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Net Neutrality

Convergence, Innovation Push Boundaries of Network Neutrality Debate, Experts Agree

ARLINGTON, Va., June 19, 2009 – Representatives of network operators, internet companies and consumer advocates said they are prepared for a network neutrality policy to emerge from the Obama administration, but during a panel at Pike and Fischer’s Broadband Policy Summit they remained very much divided over the best approach to solving problems of network management while protecting consumers.

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ARLINGTON, Va., June 19, 2009 – Representatives of network operators, internet companies and consumer advocates said they are prepared for a network neutrality policy to emerge from the Obama administration, but during a panel at Pike and Fischer’s Broadband Policy Summit  they remained very much divided over the best approach to solving problems of network management while protecting consumers.

Convergence of content providers and network owners into “one overall internet ecosystem” raises questions that weren’t present at the outset of previous network neutrality debates, said Phoenix Center President Lawrence Spiwak. While such arguments were once limited to whether backbone providers could charge popular website operators like Google or Amazon for preferential treatment, the debate has broadened to include network management, mobile handset exclusivity and mobile open access as “part of the net neutrality pie,” he said. But Spiwak cautioned that any policy should be designed with the primary goal of preventing anticompetitive behavior, regardless of scope.

AT&T Senior Vice President James Cicconi said the most pressing issue surrounding network neutrality is how business models can adapt to deal with spikes in internet use. Cicconi cited a Cisco study which predicts overall online traffic will grow from 9 to 56 exabytes per month by 2015. This rapid expansion is primarily driven by cloud computing and online video applications, and is moving “faster than anyone predicted,” he said.

Maintaining a quality user experience — with the consistency users expect — will require a careful balancing of needs between many different service and application providers, he said.

Network management problems could be sidestepped entirely by expanding the bandwidth available on long-haul and last-mile broadband pipes, Amazon.com vice president Paul Misner said. Discrimination only occurs when there is a scarcity of bandwidth — and the market would not tolerate discrimination if it could be avoided. “When there is sufficient capacity, discrimination isn’t possible.

Combining the industry’s massive investment in capacity with government build-out efforts like the Broadband Technology Opportunity Program will not be enough to keep pace with demand, panelists agreed. And while price caps and tiered pricing systems so far have been met with resistance, a metered pricing scheme is probably inevitable:  “The economically efficient solution is to charge who is clogging the system,” Meisner said.

Cicconi took issue with consumer advocates who dismiss metering or caps as un-American, responding that protecting the majority of consumers is the goal of network management. “In any sort of limited capacity system, you’ve got to find a way to balance and make it fair to consumers.”

The need for a new “fifth principle” in the Federal Communications Commission’s Internet Policy Statement was also a subject of disagreement. And the enforcability of the statement remains at issue while Comcast’s lawsuit against the FCC remains pending.  But any management regime needs “clarity and certainty” Leadership Conference on Civil Rights Vice Preside Mark Lloyd said. Without a clear set of rules, the industry will not be able to move forward and innovate, he said.

Net Neutrality

Ninth Circuit Court of Appeals Denies Efforts to Eliminate California Net Neutrality Law

A coalition of telecommunication trade associations were unable to sway the court.

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Photo of FCC Chairwoman Jessica Rosenworcel

April 20, 2022 – The U.S. Court of Appeals for the Ninth Circuit on Wednesday denied the efforts of telecommunications trade groups to to rehear its prior decision upholding California’s 2018 net neutrality law.

In January, the court turned back industry trade groups, including US Telecom, the cable industry groups NCTA and ACA Connects, and the wireless association CTIA, who had sought to overturn California’s SB 822 on the grounds that the Federal Communications Commission federal rules on net neutrality conflict with California’s state level rules.

Then, the appeals court found that because the FCC determined – in a prior ruling during the Trump administration – that it no longer had authority over broadband consumer protection, California’s broadband consumer protection law could go into effect.

On Wednesday, the appeals court refused to reconsider whether the California law had been preempted by the FCC’s decision.

In January 2018, the FCC – administered by then-Commissioner Ajit Pai – rescinded rules put in place in 2015 by the Obama administration that had reclassified broadband services from “information services” to “telecommunication services.” The latter category is subject to far more regulations.

Later that year, California passed SB 822, putting net neutrality requirements in place for California consumers, even after the rules had been gutted at the federal level by the FCC.

On the federal level, the D.C. Circuit Court of Appeals upheld the Trump administration’s removal of net neutrality requirements in October 2019. Although the Pai FCC’s reclassification was largely upheld by the D.C. circuit court, the victory was tempered by the court’s decision, by a two-to-one margin, to vacate the FCC’s having purported to preempt “any state or local requirements that are inconsistent with [the FCC’s] de-regulatory approach.”

In a tweet about Wednesday’s ruling, FCC Chairman Jessica Rosenworcel said:

  • The 9th Circuit just denied the effort to rehear its decision upholding California’s #netneutrality law. This is big. Because when the FCC rolled back its open internet policies, states stepped in. I support net neutrality and we need once again to make it the law of the land.

“As expected, the 9th U.S. Circuit Court of Appeals has rejected yet another attempt by internet service providers to overturn California’s strong net neutrality law,” said John Bergmayer, Legal Director at Public Knowledge.

