Here's the FCC's Playbook for Burying Net Neutrality
The Federal Communications Commission (FCC) is planning in the next couple of weeks to begin an inquiry into Net Neutrality. On the surface, that might appear to be an enlightened, even noble, action for the agency to take.
It’s not. Beneath the surface, the reality is that FCC Chairman Kevin Martin’s planned Notice of Inquiry on Net Neutrality is an audacious triple play with the goals of greasing the largest telecom merger in history, relieving pressure on a key piece of legislation, and burying the Net Neutrality concept for good.
Net Neutrality is the simple idea that the companies which operate telecom networks, like telephone and cable companies, shouldn’t be able to have control over content by playing favorites, whether with affiliates or through companies which cut special deals. The telephone network operated for 71 years under a non-discrimination policy, which the FCC lifted last year for high-speed Internet services. Those of us, like my day job employer Public Knowledge, who want customers and content producers to have the ultimate control, want that non-discrimination principle reinstated.
The Net Neutrality debate has proven so potent that the proponents in Washington and around the country have been able to bring Senate Commerce Committee Chairman Ted Stevens’ massive telecom bill to a standstill. There’s a lot in the bill not to like, but Net Neutrality is the defining issue.
So here’s the setup. The FCC is currently considering AT&T’s $67 billion purchase of BellSouth, the largest merger in history. In similar past mergers, such as SBC’s purchase of AT&T, or Verizon’s purchase of MCI, the Commission has imposed some relatively neutered Net Neutrality conditions for a limited period of time. Martin would like to approve the current deal without any conditions.
Martin’s gambit to make the merger as painless as possible for the companies is to try to take the Net Neutrality issue off the table. The way he will try to do that is with a Notice of Inquiry.
In the arcane world of FCC process, there are basically three levels of action the Commission can take. Most of the time, the Commission employs only two out of three. First, there is a Notice of Proposed Rulemaking (NPRM). The construct of the NPRM is that the Commission has found a problem that needs a Commission ruling and proposes some solutions. After a public comment proceeding, the Commission then issues the rule. The construct the rule is that the Commission has picked a course of action to follow. Most of the time the Commission adopts its proposed rule, rather than something others might suggest, but you have to go through the drill anyway.
A preliminary step to the NPRM is called the Notice of Inquiry. The construct here is that the Commission is asking whether there is a problem that needs FCC attention. Notices of Inquiry rarely go any farther in the process. They are a device for burying a problem. But this one is tricky, for the political and analytical hazards it poses for Net Neutrality advocates, including FCC Commissioners Michael Copps and Jonathan Adelstein.
When the FCC votes on an action, Commissioners can vote for it, vote against it, or concur in part or dissent in part. Because the window dressing on a Notice of Inquiry is that it’s simply asking a question, it’s hard for a Commissioner to vote against issuing one without appearing unreasonable. In this case, it would be hard for Copps or Adelstein to vote against issuing the Inquiry would open them to the charge of being unreasonable. After all, critics will say, the Commission is only “asking questions” and no one can object to that, particularly when Copps had been such a staunch advocate of Net Neutrality.
It’s easy to see how the inquiry will play out. The telephone companies and cable companies will tell the FCC there’s no problem with Net Neutrality. Those of us who favor reinstating the non-discrimination law will argue that there might not be a current problem because discrimination was until recently illegal, because the telephone and cable companies are on their best behavior while trying to obtain easier entry to the cable business from Congress and because the FCC’s current non-enforceable Net Neutrality principles don’t protect consumers from the telephone and cable companies giving priority to the services in which they have a financial interest (even more than they do now with Internet telephony).
None of our arguments will matter. The FCC, if it says anything, will say there’s no need for a proposed rulemaking because no one has shown a problem exists. More study or monitoring will be needed. Even if the telephone and cable companies do start openly discriminating in favor of some services, the current FCC is unlikely to do anything about it.
As an added bonus, Stevens will be able to say there’s no need to pursue Net Neutrality in his telecom bill because the FCC is handling the issue. The irony, of course is that the legislation prohibits the FCC from enacting any rules on Net Neutrality.
