Wednesday, February 23, 2011

Congress Shows Their Hand Against FCC Net Neutrality

As CNET blogger, Larry Downes, put it, "Action follows hearings. The hearings weren't simply for show." Downes, who was called to testify on Capital Hill last week regarding the FCC's recent Net Neutrality regulations, suspects we will see the FCC's net neutrality regulations overturned by the now-republican congress.

Why? In short, because there was no need for it. Congress asked the FCC to demonstrate that a crisis of power was stirring in the world of broadband providers, one that would require government intervention in order to keep the market stability, and according to one congressman, they could not. "We held a hearing today in which we gave the commissioners of the FCC one more opportunity to provide sufficient evidence of a crisis that warrants government intervention. They failed." said committee chairman, Fred Upton. "The controversial Internet regulations stifle innovation, investment and jobs. A federal bureaucracy should not be picking winners and losers."

The proponents of the FCC's ruling are not left without answer, however, as many have pointed out that one simple reason for overturning the ruling in the first place is that protection already exists for the broadband market. Existing antitrust laws already in place can be, and indeed have been, used to keep the t-com titans in check.

At stake for the FCC is the exclusive power to regulate the businesses in its own industry. Antitrust laws are FTC-enforced and regulate every industry from software to baking powder. By putting forth regulations specific to the Internet and how it is used in commerce, the FCC is flexing a muscle that says, "Our arena is different." And, I'm not sure I disagree. The questions over how data is managed across nationwide networks, down to the 1's and 0's of switching, packets, and sniffing that few people in the industry understand, let alone those outside, might just be too much for a non-specialized agency to handle.

Nevertheless, congress is saying, the FCC can offer their expertise when needed for a ruling on existing laws. Indications appear clear that by this Spring, net neutrality will be squashed, if not directly, effectively though budget diversions and other measures at congress' disposal. Those in favor of net neutrality will have to, at least for now, rely on the existing laws our nation has put forth to protect the free market.

Labels: Broadband, FCC, Net Neutrality, Telecommunication