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Revolving Door: When Former FCC Commissioner Robert McDowell Speaks, It’s Verizon and AT&T Talking

Phillip Dampier January 20, 2015 Consumer News, Net Neutrality, Public Policy & Gov't Comments Off on Revolving Door: When Former FCC Commissioner Robert McDowell Speaks, It’s Verizon and AT&T Talking
D.C.'s perpetually revolving door keeps on spinning.

D.C.’s perpetually revolving door keeps on spinning.

A former Republican member of the Federal Communications Commission is calling on the federal agency to stop consideration of strong Net Neutrality rules and defer to a Republican drafted bill that would dramatically weaken Open Internet protections.

Robert McDowell said the FCC should defer to Congress and avoid adopting a “Depression era law designed to regulate phone monopolies” as the foundation for Net Neutrality enforcement.

“While Republicans and Democrats try to work out a deal, FCC Chairman Tom Wheeler should hit the pause button on next month’s vote and let the elected representatives of the American people try to find common ground,” he wrote in a Wall Street Journal op-ed Monday. “At the end of this constitutional process, all sides may be able to claim victory. It’s time to consider a different path — one that leads through Congress — to end the Net Neutrality fiasco. Although the legislative process can be perilous, Congress can provide all sides with a way out.”

McDowell’s comments fall tightly in line with the fierce lobbying campaign against Net Neutrality being run by companies like Comcast and AT&T.

That may not be surprising considering McDowell’s trip through the notorious “D.C. Revolving Door,” where ex-government employees go to work on behalf of the industries they formerly regulated.

McDowell

McDowell

After retiring from the FCC, McDowell landed a position with the law firm Wiley Rein LLP, a corporate favorite for litigation against government oversight and regulatory public policies. It was Wiley Rein LLP that represented Comcast in 2010, successfully arguing the FCC had no right to oversee Comcast’s Internet service under the Section 706 “information service” framework still at issue today.

The D.C. Circuit unanimously ruled, “the Commission failed to tie its assertion of ancillary authority over Comcast’s Internet service to any ‘statutorily mandated responsibility,'” a long-winded way to say that the FCC’s reliance on its limited authority to oversee broadband as an “information service” in reality gave the FCC almost no right of oversight at all.

Ironically, that case is what prompted Internet activists to demand the FCC reclassify broadband as a “telecommunications service” under Title II to give the FCC the authority it needs to oversee broadband providers, exactly what McDowell does not want.

The ruling (emphasis ours):

Turning to ancillary authority, the Court rejected each of the statutory provisions on which the Commission relied.  Relying on a number of Supreme Court precedents, the Court held that “policy statements alone cannot provide the basis for the Commission’s exercise of ancillary authority,” id. at 22, and thus rejected the Commission’s reliance on Section 230(b) and Section 1 of the Communications Act and Section 706 of the Telecommunications Act of 1996.  The Court explained that allowing congressional policy to create “statutorily mandated responsibilities” sufficient to support the exercise of ancillary authority “would virtually free the Commission from its congressional tether.” Id. at 23.  The Court then rejected the remaining statutory provisions that “at least arguably delegate regulatory authority to the Commission,” id. at 16, on a variety of substantive and procedural grounds, including waiver.

Few media sources have bothered to disclose that McDowell’s new employer counts among its current clients two of the biggest Net Neutrality foes in the industry: AT&T and Verizon.

Channeling Pinnochio, NCTA Cable Lobby Launches “The Infinite Internet” (They Want to Usage Cap)

Phillip Dampier January 20, 2015 Astroturf, Competition, Consumer News, Data Caps, Editorial & Site News, Net Neutrality, Online Video, Public Policy & Gov't, Video, Wireless Broadband Comments Off on Channeling Pinnochio, NCTA Cable Lobby Launches “The Infinite Internet” (They Want to Usage Cap)

pinnocThe National Cable & Telecommunications Association (NCTA), the nation’s largest cable lobbying group, has outdone itself with a brand new fact-challenged video truth-seekers will quickly discover is little more than industry propaganda.

