Center for Democracy & Technology Transition Memo Theme: Keeping the Internet Open Issue: Internet Neutrality
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- Caroline Hodges
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1 CenterforDemocracy&TechnologyTransitionMemo Theme:KeepingtheInternetOpen Issue:InternetNeutrality Issue/Problem.TheInternetoffersanextraordinaryplatformforindependent innovationandspeech.majorinnovationslikeinstantmessaging,voip,web based , andtheworldwidewebitselfwereallpioneeredbyindividualsorsmallstartups.thisis notanaccident itisadirectconsequenceoftheinternet sopenarchitecture.specihically, openandstandardizedtechnicalprotocolsenableinnovatorstodevelopanddeploynew contentandservicesonaninternet widebasiswithoutneedingtoseekpermissionfrom anygatekeeper.crucially,broadbandprovidersdonotexercisecentralizedcontrolover whatapplications,services,orcontentwillbeallowedorhowtheymustbedesigned. Unfortunately,thefutureofthis neutral platformforinnovationisuncertain.some broadbandprovidershavesuggestedthattheymayseektochargefeestodeliveror prioritizeselectedtrafhic;somehavesoughttolimittrafhicassociatedwithcertainhigh bandwidthapplications.thiscreatesaseriousriskthatbroadbandproviderscould determinewhichonlineserviceswillworksmoothlyandwhichwillnot. Regulatorysafeguardsareneededtoprotectagainsttheriskthatbroadbandproviders,by favoringsomeinternettrafhicoverothers,couldexertcreepinggatekeepercontroland underminethemedium sopennesstoindependentinnovation.atthesametime,extensive orburdensomeregulationinthisareaclearlyisnotdesirable.overbroadrulescouldslow networkdeploymentandinterferewithlegitimatenetworkmanagement. PolicyHistory.ThedebateoverInternetneutralitybeganinearnestin2005,afterthe SupremeCourt sdecisioninthebrandxcaseandthefcc sdecisionontheregulatory classihicationofdslestablishedthatbroadbandserviceswouldbeexemptfromall commoncarrierregulation.thefcc,recognizingthefearthatthiscouldleadtomore closedbroadbandnetworks,issueda PolicyStatement (FCC05 151)featuringfour opennessprinciples.thefccexpresslystated,however,thattheprinciplesdonothavethe statusofformalrules. Congressbegantolookattheissuein2006.Billsaimedatprohibitingbroadbandproviders fromdiscriminatingagainstselectedtrafhicincludeds.2360(wyden),s.2917 (Snowe/Dorgan)andH.R.5273(Markey)inthe109 th CongressandS.215 (Dorgan/Snowe)andH.R.5353(Markey)inthe110 th.butnobillswereenacted,and controversyoverneutralityprovisionshelpedsinkamajortelecommunicationslegislative packageinlate2006. In2007,theFTCandFCCbegantogetinvolved.TheFTCheldatwo dayworkshopinearly 2007andissuedareportlaterintheyear,essentiallyconcludingthatpolicymakersshould behesitanttoenactnewregulationstoaddresstheinternetneutralityissue.thefcc launchedanoticeofinquiryrequestinginformationonwhetherandhowbroadband carrierscurrentlyfavorordisfavorselectedtrafhicandwhethersuchpracticesareharmful.
2 CDTTransitionMemo InternetNeutrality 2 Inthesecondhalfof2007,thedebatewastransformedbyrevelationsthatComcastwas interferingwithsomeofitssubscribers peer to peer(p2p)uploadtrafhic.comcastargued thatitwasmerelytryingtocontrolcongestion,butthenewscausedahirestorminthe blogosphereandpromptedpetitionstothefccallegingthatcomcastwasviolatingthe agency s2005policystatement.thefcclaunchedanewproceedingandruled(fcc08 183)bya3 2voteinAugust2008thatComcast spracticeswereinconsistentwiththe PolicyStatementandhenceimpermissible.ThedecisionwassharplycriticalofComcast, bothforitsdiscriminatorytrafhicmanagementtacticsandforitsfailuretodisclosethemto thepublic. TheFCC sdecisionmarksthehirsttimethegovernmenthastakenofhicialactionagainsta broadbandcarrierfordiscriminatingagainstselectedtrafhic.inonesense,thisisapositive development;comcast spracticesrepresentedasignihicantdeparturefromtheinternet s openarchitecture.butthedecisionalsocreatessubstantialuncertainty.comcasthas appealed,andthedecisionmaybevulnerableonthegroundthatittreatedmere principles asiftheywereactualrules.perhapsevenmoreworrisome,thedecision assertsadangerouslyelasticconceptoffccregulatoryauthorityovermattersrelatedto theinternet. WhattheObamaAdministrationShouldDo.PresidentObamashouldspearhead