/PRNewswire/ -- EarthLink, Inc. (Nasdaq: ELNK), one of the nation's leading Internet service providers, has presented an economic report to the Federal Communications Commission on the proposed merger of Comcast Corp. and NBC Universal. The findings demonstrate that control of NBC Universal's content and assets will result in Comcast raising the prices that consumers pay for standalone broadband service. This report was prepared by Professor Simon J. Wilkie, Former Chief Economist of the Federal Communications Commission, and is available at http://fjallfoss.fcc.gov/ecfs/document/view?id=7020915403.
The report shows that an increase in the price of standalone broadband service will harm consumers in several ways. In response to higher prices, existing subscribers may be forced to drop their broadband service subscription and new subscribers may not be able to afford Comcast's broadband service. Further, Comcast customers who wish to "cut the cord" from the higher-priced Comcast cable television subscription in order to access lower-cost online video and voice services via standalone broadband or simply "break the bundle" and subscribe only to broadband services will face increased charges. As a result, the market for innovative online video services will be stifled and the nation's goals of ubiquitous broadband adoption and usage will be dampened.
In June, EarthLink asked the FCC to deny the merger or adopt a condition requiring Comcast to offer wholesale standalone broadband access service to independent Internet service providers. Professor Wilkie determined that allowing consumers to have a choice for broadband services will allow consumers to "break the bundle," promote and discipline Comcast's pricing and protect the development of online video. This remedy will impose little or no costs on Comcast while at the same time generating significant benefits.
"Professor Wilkie has confirmed through substantial findings that the Comcast-NBCU transaction will result in a real and significant harm to consumers," said EarthLink General Counsel Samuel R. DeSimone, Jr. "The FCC must step in to ensure that consumers have access to affordable standalone broadband service."
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Showing posts with label FCC. Show all posts
Showing posts with label FCC. Show all posts
Wednesday, October 6, 2010
Wednesday, September 1, 2010
FCC Terminates AWS-3 Rulemaking to Auction Spectrum with Free Broadband Requirement; Breaks National Broadband Plan Commitment
/PRNewswire/ -- On Friday, August 27, 2010, the Federal Communications Commission (FCC) notified M2Z Networks, Inc. (M2Z) and its Silicon Valley investors including Kleiner Perkins, Charles River Ventures, and Redpoint Ventures, that it has terminated the AWS-3 spectrum (2155-2180 MHz) public interest rulemaking, thereby closing off the possibility of providing free nationwide broadband service in the United States for the foreseeable future. The FCC has been considering M2Z's proposal for a free nationwide broadband network using AWS-3 since 2006. This decision reverses the FCC's National Broadband Plan commitment to finalize the AWS-3 spectrum rulemaking in the fourth quarter of 2010 and for the spectrum to be auctioned by the second quarter of 2011.
The FCC's AWS-3 rulemaking, pending since 2007, consisted of three key issues:
-- A requirement that the AWS-3 licensee provide free broadband service
to at least 95% of the U.S. population in order to address the digital
divide;
-- A requirement that the AWS-3 licensee adhere to Net Neutrality
principles of open access (end-user access to all lawful content) and
open platforms (end-users to have the choice of devices);
-- An enforceable requirement on the AWS-3 licensee to build-out a
national broadband network covering 50% of the population in 4 years
and 95% in 10 years.
According to the FCC's own National Broadband Plan, 28 million Americans today cannot afford to subscribe to broadband. A free nationwide broadband service using the AWS-3 spectrum band would have addressed this persistent digital divide. While campaigning for the White House in 2008, President Obama told the U.S. Conference of Mayors, "Every American should have broadband access - no matter where you live, or how much money you have. We'll connect our schools and libraries and hospitals. And we'll take on the special interests to realize the potential of wireless spectrum for our safety and connectivity."
There continues to be considerable support from the public for a free nationwide broadband service. The FCC record shows that during the pendency of the AWS-3 rulemaking, more than 50,000 Americans signed a petition supporting the proposed rules while the FCC and members of Congress received over 20,000 letters and emails in support of the proposed rules. Government officials outside of Washington--faced with a growing digital divide and a poor economy--also saw merit in this innovative private sector solution. The FCC record shows that over 300 local, state and federal officials from all 50 states wrote to the FCC in support of the proposed AWS-3 rules.
"The FCC's decision to delay the use of this valuable spectrum forgoes the consumer welfare and economic stimulus that would result from putting new spectrum into the marketplace," said John Muleta, CEO of M2Z Networks. "A new nationwide broadband entrant that provided a free broadband service would have created tens of thousands of direct and indirect jobs throughout the country while giving all Americans an equal opportunity to participate in the digital economy. Despite the spectrum crisis facing the U.S. as documented by the FCC's National Broadband Plan, the AWS-3 spectrum will continue to lie fallow providing no economic value to American consumers."
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The FCC's AWS-3 rulemaking, pending since 2007, consisted of three key issues:
-- A requirement that the AWS-3 licensee provide free broadband service
to at least 95% of the U.S. population in order to address the digital
divide;
-- A requirement that the AWS-3 licensee adhere to Net Neutrality
principles of open access (end-user access to all lawful content) and
open platforms (end-users to have the choice of devices);
-- An enforceable requirement on the AWS-3 licensee to build-out a
national broadband network covering 50% of the population in 4 years
and 95% in 10 years.
According to the FCC's own National Broadband Plan, 28 million Americans today cannot afford to subscribe to broadband. A free nationwide broadband service using the AWS-3 spectrum band would have addressed this persistent digital divide. While campaigning for the White House in 2008, President Obama told the U.S. Conference of Mayors, "Every American should have broadband access - no matter where you live, or how much money you have. We'll connect our schools and libraries and hospitals. And we'll take on the special interests to realize the potential of wireless spectrum for our safety and connectivity."
