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[ NNSquad ] "FCC 'Net Neutrality' Rules Endanger a Truly Open Internet"


----- Forwarded message from "Peter G. Neumann" <neumann@csl.sri.com> -----

Date: Thu, 14 Jan 2010 13:50:03 PST
From: "Peter G. Neumann" <neumann@csl.sri.com>
Subject: ["Christine Hall" <chall@cei.org>:
	FCC "Net Neutrality" Rules Endanger a Truly Open Internet]


Contact:

Christine Hall, 202-331-2258

[http://cei.org/news-release/2010/01/14/fcc-%E2%80%98net-neutrality%E2%80%99-rules-endanger-truly-open-internet]
FCC ‘Net Neutrality’ Rules Endanger a Truly Open Internet

Watchdog Group Warns Against Internet Regulation, Urges “Agency
Neutrality” in FCC Filing

Washington, D.C., January 14, 2010 – The Federal Communications
Commission is planning new rules to dictate how Internet providers can
manage the information that flows over their private networks. These rules
would foreclose the evolution of innovative, pro-competitive network and
business models and, worse, would inject politics into the governance of
Internet networks, the Competitive Enterprise Institute warned in a public
comment submitted to the FCC today.

“America’s challenge is not for FCC to ‘do something’ in the
communications and Internet realm, but rather to dismantle and move beyond
earlier regulatory impediments that have limited our creative freedoms in
expanding infrastructure and content access,” explained
[http://cei.org/people/clyde-wayne-crews] Wayne Crews, CEI Vice President
for Policy.

The FCC’s proposed net neutrality rules rest on the fallacy that
government action is needed to ensure a vibrant, innovative Internet. In
reality, today’s Internet is as free and innovative as ever, while
consumer choice among broadband providers is at an all time high. Net
neutrality rules, announced late last year by FCC Chairman Julius
Genachowski, would empower a heavily politicized federal agency to dictate
the outcomes of otherwise-private disputes over network access and pricing,
and will also likely extend to the content sectors now advocating the
rules.

“Banning proprietary business models is just the opposite of true
‘openness,’” said Crews. “The FCC seems to be forgetting that not
every network has been built yet, and tomorrow’s networks and business
models need not resemble those that prevail today. The FCC is wrong to
assume that today’s politicians and regulators know what’s best for
companies not yet created, networks not yet deployed, and business plans
not yet formulated."

Key Points to the FCC:

-
The "Agency Neutrality" proposed here would mean regulators must not be
allowed to “discriminate” and choose sides (content over
infrastructure) in any market confrontation.

-
At stake is less today’s ground-level dispute, but, rather, the
principle of proprietary control vs. the principle of collective control in
the creation and management of infrastructure and communications wealth,
decades hence.

-
When liberalizing a heavily regulated segment of a mixed economy, the
gauge of the impending reform’s appropriateness is simple: The body of
private activity subject to regulation must decline rather than increase.

-
It is important to appreciate the significance of the fact that the FCC is
unwilling to even affirm that it will leave “managed” and
“specialized services” alone.

- The deliberate conflation of competition with government-defined
openness and a penchant for compulsory access (and the attendant government
role in price and entry regulation) colors the entire proceeding.
-
Pricing and access freedom would result in a constant escalation in the
basic capabilities of the network, an intensification of the “background
hum” of the Internet as a whole, much as we’ve already witnessed
without neutrality mandates interrupting the process over the past decade.

-
The principle of neutrality should be replaced by a new principle, that of
fostering competition in the creation of networks. Today’s task is one of
lowering transactions costs of building infrastructure.

