The FCC to Propose New Net Neutrality Rules

The Federal Communications Commission intends to propose tomorrow new rules for the Internet that would enable content companies to pay ISPs for "special access to consumers," according to a report in The Wall Street Journal.

The new rules would allow Internet providers to give preferential treatment to some traffic as long as the arrangements are "commercially reasonable."

The Journal said companies like Skype and Netflix could pay more for uninterrupted last-mile connectivity -- the last-mile equivalent of peering arrangements.

The report did not address the obvious conflict here, which is that if providing uninterrupted last-mile service is a business, then Internet providers are incentivized to not invest in uninterrupted service for everybody. The shoddier their standard service, the more companies will need to pay for special treatment.