There continues to be considerable support from the public for a free nationwide broadband service. The FCC record shows that during the pendency of the AWS-3 rulemaking, more than 50,000 Americans signed a petition supporting the proposed rules while the FCC and members of Congress received over 20,000 letters and emails in support of the proposed rules. Government officials outside of Washington--faced with a growing digital divide and a poor economy--also saw merit in this innovative private sector solution. The FCC record shows that over 300 local, state and federal officials from all 50 states wrote to the FCC in support of the proposed AWS-3 rules.
"The FCC's decision to delay the use of this valuable spectrum forgoes the consumer welfare and economic stimulus that would result from putting new spectrum into the marketplace," said John Muleta, CEO of M2Z Networks. "A new nationwide broadband entrant that provided a free broadband service would have created tens of thousands of direct and indirect jobs throughout the country while giving all Americans an equal opportunity to participate in the digital economy. Despite the spectrum crisis facing the U.S. as documented by the FCC's National Broadband Plan, the AWS-3 spectrum will continue to lie fallow providing no economic value to American consumers."
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Friday, August 20, 2010
EarthLink Files Reply in Comcast-NBCU Merger; Urges FCC to Require Wholesale Standalone Broadband Access Condition
/PRNewswire/-- EarthLink, Inc. (NASDAQ:ELNK) , one of the nation's leading Internet service providers, on August 18 filed at the Federal Communications Commission a response to the opposition of applicants to conditions proposed in the Comcast-NBCU merger. In June, EarthLink asked the FCC to deny the merger or adopt a condition requiring Comcast to offer wholesale standalone broadband access to independent Internet service providers.
EarthLink urged the FCC to adopt the condition to ensure the merger does not result in anti-competitive activity that will reduce consumer choice, restrict content diversity, and interfere with Internet competition. In addition to providing consumers a choice for broadband access service, the condition would allow consumers to "break the bundle" and take advantage of video programming available on the Internet without subscribing to cable television service, thereby encouraging broadband investment, competition and adoption.
"The Comcast-NBCU transaction raises the substantial risk that Comcast will use its market power to stifle competition, growth and innovation of online video and other broadband content," said EarthLink General Counsel Samuel R. DeSimone, Jr. "The access condition proposed by EarthLink is a cost-effective solution to these concerns and will benefit U.S. consumers."
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EarthLink urged the FCC to adopt the condition to ensure the merger does not result in anti-competitive activity that will reduce consumer choice, restrict content diversity, and interfere with Internet competition. In addition to providing consumers a choice for broadband access service, the condition would allow consumers to "break the bundle" and take advantage of video programming available on the Internet without subscribing to cable television service, thereby encouraging broadband investment, competition and adoption.
"The Comcast-NBCU transaction raises the substantial risk that Comcast will use its market power to stifle competition, growth and innovation of online video and other broadband content," said EarthLink General Counsel Samuel R. DeSimone, Jr. "The access condition proposed by EarthLink is a cost-effective solution to these concerns and will benefit U.S. consumers."
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Thursday, August 12, 2010
State Legislators Oppose FCC's Plans to Re-label and Regulate Internet
/PRNewswire/ -- The American Legislative Exchange Council (ALEC) voices its opposition to plans by the Federal Communications Commission (FCC) to change the status of broadband Internet Service from a lightly-regulated "information service" to a more heavily regulated "telecommunications service."
At its meeting late last week, ALEC's Telecommunications & Information Technology Task Force approved its ALEC Broadband Regulation Resolution. The Resolution declares ALEC's opposition to the FCC's controversial plan to subject broadband Internet service to a handful of older monopoly-era telephone regulations.
Today the Resolution was delivered to the FCC along with a letter by Connecticut State Representative Bill Hamzy, who serves as Public Sector Chair of ALEC's Telecom & IT Task Force. In the letter, the state legislator insists the agency should back off from its controversial plan to subject broadband Internet to heavier regulatory burdens.
"ALEC supports the continuation of federal policies that have kept the Internet free from government regulation. Marketplace freedom has encouraged the explosive growth of the Internet and e-commerce in recent years. It would be a grave mistake for the FCC to suddenly reverse course and saddle the Internet with burdensome new regulation. ALEC remains concerned that attempts by federal regulators to impose new restrictions on broadband Internet service will hurt technological innovation, deter private infrastructure investment, and threaten job growth in the states," said Representative Hamzy.
As declared in the Resolution, "ALEC urges that the FCC, Congress and state regulatory and legislative bodies refocus their efforts on specific and limited initiatives targeted at ensuring that broadband service is made universally available and affordable to consumers, rejecting overly prescriptive regulations that would harm innovation, investment, and job growth."
In January, over 90 other state legislators submitted a letter to the FCC opposing its plans to impose net neutrality regulation. In 2007, ALEC adopted a Resolution on Net Neutrality, opposing federal and state regulation of network management practices.
The American Legislative Exchange Council is the nation's largest nonpartisan, individual membership organization of state legislators.
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At its meeting late last week, ALEC's Telecommunications & Information Technology Task Force approved its ALEC Broadband Regulation Resolution. The Resolution declares ALEC's opposition to the FCC's controversial plan to subject broadband Internet service to a handful of older monopoly-era telephone regulations.
Today the Resolution was delivered to the FCC along with a letter by Connecticut State Representative Bill Hamzy, who serves as Public Sector Chair of ALEC's Telecom & IT Task Force. In the letter, the state legislator insists the agency should back off from its controversial plan to subject broadband Internet to heavier regulatory burdens.
