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President Obama Reiterates Support for Net Neutrality, Expresses Concern About Internet Overcharging

Phillip Dampier February 3, 2010 Net Neutrality, Public Policy & Gov't, Video No Comments

President Barack Obama reiterated his support for Net Neutrality policies and expressed concern about providers trying to charge higher fees and extract more money from consumers for broadband service.

In a post State of the Union question and answer session held on YouTube, the president responded to a question regarding policies that would forbid broadband providers from tampering with Internet traffic, typically for monetary gain.

“We’re getting push back, obviously, from some of the bigger carriers who would like to be able to charge more fees and extract more money from wealthier customers,” he said. “But we think that runs counter to the whole spirit of openness that has made the Internet such a powerful engine for not only economic growth, but also for the generation of ideas and creativity.”

The reference to charging higher fees and extracting more money from wealthier customers may signal Obama recognizes that Internet Overcharging schemes like usage limits and usage-based billing represent an end run around many Net Neutrality prohibitions.  By charging excessively high prices for broadband traffic, Internet providers can effectively choke off potential competition to both its phone and television programming businesses, as well as higher bandwidth innovations still to come.

The Obama Administration’s support for Net Neutrality dates back to the early days of the presidential campaign, when then-Senator Obama expressed support for Net Neutrality.  The Federal Communications Commission has been tasked to develop a Net Neutrality policy to be enforced by the Commission.

Critics contend the FCC has no authority to enforce such provisions.

Robert McDowell, one of the two minority Republican commissioners at the FCC predicted any attempt by the Commission to enact sweeping Net Neutrality policies would likely face a rapid challenge in the courts. One popular venue for such cases has been the DC Circuit Court of Appeals, which has a track record of deciding cases in favor of providers.

Such a ruling could partially or completely derail an FCC Net Neutrality policy until Congress passed legislation to specifically authorize the Commission to regulate broadband policy.  Congress can also pass Net Neutrality legislation itself.


President Barack Obama answers a question about Net Neutrality policy in his administration.

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