“For nearly 20 years, cable has been building Internet networks that are empowering everyone from innovators and entrepreneurs to kids in the garage,” says the NCTA in its introduction of its new video “The Infinite Internet.” “The Internet propels business, education, entertainment – whatever we want. It’s a platform of possibilities and the fast growing technology in history. Cable is proud of the part we’ve played in advancing America’s future and we’ll continue to make it faster and more accessible.”

Except many NCTA member companies want to introduce usage caps and consumption billing that limit those possibilities on an already absurdly profitable service. The same broadband duopoly of cable and phone companies also holds America’s broadband rankings back, and has demonstrated its real priority is to charge more money for less service.

We’ve reviewed the video and found credibility problems with almost every claim:

Claim: “America’s ISPs have invested trillions of dollars and laid 400,000 miles of fiber optics.”

Our finding: FIB Even industry mouthpieces like the Progressive Policy Institute and NCTA members themselves have a problem with “trillions.” The chief executives of AT&T, Bright House Networks, Cablevision, CenturyLink, Charter, Comcast, Cox, Frontier, Suddenlink, Time Warner Cable, 15 other companies, and industry groups such as the National Cable & Telecommunications Association itself, the Telecommunications Industry Association, and the CTIA Wireless Association claimed in the spring of 2014 that the entire telecommunications industry (not cable alone) spent a combined $1.2 trillion on communications infrastructure. A considerable percentage of that investment was to build out cellular networks, first for mobile phone calls and only later for wireless data. The cable industry spent far less than $1 trillion on its own infrastructure and at the time of its most rapid growth, it was intended primarily to deliver cable television, not broadband.

Stop the Cap! also found the NCTA cheating in its claims of increasing investment in broadband. The trade group was citing cumulative spending, not actual year-to-year spending. A careful review shows broadband investments are generally flat or in decline and are nowhere near comparable to the investments the industry made in the late 1990s.

Although it may be true the cable industry has deployed 400,000 miles of fiber optics, the overwhelming majority of cable customers cannot directly access any of it. Virtually all the cable industry’s fiber is deployed between the company’s headquarters and individual communities where it is connected to the same coaxial cable platform that has been around since the 1960s. Most of the rest is laid for commercial purposes, notably providing backhaul connectivity for cell towers. Time Warner Cable alone deployed fiber to its 10,000th cell tower back in 2013. It’s a lucrative business, earning that cable company more than $61 million a quarter.

BroadbandNow found no cable company appearing on the list of top fiber broadband providers. In fact, as of 2012 only 23% of Americans have access to fiber broadband ranking the United States 14th among western countries in fiber optic penetration according to the OECD.

Claim: “High speed connections reach nearly every home with blazing fast speeds that power our lives.”

Our finding: HIGHLY MISLEADING The NCTA fails to define its terms here. What exactly constitutes a “high-speed connection.” The FCC currently defines broadband as providing speeds of 4Mbps or better. Is that “blazing fast?” The FCC is currently considering redefining broadband to mean speeds of at least 25Mbps, well below many cable company entry-level broadband tiers. The NCTA also likes to claim that 99% of households have access to high-speed Internet, but they include wireless technology at any speed in those figures. If you can get one bar from AT&T’s 3G wireless Internet network, you’ve got high-speed broadband in their eyes.

In fact, when it comes to stingy coverage areas, cable is notoriously not available outside of the biggest cities and suburbs, as the government’s own National Broadband Map depicts:

Map showing cable companies offering at least DOCSIS 3.0 cable broadband service.

Map showing cable companies offering at least DOCSIS 3.0 cable broadband service.

Claim: “ISP’s want access for everyone.”

Our finding: TRUE, WITH MISSING FINE PRINT What company would not want to offer its products and services to everyone. The real question is whether they plan on doing that or simply wishing they had. The cable industry has no intention of implementing sweeping changes to the Return On Investment (ROI) formula that determines whether your home gets access to cable or not. Some companies like Time Warner Cable and Frontier Communications are expanding their cable and DSL networks, but only when the government steps in with broadband deployment grant funding.

