Four hundred-page net neutrality document expected to see legal challenges
The Federal Communications Commission released the full Report and Order tied to its net neutrality ruling, which as expected has drawn divergent commentary.
The 400-page document lays out the FCC’s position in bringing broadband access, both fixed and mobile, under Title II jurisdiction. The commission noted the move was needed in order to protect access to the Internet through users’ broadband Internet service provider of choice.
The FCC previously regarded cellular services as separate from fixed-broadband services owing to the limited spectrum capacity available to mobile operators as well as the limited use of mobile connectivity by consumers in accessing the Internet. However, with mobile access now accounting for more than half of Internet connections, the FCC looks set to take a harder look at how that access is managed.
“While the FCC’s 2010 Open Internet rules had limited applicability to mobile broadband, the new rules – in their entirety – would apply to fixed and mobile broadband alike, recognizing advances in technology and the growing significance of wireless broadband access in recent years (while recognizing the importance of reasonable network management and its specific application to mobile and unlicensed Wi-Fi networks),” the FCC previously noted. “The order protects consumers no matter how they access the Internet, whether on a desktop computer or a mobile device.”
The statement’s inclusion of “reasonable network management” is likely to be a major point of discussion for mobile operators. While the market has more wireless spectrum than ever, consumers are putting an increasing demand on mobile broadband connections, putting those spectrum assets and corresponding network technologies to the test.
The FCC did provide a bit more color on the management issue, explaining:
“However, the network practice must be primarily used for and tailored to achieving a legitimate network management – and not business – purpose,” the FCC stated. “For example, a provider can’t cite reasonable network management to justify reneging on its promise to supply a customer with ‘unlimited’ data.”
While the full document was expected to provide further insight into the FCC’s plans, initial commentary indicates that many questions remain. Those include the FCC’s ability to regulate pricing; how it will handle contentious interconnection agreements; what role the FCC’s Enforcement Bureau will play in settling disputes; and the gray area surrounding network management.
The document is now set for a review process before being submitted to the Federal Register, where after 60 days it will become law. FCC Chairman Tom Wheeler has gone to great lengths to note the robustness of the Report and Order in the face of legal challenges. However, if initial commentary is any indication, legal challenges are sure to erupt causing a delay in the order taking legal effect.
AT&T, which has been against the Title II move, noted that the ruling was far from finished, citing both legislative or potential court actions.
“Unfortunately, the order … begins a period of uncertainty that will damage broadband investment in the United States,” said AT&T SEVP of external and legislative affairs Jim Cicconi. “Ultimately, though, we are confident the issue will be resolved by bipartisan action by Congress or a future FCC, or by the courts.”
Verizon Communications, which last year was successful in the court case against the FCC’s previous grounds for regulating broadband services that led to the Title II move, has remained adamant that the FCC’s latest decision would have “unintentional consequences.”
Not all mobile telecom operators have come out against the FCC’s decision. T-Mobile US previously expressed a cautiously optimistic view on the subject, with CEO John Legere touting the carrier’s self-described “pro-consumer” actions.
“As the consumer advocate, we have always believed in competition and in a free, open Internet with rules that protect net neutrality – no blocking, no discrimination and transparency,” Legere said. “I am hopeful that the FCC’s new rules will let us continue to offer innovative services to consumers in our typical un-carrier fashion, but obviously we need to read through all of the details.”
Sprint came in with full support for the FCC action, something the carrier had expressed leading up to the final vote, which Wheeler noted several times during the FCC’s open meeting on the matter.
“Sprint has been a leader in supporting an open Internet and commends the FCC for its hard work in arriving at a thoughtful, measured approach on this important issue,” the carrier stated. “We believe balanced net neutrality rules with a light regulatory touch will benefit consumers while fostering mobile broadband competition, investment and innovation in the United States. We look forward to reviewing the FCC order and continuing to work with policymakers to ensure consumers benefit from an open Internet.”
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