Marking the first step towards imposing limited regulations on broadband providers, the US Federal Communications Commission (FCC) Thursday voted 3-2 in favor of launching a notice of inquiry (NOI) to explore the so-called “third way” plan to regulate broadband. The “third way” plan will narrowly reclassify the transmission of data as a telecommunications service that the FCC can directly regulate.

The NOI essentially seeks public comment on FCC Chairman Julius Genachowski’s proposal for the reclassification of broadband as a common-carrier regulated service. The question that the NOI pertains to is - whether the FCC should apply all common-carrier rules to broadband or it should avoid making any change and try to rule on broadband provider actions on a case-by-case basis.

Noting that there are pros and cons to any approach, Genachowski said: “This is not an easy issue, or one without complexity. I remain open-minded; I welcome the possibility of new ideas.”

In Genachowski’s opinion, the reclassification will not only facilitate FCC’s creation of network neutrality rules, but will also help it protect broadband customers’ privacy, and redirect telephone subsidies to the deployment of broadband in the country.

Terming the limited application of common-carrier rules as a “narrow and tailored”, Genachowski said that the approach rejects the extremes abandoning FCC oversight of broadband or the application of all common-carrier regulations under Title II of the Telecommunications Act of 1996.