"ALEC supports the continuation of federal policies that have kept the Internet free from government regulation. Marketplace freedom has encouraged the explosive growth of the Internet and e-commerce in recent years. It would be a grave mistake for the FCC to suddenly reverse course and saddle the Internet with burdensome new regulation. ALEC remains concerned that attempts by federal regulators to impose new restrictions on broadband Internet service will hurt technological innovation, deter private infrastructure investment, and threaten job growth in the states," said Representative Hamzy.
As declared in the Resolution, "ALEC urges that the FCC, Congress and state regulatory and legislative bodies refocus their efforts on specific and limited initiatives targeted at ensuring that broadband service is made universally available and affordable to consumers, rejecting overly prescriptive regulations that would harm innovation, investment, and job growth."
In January, over 90 other state legislators submitted a letter to the FCC opposing its plans to impose net neutrality regulation. In 2007, ALEC adopted a Resolution on Net Neutrality, opposing federal and state regulation of network management practices.
The American Legislative Exchange Council is the nation's largest nonpartisan, individual membership organization of state legislators.
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Tuesday, June 22, 2010
EarthLink Files Opposition to Comcast-NBCU Merger; Seeks to Enhance Consumer Choice of Internet Services
PRNewswire -- EarthLink, Inc. (NASDAQ:ELNK) , one of the nation's leading Internet service providers, today filed at the Federal Communications Commission a Petition to Condition or Deny the proposed merger of Comcast Corporation and NBC Universal. (See http://www.earthlink.net/go/merger for EarthLink's Petition.)
EarthLink believes the transaction would result in Comcast engaging in a range of anti-competitive actions that will reduce consumer choice, restrict content diversity, and interfere with Internet competition. To remedy these harms, EarthLink proposed the FCC adopt a condition requiring Comcast to offer wholesale standalone broadband access to independent Internet service providers. EarthLink's successful and long-standing wholesale relationship with Time Warner Cable demonstrates that merger conditions implementing competitive broadband access can enhance consumer choice and create commercial benefits for all parties.
"The access condition that EarthLink proposes today for the Comcast-NBCU merger will be a win for consumers and a win for online competition," said EarthLink Chairman and Chief Executive Officer Rolla Huff. "The condition essentially enables Comcast customers to 'break the bundle' and purchase only the services they need or want. We look forward to working with the FCC and the U.S. Department of Justice to ensure the transaction results in greater consumer choice and competition."
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EarthLink believes the transaction would result in Comcast engaging in a range of anti-competitive actions that will reduce consumer choice, restrict content diversity, and interfere with Internet competition. To remedy these harms, EarthLink proposed the FCC adopt a condition requiring Comcast to offer wholesale standalone broadband access to independent Internet service providers. EarthLink's successful and long-standing wholesale relationship with Time Warner Cable demonstrates that merger conditions implementing competitive broadband access can enhance consumer choice and create commercial benefits for all parties.
"The access condition that EarthLink proposes today for the Comcast-NBCU merger will be a win for consumers and a win for online competition," said EarthLink Chairman and Chief Executive Officer Rolla Huff. "The condition essentially enables Comcast customers to 'break the bundle' and purchase only the services they need or want. We look forward to working with the FCC and the U.S. Department of Justice to ensure the transaction results in greater consumer choice and competition."
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Thursday, June 17, 2010
Verizon Statement on FCC Vote on Broadband Internet Services Inquiry
/PRNewswire/ -- The Federal Communications Commission approved a Notice of Inquiry by a 3-2 vote on Thursday (June 17) to begin public consideration of possible legal frameworks for commission action on broadband Internet services. The following is a statement by Tom Tauke, Verizon executive vice president for public affairs, policy and communications:
"Reclassifying high-speed broadband Internet service as a telecom service is a terrible idea. The negative consequences for online users and the Internet ecosystem would be severe and have ramifications for decades. It is difficult to understand why the FCC continues to consider this option.
"Rather than attempting to make the new world of broadband fit into the regulatory scheme of the old telephone world, the FCC should acknowledge that this is an issue Congress should address. Nearly 300 members of Congress have signed letters to the FCC, warning against reclassification and expressing support for congressional action.
"We will continue to work with the Congress, the FCC and other interested parties to resolve these issues in a manner that encourages investment, innovation, jobs and the best possible online experience for users."
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"Reclassifying high-speed broadband Internet service as a telecom service is a terrible idea. The negative consequences for online users and the Internet ecosystem would be severe and have ramifications for decades. It is difficult to understand why the FCC continues to consider this option.
"Rather than attempting to make the new world of broadband fit into the regulatory scheme of the old telephone world, the FCC should acknowledge that this is an issue Congress should address. Nearly 300 members of Congress have signed letters to the FCC, warning against reclassification and expressing support for congressional action.
"We will continue to work with the Congress, the FCC and other interested parties to resolve these issues in a manner that encourages investment, innovation, jobs and the best possible online experience for users."
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Americans for Prosperity Slams FCC's Internet Takeover Attempt
/PRNewswire/ -- Phil Kerpen, vice president for policy at Americans for Prosperity (AFP), released the following statement in response to the Notice of Inquiry announcement today by the Federal Communications Commission:
"Today marks a troubling and dangerous step forward in the Federal Communications Commission's ongoing effort to take over the internet. The FCC's Notice of Inquiry is an aggressive step in their reckless effort to force decades-old Title II public utility regulations on Internet providers.
"Such a radical change undoes a remarkable decade of success with a free-market, hands-off Internet. No wonder we have seen mounting bipartisan opposition to reclassification from consumers worried about the impact Title II would have on innovation and competition, small businesses worried about a sudden drop in investment, and free-market allies worried about the increased role of the federal government in internet policy.
