* FCC chairman suggests the FCC should have regulatory oversight of the transmission component of broadband access service
We have an update to our last newsletter reports on the Federal Communications Commission’s plan to regulate Internet services. FCC Chairman Julius Genachowski has now proposed a new approach that suggests the FCC should have regulatory oversight of the transmission component of broadband access service, classifying only this component as a telecommunications service. His proposal also suggests the FCC also apply “only a handful of provisions” [from the regulations available] and “simultaneously renounce — that is, forbear from — application of the many sections of the Communications Act that are unnecessary and inappropriate for broadband access service. . . [installing] . . . up-front forbearance and meaningful boundaries to guard against regulatory overreach.”
FCC’s broadband reclassification: What’s next?
The latest recommendations follow a decision by the a U.S. Court of Appeals for the District of Columbia Circuit in April 2010 that found the FCC had exceeded its authority in 2008 when it applied sanctions against Comcast — sanctions that were meant to enforce the FCC policies on net neutrality. Full statements on the issue from Genachowski, the FCC General Counsel and other Commissioners are available on the agency’s Web site.
Our observations: While we’re not regulatory lawyers, we think that the FCC does have some logic behind it because wireless access and dial access to the Internet are currently regulated as telecommunications services, so the extension of this approach is a logical extension of current regulatory frameworks.
We also think the FCC is wise to limit its arguments in this instance to broadband access, and not to the content and applications that reside in the Internet. For example, the proposal does not suggest that Internet-delivered applications like a Google search engine or a hosted unified communications service (such as visual voice mail) should be regulated as a telecommunications service.
Regardless of how the FCC classifies broadband access or Internet content and applications, businesses will likely resist regulation and consumer advocates will ask for more regulation. And as we mentioned last time, the ultimate framework will likely be decided by the U. S. Congress and the courts and the final outcome will take many years. Meanwhile, how net neutrality is managed (or not managed) by Internet Service Providers and Content Providers will remain in flux.
