In CA's recently passed SB822, "Paid Prioritization" is not allowed, but "Reasonable Network Management" is allowed.
“Paid prioritization” means the management of an Internet service provider’s network to directly or indirectly favor some traffic over other traffic, including, but not limited to, through the use of techniques such as traffic shaping, prioritization, resource reservation, or other forms of preferential traffic management, either (1) in exchange for consideration, monetary or otherwise, from a third party, or (2) to benefit an affiliated entity.
“Reasonable network management” means a network management practice that is reasonable. A network management practice is a practice that has a primarily technical network management justification, but does not include other business practices. A network management practice is reasonable if it is primarily used for, and tailored to, achieving a legitimate network management purpose, taking into account the particular network architecture and technology of the broadband Internet access service, and is as application-agnostic as possible.
According to EFF:
Reasonable network management means that ISPs can slow things down, speed things up, and even block things in the interests of making sure a service like remote surgery works as intended.
Suppose an hypothetical ISP wishes to provide a two tier service for end users:
- Real time (user), always close to 100 Mpbs
- Economy (user) , minimum average 10 Mpbs, max 100 Mpbs traffic permitting
and another two tier service for providers:
Real time (prov), always 100 Mpbs to customer (*)
Economy (prov), minimum average 10 Mpbs, max 100 Mpbs to customer (*)
(* provided the intervening third party networks allow that bandwith)
(1) Is it correct that SB822 allows for for such a business model, provided that the same services are offered to all users and providers without discrimination?
(2) Why have the ISPs never attempted to institute non-discriminatory tiered services?
The example account types are not meant to be realistic - this question is meant to query the legal principle.
There is no "net-neutrality" topic, so I chose "internet", "contract-law" and "consumer-protection" instead as a rough stab to satisfy the topic requirement.