"Despite the outcry from nearly 300 Democrats and Republicans, President Obama's FCC is determined to regulate. We therefore urge Congress to step in immediately to stop the Commission's dangerous efforts to get regulatory control of the Internet."
AFP's new website -- www.NoInternetTakeover.com -- provides information and tools for Americans to engage their members of Congress on this critical issue.
Americans for Prosperity(TM) (AFP) is committed to educating citizens about economic policy and mobilizing those citizens as advocates in the public policy process. AFP is an organization of grassroots leaders who engage citizens in the name of limited government and free markets on the local, state and federal levels. The grassroots members of AFP advocate for public policies that champion the principles of entrepreneurship and fiscal and regulatory restraint.
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"Today marks a troubling and dangerous step forward in the Federal Communications Commission's ongoing effort to take over the internet. The FCC's Notice of Inquiry is an aggressive step in their reckless effort to force decades-old Title II public utility regulations on Internet providers.
"Such a radical change undoes a remarkable decade of success with a free-market, hands-off Internet. No wonder we have seen mounting bipartisan opposition to reclassification from consumers worried about the impact Title II would have on innovation and competition, small businesses worried about a sudden drop in investment, and free-market allies worried about the increased role of the federal government in internet policy.
"Despite the outcry from nearly 300 Democrats and Republicans, President Obama's FCC is determined to regulate. We therefore urge Congress to step in immediately to stop the Commission's dangerous efforts to get regulatory control of the Internet."
AFP's new website -- www.NoInternetTakeover.com -- provides information and tools for Americans to engage their members of Congress on this critical issue.
Americans for Prosperity(TM) (AFP) is committed to educating citizens about economic policy and mobilizing those citizens as advocates in the public policy process. AFP is an organization of grassroots leaders who engage citizens in the name of limited government and free markets on the local, state and federal levels. The grassroots members of AFP advocate for public policies that champion the principles of entrepreneurship and fiscal and regulatory restraint.
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Thursday, May 20, 2010
Alliance for Digital Equality (ADE) Opposes The FCC's "Third Way" Approach to Address Network Neutrality
/PRNewswire/ -- Today, the Alliance for Digital Equality (ADE) expressed opposition to the Federal Communications Commission's (FCC) recently developed "third way" approach to regulating the Internet, and urged Congress to play a larger role in the network neutrality debate.
"This policy shift appears to be a risky experiment and will likely lead to higher broadband prices," said ADE Chairman Julius H. Hollis. "It could conceivably keep 100 million Americans economically disenfranchised and locked out of our society - keeping the miracles and benefits of this 'Digital Revolution' far beyond their reach. That is something that we as a country simply cannot afford and, as such, we strongly feel that this is the wrong path to take."
In the letter, ADE urged Congress to play a larger role in the net neutrality debate. The group asked for "sensible action to guarantee all Americans have access to the benefits of high-speed Internet technology," and made several recommendations to achieve this.
"As the world of business, medicine and education shift towards a more digital-based economy, the Chairman's proposal could worsen the problems of low and moderate-income Americans, who are already stretched financially and have disproportionately borne the brunt of this recession," said Manuel A. Diaz, Vice Chairman of the ADE Board of Directors.
"ADE and the Communications Workers of America (CWA) are dedicated to closing the economic divide through digital technology so that everyone, regardless of race or socioeconomic status, has the opportunity to access information in order to improve their quality of life, said Larry Cohen, CWA President. "With quick action from Congress, we can move forward to build the world class Internet society that will truly transform our nation into a better and fairer society for all Americans."
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"This policy shift appears to be a risky experiment and will likely lead to higher broadband prices," said ADE Chairman Julius H. Hollis. "It could conceivably keep 100 million Americans economically disenfranchised and locked out of our society - keeping the miracles and benefits of this 'Digital Revolution' far beyond their reach. That is something that we as a country simply cannot afford and, as such, we strongly feel that this is the wrong path to take."
In the letter, ADE urged Congress to play a larger role in the net neutrality debate. The group asked for "sensible action to guarantee all Americans have access to the benefits of high-speed Internet technology," and made several recommendations to achieve this.
"As the world of business, medicine and education shift towards a more digital-based economy, the Chairman's proposal could worsen the problems of low and moderate-income Americans, who are already stretched financially and have disproportionately borne the brunt of this recession," said Manuel A. Diaz, Vice Chairman of the ADE Board of Directors.
"ADE and the Communications Workers of America (CWA) are dedicated to closing the economic divide through digital technology so that everyone, regardless of race or socioeconomic status, has the opportunity to access information in order to improve their quality of life, said Larry Cohen, CWA President. "With quick action from Congress, we can move forward to build the world class Internet society that will truly transform our nation into a better and fairer society for all Americans."
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Friday, May 7, 2010
Small Business Group Bemoans Federal Intrusion on the Internet
/PRNewswire/ -- Despite the fact that Congress has not given the Federal Communications Commission (FCC) authority to regulate the Internet, along with a recent court decision informing the government agency that it exceeded its regulatory boundaries in trying to do so, the FCC announced that it will move forward with intrusive and risky rules that hurt innovation, the economy and small business. According to the Small Business & Entrepreneurship Council (SBE Council), such federal government intrusion dictating how the Internet operates will suffocate innovation, chill investment, and erode U.S. competitiveness. Moreover, Internet regulation undermines two crucial goals of the Obama Administration - accelerating the pace of economic recovery, and making broadband available for every American who wants access.
