December 1, 2010

The FCC Gets It Right on Net Neutrality

Here are a few thoughts on the breaking news from the FCC on net neutrality, a matter I’ve written about repeatedly for several years. 

Today, FCC Chairman Julius Genachowski spelled out his proposal for new rules for the regulation of broadband networks.  They won’t satisfy everybody, and some outspoken advocates of so-called network neutrality are already throwing their stones, but the truth is, they’re pretty balanced and reasonable.  Mr. Genachowski wants the Commission to vote before the year ends, so they can use 2011 to focus on critical issues such as universal broadband.  Progress in that area — the key to digital equality — has been slowed by the telecom community’s focus on the neutrality rules. 

In brief, the Chairman’s proposal outlined at a press conference today (December 1st, 2010) would bar service providers from blocking any consumer’s access to any legal websites and applications of their choosing, and from unreasonable discrimination in delivering Internet traffic.  Net neutrality advocates may not acknowledge it, but that’s a big win for them — it directly addresses their fears that the large service providers will become gatekeepers to the web, deciding what consumers can do online.  For their part, the companies have always insisted that they have no interest in being gatekeepers, and this proposal should make that part of the debate moot. 

On the other side, Mr. Genachowski’s framework shouldn’t interfere with the incentives that the providers need to invest an estimated additional $300 billion or more in broadband infrastructure, to handle the sharp recent and projected increases in bandwidth demand coming largely from video applications.  The Commissioner did just the right thing by confirming the service providers’ right to manage their networks for congestion and offer specialized services to boost their bottom line.  And the best news is that it also should help the economy in coming years.