Between the Lines

Larry Dignan, Andrew Nusca and Rachel King

FCC and Net Neutrality: A no-win situation?

By | May 3, 2010, 1:26pm PDT

Summary: The FCC chairman may be leaning toward a position of leaving broadband deregulated, a move that critics say would kill net neutrality and forever change the Internet.

The Washington Post is reporting today that FCC Chairman Julius Genachowski may be leaning toward keeping broadband services deregulated, a move that industry watchdogs claim would be a Net Neutrality killer.

The buzz around Genachowski’s position on broadband regulation comes as the chairman is weighing his response to a court ruling last month that found that the FCC does not have the authority to require Comcast (and other broadband providers) to treat all Internet traffic the same on its network.

That’s a big victory for the providers and a blow to the FCC, which could face a legal challenge of its authority every time it tries to address a broadband policy.

The Post story cites three agency sources who say that Genachowski has not made a final decision but is leaning toward keeping things as-is. The sources told the Post that reclassifying broadband for greater regulation would be “burdensome on carriers and would deter investment.” However, the chairman is also looking at making some changes that would give the FCC more teeth in overseeing some broadband policies.

Almost immediately, critics surfaced and said that FCC should take a position that best protects consumers. Among them was Josh Silver, executive director of Free Press, who issued the following statement:

We simply cannot believe that Julius Genachowski would consider going down this path. Failing to reclassify broadband means the FCC is abandoning the signature communications and technology issues of the Obama administration. Such a decision would destroy Net Neutrality.  It would deeply undermine the FCC’s ability to ensure universal Internet access for rural, low-income and disabled Americans. It will undermine the FCC’s ability to protect consumers from price-gouging and invasions of privacy. If Chairman Genachowski fails to re-establish the FCC authority to protect Internet users, he will be allowing companies like Comcast, AT&T and Verizon to slow down, block or censor content at will. They can block any website, any blog post, any tweet, any outreach by a political campaign — and the FCC would be powerless to stop them.  Without reclassification, nearly every broadband-related decision the agency makes from here forward will be aggressively challenged in court, and the FCC will likely lose. The phone and cable companies know this, which is why they’re going all out to keep the FCC from doing so. Genachowski should not buckle to phone and cable industry pressure, but it will take courage to stand up to one of the biggest lobbying juggernauts in Washington. It’s not too late — and the public is watching. This decision facing the FCC chairman is about more than one single issue, or even a broken promise to the American people. If the FCC fails to stand with the public, it will be the end of the Internet as we know it.

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Sam has been a technology and business blogger for more than 18 years.

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Sam Diaz has nothing to disclose.

Biography

Sam Diaz

Sam has been a technology and business blogger, reporter and editor at ZDNet, the Washington Post, San Jose Mercury News and Fresno Bee for more than 18 years. He's a member of the National Association of Hispanic Journalists and a graduate of California State University, Fresno.

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RE: FCC and Net Neutrality: A no-win situation?
yarinsiz Updated - 11th May 2011
Great!!! thanks for sharing this information to us!
seslisohbet seslichat
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Competition not good enough anymore?
garethmcc 4th May 2010
Why all the fuss? If the FCC decides to leave
things as they are, where is the problem? Market
conditions will dictate the actions of Internet
Providers and no lawyers need to get involved.
If there is collusion between ISP's on price-
fixing and throttling models then get the
lawyers involved. If there is "price gouging"
all it will do is make it easier for someone to
offer better rates and win all the customers
over to their network.

In South Africa we have (unfortunately) had a
restrictive monopoly in place for a long time
now but that is slowly being taken apart by
addition of competitors into the sector and we
are seeing massive improvements to our ITC
infrastructure over a very short time frame
simply because the government does NOT interfere
and competitive market practices are taking
effect.

The market will sort itself out. If people start
finding their current provider is overcharging
and/or too restrictive on their network
policies, people will simply move to another
provider. The ONLY thing to watch out for is a
monopoly and last I checked the US had some
pretty good legal options available to combat
that across all sectors with no special cases.
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Where's the competition?
KNPepper 4th May 2010
Many (most?) markets don't have any real competition. You have a choice of a cable provider (in my case Time Warner - good speed, good service, high prices) or a phone company (AT&T - mediocre speed, mediocre service, high prices). A few more choices might make things more competitive, but I don't have them.
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Your right, there is none!
midenginedrift 4th May 2010
The gentlemen from S. Africa is naive to our problem.