Commenting on the FCC's fixation to control the workings of the Internet where no problem exists, SBE Council President & CEO Karen Kerrigan said: "I cannot tell you how disappointed and concerned we are that the federal government has decided to intrude into an area where creativity, capital and freedom have joined to produce unprecedented gains and opportunities for the individual, society, entrepreneurs and our economy. We are particularly troubled because the FCC has not offered any compelling evidence that an 'Open Internet' has been compromised. In fact, the vast record accumulated by the FCC over the years proves this point: There is no problem."
Raymond J. Keating, SBE Council's chief economist, added: "The FCC's drive to micromanage broadband networks is a case of irrational exuberance for government interference. While Internet providers have every incentive to serve their markets well, and clearly no market failure exists, the FCC chairman nevertheless wants government calling the shots on broadband pricing and operations. Investment and innovation will suffer accordingly, as will the entrepreneurs and small businesses that rely on and contribute to the Internet. At a time of great uncertainty regarding the economy and markets, the FCC inexplicably is creating greater uncertainty."
As the SBE Council has argued in its comments to the FCC, certainty is needed in order for broadband providers to invest the billions upon billions needed to fully deploy broadband and maintain its complex operations and growth. Indeed, the FCC has developed a National Broadband Plan recognizing the need for massive private sector investment in order to reach its goal of making broadband available to every American who wants access. Unfortunately, the FCC's obsession with regulation will undermine the essential goals it sets out in the National Broadband Plan, according to SBE Council.
Kerrigan continued: "Chairman Genachowski is moving full-steam ahead with a risky regulatory scheme even though the Congress has never given the Commission such authority to regulate the Internet. As consumers of broadband, and as entrepreneurs engaged in its deployment, maintenance and development; small business owners have the most to lose if intrusive new rules are enacted. That is why small business owners overwhelmingly oppose 'net' regulation, and we will continue to work with our supporters and small business leaders in Congress to ensure the FCC does not impose burdensome rules that disrupt innovation, service offerings, deployment as well as the Internet's staggering progress and the opportunities it offers."
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Commenting on the FCC's fixation to control the workings of the Internet where no problem exists, SBE Council President & CEO Karen Kerrigan said: "I cannot tell you how disappointed and concerned we are that the federal government has decided to intrude into an area where creativity, capital and freedom have joined to produce unprecedented gains and opportunities for the individual, society, entrepreneurs and our economy. We are particularly troubled because the FCC has not offered any compelling evidence that an 'Open Internet' has been compromised. In fact, the vast record accumulated by the FCC over the years proves this point: There is no problem."
Raymond J. Keating, SBE Council's chief economist, added: "The FCC's drive to micromanage broadband networks is a case of irrational exuberance for government interference. While Internet providers have every incentive to serve their markets well, and clearly no market failure exists, the FCC chairman nevertheless wants government calling the shots on broadband pricing and operations. Investment and innovation will suffer accordingly, as will the entrepreneurs and small businesses that rely on and contribute to the Internet. At a time of great uncertainty regarding the economy and markets, the FCC inexplicably is creating greater uncertainty."
As the SBE Council has argued in its comments to the FCC, certainty is needed in order for broadband providers to invest the billions upon billions needed to fully deploy broadband and maintain its complex operations and growth. Indeed, the FCC has developed a National Broadband Plan recognizing the need for massive private sector investment in order to reach its goal of making broadband available to every American who wants access. Unfortunately, the FCC's obsession with regulation will undermine the essential goals it sets out in the National Broadband Plan, according to SBE Council.
Kerrigan continued: "Chairman Genachowski is moving full-steam ahead with a risky regulatory scheme even though the Congress has never given the Commission such authority to regulate the Internet. As consumers of broadband, and as entrepreneurs engaged in its deployment, maintenance and development; small business owners have the most to lose if intrusive new rules are enacted. That is why small business owners overwhelmingly oppose 'net' regulation, and we will continue to work with our supporters and small business leaders in Congress to ensure the FCC does not impose burdensome rules that disrupt innovation, service offerings, deployment as well as the Internet's staggering progress and the opportunities it offers."
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FCC's Third Way Would Transfer Costs for Digital Expansion to the Un-served and Underserved
/PRNewswire/ -- The CEO and Chairman of the Alliance for Digital Equality (ADE), Julius Hollis, issued the following statement regarding FCC Chairman Genachowski's announcement yesterday that the FCC will seek to reclassify broadband providers as common carrier services under certain provisions of Title II of the Communications Act, in order to restore a legal foundation to their regulatory authority following the recent FCC vs. Comcast lawsuit:
"Yesterday's announcement by Chairman Genachowski is both perplexing and concerning. The FCC, after conferring with various stakeholders, crafted a comprehensive National Broadband Plan which seeks to guide the build out of high speed Internet and stimulate much-needed job growth. The FCC's National Broadband Plan provides a level and competitive landscape across all networks allowing for the spread of broadband to all American consumers. All this while maintaining an open Internet.
However, the Chairman's "third way" approach constricts economic development, particularly in communities of color that have been economically marginalized for decades due to the absence of private sector investment. This "third way" that the Chairman speaks of could further perpetuate economic inequalities by restricting consumers' choice and access to affordable broadband as our society moves towards a digitally-based economy.
"The Alliance for Digital Equality fully supports an open Internet and a regulatory environment that incentivizes the private investment necessary to bring digital technology to our currently un-served and underserved communities, leading to economic equality. ADE calls on the FCC today to focus on the critically important task of getting all Americans connected as delineated in the National Broadband Plan by promoting a more balanced regulatory environment. The ADE encourages Chairman Genachowski to reconsider his plans to implement a third way."
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"Yesterday's announcement by Chairman Genachowski is both perplexing and concerning. The FCC, after conferring with various stakeholders, crafted a comprehensive National Broadband Plan which seeks to guide the build out of high speed Internet and stimulate much-needed job growth. The FCC's National Broadband Plan provides a level and competitive landscape across all networks allowing for the spread of broadband to all American consumers. All this while maintaining an open Internet.