Assuming service is available, the next hurdle is cost. BBC News reported in 2013 home broadband in the U.S. costs far more than elsewhere. At high speeds, it costs nearly three times as much as in the UK and France, and more than five times as much as in South Korea. Today it costs even more when you count the growing number of providers charging modem rental fees as high as $10 a month and often cap usage or force customers into usage-based billing schemes.

Claim: “With over 300,000 public Wi-Fi hotspots, the Internet of Things is emerging.”

Cox Cable sells their customers on accessing over 300,000 Wi-Fi hotspots, with a prominent asterisk.

Cox Cable sells their customers on accessing over 300,000 Wi-Fi hotspots, with a prominent asterisk. Access is only available for free if you are a current cable broadband customer.

Our finding: MISLEADING The NCTA is referring to collaboration between Bright House Networks, Cox Communications, Optimum, Time Warner Cable and XFINITY that allow each other’s high-speed Internet customers to use to each company’s Wi-Fi hotspots. They key word is “customers.” The hotspots may be technically reachable by the public, but unless you are a current cable broadband subscriber, using them typically requires the purchase of a daily use pass.

Claim: “Cable will continue to invest, building this platform of possibilities, if we preserve the freedom that created the Internet.”

Our finding: EMPTY CLAIMS The NCTA’s commitment that the cable industry will continue to invest is fulfilled if one cable operator spends just $1 on their network infrastructure. Notice the NCTA does not commit its members to stopping the ongoing decline in broadband investment, much less move to increase it. It also has no explanation for the annual rate increases and new fees and surcharges customers are paying, as the gap between broadband pricing abroad and at home grows even larger. 

“Preserve the freedom” is code language for maintaining the deregulation that the industry has used to its advantage to raise prices in a broadband market most Americans will find is either a monopoly or duopoly. Although the NCTA implies it, the cable industry did not create the Internet. It was a government project (gasp!) initially developed through contracts with the Department of Defense and soon broadened to include educational institutions. The first significant commercial ISPs emerged only in the late 1980s. Cable industry broadband finally showed up around a decade after that. The industry’s claims are akin to boasting Lewis and Clark discovered Kansas City… in 1966.

If the cable industry gets some oversight of its broadband service and enforced protection of Net Neutrality, does that mean investment will flee? First, providers are already spending a lower percentage of capital on broadband expansion in the current deregulatory environment. Second, as broadband becomes the cable industry’s top earner, it provides an endless supply of revenue without the headaches of negotiating programming contracts, dealing with cable television network rate increases, and the growing phenomenon of cord-cutting. In other words, without significant new competition, it remains a license to print money.

[flv]http://www.phillipdampier.com/video/NCTA The Infinite Internet 1-20-15.mp4[/flv]

The NCTA is trying to make hay with its new video, “The Infinite Internet” which purports to share how Big Cable’s vision of the Internet is making new things possible. They don’t mention many of their member companies want to place a usage cap on that innovation, even as they continue to raise prices way out of proportion of the cost of delivering the service. It’s classic cable industry propaganda. (1:08)

Republicans’ Fake Net Neutrality Alternative Contains Grand Canyon-Sized Loopholes

Thune

Thune

When Sen. John “Net Neutrality is unjustified” Thune (R-S.D.) and Rep. Fred “Net Neutrality is a solution in search of a problem” Upton (R-Mich.) last week magically became Internet activists ready to solve the Net Neutrality issue with an “unambiguous” bill to “protect Americans” from greedy ISPs, you will pardon me if I am just a tad suspicious.

The two Republicans who champion “less government regulation is better” and “let the marketplace decide for itself”-principles are proposing new legislation that will regulate the conduct of Internet Service Providers, claiming it will tie their hands and prevent the launch of Internet fast lanes and ban traffic degradation.

The two legislators are traveling in a fast lane of their own — hurrying to schedule hearings, mark up a bill, and speed it to the floor for consideration by the end of this month. That’s a marked departure for the U.S. Congress-as-usual, the one that can’t manage to pass virtually anything, much less in a hurry. So where is the fire?

