As expected, the Federal Communications Commission (FCC) yesterday voted to begin the rule-making process that will move the US toward network neutrality - a major shift from its earlier 'hands off' policy on web regulation.
The theory behind this principle is that as the number of broadband providers grow smaller and more concentrated, these players will favor access to their own products and services - a deep concern to Web 2.0 companies that offer competing offerings.
FCC Chairman Julius Genachowski had given the market sneak previews of his beliefs, so the final proposal did not come as a great surprise. The concepts, including the so-called sixth principle, are:
- Preserving a free and open internet.
- Promoting both investment and innovation. "The idea that we must choose between innovation and investment on the 'edge' of the network, where content and applications are developed, or innovation and investment in the 'core' of the network, where broadband providers operate, is a false choice."
- Flexibility for broadband providers to manage their networks.
- A 'modest' government role in preserving openness. "The goal is to provide a fair framework in which all participants in the Internet ecosystem can operate, ultimately minimizing the need for government involvement."
- Emphasizing security. "Open internet rules…are not a shield for copyright infringement, spam, or other violations of the law… they must honor the protection of users’ privacy… and be consistent with public safety as well as homeland and national security."
- Transparent network management practices.
Though lobbying against the proposal has been intense by telcos, its release appears to have mollified their worst-case imaginings, PC Magazine said. "While the usual suspects were elated, the chairman's effort to make the process more transparent and collaborative also appears to have allayed fears among major critics."
Chairman Genachowski also emphasized that technical realities for wireless internet are different from land-line providers, and thus application of the rules would be tailored to that environment - comments that the industry immediately seized.
"We are pleased that Chairman Genachowski and the commission acknowledge that 'wireless is different,' and that as part of the [rules], the commission will investigate 'how, when, and to what extent' the rules should apply to the mobile wireless broadband platform," Steve Largent, CEO and president of industry association CTIA, told PC Magazine.
"We agree wireless is different, and believe that whatever the case may be for applying rules to other platforms, applying these rules to mobile wireless broadband services during a period of dynamic innovation and change in the wireless ecosystem could have significant unintended consequences," Largent said.
For all the angst and handwringing in the lead up to the proposal, in truth Thursday's vote is just the opening move in what will be a complicated process that will take several months. The end result will be codified rules, instead of the guidance’s under which telcos and Web 2.0 have been operating (via the Washington Post).
In other words, what those rules finally look like is still unclear. For instance, Rebecca Arbogast, head of technology policy research at Stifel Nicolaus, said in a research note that as a concession to large telecommunications companies, it appeared as though some commissioners had opened the question of whether internet content companies such as Google, Amazon, eBay and Skype should also fall under the rules, the Post reported.
Stakeholders have until January 14, 2010 to file the first round of comments; March 5, 2010 is the deadline to file reply comments. Meanwhile Sen. John McCain (R-AZ) introduced a bill on Thursday that would prohibit the FCC from enacting rules that would regulate the internet.
App Scout notes that McCain's bill also includes a provision that says it would not pre-empt "any regulations regarding internet or IP-enabled services that were in effect on the day before the date of the enactment of this Act." If the FCC passed its rules before Congress passed the McCain bill, would this bill not apply to the FCC rules?" the publication questioned.