However, the Chairman's "third way" approach constricts economic development, particularly in communities of color that have been economically marginalized for decades due to the absence of private sector investment. This "third way" that the Chairman speaks of could further perpetuate economic inequalities by restricting consumers' choice and access to affordable broadband as our society moves towards a digitally-based economy.
"The Alliance for Digital Equality fully supports an open Internet and a regulatory environment that incentivizes the private investment necessary to bring digital technology to our currently un-served and underserved communities, leading to economic equality. ADE calls on the FCC today to focus on the critically important task of getting all Americans connected as delineated in the National Broadband Plan by promoting a more balanced regulatory environment. The ADE encourages Chairman Genachowski to reconsider his plans to implement a third way."
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Thursday, May 6, 2010
FCC Moves Toward More Government Regulation of the Internet
/PRNewswire/ -- According to reports, Federal Communications Commission (FCC) Chairman Julius Genacowski will seek to reclassify broadband services under New Deal-era "common carrier" laws created for early landline telephone technology, thereby allowing the government to regulate the Internet via outdated rules. In response, Center for Individual Freedom's Vice President of Legal and Public Affairs Timothy Lee issued the following statement:
"The FCC should not attempt to apply archaic 1930s rules to 21st century technologies. This move by Chairman Genacowski will do nothing but stifle innovation, investment and growth within the broadband sector.
"Reclassifying broadband will merely allow the government to intervene in a thriving Internet market and hamper the constant service improvement and innovations to which consumers have become accustomed. It's the proverbial 'solution in search of a problem.' This bald partisan move also ignores all of the new technologies that are available precisely due to limited government intervention, and will ultimately move us backward to old-fashioned rules that once governed telephone services in the early 20th century.
"With everything else going on, do we really need a government take over the Internet?"
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"The FCC should not attempt to apply archaic 1930s rules to 21st century technologies. This move by Chairman Genacowski will do nothing but stifle innovation, investment and growth within the broadband sector.
"Reclassifying broadband will merely allow the government to intervene in a thriving Internet market and hamper the constant service improvement and innovations to which consumers have become accustomed. It's the proverbial 'solution in search of a problem.' This bald partisan move also ignores all of the new technologies that are available precisely due to limited government intervention, and will ultimately move us backward to old-fashioned rules that once governed telephone services in the early 20th century.
"With everything else going on, do we really need a government take over the Internet?"
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Thursday, January 14, 2010
State Legislators Say Net Regulation Will Hurt Investment and Jobs
/PRNewswire/ -- The American Legislative Exchange Council (ALEC) has delivered a letter to the Federal Communications Commission (FCC) opposing proposed network neutrality regulation. The state lawmakers expressed serious concerns that the unintended consequences of the proposed federal regulatory expansion into the Internet will harm states' economies. ALEC's letter was signed by 91 legislators from 36 states.
Connecticut State Representative Bill Hamzy serves as Chair of ALEC's Telecommunications & Information Technology Task Force and is the lead signatory of the ALEC letter opposing network neutrality regulation. "Federal regulation of broadband networks is the wrong way to spur the kind of technological innovation and financial investment in broadband infrastructure that will bring sustainable job growth to state economies. Since the FCC cannot even point to any existing problem with the Internet, it should say 'no' to network neutrality regulation," he said.
The ALEC letter described the proposed network neutrality regulation as "an unprecedented foray into government control of broadband private networks and the Internet" that could result in economic slowdown and setback in the states. "If adopted, extensive regulatory control and uncertainties will harm innovation, stifle investment, and curtail job growth. We believe that unintended consequences stemming from the draft rules will be detrimental to our states' economies and forestall marketplace recovery."
In 2007, ALEC adopted a Resolution on Network Neutrality that calls on the federal government and states to refrain from imposing such regulation.
The American Legislative Exchange Council (ALEC) is the nation's largest nonpartisan, individual membership organization of state legislators.
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Connecticut State Representative Bill Hamzy serves as Chair of ALEC's Telecommunications & Information Technology Task Force and is the lead signatory of the ALEC letter opposing network neutrality regulation. "Federal regulation of broadband networks is the wrong way to spur the kind of technological innovation and financial investment in broadband infrastructure that will bring sustainable job growth to state economies. Since the FCC cannot even point to any existing problem with the Internet, it should say 'no' to network neutrality regulation," he said.
The ALEC letter described the proposed network neutrality regulation as "an unprecedented foray into government control of broadband private networks and the Internet" that could result in economic slowdown and setback in the states. "If adopted, extensive regulatory control and uncertainties will harm innovation, stifle investment, and curtail job growth. We believe that unintended consequences stemming from the draft rules will be detrimental to our states' economies and forestall marketplace recovery."
In 2007, ALEC adopted a Resolution on Network Neutrality that calls on the federal government and states to refrain from imposing such regulation.
The American Legislative Exchange Council (ALEC) is the nation's largest nonpartisan, individual membership organization of state legislators.
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Friday, October 23, 2009
Commission Seeks Public Input on Draft Rules to Preserve the Free and Open Internet
In the next chapter of a longstanding effort to preserve the free and open Internet, the Federal Communications Commission is seeking public input on draft rules that would codify and supplement existing Internet openness principles. In addition to providing greater predictability for all stakeholders, the Notice is aimed at securing the many economic and social benefits that an open Internet has historically provided. It seeks to do so in a manner that will promote and protect the legitimate needs of consumers, broadband Internet access service providers,
entrepreneurs, investors, and businesses of all sizes that make use of the Internet.