It is at the Federal Communications Commission in Washington, scheduled to vote on its own new Net Neutrality proposal by the end of February. Thune and Upton are hoping to launch a pre-emptive strike against the anticipated strong Open Internet protections the FCC will probably enact on a party line vote. The FCC is likely to pursue a reclassification of broadband away from the lobbyist-lovin’, largely deregulated “information service” it is today towards a “telecommunications service” under Title II of the Communications Act. That represents Comcast’s worst nightmare.

???????????????????????????????Current FCC rules have allowed traffic shenanigans from ISPs like Comcast that don’t mind slowing their customers’ Netflix experience to a crawl until the streaming company opens its checkbook. The FCC’s anticipated new proposal would strictly forbid any creative end-runs around the concept of paid fast lanes Comcast can get away with today.

The proposed Republican alternative suggests a “third way” compromise only Comcast and AT&T could love. While ostensibly banning intentional interference with Internet traffic, the two legislators include a Grand Canyon-sized loophole in the form of one word you could fly an Airbus A380 through: reasonable

SEC. 13. INTERNET OPENNESS.

(a) OBLIGATIONS OF BROADBAND INTERNET ACCESS SERVICE PROVIDERS.—A person engaged in the provision of broadband Internet access service, insofar as such person is so engaged (1) may not block lawful content, applications, or services, subject to reasonable network management; may not prohibit the use of non-harmful devices, subject to reasonable network management; may not throttle lawful traffic by selectively slowing, speeding, degrading, or enhancing Internet traffic based on source, destination, or content, subject to reasonable network management; may not engage in paid prioritization; and shall publicly disclose accurate and relevant information in plain language regarding the network management practices, performance, and commercial terms of its broadband Internet access services sufficient for consumers to make informed choices regarding use of such services and for content, application, service, and device providers to develop, market, and maintain Internet offerings, except that a provider is not required to publicly disclose competitively sensitive information or information that could compromise network security or undermine the efficacy of reasonable network management practices.

No ISP has ever declared its own traffic management policies unreasonable, so whatever they do, in their minds, is “reasonable” by definition.

Upton

Upton

The proposed bill would keep Net Neutrality far away from the critical Title II foundation it needs — essential armor that will help withstand inevitable court challenges by providers outraged by the government’s attempt to interfere with their free speech rights (at the expense of their customers’ freedom from content-killing traffic slowdowns).

The concept of “network management” is Play-Doh in Comcast and AT&T’s hands. It could mean balancing traffic by adding more capacity as needed or implementing a “fair access policy” that rations inadequate capacity. Both could easily be called “reasonable” by them. Customers paying for 25Mbps and getting 6Mbps during the evenings may think otherwise.

But no worries, the Republicans’ plan requires ISPs to disclose exactly how they are undercutting the broadband service you paid good money to receive. They claim that will give you an “informed choice,” except for many Americans, there is no choice.

The FCC’s plan is much more likely to stop to the tricks, traps, and traffic manipulation in whatever form arises now or in the future. It uses well-established precedent that is unlikely to be thrown out by the courts, delivers real oversight desperately needed in the monopoly/duopoly broadband marketplace, and will actually protect consumers.

The Republican alternative primarily protects AT&T, Comcast, and their chances of getting more campaign contributions from their friends in the cable and phone business. In short, it isn’t worth your time, and you should tell your member of Congress it isn’t worth theirs either.

Shakedown Sharpton: Buy Quid Pro Quo Minority Support for Your Big Telecom Merger Deal

Phillip Dampier January 12, 2015 Astroturf, AT&T, Comcast/Xfinity, Competition, Consumer News, Net Neutrality, Public Policy & Gov't Comments Off on Shakedown Sharpton: Buy Quid Pro Quo Minority Support for Your Big Telecom Merger Deal

shakedown alLooking for civil rights groups to support your multi-billion dollar telecom merger and keep minority groups off your back?

You couldn’t do better than cutting a check to Rev. Al Sharpton, whose National Action Network (NAN) will generate form letters praising your killer deal before regulators or help garner support in Congress for more deregulation and less Net Neutrality. All it takes is a few donations and consulting fees, according to a special report published by the New York Post.

