Ahead of the Bell: House to vote to undo FCC rules

WASHINGTON (AP) â€" The House is set to vote Thursday on a Republican-backed bill to repeal new Federal Communications Commission rules that prohibit phone and cable companies from interfering with Internet traffic on their broadband networks.

The measure, sponsored by Rep. Greg Walden, R-Ore., would overturn the "network neutrality" regulations adopted by a divided FCC late last year.

The rules aim to prevent phone and cable companies from using their control over broadband connections to dictate where their subscribers go and what they do online. They prohibit broadband providers from favoring or discriminating against Internet content and services, including online calling services like Skype and Web video services like Netflix that could compete with their core phone and cable operations.

The FCC's three Democrats adopted the rules over the opposition of the agency's two Republicans just before Christmas.

Republicans argue that the regulations will discourage phone and cable companies from investing in costly network upgrades by barring them from offering premium services over their lines or prioritizing traffic from business partners in order to earn a return on those investments. They also maintain that the FCC overstepped its legal authority in adopting the rules.

House Republicans already have attached an amendment to a sweeping spending bill that would bar the FCC from using government money to implement the regulations.

Even if the House votes Thursday to overturn the net neutrality rules altogether, however, Republicans are likely to face an uphill battle in the Democratic-controlled Senate. The White House also has threatened to veto the measure if it gets to the President's desk. In a statement Monday, the administration said the new FCC rules provide "an enforceable and effective policy for keeping the Internet free and open."

Regardless of what happens in Congress, the FCC will almost certainly have to defend its regulations in court

A federal appeals court on Monday dismissed legal challenges filed by Verizon Communications Inc. and MetroPCS Communications Inc. The court said the companies filed their challenges prematurely since the rules have not yet been published in the federal register. Verizon has already said it plans to refile its appeal as soon as it is allowed.

The companies are suing the FCC in the same court that ruled last year that the agency had exceeded its authority in sanctioning cable giant Comcast Corp. for discriminating against online file-sharing traffic on its broadband network.