The Commission has addressed openness issues in a variety of contexts and proceedings,
including: a unanimous policy statement in 2005, a notice of inquiry on broadband industry
practices in 2007, public comment on several petitions for rulemaking, conditions associated
with significant communications industry mergers, the rules for the 700 MHz spectrum auction
in 2007, specific enforcement actions, and public en banc hearings. During this time period,
opportunities for public participation have generated over 100,000 pages of input in
approximately 40,000 filings from interested parties and members of the public.
The process today’s Notice initiates will build upon the existing record at the
Commission to identify the best means to achieve the goal of preserving and promoting
the open Internet.
Recognizing that the proposed framework needs to balance potentially competing
interests while helping to ensure an open, safe, and secure Internet, the draft rules would permit
broadband Internet access service providers to engage in reasonable network management,
including but not limited to reasonable practices to reduce or mitigate the effects of network
congestion.
Under the draft proposed rules, subject to reasonable network management, a provider of
broadband Internet access service:
1. would not be allowed to prevent any of its users from sending or receiving the
lawful content of the user’s choice over the Internet;
2. would not be allowed to prevent any of its users from running the lawful
applications or using the lawful services of the user’s choice;
3. would not be allowed to prevent any of its users from connecting to and using
on its network the user’s choice of lawful devices that do not harm the
network;
4. would not be allowed to deprive any of its users of the user’s entitlement to
competition among network providers, application providers, service
providers, and content providers;
5. would be required to treat lawful content, applications, and services in a
nondiscriminatory manner; and
6. would be required to disclose such information concerning network
management and other practices as is reasonably required for users and
content, application, and service providers to enjoy the protections specified in
this rulemaking.
The draft rules make clear that providers would also be permitted to address harmful traffic and traffic unwanted by users, such as spam, and prevent both the transfer of unlawful content, such as child pornography, and the unlawful transfer of content, such as a transfer that would infringe copyright. Further, nothing in the draft rules supersedes any obligation a broadband Internet access service provider may have -- or limits its ability -- to deliver emergency communications, or to address the needs of law enforcement, public safety, or national or homeland security authorities, consistent with applicable law.
The Commission is also seeking comment on how it should address “managed” or “specialized” services, which are Internet-Protocol-based offerings provided over the same networks used for broadband Internet access services. While the proceeding will seek input on how best to define and treat such services, managed services could include voice, video, and enterprise business services, or specialized applications like telemedicine, smart grid, or eLearning offerings. These services may provide consumer benefits and lead to increased deployment of broadband networks.
The Notice asks how the Commission should define the category of managed or specialized services, what policies should apply to them, and how to ensure that broadband providers’ ability to innovate, develop valuable new services, and experiment with new technologies and business models can co-exist with the preservation of the free and open Internet on which consumers and businesses of all sizes depend.
The Notice affirms that the six principles it proposes to codify would apply to all platforms for broadband Internet access, including mobile wireless broadband, while recognizing that different access platforms involve significantly different technologies, market structures, patterns of consumer usage, and regulatory history. To that end, the Notice seeks comment on how, in what time frames or phases, and to what extent the principles should apply to non-wireline forms of broadband Internet access, including mobile wireless.
Recognizing that the Commission’s decisions in this rulemaking must reflect a thorough understanding of current technology and future technological trends, the Chief of the Commission’s Office of Engineering & Technology will create an inclusive, open, and transparent process for obtaining the best technical advice and information from a broad range of engineers.
The adoption of this Notice will open a window for submitting comments to the FCC. Comments can be filed through the Commission’s Electronic Comment Filing System, and are due on Thursday, January 14. Reply comments are due on Friday, March 5. In addition, the rulemaking process will include many other avenues for public input, including open workshops on key issues; providing feedback through openinternet.gov, which will include regular blog posts by Commission staff; and other new media tools, including IdeaScale, an online platform for brainstorming and rating solutions to policy challenges.
Action by the Commission, October 22, 2009, by Notice of Proposed Rulemaking (FCC
09-93). Chairman Genachowski, Commissioners Copps and Clyburn; Commissioner McDowell
and Commissioner Baker concurring in part, dissenting in part. Separate statements issued by
Chairman Genachowski, Commissioners Copps, McDowell, Clyburn and Baker.
GN Docket No.: 09-191
WC Docket No.: 07-52
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entrepreneurs, investors, and businesses of all sizes that make use of the Internet.
The Commission has addressed openness issues in a variety of contexts and proceedings,
including: a unanimous policy statement in 2005, a notice of inquiry on broadband industry
practices in 2007, public comment on several petitions for rulemaking, conditions associated
with significant communications industry mergers, the rules for the 700 MHz spectrum auction
in 2007, specific enforcement actions, and public en banc hearings. During this time period,
opportunities for public participation have generated over 100,000 pages of input in
approximately 40,000 filings from interested parties and members of the public.
The process today’s Notice initiates will build upon the existing record at the
Commission to identify the best means to achieve the goal of preserving and promoting
the open Internet.
Recognizing that the proposed framework needs to balance potentially competing
interests while helping to ensure an open, safe, and secure Internet, the draft rules would permit
broadband Internet access service providers to engage in reasonable network management,
including but not limited to reasonable practices to reduce or mitigate the effects of network
congestion.
Under the draft proposed rules, subject to reasonable network management, a provider of
broadband Internet access service:
1. would not be allowed to prevent any of its users from sending or receiving the
lawful content of the user’s choice over the Internet;
2. would not be allowed to prevent any of its users from running the lawful
applications or using the lawful services of the user’s choice;
3. would not be allowed to prevent any of its users from connecting to and using
on its network the user’s choice of lawful devices that do not harm the
network;
4. would not be allowed to deprive any of its users of the user’s entitlement to
competition among network providers, application providers, service
providers, and content providers;
5. would be required to treat lawful content, applications, and services in a
nondiscriminatory manner; and
6. would be required to disclose such information concerning network
management and other practices as is reasonably required for users and
content, application, and service providers to enjoy the protections specified in
this rulemaking.