legislationtocabinthefcc sassertionofunfetteredauthorityandreplaceitwithan explicitbutnarrowlyfocusedstatutorymandatetopolicediscriminatorybehaviorthat couldunderminetheopennessoftheinternet.suchlegislationcouldhelpensurethatthe Internetretainsitsopennesstoinnovation,withlessriskofunpredictabilityandregulatory overreachingthanthecurrentstatusquo.uncertaintyregardingthescopeandfutureeffect ofthefcc sdecisionmaycreateauniqueopportunityinwhichmanypartieshavean incentivetoconsidercompromises.formoredetailsonwhatsuchlegislationshould include,seetheattachedappendix. CampaignPlatform.ThisrecommendationisconsistentwithObama scampaign platform,whichstates, BarackObamastronglysupportstheprincipleofnetwork neutralitytopreservethebenehitsofopencompetitionontheinternet. OtherVoices.TechnologycompanieslikeGoogleandeBayandabroadcoalitionof groupslistedatsavetheinternet.comhaveadvocatedfornetneutralityandlikelywould supportlegislation.cableandtelephonecompanieshavestronglyopposednetneutrality, butperhapscouldbeinterestedinreininginthefcc sbroadassertionofauthority. ForMoreInformation. CDTissueexpert:DavidSohn,dsohn@cdt.org, x317
3 3 Resources: CDTpolicypostonnetworkmanagement: CDTcommentstoFTC: CDTblogonFCC/Comcast: enforcement againstcomcast/ November13,2008 CDTTransitionMemo InternetNeutrality
4 4 Appendix:CraftingLegislationToProtectInternetNeutrality Terminology: Wehaveusedtheterm Internetneutrality torehlectcommonusageintheongoingpolicy debate,butthenextadministrationmaywanttoconsiderusingdifferentadifferentterm withlessaccumulatedbaggage.possiblecandidatesmightincludevariationsonpreserving the openinternet or independentinternetinnovation. TheNeedforLegislation ProblemswithStatusQuoAfterFCCComcastOrder: TheFCC saugust2008rulinginthecomcastcaseincludeswelcomelanguagerecognizing theinnovationbenehitsoftheinternet sopenarchitecture.onapracticallevel,theruling willlikelyhavethebenehicialresultofpushingbroadbandproviderstoshyawayfrom congestionmanagementtechniquesthatsingleoutspecihicprotocolsorservicesfor degradedtreatment. Therulingalso,however,leavesconsiderableuncertaintyandrisk. ThedecisionhasbeenappealedtotheD.C.Circuit,wheretheoutcomeisfarfrom certain. TheFCC sadoptionofa case by case approachprovideslittleclarityconcerning whichtrafhiccontrolbehaviorsarepermittedtonetworkoperatorsandwhichnot. Moreover,sincetheComcastdecisionappearstoreserveahighlydiscretionaryrole forthefcc,rulingscouldvarywidelyovertimeasthecompositionofthefcc changes.thesharplydivided3 2voteintheComcastcaseillustratesthisrisk;a changeofonecommissionercouldleadtoverydifferentdecisionswithrespectto futureincidentsthefccmightaddress. Ofgreatestlong termconcern,thecomcastdecisionassertedatheoryoffcc ancillaryjurisdictionthathasnodiscernablelimits.thefccsaidthatitsactionwas ancillarytosection230(b)ofthecommunicationsact,whichcitessuchbroadpolicy goalsas promot[ing]thecontinueddevelopmentoftheinternetandother... interactivemedia. Thisrationaleopensthedoortovirtuallyanyregulatoryaction thatsomefuturefccmightviewas goodfortheinternet, potentiallyincluding actionsdirectedatprovidersofonlinecontentratherthanmereconnectivity.sucha broadconceptionofancillaryjurisdictionisdangerous. TotheextentthatnewInternetneutralitylegislationisviewedasreininginunfetteredFCC discretionandjurisdiction,partiessuchasbroadbandproviderscouldcometoviewitasan improvementoverthestatusquo,despitetheiroppositiontosuchlegislationinthepast. CDTTransitionMemo InternetNeutrality
5 5 AnOutlineforLegislation: ThenextPresidentshouldcraftandproposelegislationtoprotecttheopennessofthe Internetinamannerthatisnarrowlyfocusedanddoesnotgiveunboundedregulatory authoritytothefccoranyotheragency.cdtiscurrentlyworkingtohleshoutideasfora legislativeproposal.apossibleapproachtosuchlegislation,rehlectingcdt spreliminary considerationofthesubject,isasfollows. 