FCC tells court it has no “legal authority” to impose net neutrality rules

It's interesting to hear the arguments about broadband; is it considered a "service" or is it "telecommunications"? Reading the article it seems like the FCC want's to consider broadband as a service because ISPs have value-add services like DNS and caching.

I think that's probably incorrect because caching isn't necessary and DNS isn't involved in every packet that flows across the network. Come to think of it, I run my own DNS server and don't rely on my ISP "services" at all.

If ISPs become no longer considered common carriers, what will that mean to user-generated content on the internet? Would that apply to just residential ISPs? What about transit providers?