UPDATE: Cable stocks fell today on fears of new FCC regulation of the broadband business. Reuters story here. FCC issued a string of statements designed to clarify what the agency plans to do. Statements here.
EARLIER: The Federal Communications Commission's plan to regulate broadband Internet service creates "chaos" and "uncertainty" that will likely lead to less investment by Comcast and other cable-based telecom companies, Verizon and other phone and wireless providers, and even Google and other Web-based services, Bernstein Research analyst Craig Moffett tells clients in a new report. Expect legal challenges and more details in the days and months to come.
If the FCC wins, it's good news for DirecTV and Dish Network because it could hobble their competition. And maybe for small companies that can force the giants to carry their services cheaper. What about consumers? FCC may control broadband charges; Moffett argues that's bad because it will lead to crowded, rundown networks.