Pai

FCC Chairman Ajit Pai is preparing to announce a complete dismantling of Net Neutrality protections enacted during the Obama Administration, despite millions of comments from Americans demanding the agency retain rules protecting an open internet.

According to a report in the Wall Street Journal (use link embedded in tweet below to avoid paywall), Pai seems poised to introduce a complete rollback of the rules requiring internet service providers to treat all web traffic equally, which appears to have been his original plan before opening the matter to public comment.

The changes, likely to be adopted by the 3-2 Republican majority at the FCC, will allow ISPs to sell paid or bundled packages of websites and content and offer it to consumers at higher speeds, lower prices, or without counting usage against data caps. “Paid prioritization” was specifically forbidden under rules introduced by Obama-era FCC chairman Thomas Wheeler, who expressed concern ISPs already wielded too much power over the internet experience.

FCC is expected to dismantle ‘open internet’ plan adopted by the Obama administration https://t.co/SxWKvvxcIy

— The Wall Street Journal (@WSJ) November 20, 2017

WSJ:

If the rollback survives likely legal challenges, it has the potential to reorder the online business environment. It could give internet providers such as AT&T Inc., Comcast Corp., Charter Communications Inc. and Verizon Communications Inc. more flexibility to use bundles of services and creative pricing to make their favored content more attractive to consumers.

These companies generally profess support for basic principles of “Net Neutrality,” such as not blocking content or throttling its delivery. But with the Obama-era bright-line rules widely expected to be eliminated, many experts predict the industry will experiment with new services. The big internet providers either declined to comment or didn’t respond over the weekend.

The change would affect not only how the internet is regulated, but who regulates it. Under the new plan, legal experts say, oversight responsibility would shift to include the Federal Trade Commission as well as the FCC.

The FTC has long been the principal regulator of most internet businesses, a regime effectively ended with the 2015 rules. The shift is significant because unlike the FCC, the FTC generally doesn’t adopt overarching rules, instead developing case-by-case determinations about what business behavior is fair or unfair.

‘I win’ — Pai wins a second 5-year term at the FCC.

Republicans in the U.S. Senate on Monday confirmed Federal Communications Commission Chairman Ajit Pai for a second five-year term at the regulatory agency at a time when he is in the process of dismantling the legacy left by the former Obama Administration, which introduced consumer telecommunications reforms and mandated Net Neutrality.

Pai won confirmation with unanimous Republican support, joined by four Democrats — Sens. Jon Tester (Mont.), Gary Peters (Mich.), Joe Manchin (W.V.), and Claire McCaskill (Mo.). Every other Democrat in attendance opposed his nomination, many raising serious doubts about his performance and regulator philosophy. Pai was a former lawyer for Verizon and has delivered policy speeches sponsored by large corporate interests, including Americans for Prosperity, which has close ties to the Koch Bros.

Although Pai promised in a statement after the vote he would continue to focus on “bridging the digital divide, promoting innovation, protecting consumers and public safety, and making the FCC more open and transparent,” his critics complain he has spent most of his time repealing Obama era rules and regulations to erase the legacy of his predecessor Thomas Wheeler.

Pai is widely expected to preside over the elimination of Net Neutrality/Open Internet protections, despite millions of objections from ordinary Americans who wrote the FCC in historic numbers. Most requested the agency preserve the rules that prevent internet providers from establishing paid fast lanes and speed throttles.

Pai “has established a clear record of favoring big corporations at the expense of consumers, innovators, and small businesses,” Senate Democratic Leader Chuck Schumer said.

Senate roll call vote on the nomination of Ajit Pai for another 5-year term.

The current FCC chairman has also received withering criticism from consumer and public interest groups for his apparent close ties to Sinclair Broadcast Group, which itself has ties to the Trump Administration. Critics accuse Pai of engineering FCC rule changes that closely coincide with the business agenda of Sinclair, the nation’s largest owner of local television stations. Sinclair is currently awaiting FCC approval of its acquisition of Tribune Media, which will include local stations serving major cities including New York, Chicago, and Los Angeles.

Sen. Elizabeth Warren (D-Mass.) was particularly critical of Pai’s performance, suggesting he was little more than a corporate tool:

“As powerful companies know, it is good to have friends on the inside and they have invested a lot of money in making friends. Giant corporations have spent unlimited amounts of money to elect politicians who will promote their views and to flood Congress with lobbyists who will work around the clock to destroy laws and rules that the industry doesn’t like and to reshape those laws to suit corporate interests.