The draft rules make clear that providers would also be permitted to address harmful traffic and traffic unwanted by users, such as spam, and prevent both the transfer of unlawful content, such as child pornography, and the unlawful transfer of content, such as a transfer that would infringe copyright. Further, nothing in the draft rules supersedes any obligation a broadband Internet access service provider may have -- or limits its ability -- to deliver emergency communications, or to address the needs of law enforcement, public safety, or national or homeland security authorities, consistent with applicable law.
The Commission is also seeking comment on how it should address “managed” or “specialized” services, which are Internet-Protocol-based offerings provided over the same networks used for broadband Internet access services. While the proceeding will seek input on how best to define and treat such services, managed services could include voice, video, and enterprise business services, or specialized applications like telemedicine, smart grid, or eLearning offerings. These services may provide consumer benefits and lead to increased deployment of broadband networks.
The Notice asks how the Commission should define the category of managed or specialized services, what policies should apply to them, and how to ensure that broadband providers’ ability to innovate, develop valuable new services, and experiment with new technologies and business models can co-exist with the preservation of the free and open Internet on which consumers and businesses of all sizes depend.
The Notice affirms that the six principles it proposes to codify would apply to all platforms for broadband Internet access, including mobile wireless broadband, while recognizing that different access platforms involve significantly different technologies, market structures, patterns of consumer usage, and regulatory history. To that end, the Notice seeks comment on how, in what time frames or phases, and to what extent the principles should apply to non-wireline forms of broadband Internet access, including mobile wireless.
Recognizing that the Commission’s decisions in this rulemaking must reflect a thorough understanding of current technology and future technological trends, the Chief of the Commission’s Office of Engineering & Technology will create an inclusive, open, and transparent process for obtaining the best technical advice and information from a broad range of engineers.
The adoption of this Notice will open a window for submitting comments to the FCC. Comments can be filed through the Commission’s Electronic Comment Filing System, and are due on Thursday, January 14. Reply comments are due on Friday, March 5. In addition, the rulemaking process will include many other avenues for public input, including open workshops on key issues; providing feedback through openinternet.gov, which will include regular blog posts by Commission staff; and other new media tools, including IdeaScale, an online platform for brainstorming and rating solutions to policy challenges.
Action by the Commission, October 22, 2009, by Notice of Proposed Rulemaking (FCC
09-93). Chairman Genachowski, Commissioners Copps and Clyburn; Commissioner McDowell
and Commissioner Baker concurring in part, dissenting in part. Separate statements issued by
Chairman Genachowski, Commissioners Copps, McDowell, Clyburn and Baker.
GN Docket No.: 09-191
WC Docket No.: 07-52
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Senator McCain Introduces “The Internet Freedom Act of 2009”
U.S. Senator John McCain today (October 22) introduced legislation that would prohibit the Federal Communications Commission from enacting rules that would regulate the Internet. The Commission will meet today to determine whether the historically open architecture and free flow of the Internet should be subject to onerous federal regulation. Specifically, the Commission will seek to impose “net neutrality” rules that would reign in the network management practices of all Internet service providers, including wireless phone companies.
This government takeover of the Internet will stifle innovation, in turn slowing our economic turnaround and further depressing an already anemic job market. Outside of health care, the technology industry is the nation’s fastest growing job market. Innovation and job growth in this sector of our economy is the key to America’s future prosperity. In 2008, while most industries were slashing jobs in the worst economy in nearly 30 years, high tech industries actually added over 77,000 good high-paying jobs. Just this month, Google and Yahoo both released positive earnings reports.
The wireless industry exploded over the past twenty years due to limited government regulation. Wireless carriers invested $100 billion in infrastructure and development over the past three years which has led to faster networks, more competitors in the marketplace and lower prices compared to any other country. Meanwhile, wired telephones and networks have become a slow dying breed as they are mired in state and Federal regulations, universal service contribution requirements and limitations on use.
“Today I’m pleased to introduce ‘The Internet Freedom Act of 2009’ that will keep the Internet free from government control and regulation,” said Senator John McCain. “It will allow for continued innovation that will in turn create more high-paying jobs for the millions of Americans who are out of work or seeking new employment,” McCain continued. “Keeping businesses free from oppressive regulations is the best stimulus for the current economy.
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This government takeover of the Internet will stifle innovation, in turn slowing our economic turnaround and further depressing an already anemic job market. Outside of health care, the technology industry is the nation’s fastest growing job market. Innovation and job growth in this sector of our economy is the key to America’s future prosperity. In 2008, while most industries were slashing jobs in the worst economy in nearly 30 years, high tech industries actually added over 77,000 good high-paying jobs. Just this month, Google and Yahoo both released positive earnings reports.
The wireless industry exploded over the past twenty years due to limited government regulation. Wireless carriers invested $100 billion in infrastructure and development over the past three years which has led to faster networks, more competitors in the marketplace and lower prices compared to any other country. Meanwhile, wired telephones and networks have become a slow dying breed as they are mired in state and Federal regulations, universal service contribution requirements and limitations on use.
“Today I’m pleased to introduce ‘The Internet Freedom Act of 2009’ that will keep the Internet free from government control and regulation,” said Senator John McCain. “It will allow for continued innovation that will in turn create more high-paying jobs for the millions of Americans who are out of work or seeking new employment,” McCain continued. “Keeping businesses free from oppressive regulations is the best stimulus for the current economy.
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