How do we know that it's going to take a while to get the Federal Communications Commission's new net neutrality rules in working order? Because even though the FCC was roundly accused of copying what Verizon (NYSE: VZ) put down on paper with Google (Nasdaq: GOOG) last summer, Verizon is ready to tear the bill apart. What's more, Big Red has some telecom allies on its side.
Verizon has filed a lawsuit in the U.S. Court of Appeals to block the implementation of the FCC ruling on net neutrality, followed by another suit filed in the same court by flat-rate mobile operator MetroPCS (NYSE: PCS). Consumer groups have decried the rules as being far too carrier-friendly, yet the telecoms seem more interested than anyone else to stop it all.
Of course, MetroPCS might have ulterior motives with its filing. The company has come under attack from the aforementioned consumer advocacy groups for selectively allowing some types of traffic across its 4G network while blocking others, service by service. For example, on some plans MetroPCS is accused of flat-out blocking Skype calls and hobbling Netflix (Nasdaq: NFLX) streams, while less bandwidth-intensive YouTube streams are allowed. If you want unfettered access to a full range of sites plus tacked on "premium" content, be prepared to pay up an extra 50%.
This is exactly the scenario net-neutrality rules are designed to prevent. If MetroPCS is upset over that, I suppose the rules are working too well for its comfort. The tiered set of data plans MetroPCS offers is a far less agreeable solution to protect its precious bandwidth than the more straightforward bandwidth caps imposed by AT&T (NYSE: T) -- and even the AT&T option caused outrage when it was announced.
The real mystery is: What in the world is Verizon up to? It doesn't make sense to effectively draft a legal framework and then oppose its implementation.
If you know what's up with Verizon's turncoat ways, feel free to enlighten the rest of us in the comments below. Else, just add Verizon to your watchlist to keep a close eye on the situation.