“[…] Powerful corporations need weak agencies that won’t hold them accountable, so they work to fill those agencies with their allies — friends who can undo the rules that giant corporations don’t like. Friends who won’t go after those companies when they throw the rules out the window to make an extra buck. The FCC is one of the agencies that has been on their hit list for a long time, and now they see their opportunity to execute a corporate takeover of the FCC, and they started at the top with Ajit Pai, President Trump’s pick to chair the FCC. Since his appointment as chair of the FCC, Chairman Pai has worked at breakneck speed to transform the FCC from an agency that works in the public interest to a big business support group.”

Sen. Elizabeth Warren (D-Mass.) explains her reasons why she doesn’t support the nomination of FCC Chairman Ajit Pai for another five-year term. (8:43)

States and communities across the country are warning the Federal Communications Commission its proposal to limit local authority over wireless infrastructure siting will create chaos and open the door to public safety and aesthetics nightmares.

The FCC’s proposal would allegedly accelerate wireless infrastructure deployment by removing or pre-empting what some on the Commission feel are improper zoning barriers, unjustified fees meant to deter providers from adding new towers, and various other bureaucratic impediments. It would modify current “shot clock” rules that set time limits on applications and deem them automatically granted if a local or state authority failed to reach a decision in as little as 60 days.

Pai

While the wireless industry has expressed strong support for the proposed changes introduced by FCC Chairman Ajit Pai in March during the FCC’s “Infrastructure Month,” many states and localities are fiercely opposed to what some are calling a federal government takeover of local zoning and permitting. States as diverse as Illinois, Utah, and Maine have submitted comments objecting to the proposal, noting it will turn the FCC into a national zoning agency that could allow the installation of new cell towers and monopole antennas just about anywhere if the clock for consideration has run out.

Several communities have also submitted comments to the FCC reminding the agency its existing rules have allowed some providers to abuse the system, with further easing of regulatory oversight on the local level only increasing the potential for more abuse.

Communities have complained some providers have intentionally overwhelmed local authorities by submitting “bulk applications” that attempt to win approval for dozens of new sites with incomplete or missing paperwork. Others report providers using the public rights-of-way have placed large pieces of infrastructure in direct line with residents’ front doors, have created public safety problems with equipment that blocks drivers’ views at intersections, and had to contend with requests to place 120-200 foot monopole antennas on the edge of public highways and abandoned retired infrastructure providers fail to maintain or remove.

Can you find the hidden monopole tower?

The Utah Department of Transportation, among others, calls the FCC’s proposal “detrimental to public safety” and warns the FCC could end up creating a new loophole allowing providers to submit defective applications and then stalling required corrections until the shot clock runs out.

“No decisions are made on incomplete applications because the requested information is necessary for a decision to be issued,” Utah’s DOT writes. “This information may include, but is not limited to, when and where the work will be performed, type of installation, impacts to the traffic of the state highway. All safety issues must be addressed. Any shot clock start considerations by the Federal Communications Commission must be based upon completed applications. Otherwise the telecommunications company may fail to submit a completed application and continue to not submit all the requested information until the shot clock time period has run out. Such an approach would have detrimental impacts to safety of the traveling public on state highways because the Federal Communications Commission seeks to remove any authority from the states and local governments to address safety and placement after the shot clock has run out.”

Utah also fears the FCC’s decision to set uniform fees for applications could end up subsidizing large telecom companies with taxpayer dollars.

“Any requirement mandating lower fees than the actual costs will require the states to subsidize the telecommunications industry,” Utah’s DOT warned.

Maine’s Department of Transportation worries the FCC is putting the interests of multi-billion dollar telecom corporations ahead of the citizens of the state and their own needs. By allowing telecommunications companies to win irrevocable rights to place wireless towers where they want by running out the clock, the interests of those companies overshadow the public interest.

“The only ‘right’ that any entity receives to locate within Maine’s highway corridors is a revocable permit,” the DOT wrote. “To minimize overall expense and downtime, it is essential that facilities are appropriately located the first time around and there should not be any rules stating that it is in any way appropriate for an entity to construct facilities in a location that has not been explicitly approved by the applicable licensing authority, property owner or facility owner.”

Because the FCC’s proposal is so wide-ranging and skewed in favor of telecom companies, several state and local agencies are asking the FCC to clearly affirm that a company’s business interests should never come before public safety, future transportation needs, or at the public’s expense.

