Washington, D.C. - November 24, 2017 (The Ponder News) -- Federal Communications Commission (FCC) Chairman Ajit Pai announced plans to repeal Obama-era regulations that maintain net neutrality, calling it a "
Restoring Internet Freedom order" that would roll back the agency’s
2015 Open Internet Order, which created strong net neutrality rules that force broadband providers to treat all internet content and services equally.The agency’s new proposal downgrades broadband from a “telecommunications service” under Title II of the Communications Act, to a mere “information service.” If adopted at the FCC meeting on December 14, the draft Order will eliminate the existing network neutrality rules (“no blocking, no throttling, and no ‘fast lanes’”). This has become a hot topic (meaning that a lot of people are talking about it), so we thought you might find it interesting.
“Internet service providers should not be able to pick winners and losers on the internet,” said Congresswoman Ann Kuster (D-NH, 2nd), who
voted in favor of Net Neutrality in 2015. “Net Neutrality is fundamental to maintaining a level playing field on the web for small businesses and consumers, which is critical to the 21st Century economy. I’m disappointed by the proposal announced by Chairman Pai that will undermine the ability of people from all economic backgrounds to access equal speed and service on the internet.”
Pete Sepp, President of National Taxpayers Union (NTU), offered the following statement of support for the Chairman’s action:
“National Taxpayers Union applauds Federal Communications Commission (FCC) Chairman Ajit Pai’s plan to lift the burdensome and outdated ‘Title II’ regulations on broadband Internet service, and return to the governing approach that has ably served consumers for so many years.
As we outlined in comments to the FCC earlier this year, a light regulatory touch is what has largely given us the Internet ecosystem we Americans enjoy today. A return to this framework will help taxpayers and businesses come out ahead as well. Unfettered Internet access can bring about serious savings for governments, and American businesses thrive when given the freedom to innovate without undue interference. We only have to look at lagging consumer innovation and hefty taxpayer burdens within the European Union to see what our future would look like if these harmful regulations were kept in place.
We are encouraged by Chairman Pai’s efforts, and we strongly believe that his proposal will help guarantee that we have a truly taxpayer- and consumer-first Internet once and for all. It’s time to get back on track.”
New York Mayor Bill de Blasio said, “Access to a free and open internet is a fundamental right of every citizen. Repealing net neutrality would stifle opportunity for individuals, students and small businesses, while letting huge corporations profit at our expense. New York City stands with other cities against the repeal of Net Neutrality. We will do everything within our power to keep the internet open and accessible for all." He then urged New Yorkers to call their representatives to voice their opinions.
Harold Feld, Senior Vice President at Public Knowledge commented that the draft order "shows both an appalling disregard for the record and an astounding disregard for even the basics of administrative law. It would seem more likely, as some have suggested, that Chairman Pai and Congressional Republicans have released this Order to create a crisis atmosphere and push through legislation authored by the cable companies rather than in a serious attempt at policy.
“For almost 20 years, both Republican and Democratic Chairmen of the FCC have asserted the FCC’s ongoing responsibility and authority to protect consumers and promote competition in the broadband access market. Rather than admit that this draft Order is a radical break from a bipartisan consensus on FCC authority to protect consumers generally and net neutrality specifically, Chairman Pai prefers to surrender this power to broadband providers, enabling them to set their own ‘net neutrality’ standards.
“In an even more brazen violation of law, Chairman Pai claims to be able to simultaneously divest the FCC of authority while claiming unlimited power to preempt the states as well. Under Chairman Pai’s expansive theory of preemption, the FCC could -- in theory -- preempt every state law applicable to Google, Facebook, or any other information service. For a man claiming to correct the previous Administration’s ‘overreach,’ this is an astonishing claim to unlimited power to advance corporate interests at the expense of the public.”
Public Knowledge
will host a hill briefing on Wednesday, November 29 at 1:30 p.m. EST in the Capitol Visitors Center, Room SVC 215, to provide a legal and policy analysis of the draft order published in the Restoring Internet Freedom proceeding. The hill briefing is open to the public.
Raymond J. Keating, chief economist for the Small Business & Entrepreneurship Council (SBE Council), released the following statement in response to the draft order:
“The FCC’s draft order, under the leadership of Chairman Ajit Pai, will roll back onerous internet regulations and is a major pro-investment, pro-innovation and pro-small business step forward. Regulating dynamic, competitive broadband markets and networks as if they were 1930s-style monopolies makes no sense whatsoever. This regulatory mess created under the previous FCC chairman was completely unnecessary, given that broadband providers possess clear incentives to serve both content providers and content consumers well. It was a drastic regulation imposed on a problem that did not, and does not, exist. Such regulation creates uncertainty that restricts investment and innovation, including by threatening government rate and business model regulation. Small companies have been disproportionately and negatively impacted by the onerous ‘net neutrality’ regulations, which have inflicted more costs upon them and more uncertainty into their path.”
