The rules are necessary to protect innovation on the Internet and preserve the openness that has allowed the Internet to blossom, said FCC Chairman Julius Genachowski.

"The problem is not merely that we've seen some significant situations where broadband providers have degraded the data streams of popular lawful services and blocked consumer access to lawful applications," he said. "The heart of the problem is that … we face the dangerous combination of an uncertain legal framework with ongoing as well as emerging challenges to a free and open Internet.

"Given the potentially huge consequences of having the open Internet diminished through inaction, the time is now to move forward with consideration of fair and reasonable rules of the road," he added.

But Commissioner Robert McDowell suggested the Internet has seen massive growth because of a lack of regulations. The proposed rules regulate network providers, but not Web applications vendors, while supporters assume new innovation will come from applications and not networks, he said.

"The Internet is perhaps the greatest deregulatory success story of all time," said McDowell, a Republican. "No government has ever succeeded in mandating innovation and investment."

New rules could inadvertently hurt the growth of the Internet and give a precedent to other nations that want to create all kinds of new Internet regulations, McDowell added.