Government Proposes New Net Neutrality Rules

Federal Communications Commission Chairman Julius Genachowski says he has drawn up draft rules that would provide the framework for a Net Neutrality policy. The FCC is expected to take up the policy proposal at its meeting December 21.

Genachowski said the draft is based on more than 100,000 comments the agency received from citizens and other interested parties.

"This framework, if adopted later this month, would advance a set of core goals: It would ensure that the Internet remains a powerful platform for innovation and job creation; it would empower consumers and entrepreneurs; it would protect free expression; it would increase certainty in the marketplace, and spur investment both at the edge and in the core of our broadband networks, Genachowski said today in a speech in Washington.  

In recent months Net neutrality has evolved into a partisan issue. Democrats generally favor it while Republicans generally oppose it, calling it bad for business. But in his remarks today, Genachowski says Net neutrality started out as a bi-partisan issue.

Republican roots

"The proposed rules of the road are rooted in ideas first articulated by Republican Chairmen Michael Powell and Kevin Martin, and endorsed in a unanimous FCC policy statement in 2005," Genachowski said. "Similar proposals have been supported in Congress on a bipartisan basis.  And they are consistent with President Obama's commitment to 'keep the Internet as it should be -- open and free.'"

In short, Net neutrality would require major network operators - Verizon, AT&T and Comcast, to treat all content the same. It couldn't charge more for video content distribution, for example, even though video content uses more bandwidth.

It would also not favor one provider's content over another. As the name implies, Internet Service Providers would have to remain neutral.

Major network providers have been staunchly opposed to most Net neutrality provisions. Broadband providers want to include language in any policy that would not encumber them when it comes to managing their networks or charging different prices for different levels of service. Wireless network providers are insisting that they be exempt from any Net neutrality rules.

Goodbye to unlimited bandwidth?

Under Genachowski's proposal, broadband providers would be able to impose usage-based charges on consumers, so that consumers - not the content provider - would bear the cost of extra bandwidth usage. For example, Verizon Wireless now offers a mobile broadband service that gives consumers about five gigabytes of bandwidth per billing cycle for a set price. Consumers who exceed that limit pay extra.

Genachowski said his proposal, which would establish open Internet rules for the first time, has three main points:

• First, consumers and innovators have a right to know basic information about broadband service, like how networks are being managed.  The proposed framework therefore starts with a meaningful transparency obligation, so that consumers and innovators have the information they need to make smart choices about subscribing to or using a broadband network, or how to develop the next killer app.  Sunshine can help solve problems early, reducing the number of issues that even come to the FCC. 

• Second, consumers and innovators have a right to send and receive lawful Internet traffic -- to go where they want and say what they want online, and to use the devices of their choice.  Thus, the proposed framework would prohibit the blocking of lawful content, apps, services, and the connection of non-harmful devices to the network.

• Third, consumers and innovators have a right to a level playing field.  No central authority, public or private, should have the power to pick which ideas or companies win or lose on the Internet; that's the role of the market and the marketplace of ideas.  And so the proposed framework includes a bar on unreasonable discrimination in transmitting lawful network traffic. 

"The animating force behind all of these efforts is a shared appreciation for the Internet's wondrous contributions to our economy and our way of life," Genachowski said.

The FCC Chairman tried to quash speculation that the FCC action is designed as an end-run around Congress, which has yet to act on a Net neutrality proposal, even with Democrats in control. Republican control of the House in the next Congress makes Congressional support for a Net neutrality policy even more unlikely.

"As always, I welcome the opportunity for the Commission to serve as a resource to Congress," Genachowski said.