FCC Sets Showdown on Net Neutrality

FCC Chairman Julius Genachowski announced the commission would vote this month on a plan to prohibit Internet service providers from favoring some kinds of web traffic over others. Citing “real risks to the Internet’s continued freedom and openness,” Genachowski said the FCC would vote on so-called Net neutrality rules Dec. 21.

The move ushers in a new phase in the battle between cable and phone companies, who resist any efforts at regulation, and advocates of an open Internet who hoped the commission would move aggressively to establish Net neutrality rules. Genachowski has long advocated Net neutrality rules, but suffered a setback in April when a court questioned the FCC’s ability to regulate broadband.

Hemmed in on what has become a political wedge issue, he sought a middle ground. The proposal would not reclassify broadband as a telecommunications service, which would have offered more meaningful checks on provide providers and which Net neutrality advocates sought. Nor does it extend network protections to wireless, giving service providers a “meaningful flexibility” they argue is necessary to manage networks with bandwidth constraints. FCC Commissioner Michael Copps, a forceful advocate for Net neutrality, greeted it tepidly, called it “the beginning of an important discussion,” while Republican commissioners blasted the plan.

“Broadband providers have natural business incentives to leverage their position as gatekeepers to the Internet.  Even after the Commission announced open Internet principles in 2005, we have seen clear deviations from the Internet’s openness — instances when broadband providers have prevented consumers from using the applications of their choice without disclosing what they were doing,” Genachowski said, according to prepared remarks. “The proposed open Internet framework is designed to guard against these risks, while recognizing the legitimate needs and interests of broadband providers.”

For consumer advocates, the compromise — which resembles a proposal put forth by Democrat Rep. Henry Waxman — may be a disappointment.  “To achieve real net neutrality and preserve the level playing field that is the DNA of the Internet, the FCC must do a lot better than offer failed proposals we have seen this year floated by big corporations or designed to win the unanimous consent of Congress,” Josh Silver, president of Free Press, said in a statement. “You can call any policy Net Neutrality, but the devil is always in the details — and right now the details look grim. We are glad the FCC is finally moving forward, but early reports indicate that this proposal looks like the fake Net Neutrality preferred by foes of the open Internet.”

Those “foes” include major providers, who lobbied extensively to avoid reclassification, as well as Congressional Republicans, who say the issue should be decided by the legislative branch. In a statement this morning, Republican Senator John Thune of South Dakota echoed an argument popular among foes of net neutrality. Any regulatory meddling, he said, will hamper a system that’s working fine.  “Chairman Genachowski has once again proposed a solution in search of a problem,” said Thune. “There is no evidence of systemic broadband market failure, and the FCC’s proposed Internet regulations will only create more uncertainty for broadband providers, which will deter broadband deployment and cost jobs in a growing sector of our economy. This is yet another step down the path of Intern et regulation and President Obama’s big government agenda.” The pitchforks actually preceded Genachowski’s statement; yesterday House Energy and Commerce Committee member Marsha Blackburn called it a “hysterical reaction by the FCC to a hypothetical problem.”

Genachowski’s remarks sketched out the basic principles of the proposal: corporate transparency, a ban on blocking legal content and “a bar on unreasonable discrimination” against Internet traffic. His remarks also recognized the need for “reasonable network management,” which providers say is crucial to optimal performance. “He got pushed into a very, very difficult corner here,” says Larry Downes of Stanford’s Center for the Internet and Society. “With the new Congress coming in in January and rattling the saber about more explicit oversight, this was his Hail Mary pass, the last real chance he had to do something.” While Genachowski said in his statement that he was confident the framework had a “sound legal basis,” it’s likely to face a court challenge if the five-member panel–which includes two other Democrats and two Republicans–passes it later this month.

(Disclaimer: TIME magazine and Time.com are part of Time Warner, which has no public position on Net neutrality. Like its competitors, Time Warner Cable, which was spun off from Time Warner in 2009, opposes new Net neutrality regulations.)