>[http://cei.org/rcandtestimony/2010/01/14/net-neutrality-comment-fcc-net-neutrality-vs-bandwealth]
View the CEI comment to the FCC

>For more info on broadband policy go to [http://cei.org/issue/2]
cei.org/Tech and Telecom

CEI is a non-profit, non-partisan public interest group that studies the
intersection of regulation, risk, and markets.  For more information about
CEI, please visit our website at [http://www.cei.org/] www.cei.org and
blog, [http://www.openmarket.org] openmarket.org.  Follow our twitter
updates at [http://twitter.com/ceidotorg] twitter.com/ceidotorg

Contact:
Christine Hall, 202.331.2258

[http://cei.org/news-release/2010/01/14/fcc-%E2%80%98net-neutrality%E2%80%99-rules-endanger-truly-open-internet]
FCC ‘Net Neutrality’ Rules Endanger a Truly Open Internet

Watchdog Group Warns Against Internet Regulation, Urges “Agency
Neutrality” in FCC Filing,

Washington, DC, January 14, 2010 – The Federal Communications
Commission is planning new rules to dictate how Internet providers can
manage the information that flows over their private networks. These rules
would foreclose the evolution of innovative, pro-competitive network and
business models and, worse, would inject politics into the governance of
Internet networks, the Competitive Enterprise Institute warned in a public
comment submitted to the FCC today.

“America’s challenge is not for FCC to ‘do something’ in the
communications and Internet realm, but rather to dismantle and move beyond
earlier regulatory impediments that have limited our creative freedoms in
expanding infrastructure and content access,” explained
[http://cei.org/people/clyde-wayne-crews] Wayne Crews, CEI Vice President
for Policy.
The FCC’s proposed net neutrality rules rest on the fallacy that
government action is needed to ensure a vibrant, innovative Internet. In
reality, today’s Internet is as free and innovative as ever, while
consumer choice among broadband providers is at an all time high. Net
neutrality rules, announced late last year by FCC Chairman Julius
Genachowski, would empower a heavily politicized federal agency to dictate
the outcomes of otherwise-private disputes over network access and pricing,
and will also likely extend to the content sectors now advocating the
rules.
“Banning proprietary business models is just the opposite of true
‘openness,’” said Crews. “The FCC seems to be forgetting that not
every network has been built yet, and tomorrow’s networks and business
models need not resemble those that prevail today. The FCC is wrong to
assume that today’s politicians and regulators know what’s best for
companies not yet created, networks not yet deployed, and business plans
not yet formulated."
Key Points to the FCC:

·         FCC needs to bring something to the table apart from an
appetite for regulation.

·         The "Agency Neutrality" proposed here would mean regulators
must not be allowed to “discriminate” and choose sides (content over
infrastructure) in any market confrontation.

·         At stake is less today’s ground-level dispute, but, rather,
the principle of proprietary control vs. the principle of collective
control in the creation and management of infrastructure and communications
wealth, decades hence.

·         When liberalizing a heavily regulated segment of a mixed
economy, the gauge of the impending reform’s appropriateness is simple:
The body of private activity subject to regulation must decline rather than
increase.

·         It is important to appreciate the significance of the fact
that the FCC is unwilling to even affirm that it will leave “managed”
and “specialized services” alone.

·         That “background hum” of the Net (few use dial-up anymore)
will escalate with private investment in smart networks. For that reason
FCC would best contribute by being out front articulating that case for
smart pipes, not treating the Internet’s infrastructure as some passive
husk that fell out of the sky. Indeed, the agency seems to adhere to a
“big bang” theory of infrastructure origins: It just showed up somehow,
and we needn’t worry about where future generations of infrastructure
come from, either.

·         The deliberate conflation of competition with
government-defined openness and a penchant for compulsory access (and the
attendant government role in price and entry regulation) colors the entire
proceeding.

·         Pricing and access freedom would result in a constant
escalation in the basic capabilities of the network, an intensification of
the “background hum” of the Internet as a whole, much as we’ve
already witnessed without neutrality mandates interrupting the process over
the past decade.

·         The principle of neutrality should be replaced by a new
principle, that of fostering competition in the creation of networks.
Today’s task is one of lowering transactions costs of building
infrastructure.

>View the CEI comment to the FCC
This message was sent by: Competitive Enterprise Institute, 1899 L Street NW
12th Floor, Washington, DC 20036

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