In a move that would reinforce the Federal Communications Commission (FCC)’s authority over broadband providers, the agency’s chairman Julius Genachowski Thursday proposed a middle-of-the-road approach for regulating broadband - placing Internet service providers (ISPs) into the same category as the telephone companies.

Describing his “third way” proposal as a middle ground between a “heavy-handed” policy and a flippant approach, Genachowski suggested that some specific provisions of regulations framed for regulating traffic on copper-wire telephone networks should be made applicable to broadband Internet service as well.

According to Genachowski, such a move would not only help promote competition among ISPs, and safeguard the free flow of Web traffic; but will also ensure that the consumers are adequately protected.

Noting that he intends exempting ISPs from many of the rules that are characteristically applicable to telephone companies, Genachowski said: “I sought an approach consistent with the limited but essential role that government should play with respect to broadband communications.”

However, despite the concessions suggested by the FCC chairman – reiterating that he has no intention of burdening the flourishing broadband industry with a heavy regulatory hand -, the proposal still was met with swift opposition from most of the country’s biggest ISPs as well as analysts, who are of the opinion that regulation of broadband will largely affect business and investment decisions of broadband providers.