“Al Sharpton has enriched himself and NAN for years by threatening companies with bad publicity if they didn’t come to terms with him. Put simply, Sharpton specializes in shakedowns,” Ken Boehm, chairman of the National Legal & Policy Center told the Post.

“Once Sharpton’s on board, he plays the race card all the way through,” said a source who has worked with the Harlem preacher. “He just keeps asking for more and more money.”

Sharpton’s 60th birthday party bash last October at Manhattan’s Four Seasons restaurant departed from the usual friends and family oriented affair most of us would expect, as envelopes arrived from some of America’s largest corporations, including AT&T and Verizon, containing at least $1 million in donations for Sharpton’s civil rights group.

Coincidentally, that same month Sharpton co-signed a letter sent to the FCC urging the regulator to approve AT&T’s deal to buy DirecTV.

“We believe the evidence and the company’s record, as well as future impact and commitments post-merger, provide a clear and compelling basis for the FCC to determine that this merger is in the public’s best interest,” the letter said. “If approved, the combined AT&T-DirecTV will have greater incentive to deploy a state of the art Internet service and give millions of Americans a new way to access the Internet’s economic, social, and civic benefits.”

If approved, the deal would also eliminate one of AT&T’s chief competitors for pay television customers, making DirecTV part of the AT&T family.

Money-Stuffed-Into-PocketWhile the money keeps rolling in, Sharpton has left taxpayers footing his bills. Sharpton himself, his nonprofit NAN, and two for-profit firms controlled by him have racked up $4.7 million in outstanding debt and tax obligations according to federal and New York State records. He owes New York taxpayers $806,875 and after not bothering to pay his personal income taxes in full, he owes $2.6 million in federal liens. Sharpton’s NAN still owes more than $800,000 to the federal government and his two for-profit ventures separately owe New Yorkers nearly $450,000.

Raising money to repay debts appears to be a major priority for Sharpton these days, and companies like Comcast covet his support of their corporate agendas.

Shortly after Comcast announced its intention to acquire NBC-Universal in late 2009, Comcast’s chief executive, Brian L. Roberts, and the head of the company’s lobbying effort, David L. Cohen, met with Sharpton and other representatives of minority groups to talk about their bid. Comcast recognized that support from minority groups would be crucial to answering the inevitable charge that giant media mergers have a tendency to reduce diversity in programming, particularly from and for minorities.

Comcast turned on its money spigot, donating at least $140,000 to Sharpton’s National Action Network. In turn, Sharpton took a sudden interest in the merger, penning letters of strong support to the FCC. Between 2008 and 2010, Comcast’s corporate foundation donated more than $3 million to 39 minority groups that wrote letters to federal regulators in support of the NBC deal. Comcast and NBC Universal also worked out an agreement with advocacy groups guaranteeing increased “minority participation in news and public affairs programming”—so long as the deal went through.

Comcast supporter turned Comcast-owned MSNBC host.

Sharpton: Comcast supporter turned Comcast-owned MSNBC host.

Few expected that Sharpton himself would be a direct beneficiary of Comcast’s gratitude after the merger was approved. Sharpton was suddenly hired (for an undisclosed amount) as host of his own MSNBC weeknight show, still on the network today.

The New York Times noticed.

“Rarely, if ever, has a cable news channel employed a host who has previously campaigned for the business goals of the channel’s parent company,” the newspaper wrote.

Since the cable company began cutting checks to the NAN, Sharpton has towed the line on Comcast’s public policy agenda.

Last July, Sharpton’s group joined several other civil rights groups (most, if not all financially supported by Comcast) complaining that enforcing Net Neutrality would “harm communities of color.”

“The groups wrote to the FCC to tell them that ‘we do not believe that the door to Title II should be opened,'” said Lee Fang in a piece that was quickly censored by a Comcast-owned news outlet. “Simply put, these groups, many of which claim to carry the mantle of Martin Luther King Jr., are saying that Comcast and Verizon should be able to create Internet slow lanes and fast lanes, and such a change would magically improve the lives of non-white Americans.”