“Any new or revised rules should clearly affirm a state or local highway agencies’ authority to properly manage the highway corridor in the interest of highway safety, operations, and right of way preservation for future highway purposes,” offers Maine’s DOT, adding that after the state’s experience with financially troubled telecom companies abandoning outdated or damaged infrastructure, the public should not have to pay to clean it up.

“Accommodation of wireless towers or other monopole structures within the highway corridor also present hidden public expense when relocation of those facilities cause construction delays or when such facilities are abandoned by a [company] that declares bankruptcy,” the agency noted.

The Illinois Department of Transportation echoed Utah and Maine, noting the telecom industry needed to work with local and state officials to ensure timely permitting.

Instead, the telecom industry has spent millions lobbying state and federal legislators to curtail or eliminate local oversight and control. While many telecom companies are honest and accommodating, especially when they are considering major infrastructure expansion, some are not and work to game the system.

IDOT notes it is willing to manage the burden of processing applications on a timely basis, but utilities should not be rewarded with a right to run out the clock with an incomplete application.

“The burden of timely issuance of permits is shared by both the state and the industry,” IDOT wrote. “It is important that the utility fulfill its duties and meet their obligations.”

Benjamin

In one instance, a large telecom company submitted a very large number of permit applications across Illinois for a network upgrade it had no plans to commence in the near future, overwhelming permit offices. If the FCC’s reforms were in place, many of those applications would have been automatically approved after the deadline for consideration ran out, even though the provider was in no hurry to start work.

“The concept behind this is […] if a government authority doesn’t respond in a timely manner, the permit is automatically granted,” the filing said. “The [proposal] is attempting to shift the burden of court appeal to the [local permitting authority] as opposed to the permit applicant.”

Columbia, S.C. mayor Steve Benjamin believes the FCC is trying to solve a non-existent problem.

“Simply put, local rights-of-way management does not discourage wireless deployment,” Mayor Benjamin said in March. “Instead, it serves numerous public policy goals and ensures that rights-of-ways are managed in a manner that allows for all users to safely and efficiently use public rights-of-way. The city is deeply concerned […] the Commission is simply seeking to preempt local authority and to dictate how local governments should manage public property, all in an effort to marginally increase the profits of an already profitable industry at the expense of important and legitimate public interest goals.”

Johnson

Sen. Ron Johnson (R-Wis.) is in favor of banishing Net Neutrality and allowing service providers to sell paid broadband fast lanes, claiming some uses of the internet are more important than others.

Speaking alongside FCC Chairman Ajit Pai on a live interview with WTMJ Radio in Milwaukee with no guests in opposition, Johnson claimed unless cable and telephone companies are given additional economic incentives to risk capital, broadband service improvements will be slow in coming.

Johnson added ISPs should be allowed to adopt paid prioritization.

“You might need a fast lane within that pipeline so that [medical] diagnoses can be transmitted instantaneously [and] not [be] held up by maybe a movie streaming,” Johnson said.

“I want everyone to have what I call digital opportunity, and to do that you need to have a regulatory framework that gives all of these companies — satellite, wireless, fiber — a strong incentive to invest,” added Pai.

“As a businessperson, you need the economic incentive to risk your capital and the minute you have government regulation it reduces the certainty in terms of what you can get from return on investment, you are going to invest less,” argued Johnson. “We’re seeing that right now because of what [former FCC] Chairman Wheeler did.”

Pai

Pai argued that outdated FCC rules were also responsible for reducing broadband investment, particularly rules that require phone companies to continue maintaining their existing wireline network to provide universal access to telephone service.

Pai characterized Net Neutrality as government control of the internet.

“Do you want the government deciding how the internet is run?” Pai said, noting he favors “light touch” regulation where private companies manage their own businesses with targeted enforcement action by the FCC. “In 2015, on a party line vote, the FCC went the other way and put the government, rather than the private sector, at the center of how the internet operates.”

By getting rid of the Obama Administration’s Net Neutrality policies, Pai believes that will return the U.S. to an era of where cable and phone companies invest in their networks and expand rural broadband.

“As Chairman Pai said, Net Neutrality is a slogan,” added Johnson. “What you really want is an expansion of high-speed broadband. In order to do that, you have to create the incentives for those smaller ISPs to invest and if they don’t really control their own fiber — if the government tells them exactly how they are going to use their investment — there is less incentive for them to invest so we’ll have less high-speed broadband.”

