The sources said Genachowski thinks "reclassifying" broadband to allow for more regulation would be overly burdensome on carriers and would deter investment. But they said he also thinks the current regulatory framework would lead to constant legal challenges to the FCC's authority every time it attempted to pursue a broadband policy.
"The telephone and cable companies will object to any path the chairman takes," said Art Brodsky, a spokesman for Public Knowledge, a media public interest group. "He might as well take the one that best protects consumers and is most legally sound."
The sources spoke on the condition of anonymity because a final decision hasn't been made and because of the sensitive nature of the issue. FCC spokeswoman Jen Howard would say only that Genachowski has not made a final decision.
Telecommunications companies would cheer a decision from the FCC to retain the current regulatory structure.
"It should come as no surprise . . . that leading financial analysts and technology commentators have questioned this path," the biggest telecommunications and cable trade groups wrote in a letter to Genachowski last week, warning against further regulation.
All hail Obama for installing his presidential campagn Technology, Innovation, and Government Reform Group co-leader, and thus driving internet fairness backwards from where the Bush appointed Chariman was.
The FCC imposed no fine, but required Comcast to end such blocking in 2008. FCC chairman Kevin J. Martin said the order was meant to set a precedent that Internet providers, and indeed all communications companies, could not prevent customers from using their networks the way they see fit unless there is a good reason. In an interview Martin stated that "We are preserving the open character of the Internet" and "We are saying that network operators can't block people from getting access to any content and any applications." Martin's successor, Julius Genachowski has maintained that the FCC has no plans to regulate the internet, saying: "I've been clear repeatedly that we're not going to regulate the Internet."