I live in Silicon Valley. Even here, choices for internet are Comcast and AT&T.

Verizon's FIOS service is not yet available in any of the houses I've lived in (3 separate zip codes, I still check).

There are other smaller competetitors, but they charge the same or more because they are ultimately piggybacking off of another company's infrastructure (AT&T or comcast). They didn't lay down the copper themselves, the big corps did.
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Here's why all the fuss
gloomraven 4th May 2010
The regular consumer can't easily switch to another ISP in the U.S. I have the choice of cable satellite or telephone. Like cell phone services, they are discounted when you purchase a contract. If my ISP decides to start censoring something I need to see, I can't just switch to another provider. It would be different if we could easily switch from day to day like we do with Browsers, pens, or places we buy lunch. The cost to switch is too much. Also, although many Americans have broadband service, a good amount of them would not know how to switch or even the little choices they had.
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Cable, because they own a franchise.
Telcos, because the merger fever in the 2000's has reduced the ownership to 3 interlocking directorships (pseudotrust).
Face it, the reason we HAVE the commerce clause in the U.S. is to protect the consumer from the monopolist.
It's why the Constitution includes that little gem.
Time to turn the net providers back into CLEC's
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you are soooooo wrong
jhand47201 Updated - 4th May 2010
Let me give you some examples. My ISP also provides cable TV and offers VOIP phone service. They already got in trouble for tampering with customers who were using competing VOIP services. They were throttling speeds of subscribers who were using programs like Bit Torrent even for legitimate reasons without telling the subscribers or adjusting the billing charges. They instituted download caps that for months nobody at their customer service could explain and there was no way for subscribers to know what their use was. The caps make subscribers think twice about using services to download and watch movies because they eat up the cap. Movies from the ISP don't affect it but a single movie can be as much as $7 or $8 while my unlimited Netflix subscription is about $12.00 a month. It's the same thing for renting from Amazon.com through my TiVo. It's cheaper to download from them but I risk going over limit. Exceed the cap and there's a charge for data over the limit, a chance of being forced in into the higher commercial rate, having your speeds severely throttled with no corresponding adjustment in service charge or total suspension of service. Recently they began offering a pay service to watch TV programs over the computer. There are services that also do this for less and some for free. If net neutrality fails and my ISP gets control of the Internet they will block those services and nothing can be done. It isn't hard to extrapolate the other things that they can affect such as charging retail establishments for the ability to have subscribers access their web sites. The subscribers are on the bottom of the food chain and since there is no competition or negligible competition,will lose. I have a choice of two. AT&T with no caps, slower speeds, less features, same price as what I have now or Comcast which has never produced advertised speeds, institued caps, and regularly raises prices simply because they can.
to regulate or control.

People are paying for an expected level of service, whether it's internet broadband or cable TV service. If someone is paying around $100 or more for an expected level of service, say 10 meg download speed and 1 meg upload, and the ISP delivers considerably less and constantly, then the consumer should have the right to sue for non-delivery of service or for fraud.

So, a class-action lawsuit, with perhaps millions of customers involved as plaintiffs, might get some action for resolution against the ISPs. That kind of resolution doesn't have to get the feds involved in regulating or controlling. The only government involvement might be in the form of the courts that would have to hear the case(s).
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We don't need the government telling us how and where to build the internet. We (in the U.S.) have 66% broadband penetration today without their help. I am sure we can continue to progress without the heavy handed mis-allocation of resources that is bound to happen when the government gets involved.
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66%?
Michael Alan Goff 4th May 2010
According to this chart I'm looking at right now, and I'll admit it was done in 2002, we're 19th with a beautiful 21.4% We're being beaten by such grand countries as: Canada, Belgium, South Korea, Finland, Norway, Sweden, and Bermuda.

