Update 11 Feb 2015: The majority of FCC’s five commissioners are always of the party of the sitting President. So when FCC Commissioner Ajit Pai exclaimed: “I have studied the 332-page plan in detail, and it is worse than I had imagined,” it was no surprise, as Mr Pai is one of the two Commissioners in the Republican minority.
The wait is nearly over: FCC Chairman Tom Wheeler posted an article with Wired that previews the FCC’s decision on Net Neutrality. At risk of alienating some old friends and making some new ones, my opinion is that the FCC’s pending regulation under Title II of the Communications Act of 1934 is exactly the right thing to do. Operators with their own network facilities have challenged NN and will continue to do so, but their bark is worse than the bite.
Why? Because the FCC holds the keys:
- The FCC set the precedent for N.N. in 1934 by mandating a responsibility to put phone calls through (common carrier), and reinforced it in 1996 by adding transparent handoff between wireline and wireless.
- What happens when any of these network providers starts producing its own content (As owner of NBC Universal, Comcast comes to mind), and gets throttled by another network provider? The FCC is the arbiter.
- If any of these operators actually did go ahead and not play by the FCC’s rules, the FCC can issue warnings, followed by fines, followed by revoking their licenses to operate.
Besides, do you honestly think that your favorite cable, telco or wireless operator would actually walk away from business (e.g. stop investing in their networks, as AT&T and Verizon have each threatened to do) if the FCC put NN in place? Really? Would you like to buy a bridge?
In my opinion, N.N will result in exactly the opposite. Readers of my blog know about my trevails with Centurylink, which currently has no incentive to give me more than 3.2mbps down and .9mbps up. I am out of mobile range, and no cable operator serves my neighborhood. If Centurylink were suddenly to have competition, I would expect them to protect their share, not abandon it.
In other words, I believe that NN will spur a race to the top, not the bottom.