by Claudia Bruemmer

U.S. communications regulators voted on Internet traffic rules that prevent Internet Service Providers (ISPs) from blocking lawful content; however, the rules allow them to ration access to their networks.

FCC Chairman Julius Genachowski’s plan for the “Open Internet” gained support from fellow Democrats Michael Copps and Mignon Clyburn, resulting in approval of the order by the Federal Communications Commission (FCC) on Tuesday, December 21, 2010.

The new rules strive for balance between the interests of ISPs, content publishers and consumers. However, some industry analysts think a court challenge is likely.

The point of contention is whether the regulators need to guarantee that all stakeholders continue to have reasonable Internet access, a principle referred to as “net neutrality,” or whether the web is best left unregulated.

The FCC’s right to regulate the Internet has been in jeopardy since an appeals court ruled the agency lacked the authority to stop cable company Comcast Corp. from blocking bandwidth-intense applications in April.

Senior FCC members have said they will invoke new legal arguments not used in the Comcast case. The two Republican commissioners on the FCC opposed the latest rule-making effort saying it was unnecessary and would stifle innovation. In an open meeting, Robert McDowell and Meredith Attwell Baker stated they believed the rules would not stand up in court.

Since high-speed ISPs such as Comcast and Verizon can “reasonably” manage their networks under the rules, they can likely charge consumers based on levels of Internet usage.

The rules, which will be somewhat looser for the wireless Internet, could help cable companies in competition with Microsoft , Google and Amazon, who plan to deliver competing video content over the Internet lines that the cable companies run to customers’ homes.

Adoption of the measure was expected after Copps and Clyburn issued statements on Monday saying they would support the proposal despite some misgivings. However, McDowell warned that the FCC was defying the earlier court ruling and also circumventing the will of Congress. Due to the fact that Republicans will be in control of the U.S. House of Representatives in January and also made gains against the Democrats in the Senate in November’s elections, the new rule may be in jeopardy.

“Litigation will supplant innovation. Instead of investing in tomorrow’s technologies, precious capital will be diverted to pay lawyers’ fees,” warned McDowell.

Genachowski, speaking last at the meeting, said the Internet currently was unprotected and invoked the names of his Republican predecessors to back adoption of the rules.

“The rules of the road we adopt today are rooted in ideas first articulated by Republican Chairmen Michael Powell and Kevin Martin, and endorsed in a unanimous FCC policy statement in 2005,” declared Genachowski.