The FCC classifies broadband (such as FiOS) as an information service under Title I of the Communications Act, resulting in less strict rules than the ones applied to common carrier services (such as the traditional phone system) under Title II. But since both services are delivered over the same wire, Verizon FiOS is able to reap the benefits of utility regulation without the downsides.
via Report: Verizon FiOS claimed public utility status to get government perks | Ars Technica.
“The companies’ affiliates have acted together and have taken control of the customer-funded wires and networks, which are Title II, in multiple ways that allow the company to control both the end-user connection—speed, access, and use of the Internet—as well as the competitor side of attaching to the wire and delivering services to the end users,” Kushnick wrote in an e-mail. “We will be asking for the FCC to open the networks to all forms of competition because customers paid for it and they are Title II, and because the affiliate companies have created a bottleneck that controls the wires and blocks competitors.”