Here’s an alternative scenario. Martin’s actions should be seen as dodge they really are. Copps and Adelstein should insist on strong non-discrimination language as part of the AT&T takeover of BellSouth. They should either dissent to the bogus Notice of Inquiry or, at the least, point out the reality of the situation. And the telecom legislation should be allowed to expire. Then, perhaps next year, a serious discussion about protecting the open Internet can take place.












Question:
Are the cable and DSL companies not regulated by the Common Carrier status, and would they not then be responsible for whatever content traversed their networks were they to discriminate? How do the current FCC proposals change this (or will there be a good deal of censorship imposed by the telcoms in order to meet decency standards once common carrier status is lost?)
October 6, 2006 7:00 AM | Reply | Permalink
About a year ago the FCC ruled that common carrier status need not apply to the telecoms. The Stevens bill, in part, was intended to make the revocation of common carrier status a statutory rather than regulatory condition.
Yes, this is an interesting point. They may well become liable for content in the absence of the common carrier provision, including folks like white supremicists and, dare we say it, terroists.
Of course, this potential liability, as you seem to be saying, could well be used as grounds for censorship.
October 6, 2006 8:03 AM | Reply | Permalink
A quick update -- both the AT&T takeover of BellSouth and the Notice of Inquiry are on the agenda of the FCC's Oct. 12 meeting.
October 6, 2006 11:23 AM | Reply | Permalink
So is there any action we can take?
October 6, 2006 1:51 PM | Reply | Permalink
What you say is true. If a carrier regulates the content of their transmissions, they are responsible for it as pertains to law and decency standards. To try and do this for the entire worlds data that flows over these carriers, would be an impossible task. I see much more limited sort of "pay-per-view" services happening. A group with downloadable multi-media/music, news/sports packages and financial services. I don't think anyone is in any danger of having a pay-to-see-you-friend's-youtube-file, or never being able to read the truth in the news unless you pay AT&T. Actually by decreasing big-media competition in "free" areas of the internet the opportunity for more independent sites and services might just appear.
October 6, 2006 3:22 PM | Reply | Permalink
The Telecomms may also have liability under the DMCA if they begin to discriminate. The second stipulation of the Digital Millenium Copyright Act states that in order to qualify as a "transitory communications provider" and be exempt from liability for copyright infringement, "The transmission, routing, provision of connections, or copying must be carried out by an automatic technical process without selection of material by the service provider." This is according to the Article at Plagiarism Today, and I confirmed it in the DMCA itself. The way Plagiarism Today sees it is that filetypes can be routed selectively, but the minute they discriminate between two files of the same filetype because of content, the telecomms may lose their protection under the DMCA.
Of course, if the trend to subvert the law and the rules to benefit the conglomerates continues, the DMCA will be the next thing to undergo some bizarre metamorphosis at the hands of our legislators and/or regulators.
October 6, 2006 4:20 PM | Reply | Permalink
KC in DC
I don't think Copps and Adelstein would appear at all unreasonable for dissenting from the NOI, since, as you have pointed out, it is a pretty transparent dodge. An NOI is not, generally speaking, a bad idea. It can allow the FCC (or another agency, since it's part of the Administrative Procedure Act) to take a big picture look at an issue without proposing a solution. In an NPRM, the FCC is supposed to actually propose the text of the rules, but this usually doesn't happen - they just say they are going to have a rule banning discrimination, for example, without making a concrete proposal. In effect, the NOI and the NPRM are merged. This makes the process faster (or, perhaps I should say less slow) but the result is that, as you point out, an actual NOI is just a way to sweep something under the rug.
October 11, 2006 12:47 PM | Reply | Permalink
A sidebar: a friend of mine wrote his Congressmen about the net neutrality issue, and shortly thereafter got a recruitment message from the RNC saying they had noticed that no one in his household was registered to vote.
A friend who recently started a small business was also contacted by the RNC. NPR had a piece about this practice today. The RNC is taking homeland security data mining techniques and using them to identify potential voters and make personal political recruitment and fundraising contacts. I doubt that Democrats are being given equal access to information and techniques developed with public funding.
You might check the ">http://www.eff.org"> Electronic Frontier Foundation for net neutrality information.
October 11, 2006 12:55 PM | Reply | Permalink