“Just as Martin Luther King Jr.’s children have embarrassingly descended into fighting bitterly over what’s left of his estate, the civil rights groups formed to advance Dr. King’s legacy seem willing to sell out their own members for a buck,” Fang concluded.

FCC’s Tom Wheeler Falls in Line Behind President Obama’s Strong Net Neutrality Agenda

Wheeler

Wheeler

The chairman of the Federal Communications Commission has foreshadowed his revised plan for Net Neutrality will include reclassification of broadband as a utility, allowing the agency to better withstand future legal challenges as it increases its oversight of the Internet.

Tom Wheeler’s latest comments came during this week’s consumer electronics show in Las Vegas. Wheeler stressed he supports reclassification of broadband, away from its current definition as an “information service” subject to Section 706 of the Telecom Act of 1996 (all two broadly written paragraphs of it) towards a traditional “telecommunications service.” Under the Communications Act of 1934, that would place broadband under Title II of the FCC’s mandate. Although at least 100 pages long, Title II has stood the test of time and has withstood corporate lawsuits and challenges for decades.

Section 706 relies almost entirely on competition to resolve disputes by allowing the marketplace to solve problems. The 1996 Telecom Act, signed into law by President Bill Clinton, sought to promote competition and end “barriers to infrastructure investment.” Broadly written with few specifics, large telecom companies have successfully argued in court that nothing in Section 706 gives the FCC the right to interfere with the marketing and development of their Internet services, including the hotly disputed issues of usage caps, speed throttling, and the fight against paid fast lanes and Internet traffic toll booths. In fact, the industry has argued increased involvement by the FCC runs contrary to the goals of Section 706 by deterring private investment.

An executive summary of a report published on the industry-funded Internet Innovation Alliance website wastes no time making that connection, stating it in the first paragraph:

Net neutrality has the potential to distort the parameters built into operator business cases in such a way as to increase the expected risk. And because it distorts the operator investment business decision, net neutrality has the potential to significantly discourage infrastructure investment. This is due to the fact that investments in infrastructure are highly sensitive to expected subscriber revenue. Anything that reduces the expectation of such revenue streams can either delay or curtail such investments.

netneutralityUnfortunately for consumers, even the chairman of the FCC concedes the broadband marketplace isn’t exactly teeming with the kind of competition Section 706 envisioned to keep the marketplace in check. In fact, Wheeler suggested most Americans live with a broadband duopoly, and often a monopoly when buying Internet access at speeds of 25Mbps or greater. Further industry consolidation is already underway, which further deters new competitors from entering the market.

Net Neutrality critics, the broadband industry, and their allies on Capitol Hill have argued that adopting Title II rules for broadband will saddle ISPs with at least one hundred pages of rules originally written to manage the landline telephone monopoly of the 1930s. Title II allows the FCC to force providers to charge “just and reasonable rates” which they believe opens the door to rate regulation. It also broadly requires providers to act “in the public interest” and unambiguously prohibits companies from making “any unjust or unreasonable discrimination in charges, practices, classifications, regulations, facilities, or services.”

Both Comcast and Verizon have challenged the FCC’s authority to regulate Internet services using Section 706, and twice the courts have ruled largely in favor of the cable and phone company. Judges have no problem permitting the FCC to enforce policies that encourage competition, which has allowed the FCC some room to insist that whatever providers choose to charge customers or what they do to manage Internet traffic must be fully disclosed. The court in the Verizon case also suggested the FCC has the authority to oversee the relationship between ISPs and content providers also within a framework of promoting competition.

DC Circuit Court

DC Circuit Court

But when the FCC sought to enforce specific policies governing Internet traffic using Section 706, they lost their case in court.

Although Net Neutrality critics contend the FCC has plenty of authority to enforce Net Neutrality under Section 706, in reality the FCC’s hands are tied as soon as they attempt to implement anti-blocking and anti-traffic discrimination rules.

The court found that the FCC cannot impose new rules under Section 706 that are covered by other provisions of the Communications Act.

So what does that mean, exactly?