I could go on, but you get my point.
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Since for some reason it isn't letting me edi
Michael Alan Goff 5th May 2010
@goff256

I'm just going to correct myself and say it was 2007, not 2002. Didn't catch that mistake XD
Despite the fact that Internet is essentially unregulated,
thanks to past FCC and recent court decisions, we can see
would-be competitors exiting markets (or not entering
them). Verizon has apparently reduced its plans for FIOS
deployment for example. In the absence of competition and
in the presence of barriers to switching even when there are
competitive choices, one wonders how users will be assured
that they have choice to access any Internet-based services,
world-wide and that they will be treated fairly with regard
to their share of Internet access resources. While the FTC
may be an additional avenue for oversight and recourse, the
FCC has traditionally had a statutory role in
telecommunications. To argue that there is no
telecommunications component of Internet access service
ignores its fundamental layered architecture. Fairness of
access to the underlying transport capacity, based on the
service levels to which users subscribe, seems to be
fundamental to the utility of the Internet. I do not believe
that the "competition" mantra solves this problem, despite
arguments to the contrary.

vint cerf
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Competition isn't the end-all-be-all. Get a few major players together and you have a racket. If they can block peer-to-peer traffice, why not deep-packet inspection? Suddenly Google has poor performance and Bing has great performance. What if the only point of view you can find is a Republican point of view?
Which is mostly what's happening right now with about 90% of the press, including newspapers and magazines and radio and TV, being controlled by democrats and their points of views.

Luckily, the republicans still have talk radio. FOX, even though some think is controlled by conservatives, is really down the middle, which to many liberals is way right of their politics and ideology and thus, they classify FOX as too "conservative" for their tastes.

This whole "net neutrality" is nothing more than a sham, with the lefties trying to legislate the who or what or where of the content that flows over the internet. While the FCC and the democrats talk about fairness and net neutrality, they are really hiding their true intentions, which is to start with some legislation and then move on to complete control.

The article quotes from "Free Press", but if anyone did some close checking about the people that own and run that site, they would discover that the people there are very closely associated with communist principles. Since when have communists advocated for "free press"? Those people are dressing themselves up in sheep's clothing and hiding their true intentions. Free Press has been at the forefront of this net neutrality argument and the question has to be "why?". What is in it for them?
0 Votes
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let the FREE_MARKET decide, NOT government control. Maybe the FCC is finally taking smart pills!
0 Votes
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There is no "free-market"
ubiquitous one 4th May 2010
Only geographic cabals that own territories thanks to sweetheart deals with local governments.

One territory, one provider, one choice.
0 Votes
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What free market are you talking about?
mykmlr@... 4th May 2010
The "free market" where you are 'free' to buy what the monopolies offer, at whatever price they choose, whenever they choose, without guarantees, without the freedom even to speak out against the monopoly?
That's the problem with libertarianism. It doesn't think.
0 Votes
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Around here we have a grand two choices
Michael Alan Goff 4th May 2010
a third if you want to go to AT&T and get gorged for money. XD

So, yeah, you're pretty much right. There is no free market when it comes to this industry because it takes money to build out the network. And do you think the opposition is going to allow you to use what they spent so much time building?
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what free market?
jhand47201 4th May 2010
Free market implies there is competition that will control prices and increase features. I don't know where you live but AT&T and Comcast are not a Free Market situation. I'd have more options if I went back to dial-up.
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I imagine someone like Rupert Murdoch or Roger Ales heading a telecom company with a bias like Fox News that will control what I can read, see, and hear on the Internet. It's inconceivable to me to give control of the Internet to ANY of the telecoms. Look at their track record! From the overpriced, redundant joke that is the television programming they overcharge for to voluntarily spying on their subscribers and then turning over everything to the government why should we give them even more control? Even Time Warner raised rates "simply because they could". They know there is little if any competition. AT&T and Comcast know that, too. I still believe the spying on subscribers was their way of saying to the feds "Look what we can do for you if you give us control of the Internet." Talk about a spy in the living room! Now I'm hearing rumblings again about them snooping even deeper into what subscribers are receiving under the guise of "protecting copyrighted material" along with the RIAA wanting mandatory spy software installed on new computers to bust people making copies of DVDs or CDs. These telecom vultures want nothing more than to borrow a page or two from the Chinese government's playbook. This is one time I really hope the government steps in and saves us from the true cyber terrorists.
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My response here:
adornoe@... 4th May 2010
http://talkback.zdnet.com/5208-10532-0.html?forumID=1&threadID=80490&messageID=1553793

works just as good against your heavily biased and uninformed post.
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So says the teabagger
ubiquitous one 4th May 2010
Who thinks monopolies are somehow sacred (like the Bible) and shouldn't be touched.
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I'm for competition, whereas it's the government that has set up many of those ISP and cable monopolies. Government is oftentimes the enemy and the problem.

