The Federal Communications Commission (FCC) may change rules regulating phone companies' internet services, affecting the ability of independent internet providers to offer high-speed service, iMedia reports. Phone companies would no longer be subject to regulations that require them to lease internet line capacity to competitors. The move would hurt smaller internet service providers and provide incentive to larger phone companies to expand their broadband networks.

"Right now, cable modem providers operate free of most regulation. As you know, this not the case for most telcos who [sic] must provide their services subject to legacy regulations. This disparity continues to distort the marketplace," says FCC Chairman Kevin Martin.

The Supreme Court in June upheld the FCC's authority to regulate cable internet services. The FCC had applied a standard that granted cable companies the ability to exclude competitors from using their broadband internet lines.