In a move being applauded by players on both sides of the Net neutrality debate, the Federal Communications Commission today said it is beginning an inquiry into “market practices” in the broadband services arena.

Specifically, the FCC will examine whether broadband service providers are adhering to the four general principles of broadband deployment it issued in 2005 that were intended to preserve the open Internet.

The move represents something of a reversal, as FCC Chairman Kevin Martin has said in the past the agency wouldn’t address Net neutrality. Advocates of federal rules prohibiting broadband service providers from establishing differing prices or service tiers have continued to mount pressure on the issue, and gained some ground when the Democrats took over the U.S. Congress.

The inquiry will look at how broadband providers manage Internet traffic, whether they charge different prices for different speeds or service capacities, whether FCC policies should distinguish between content providers that charge for access to content and those that give it away, and how consumers are affected by current practices. It also will determine whether the FCC should establish a new principle of nondiscrimination and how that should be defined.

“Gathering this information will allow us to better monitor this market and determine the extent to which providers are acting consistently with our Internet Policy Statement,” Martin said, in a prepared statement. “The Commission is ready, willing and able to step in if necessary. We have the dual responsibilities of creating an environment that promotes infrastructure investment and broadband deployment and to ensure that consumers' access to content on the Internet is protected. We can best fulfill these responsibilities by being fully informed.”

The two Democrats on the FCC, Jonathan Adelstein and Michael Copps, concurred with the move, although both thought the commission should have gone farther.

“I support this effort to open a proceeding because it is critical that the commission focus a spotlight on this issue,” he said in a statement. “Nevertheless, given the importance of Internet freedom, I would have preferred a more pro-active approach, including the adoption of a Notice of Proposed Rulemaking. This commission must not send a signal that preserving the open character of the Internet is anything less than a top priority.”

AT&T said it welcomes the inquiry as a way of “separating fact from fiction.”

“For all consumers to reap the benefits of the broadband era, policymakers need to make informed decisions that rely on record evidence grounded in facts,” Robert Quinn, senior vice president of AT&T Federal Regulatory, said in a statement. “The impact on investment, deployment and innovation in the broadband marketplace are just too important to gamble on hypothetical arguments that are not burdened by the facts. That is why we applaud the FCC for launching this important proceeding. We finally will move the debate from fiction to fact. Real evidence presented in the record will show vast consumer benefits of decreasing broadband prices, faster broadband speeds and greater broadband deployment.”

The Telecommunications Research Action Council, a consumer watchdog agency, also applauded the FCC’s action.

“TRAC applauds the Federal Communications Commission’s decision to engage in a formal Notice of Inquiry on issues related to the type and nature of openness mandates for the Internet,” it said in a statement. “The Internet has dramatically changed the landscape of American society. It has shifted power from the few to the many and continues to do so. TRAC urges the FCC to also closely monitor the Internet and to be prepared to act quickly in the event of any abuses during this process. However, we urge the Commission to move cautiously before imposing any additional detailed regulation on the Internet.”

Separately, the FCC also said it would look into the fairness of long-term exclusive contracts that cable companies have established with operators of multi-dwelling units, a move applauded by USTelecom.