“Consumers will be worse off because of this term Net Neutrality,” Johnson said.

“We at the FCC need to be focused on investment in infrastructure,” Pai said, not Net Neutrality.

John Oliver returns to defend Net Neutrality, and provide a simpler way for ordinary Americans to share their views with the FCC.

John Oliver is back.

As Donald Trump’s FCC chairman Ajit Pai lays the groundwork for an all-out repeat of Net Neutrality, Oliver spent 20 minutes of his HBO show “Last Week Tonight” this past weekend pleading for Americans to come out and protect a free and open internet, just as he did three years earlier.

“It seems that the Trump-era will basically Ctrl-Z everything that happened on Obama’s watch,” Oliver said. “I genuinely would not be surprised if one night Trump went on TV just to tell us he personally killed every turkey Obama ever pardoned.”

“Every internet group needs to come together like you successfully did three years ago,” Oliver told his audience. “Gamers, YouTube celebrities, Instagram models, Tom from MySpace — if you’re still alive. We need all of you. You cannot say you are too busy when 540,000 of you commented on Beyonce’s pregnancy announcement.”

To help ordinary Americans navigate the FCC’s arcane electronic comments filing system, Oliver launched GoFCCYourself.com, a website dedicated to getting comments about Net Neutrality registered with the FCC.

His viewers responded, and promptly crashed the FCC’s website with an overwhelming amount of traffic. The same thing happened in 2014 when Oliver’s public plea helped produce millions of comments in favor of Net Neutrality. As of this afternoon, the FCC website is still slower than usual and the likely deluge of comments will keep FCC staffers busy for weeks to come.

Oliver took direct aim at Pai, noting the former Verizon lawyer said he would take a weed whacker to telecom regulations and has already threatened that Net Neutrality’s “days are numbered.”

“‘Days are numbered’ and ‘take a weed whacker’ are serial-killer talk,” Oliver said.

Oliver lampooned Pai over his repeated tweets quoting lines from the 1998 film The Big Lebowski and his oversized Reese’s Peanut Butter Cup coffee mug.

“Ajit Pai is the kind of guy who has a fun, oversized novelty mug and he is really proud of it,” Oliver said.

But despite the fun-loving façade, Pai’s claims that Net Neutrality regulations were burdensome and unnecessary are not a game to internet content providers and startups that fear large telecommunications companies could rig the marketplace against them. Pai complained at a gathering held April 26 at the Newseum, sponsored in part by FreedomWorks — a group with direct ties to the Koch Brothers, that “special interests” were pushing Net Neutrality and causing a reduction in private broadband investment.

Oliver responded that Title II enforcement was essential for Net Neutrality policies to have any teeth. Pai’s desire to return to an earlier Title I enforcement mechanism for Net Neutrality was overturned by the D.C. Court of Appeals, ruling the FCC could not enforce Net Neutrality policies under Title I, and suggested Title II enforcement instead.

Last week, that same D.C. Court of Appeals elected not to review and let stand a three-judge panel’s decision that the FCC was within its rights to reclassify ISPs under Title II, a clear victory for open internet proponents.

“[That] decision is a win for consumers,” said Lisa Hayes, general counsel for the Center For Democracy and Technology. “The court agreed that Title II classification is sound, and that the FCC has authority to regulate the marketplace. Net neutrality is essential to a vibrant internet ecosystem, and CDT will continue to defend the open internet in the days and years to come.”

“The D.C. Circuit has once again confirmed that the FCC’s Open Internet rules are lawful and supported by the evidence,” said Public Knowledge senior counsel John Bergmayer. “Now, the primary threat to these important consumer protections is FCC Chairman Pai’s determination to roll them back, and to hand more power to monopolistic internet access providers.”

ISPs like Verizon are also on record stating Net Neutrality had and will continue to have no bearing on internet investment, which directly contradicts Pai’s repeated claims.

“Maybe the best way to gauge Title II’s impact is to listen to what cable companies told their own investors, to who they are legally obligated to tell the truth,” Oliver said, playing a recording of a 2014 Verizon earnings conference call quoting former chief financial officer Fran Shammo who told investors that Net Neutrality “does not influence the way we invest.”

John Oliver takes on FCC chairman Ajit Pai in Net Neutrality II from his HBO series “Last Week Tonight.” (19:32)