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TECHNOLOGY

In Net Neutralit Puh, F.C.C. I xpected to

Propoe Regulating Internet Service a a Utilit
STV LOHR

F. 2, 2015

ThechairmanoftheFederalCommunicationsCommissionthisweekiswidely
expectedtoproposeregulatingInternetservicelikeapublicutility,amove
certaintounleashanotherroundofintensedebateandlobbyingabouthowto
ensuresocallednetneutrality,oranopenInternet.
ItisexpectedthattheproposalwillreclassifyhighspeedInternetservice
asatelecommunicationsservice,insteadofaninformationservice,underTitle
IIoftheCommunicationsAct,accordingtoindustryanalysts,lobbyistsand
formerF.C.C.staffmembers.
Thechange,theanalystsandotherssay,whichhasbeenpushedby
PresidentObama,wouldgivethecommissionstronglegalauthoritytoensure
thatnocontentisblockedandnosocalledpaytoplayfastlanesexist
prohibitionsthatarehallmarksofthenetneutralityconcept.
ButTomWheeler,theF.C.C.chairman,willadvocatealighttouch
approachtoTitleII,theysay,shunningthemoreintrusiveaspectsofutility
styleregulation,likemeddlinginpricingdecisions.Hemayalsosuggest
puttingwirelessdataservicesunderTitleIIandaddingregulationsfor
companiesthatmanagethebackboneoftheInternet.
Theproposalisexpectedtobesubmittedtotheagencyscommissioners
byThursday.AlthoughtheF.C.C.isnotexpectedtoreleaseacopyoftheplan
thisweek,thecontentsarealmostcertaintoleakout.Avoteontheproposal
bythefullcommissionisscheduledforFeb.26.
ThemaneuveringinWashingtonovertheproposalhasalreadystarted.

CongressionalRepublicanshaveproposednetneutralitylegislationthatbans
contentblockingandfastandslowlanes,butalsopreventstheF.C.C.from
issuingregulationstoachievethosegoals.
TheF.C.C.proposalisMr.Wheelerslatestattempttofindawaytowrite
openInternetrulesthatarepoliticallypalatableandthatwillstanduptolegal
scrutiny.Mr.Wheelerhadinitiallyproposednetneutralityrulesthatwould
nothaveclassifiedInternetserviceprovidersascommoncarriersunderTitle
II,andwouldhaveallowedthecableandtelecommunicationscompaniesto
strikedealswithcontentcompaniesandonlineservicesaslongastheywere
commerciallyreasonable.
ThatapproachbroughtafloodofcriticalcommentsintotheF.C.C.last
summer,sayingitwouldopenthedoortofastlanesontheInternetfordeep
pocketedcompaniesandslowlanesforeveryoneelse.
Then,inNovember,Mr.Obamatooktheunusualstepofweighingin.He
calledontheF.C.C.toadoptthestrongestpossiblerulesonnetneutrality,
andspecificallytoclassifyhighspeedbroadbandserviceasautilityunder
TitleII.Hisrationale:FormostAmericans,theInternethasbecomean
essentialpartofeverydaycommunicationandeverydaylife.
ThatchangedthepoliticalcalculusforMr.Wheeler,eventhoughthe
F.C.C.isanindependentagency.Onmostkeyvotes,thefivemember
commissionvotes32,withMr.WheelerjoinedbytheothertwoDemocrats.
ThemomentObamaissuedthatstatement,itmeanttheF.C.C.wasgoing
toadoptaTitleIIrule,saidKevinWerbach,aformerF.C.C.counselandan
associateprofessorattheWhartonSchooloftheUniversityofPennsylvania.
TheindustryresponsetoPresidentObamasdeclarationwasswiftand
dividedalongpredictablelines.TheInternetAssociation,whosemembers
includeAmazon,Facebook,GoogleandNetflix,applaudedMr.Obamaand
urgedtheF.C.C.tofollowhisleadtoensureafreeandopenInternet.
ThemajorInternetserviceproviders,likeComcastandAT&T,protested
andsaidutilitystyleregulationwouldthreatentheirinvestmentinfaster
broadbandservice,ultimatelyharmingconsumers.
Inresponsetothosecritics,Mr.Wheelerisexpectedtopointtothe

agencyshandlingofmobilevoiceservices.
In1993,Congressderegulatedthecellphonebusiness,allowingnew
carrierstoenterthemarket.TheF.C.C.hasregulatedmobilevoiceservices
underTitleIIsincethen,applyingthelighttouchapproachandtheindustry
hasgrownandthrived.
Mobiledataservices,however,havenotbeenregulatedasa
telecommunicationsservice.Mr.Wheeler,industryexpertsandlobbyists
predict,willincludemobiledataservicesinhisproposal.Today,55percentof
onlinetraffichappensonsmartphonesandtablets,accordingtotheF.C.C..
DavidJ.FarberisamongthosewhohavemisgivingsaboutgoingtheTitle
IIroute.Mr.FarberhelpeddesignpartsoftheInternet,servedontheboardof
theInternetSocietyandisaformerchieftechnologistoftheF.C.C.
Myfear,Mr.Farbersaid,isthatregulatingtheInternetlikea
telecommunicationsservicepotentiallyopensaPandorasbox.
Thiscommission,saidMr.Farber,aprofessorofcomputerscienceand
publicpolicyatCarnegieMellonUniversity,maywellhavenointentionof
deployingthebroaderpowersofTitleII.But,headded,thereisnoguarantee
thatfuturecommissionswillbesimilarlyrestrained.
Informationservices,Mr.Farbernoted,arerelativelyfreeoftaxes,while
telecommunicationsservicesarenot,especiallyatthestatelevel.
Telecommunicationsregulation,Mr.Farbersaid,isasteptowardamore
rigidregimeatoddswiththefreewheelinginnovationoftheInterneteconomy.
TimWu,aprofessoratColumbiaLawSchool,seesthestrongrulesthe
F.C.C.ismovingtowardasawaytosafeguardthenormofequaltreatmentof
contentontheInternet,ratherthanviewingthemasathreat.
Andthenormnofastlaneshasworkedawfullywell,saidMr.Wu,
whoiscreditedwithcoiningthetermnetneutrality.
Thereality,headded,isthatweveseenstartupsinSanFrancisco,
NewYorkandacrossthecountrybuildnewbusinessesontheInternet.
Mostofthefocusofnetneutralityhasbeenonthebroadbandgateway
intohouseholds.ButMr.Wheeler,accordingtoindustryexpertsandlobbyists,
willprobablyalsotakeuptheissueofhandlingInternettrafficbeforeitmakes

itswaytoconsumerdevices.
TheseInternetbackbonecompaniesthatshuttledata,voiceandvideo
acrossthecountryareunseenbyconsumers.
Butthebehaviorandtreatmentofcompaniesthatoperateinthesocalled
interconnectmarketdoesaffecttheusersexperience.
HowsmoothlyaNetflixvideostreamofHouseofCardsplaysona
subscribersscreen,forexample,reflectstheperformanceofallthenetwork
operatorsthathavetransportedthedigitalbitsofthathitprogram.
ThesenetworkshandofftheirdatapayloadstotheInternetservice
providersthatservehouseholds.Thehandoffarrangementsareprivate
businessdeals.ButindustryexpertsandlobbyistssaytheF.C.C.wantstodeter
contentblockingordiscriminationinthismarketaswell.
IfyouprohibitpaidfastlanesbytheInternetserviceproviders
themselves,youwanttomakesurefastlanesarentjustmovingupandbeing
createdintheinterconnectmarket,Mr.Wusaid.

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