Net neutrality via government would end up being the exact opposite of what people might expect or hope for.

By the way, since you brought it up, what the heck is wrong with the "teabaggers"?

Also, by the way, what in my prior post did you have a problem with? You didn't address any of the points and you certainly could not refute any of them. Calling me a "teabagger" does not equate to an intelligent or coherent response.
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Ever Since The Internet Went Unregulated I've noticed
A HUGE Drop In Performance. Example. My Wired
Connection Was At 100 Mbps & My Wireless 54 Mbps. Now
I'm Lucky If I Get 11Mbps. Next Trick I Used To be
Able To Download Games 2 Gigs Plus. In 45 Minutes To
An Hour Depending On Network Traffic. Now It Takes 6
Hours Plus. So Tell Me Wheres Our Freedom Of Choice &
Performance Gone That They Always hammered Into Us If
We Get This Internet Connection Or That Internet
Connection We Get Performance. Half The Time I Cant
Hardly Load Up Web Pages.
Net neutrality conveys a different meaning from what your complaints are about.

You are complaining about crappy service and high prices and lack of competition.

But, the term "net neutrality" has a different meaning from what your problems are about.

What you are seeking is better service at better prices and for the existence of more competition. That has nothing to do with what the "net neutrality" has been about.

Perhaps what you seek is a "good service at a fair price" type of regulation with more "competition in the market-place". Those would make for a better argument than that whole "net neutrality" garbage. So, have you thought about why it is being called "net neutrality" instead of competition in the marketplace?
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"The end of the internet as we know it"???
mkpelletier@... 4th May 2010
While I agree that there is need for some government regulation in this whole issue, I think Josh Silver is overstating the case significantly. Statements like, "They can block any website, any blog post, any tweet, any outreach by a political campaign ? and the FCC would be powerless to stop them." and "...the end of the internet as we know it" are a bit over the top. Isn't this just a classic case of FUD?
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His intentions is to strike fear in people and to get them to insist on government regulations over the internet.

Mr Silver's intentions are the complete opposite of what he seems to be preaching. His tactics are classic "bait and switch". His goal is to reel you in and convince you that government needs to take control. He is a big government advocate and is no friend to the true "free press" or to freedom of speech or to real "net neutrality". His real goal is to start government towards true control of the press and of free speech. He is rooted on the ideology of communism, and, as it's well-known, there has never been a communist that believes in true freedom of the press or in true freedom of speech. He is the last person that anybody should consult or quote when one seeks true freedom of the press, or net neutrality.
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Oh boy, Josh Silver is a communist!
ubiquitous one 4th May 2010
Let's roll out the Red Scare!

Red Alert!

Red Alert!

Red Alert!

Calling the John Birch Society!

Calling Joseph McCarthy!

Calling all reactionaries!

beeb-beep!

beeb-beep!

beeb-beep!
Do your own research and don't just come out with your fifth grade type of arguments.

BTW, what was wrong with McCarthy?
0 Votes
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BTW, what was wrong with McCarthy?
ubiquitous one 6th May 2010
lol... grin

You really had to ask that question?

head shaking
0 Votes
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You can't dismiss the question with a non-answer.

Tell us what you really know about McCarthy and how he was wrong about anything.

Forget your silly "head shaking" answer. Come up with some real answers. Otherwise, stop your asinine comments.
0 Votes
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wrong place...
adornoe@... Updated - 4th May 2010
content removed
0 Votes
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RE: FCC and Net Neutrality: A no-win situation?
yarinsiz Updated - 11th May 2011
Great!!! thanks for sharing this information to us!
seslisohbet seslichat

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