Keating expanded upon how this is a serious issue for small businesses:
“The entrepreneurial sector of our economy obviously has benefitted enormously as consumers or users of new and vastly improved broadband services. In addition, smaller firms overwhelmingly populate the telecommunications sector itself. For example, according to the latest U.S. Census Bureau data, 84.1 percent of employer firms in the telecommunications sector have less than 20 employees. When regulation raises costs, creates uncertainty and diminishes investment, that’s a harmful and disruptive barrier for entrepreneurs and small businesses, which then harms competition and innovation in the telecommunications and technology sectors.
“Chairman Pai and the current FCC deserve credit for choosing to guide regulatory activities based on sound, real-world economics, as opposed to the political fantasies and ‘what if’ scenarios that pushed the intrusive and unnecessary internet regulations forward. Small businesses also thank Chairman Pai for his transparency in allowing the public to view the draft order. His actions stand in stark contrast to the previous FCC chairman who did not allow the public to see the language of the order until well after the FCC’s vote. The current FCC, under Chairman Pai’s leadership, has given small businesses and entrepreneurs a voice, and has listened to their concerns. The Restoring Internet Freedom Order is just the latest example of Chairman Pai’s thoughtful and reality-based approach when it comes to regulatory actions and their impact on the entrepreneurial sector of the U.S. economy.”
“Today’s news is a massive blow to pretty much anyone who uses the Internet,” Senator Jeff Merkley (D - OR) said. “Consumers and entrepreneurs alike need a free, open and competitive Internet. What has made the Internet the most powerful tool of the 21st century is that it’s a level playing field, where an interesting idea or an innovative startup can reach millions of people no matter whom it came from.
“Now, the FCC Chair wants to allow the Internet to become a place where big telecom companies can act as gatekeepers or toll collectors, and only the wealthy and powerful can play," Merkley continued. "This is a disaster. Preventing ‘throttling’ and paid ‘fast lanes’ was a huge step forward for consumers and for American innovation, and reversing those rules is yet another way the Trump administration is prioritizing the privileged and powerful over small businesses and consumers.”
U.S. Senator Brian Schatz (D - HI), Ranking Member of the Senate Subcommittee on Communications, Technology, Innovation, and the Internet said, "“Since its formation, we’ve seen a free and open internet grow our economy and our imaginations. But today the FCC has threatened to end the internet as we know it. If adopted, the FCC’s plan will change the way every American gets information, watches movies, listens to music, conducts business, and talks to their families. By repealing basic net neutrality protections, the FCC is handing over full control of the internet to providers, leaving the American people with fewer choices and less access.”
Senator Roger Wicker (R - MS), a senior member of the Senate Commerce, Science, and Transportation Committee supported the move, saying, “I welcome Chairman Pai’s announcement to restore the light-touch regulatory framework that has allowed the internet to thrive since its creation. This action will set the stage for expanding investment and job creation in the internet economy and closing the digital divide that exists in Mississippi and around the United States. I will continue to work with my colleagues to put a legislative solution in place that enshrines net neutrality protections into law and fosters an environment where broadband is accessible, affordable, and reliable for all Americans.”
House Representative Robert (Bob) E. Latta (R OH, 5th) also voiced support by saying, “I commend the current FCC for its commitment to a free and open Internet with a lighter regulatory touch, and today’s announcement is a major step in that pursuit. The Internet has been a powerful tool for private enterprise and economic growth since its inception thanks to a relatively hands-off government approach. I’m a staunch believer in net neutrality principles such as no blocking, no throttling, and no paid prioritization. However, top-down regulation of the Internet is not the best way to ensure user access to content — in fact, it’s counterproductive. Ultimately, the most effective path to providing certainty for consumers, providers, and businesses that rely on the Internet is to find common ground in Congress and pass legislation.
“The decision by the Wheeler-led FCC to use the Title II framework to regulate the Internet was misguided from the start. Using an 80-year old law meant for monopoly-era telephone companies doesn’t make sense for technology as dynamic and ever-changing as the Internet. This heavy-handed approach stifles investment, curbs innovation, and limits consumer choice.”
All in all, it looks like this is something that may balloon into Congressional action sooner or later. It seems to be another Democrat verses Republican argument, and it will be interesting to see how it all turns out.
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