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  • http://gum0nshoe.wordpress.com gumOnShoe

    Showdown? Pu-lease. This is just more capitulation to big business. I know that’s not as exciting. I know its depressing to tell the truth. But in the end, that’s just what it is.
    ·
    Network companies want the power to regulate what you can get by turning the internet into a Cable-subscription style service. If you want to view this, that’ll be an extra $10 a month please. Time will be $1 a month. etc etc.
    ·
    The only people who will develop websites will be established businesses. The web start up will whither and die. And those that exist will slowly be picked off one by one as someone promises the cable companies a little extra mula so that they can provide a “better” experience.
    ·
    Once again, Republicans are against freedom for the majority and freedom for the plutocrats. But you won’t read that on Time, because Time, CNN, & other mainstream outlets stand to benefit significantly from the rules ending up in big business’s favor.

  • stuartzechman

    Thanks so much for this piece, Alex Altman, no sarcasm intended.
    .
    Here’s another, entitled “FCC Chairman Announces Fake Net Neutrality Proposal,” from consumer advocate Josh Silver, whom you accurately quote in your post:

    http://huff.to/hNqWLa
    .
    This morning, Federal Communications Commission Chairman Julius Genachowski announced that he will finally seek a vote on President Obama’s top tech issue, “Net Neutrality.” There’s just one problem: According to the New York Times, it’s not even close to the real Net Neutrality that President Obama promised the American people.
    .
    The Times report, based on an advance copy of a speech the chairman plans to give today, indicates that the proposed rule is riddled with loopholes and falls far short of what’s necessary to prevent phone and cable companies from turning the Internet into something that looks like cable TV, where they decide what moves fast, what moves slow, and whether they can price gouge you or not.
    .
    The proposal is a shiny jewel for companies like AT&T and Comcast that have met with the Chairman more than anyone else during the past month, and whose affection he seems to crave more than making good on President Obama’s promise.

    But, incredible as it seems, Silver points to a possible shred of optimism, even in these corporatist-ruled climate:

    Despite all this, there is still cause for optimism. Genachowski needs three votes to pass the proposed rules. The chances that either Republican commissioner will vote for the measure is near zero, leaving the chairman reliant on Democratic Commissioners Mignon Clyburn and Michael Copps. Both are stalwart public interest advocates who have repeatedly expressed their support for strong Net Neutrality rules.
    .
    Copps and Clyburn are the “deciders” for the next three weeks, and they have both demonstrated over and over that their top priority is the interests of the American people. If that holds true, there may be a happy ending to this story.

    …And thanks for the clear disclaimer, Alex Altman, I mean that with all sincerity.

  • http://gum0nshoe.wordpress.com gumOnShoe

    (Disclaimer, apologies if I appeared to lump Time in with Time Warner Cable. The proposition that Time and other well known media outlets stand to profit is not incorrect, even so. The only winners from a regulated internet are the entities that are already winning. While I acknowledge the publishing industry is in a state of flux, attempts at pay walls etc would be greatly helped by a chained internet.)
    ·
    Also, thanks for the article. I don’t question your reason for making this article so much as the general lack of knowledgeable discussion that goes on at large at places like Cnn, Time, Wired, Fox, etc et al blah. While reporters may be individually behooved to comment from time to time, its apparent from the usual silence or quality of article that there is no push by these companies to regularly update anyone on the status of net neutrality in an honest & informed way.

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  • herby002

    “This argument resonates with Tea Party leaders, who are leery of government regulation. But in some cases their passion for the topic runs deeper than their knowledge of it. “The Internet is beautiful,” says Honey Marques, one of the Tea Party leaders to sign the Aug. 11 letter. To her, Net neutrality is “about the government trying to control and regulate our free speech and control everything that’s happening in our lives.” Lisa Miller, a Washington-area Tea Party leader, says Net neutrality is the government’s attempt to control “who should get access to the Internet and at what price.” When asked why, she declined to comment further because she didn’t have the letter she had signed to refer to at that moment.”
    .
    Then she hoisted her “Keep the Government out of my Medicare!” sign and stomped off in the direction of the ‘Palin for President’ booth.

  • http://teapartywdc.wordpress.com teapartywdc

    I spoke with this reporter for some time on the phone. I was told afterward that I must slow my speech so they can take notes, where as I wrongly assumed he was recording it…lessons learned.

    I spoke of private investment, of how the various provides were resolving their own problems of supply and demand and that there is no need for this stiffling regulation.

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