon.

The FCC is planning to take a middle path which would be beneficial to the telecom companies and would not go completely against the President’s call.

In a similar case in 2005, the Supreme Court ruled that the FCC had the power to interpret what should be classified as a less-regulated "information" service and more regulated "telecommunications" service.

In that case the FCC did not put stricter classification on Internet providers.

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