Michael Powell, former FCC chairman, is now the chief lobbyist for the National Cable & Telecommunications Association. (Photo courtesy: NCTA)

Michael Powell, former FCC chairman, is now the chief lobbyist for the National Cable & Telecommunications Association. (Photo courtesy: NCTA)

In 2002, former FCC chairman Michael Powell (who serves today as the cable industry’s chief lobbyist) presided over the agency’s decision to classify broadband not as a telecommunications service but an “information service provider” subject to Title I oversight. Whether he realized it or not, that decision meant broadband providers would be exempt from common carrier obligations as long as they remained subject to Title I rules.

When the FCC sought to write rules requiring ISPs not block, slow or discriminate against certain Internet traffic, the court ruled they overstepped into “common carrier”-style regulations like those that originally prohibited phone companies from blocking phone calls or preventing another phone company from connecting calls to and from AT&T’s network.

If the FCC wanted to enforce rules that mimic “common carrier” regulations, the court ruled the FCC needed to demonstrate it had the regulatory authority or risk further embarrassing defeats in the courtroom. The FCC’s transparency rules requiring ISPs to disclose their rates and network management policies survived Verizon’s court challenge because the court found that policy promoted competition and did not trespass on regulations written under Title II.

The writing on the wall could not be clearer: If you want Net Neutrality to survive inevitable court challenges, you need to reclassify broadband as a telecommunications service under Title II of the Communications Act.

Major ISPs won’t hear of it however and have launched an expensive media blitz claiming that reclassification would subject them to 100 pages of regulations written for the rotary dial era. Broadband, they say, would be regulated like a 1934 landline. Some have suggested the costs of complying with the new regulations would lead to significant rate increases as well. Many Republicans in Congress want the FCC to wait until they can introduce and pass a Net Neutrality policy of their own, one that will likely heavily tilt in favor of providers. Such a bill would likely face a presidential veto.

Suggestions the FCC would voluntarily not impose outdated or irrelevant sections of Title II on the broadband industry didn’t soothe providers or their supporters. Republican FCC commissioners are also cold to the concept of reclassification.

O'Rielly

O’Rielly

“Title II includes a host of arcane provisions,” said FCC commissioner Michael O’Rielly in a meeting in May 2014. “The idea that the commission can magically impose or sprinkle just the right amount of Title II on broadband providers is giving the commission more credit than it ever deserves.”

Providers were cautiously optimistic in 2014 they could navigate around strong Net Neutrality enforcement with the help of their lobbyists and suggestions that an industry-regulator compromise was possible. Early indications that a watered-down version of Net Neutrality was on the way came after a trial balloon was floated by Wheeler last year. Under his original concept, paid fast lanes and other network management and traffic manipulation would be allowed if it did not create undue burdens on other Internet traffic.

Net activists loudly protested Wheeler’s vision of Net Neutrality was a sellout. Wheeler’s vision was permanently laid to rest after last November when President Barack Obama suddenly announced his support for strong and unambiguous Net Neutrality protections (and reclassifying broadband as a Title II telecommunications service), No FCC chairman would likely challenge policies directly advocated by the president that nominated him.

Obama spoke, Thomas Wheeler listened. Wheeler’s revised Net Neutrality plan is likely to arrive on the desks of his fellow commissioners no later than Feb. 5, scheduled for a vote on Feb. 26. It’s a safe bet the two Republicans will oppose the proposal and the three Democrats will support it. But chairman Wheeler also listens to Congress and made it clear he doesn’t have a problem deferring to them if they feel it necessary.

“Clearly, we’re going to come out with what I hope will be the gold standard,” Wheeler told the audience in Las Vegas. “If Congress wants to come in and then say, we want to make sure that this approach doesn’t get screwed up by some crazy chairman that comes in, [those are] legitimate issues.”

If that doesn’t work, the industry plans to take care of the Net Neutrality regulation problem itself. Hours after any Net Neutrality policy successfully gets approved, AT&T has promised to challenge it in court.

[flv]http://www.phillipdampier.com/video/Fox Business News Net Neutrality Wheeler 1-8-15.flv[/flv]

Free Press CEO Craig Aaron appeared on Fox Business News to discuss Tom Wheeler’s evolving position on Net Neutrality. (3:54)

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