1. AuthorizetheFCCtoreceiveandadjudicatecomplaintsallegingthataproviderof broadbandinternetservicetoresidential classsubscribershaseither: a. UnreasonablydiscriminatedinthehandlingortransmissionofInternet communicationsbasedonthecontent,source,destination,ownership,or applicationofselectedcommunications;or b. Unreasonablyfailedtodisclosetothepublicthenatureandlikelyimpactof anynetworkmanagementpracticesorpoliciesthattheprovideremploys andthatmayhaveamaterialeffectontheonlineexperienceofsome subscribers. 2. StatethattheFCC,inexercisingthisauthority,shallbeguidedbyasetofstatutorily enumeratedprinciples: a. TheFCCshallseektoensurethat i. subscriberstobroadbandinternetserviceretainthepracticalability thatconsumerstraditionallyhaveenjoyedontheinternettoaccess andusethecontent,applications,,services,anddevicesoftheir choice,asstatedinthefcc s2005broadbandpolicystatement. ii. developersofinnovativeorindependentcontent,applications, services,ordevicesintendedfordeliveryoverorconnectiontothe broadbandinternetretainthepracticalabilitythatdevelopersofsuch offeringstraditionallyhaveenjoyedtomakethoseofferingsavailable tointerestedinternetuserseverywherewithouthavingtonegotiate fororobtainanykindofpermissionoragreementfromthoseusers providersofinternetservice. b. TheFCCshallnotacttopreventordiscourageaproviderofbroadband Internetservicefromblocking,degrading,orotherwiseinterferingwiththe transmissionofinternetcommunicationsthat i. areillegalormalicious; ii. threatenthestabilityorsecurityofthenetwork;or iii. constituteunwantednuisancestoahighproportionoftheprovider s subscriberstowhomsuchcommunicationsaretargeted. c. TheFCCshallnotacttopreventordiscourageaproviderofbroadband Internetservicefrom i. offeringserviceplanswithpricesthatdifferbasedonbandwidthrelatedfactorssuchasthequantityorspeedoftransmissioncapacity madeavailabletoasubscriberorthequantity,timing,orpatternsofa subscriber sbandwidthusage,withoutregardtothecontentornature ofthesubscriber sinternettrafhic; CDTTransitionMemo InternetNeutrality
6 6 ii. managing,respondingto,oravoidingnetworkcongestionusing techniquesthatfocusonandaretriggeredbythebandwidthusage volume,bandwidthusagepatterns,orserviceplansofindividual subscribers,withoutregardtothecontentornatureofsuch subscribers InternettrafHic; iii. providingtoolstoenableindividualsubscriberstoblock,hilter,or otherwisecontrolselectedinternetcommunicationsatthe subscribers owndiscretion;or iv. enablingindividualsubscriberstodesignatecertaintrafhic transmittedtoorfromthosesubscribersforincreasedordecreased transmissionpriority,solongastheprioritydesignationmaybe appliedtoanytrafhic,content,application,orserviceofthe subscriber schoosing. d. ThisActshallnotbeinterpretedtoauthorizetheFCCtoregulateorinterfere withtheprovision,byanentitythatisalsoaproviderofbroadbandinternet service,ofmultichannelvideoprogrammingdistribution,payperviewvideo, subscriptionvideo,orsimilarservicesthatarenotmarketedasinternet serviceandthattransmitdatatosubscribersthroughfacilitiesorbandwidth channelsthatareseparatefromthefacilitiesorchannelsusedtodeliverthe provider sbroadbandinternetservice. 3. DirecttheFCCtomonitorandreporttoCongressontheextenttowhich: a. Providersofresidential classbroadbandinternetserviceareincreasingthe transmissioncapacityofsuchservice;and b. Thetransmissioncapacityofresidential classbroadbandinternetserviceis sufhicienttosupportthereasonableexerciseoftheabilitiesdescribedin2.a.i. and2.a.ii. 4. Stateexpresslythat: a. FCCrulemakingauthorityunderthisActshallbelimitedtothepromulgation ofrulesprescribingsuchadministrativeproceduresasthefccmaydeem necessaryorappropriateforreceivingandadjudicatingcomplaints. b. TheFCCshallhavenoauthoritytoexerciseregulatoryjurisdictionover Internetcommunications,exceptfortheexerciseofsuchspeciHicregulatory functionsasmaybeauthorizedexpresslybystatute. c. NeitherthisAct,sections1,201,230,256,257,or601ofthe CommunicationsAct,orsection706oftheTelecommunicationsActof1996 provideabasisforthefcc i. toexerciseregulatoryjurisdictionoverthecontentof communicationstransmittedovertheinternet;or ii. toexerciseregulatoryjurisdiction,inconnectionwithaninternet communicationbywireorradio,overapersonthatdoesnotprovide, directlyorindirectly,transmissioncapabilityusedinconnectionwith suchcommunication. CDTTransitionMemo InternetNeutrality
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