The Federal Communications Com­mission once again has come up short in its attempt to regulate broadband Internet service providers, but the decision last week by a divided panel of federal appellate judges in some ways also strengthened the agency’s hand — and sets the stage for a potentially epic showdown over new rules.

The U.S. Court of Appeals for the D.C. Circuit on Jan. 14 struck down most of the FCC’s Open Internet Order on technical ground, ruling in favor of Verizon Communications Inc. and a host of industry supporters. But for the first time, the court established that the FCC holds the authority to issue rules governing broadband providers.