A federal appeals court ruled last month that the Federal Communications Commission lacks the authority to regulate the Internet. No worries, mate. This week the Obama Administration chose to “reclassify” the Internet so it can regulate the Web anyway. This crowd is nothing if not legally creative.

For the past decade, broadband has been classified as an “information service” and thus more lightly regulated than traditional telephone services. This has led to an explosion of new investment and Web innovation, but it hasn’t sat well with Democrats who want more control over the telecom business, as well as with some Web companies (Google) that want more leverage over Internet service providers like Time Warner or Verizon.

FCC Chairman Julius Genachowski did their dirty work this week by announcing that he plans to reclassify broadband lines so his agency can regulate them under rules that were written for Ma Bell in the 1930s. This means subjecting the Internet to new political supervision—from the federal government and 50 state public utility commissions. The goal is to put one more industry under Washington’s political thumb. (more…)

By AMY SCHATZ

WASHINGTON—In a move that will stoke a battle over the future of the Internet, the federal government plans to propose regulating broadband lines under decades-old rules designed for traditional phone networks.

The decision, by Federal Communications Commission Chairman Julius Genachowski, is likely to trigger a vigorous lobbying battle, arraying big phone and cable companies and their allies on Capitol Hill against Silicon Valley giants and consumer advocates.

Breaking a deadlock within his agency, Mr. Genachowski is expected Thursday to outline his plan for regulating broadband lines. He wants to adopt “net neutrality” rules that require Internet providers like Comcast Corp. and AT&T Inc. to treat all traffic equally, and not to slow or block access to websites. (more…)

To the surprise of no one, a federal appeals court ruled yesterday that the Federal Communications Commission lacks the authority to regulate how Internet service providers manage their networks. This validation of the rule of law over bureaucratic diktat is worth cheering. The question now is whether the Obama Administration will accept the decision or evade it by finding other ways to impose “net neutrality” rules on Comcast, AT&T and others. (more…)

Health care isn’t the only policy arena in which the Obama Administration aims to ram through controversial new rules. The Federal Communications Commission is set to unveil a “national broadband plan” opposed by industry and without any of the five commissioners voting on it.

Last year, Congress directed the FCC to develop a plan to make high-speed Internet available to more people. But given that 95% of Americans already have access to some form of broadband—and 94% can choose from at least four wireless carriers—rapid broadband deployment is already occurring without new government mandates.

Since 1998, the FCC has classified broadband as an “information service” subject to less regulation than traditional telecom services. The Supreme Court’s Brand X decision in 2005 validated that classification, and the upshot has been more investment, innovation and competition among Internet service providers, all to the benefit of consumers. (more…)