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Richard Bennett

Internet Regulatory Reform Proceeds Apace, Quietly

Written by Richard Bennett
6/23/2010 9 comments
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News accounts tell us that Congress, led by Chairman Rick Boucher (D-Va.) and Ranking Member Cliff Stearns (R-Fla.) of the Internet Subcommittee, is developing a new regulatory framework for broadband Internet services.

Boucher and Stearns are going about this business in the way that Congress usually approaches contentious issues, by meeting with stakeholders and planning a series of hearings. Despite the canard that Congress only moves slowly, it can and does act quickly when there's an evident consensus that action needs to be taken: The US Patriot Act, after all, was signed into law a mere 45 days after the September 11 attacks, and it was a very substantial and far-reaching law.

The difference, however, is that America doesn't perceive an imminent crisis in the state of the broadband Internet that would warrant such expeditious action.

A recent survey conducted by the Federal Communications Commission (FCC) indicates that Americans are highly satisfied with their network services:

    Most Americans are satisfied with the broadband speed they are getting. Fully 91 percent of broadband users say they are “very” or “somewhat” satisfied with the speed they get at home. The comparable number for mobile broadband, which is not yet technologically capable of the same speeds as home broadband, is 71 percent satisfaction.

In one sense, the critics of Congressional involvement in Internet broadband regulation are right: It's not realistic to expect sudden and major action as long as American consumers don't perceive a problem that warrants immediate and drastic action. But Congress does appear to be moving cautiously and deliberately to address the uncertainty about the FCC's role in Internet regulation that came about when the Commission's Comcast ruling was overturned by the D.C. Circuit Court on April 6.

Understandably, the FCC doesn't want to be left out of the process, so it's conducting a series of stakeholder meetings of its own, on the assumption that a consensus position backed by the opposing sides as well as the regulator will be very attractive to the lawmakers.

The first of these meetings included network operators, advertisers, and service providers: Lobbyists from AT&T Inc. (NYSE: T), Verizon Communications Inc. (NYSE: VZ), the National Cable & Telecommunications Association (NCTA) , Google (Nasdaq: GOOG), Skype Ltd. , and the Open Internet Coalition (OIC) of Internet advertisers met with Chairman Genachowski's chief of staff, Edward Lazarus, and a pair of top FCC policy thinkers, Paul DeSa and Zachary Katz, for a couple of hours on Monday to take temperatures.

Those who were present have told me the meeting didn't reach any conclusions or strike any deals, and the principal result was simply an agreement to hold another meeting. Our democracy is, for the time being at least, still safe.

Some members of the public interest lobby are shedding crocodile tears over their exclusion from this meeting, but they know better.

The debate over how best to regulate the broadband Internet is mature enough that the sides are well defined, and there's no doubt that the interest groups that have aligned with the "heavy regulation" contingent were well represented ideologically. In all likelihood, the debate about regulating the broadband Internet, paid peering, privacy, and Internet content will continue well past the November elections, but some significant milestones are going to appear before we have a new regulatory structure.

Some elements will be disclosed in private before they become public; that's the way these things work. As long as some parties are intent on milking each step of the process for maximum outrage, it should come as no surprise that the other parties want to conduct some of the business outside their view.

There's been entirely too much over-reaction in the net neutrality debate, so toning down the rhetoric is vital to reaching consensus.

— Richard Bennett is an ITIF Research Fellow specializing in broadband networking and Internet policy.

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Richard Bennett
Thinkernetter
Thursday June 24, 2010 9:59:49 PM
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Incidentally, there's something that I could have made clearer in the post. Free Press is running around complaining about the meeting at the FCC which, in their version of events, included industry and excluded the Pure of Heart, such as themselves. They took out a full page ad in the Washington Post accusing the FCC of "selling out" for holding this meeting.

There's just one problem: the Open Internet Coalition was a party to the meeting, and Free Press is a member of that organization.

So they are in essence complaining about a closed-door meeting that they attended.

Richard Bennett
Thinkernetter
Thursday June 24, 2010 5:25:10 PM
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There's nothing questionable about LTE or pricing plans with capacity limits, and Nolle is over-thinking the problem considerably.

The purpose of LTE is make web access faster and to reduce the costs to carriers of managing high-capacity networks. If a few people occupy LTE spectrum all the time to download video files, web access for the majority will be slowed considerably. All packet switching technology depends on polite sharing of high capacity links.

Some day, we may be able to accomodate multiple large file downloads on mobile networks, but we're not there yet.

jnieusma
Rank: Cave Painter
Thursday June 24, 2010 1:53:49 PM
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Congress has rarely moved in any way other than slowly. Hopefully this indicates so thought going into the process. If they must regulate, it needs to be done minimally but effectively. Heavy-handed controls stifle innovation and commerce. We need to be watchful over the parts that come out quietly though. Sometimes those hold the most invasive permissions for government oversight and control.

audreypeters
IQ Crew
Thursday June 24, 2010 12:48:22 PM
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It's amazing how many hours we pay for as the tax payer for just more meetings. Aren't there more pressing problems such as the economy to deal with, than meddling in the Internet - something lawmakers just don't get? And no doubt the big corporate lobbyists will ensure that the best deals are struck for their interest rather than the mere consumer.  This is going to be a disaster for global business. 

SeanFromIT
IQ Crew
Thursday June 24, 2010 9:42:16 AM
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Aren't most meetings just meetings to agree to hold another meeting? The Internet, if private companies like ISPs would let it be, doesn't need regulations or taxes. It's a global network and we shouldn't create an American island on it. The problem is that ISPs, looking for new streams of revenue, feel they have the right to sniff packets beyond routing information in order to discriminate based on content. I want no part of that "Internet," nor do most Americans.

Mary Jander
Thinkernetter
Thursday June 24, 2010 9:39:42 AM
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A slow pace... a sense by lawmakers that there's no hurry... ISPs are sure to try and scoot some questionable stuff under the radar, as AT&T and Verizon have started to do in the wireless arena.

hounhosp
Thinkernetter
Wednesday June 23, 2010 8:47:45 PM
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"the framework for broadband Internet regulation is likely to come out one piece at a time"

If most americans seem to be satisfied with the current internet coverage and capacity they are getting there is no need for congress to hurry for a reform. And ISPs are the most pleased with this slow pace.   

Richard Bennett
Thinkernetter
Wednesday June 23, 2010 6:06:07 PM
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I think the framework for broadband Internet regulation is likely to come out one piece at a time; the easy parts are to do with consumer disclosure and anti-competitive tactics; the hard parts have to do with tiered services. The Internet Subcommitee's privacy bill is moving along too, as it started over a year ago.

Mary Jander
Thinkernetter
Wednesday June 23, 2010 5:32:49 PM
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Thanks Richard, for a thoughtful and convincing summary. One question: When you refer to "some significant milestones are going to appear before we have a new regulatory structure," what milestones are those?

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