(WASHINGTON, DC) The U.S. Court of Appeals for the District of Columbia ruled on April 6, that the FCC does not have statutory authority to regulate the network management practices of Internet Service Providers. In the case, brought by mega-ISP, Comcast, the Appeals Court agreed with Comcast in a unanimous decision, and reversed a 2008 sanction against Comcast by the FCC. The decision was cheered by advocates of an unregulated Internet, and jeered by supporters of FCC oversight.

The ruling was based on a 2002 FCC decision to deregulate broadband Internet service, which was ultimately upheld by the Supreme Court. Numerous bills in Congress to grant FCC authority over the Internet have lacked support and have not been enacted. President Obama said, during the campaign, that he favored Net Neutrality and would push for it.

In addition to the blow to the FCC’s desire to enact Net Neutrality without Congressional approval, the plan announced last month by FCC Chairman Julius Genachowski to use the Universal Service Fund to subsidize a national broadband plan may also have to be scuttled because the FCC no longer has regulatory authority.

The prepaid community is as divided over the issue as are politicians. At last year’s Prepaid Press Expo, conference participants spoke both in favor and against the idea of Net Neutrality.

The FCC’s next move is uncertain. It could appeal the decision to the Supreme Court, where it is not likely to find a sympathetic ear based on earlier rulings. Or, it could attempt to reverse its own past rulings, which could also be overturned by the Court. There are some in Congress, notably Massachusetts Senator John Kerry, who want to enact legislation giving the FCC express authority over the Internet, but in an election year with other priorities, it is unlikely that any action will be taken in the near future.