“The California net neutrality law is now undefeated in court after four attempts to eliminate it,” he said. Net neutrality protections nationally continue to be common sense and popular with the public among all ideologies. It’s good news that Californians will continue to enjoy this important consumer protection, and we look forward to a full Federal Communications Commission restoring net neutrality nationwide.”

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Net Neutrality

Federal Appeals Court Upholds California’s Net Neutrality Rules

The ruling prevents internet providers in the state from abandoning net neutrality for broadband customers.

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Photo of Mary Schroeder, Chief Judge of the Ninth Circuit Court, from the May 2006 Swarthmore commencement address

January 28, 2022 – The Ninth Circuit Court of Appeals on Friday ruled against broadband companies seeking to block a state net neutrality law, and internet policy advocates are calling it a win for consumers in California.

The ruling comes after industry trade groups, including US Telecom, the cable industry groups NCTA and ACA Connects, and the wireless association CTIA, sought to overturn California’s law on the grounds that the Federal Communications Commission’s now-abandoned federal rules on net neutrality conflict with California’s state level rules.

The court found that because the FCC determined – in a prior ruling during the Trump administration – that it no longer had authority over broadband consumer protection, California’s broadband consumer protection law could go into effect.

SB 822, or the California Internet Consumer Protection and Net Neutrality Act of 2018, restricts internet service providers from some activities. For example, the state law prevents paid prioritization, or agreements that would optimize data transfer rates large companies including Facebook, Google and Netflix.

The law also prohibits so-called “zero-rating” practices that some believe exploit consumers by allowing free access to some services but not others.

John Bergmayer, legal director at Public Knowledge, called the ruling a “great decision and a major victory for internet users in California and nationwide.”

“When the FCC has its full complement of commissioners, it should put into place rules at least as strong as California’s nationwide, making some state measures unnecessary. But even after that happens, this decision clarifies that states have room to enact broadband consumer protection laws that go beyond the federal baseline.”

But Randy May, president of the Free State Foundation, said “like a lot of Ninth Circuit decisions, it is arguable that the court got the law wrong regarding whether California’s net neutrality law is preempted. Given the inherently interstate nature of today’s tightly integrated broadband internet networks, there’s a good chance that other circuits might reach a different conclusion regarding preemption.

May said that the risks of a patchwork of state regulations “should prompt Congress to resolve the decades-old net neutrality controversy by adopting a new law that prevents consumer harm while recognizing the technologically dynamic nature of today’s Internet ecosystem.”

The opinion was authored by Ninth Circuit Chief Judge Mary Schroeder and joined by Judge Danielle Forrest with a concurrence by Judge J. Clifford Wallace.

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Net Neutrality

Rosenworcel Stands Firm on Net Neutrality in Face of Lawmakers Urging Status Quo

The FCC chairwoman responded to a letter by members of Congress resisting calls to back down on net neutrality.

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FCC Chairwoman Jessica Rosenworcel and former Chairman Ajit Pai

WASHINGTON, January 4, 2022 – Federal Communications Commission Chairwoman Jessica Rosenworcel said in a letter to lawmakers last week that she continues to stand by her view that the restoration of net neutrality principles would be the best move for the internet economy.

Rosenworcel was responding to an April letter by over two dozen members of Congress, who urged the chairwoman to maintain the current “light touch” regulations imposed by the 2017 commission, led by chairman Ajit Pai, who was appointed by then-President Donald Trump. That change rolled back net neutrality rules imposed by the 2015 Obama-era commission, which prevented internet service providers from influencing the content on their networks, including barring carriers from providing certain services for free over their networks – also known as “zero rating.”

In her letter on December 28, Rosenworcel, who was confirmed as commissioner of the agency by the Senate earlier that month, said the net neutrality principles of 2015 were the “strongest foundation” for the internet economy as a whole and is “fundamental” to the “foundation of openness.”

“Those principles drove investment on the edges of the network, which network operators responded to by investing in infrastructure that allows consumers to access the services of their choosing,” Rosenworcel said in the letter.

“I stand ready to work with Congress on this topic, as necessary,” she added. “However, I continue to support net neutrality and believe that the Commission has the authority to adopt net neutrality rules.”

The lawmakers – which include Cathy McMorris Rodgers, R-Washington, and Bob Latta, R-Ohio – used as support the efforts of service providers to maintain a robust network during the pandemic, as well as their willingness to waive late fees and open Wi-Fi hotspots as additional reasons for the commission not to impose further regulations on business. The letter also noted that the Department of Justice’s withdrawal of a lawsuit against a net neutrality law in California led to two providers axing services that relied on zero rating protections.

The lawmakers challenged previous comments made by Rosenworcel, who said that it was unfortunate that California had to fill a void left by the net neutrality rollbacks. But Rosenworcel reiterated those comments. “It is unfortunate that individual states have had to fill the void left behind after the misguided roll back of the Commission’s net neutrality policies,” she said in her letter.

And while the lawmakers said they “agree that harmful practices such as blocking, throttling, and anticompetitive behavior should not be permitted…we can achieve this without heavy-handed overregulation.”

The current make-up of the FCC includes two Democrats and two Republicans. President Joe Biden’s pick for a fifth Democratic commissioner to break the party deadlock, net neutrality advocate Gigi Sohn, is still awaiting a confirmation vote by the Senate.

This week, Sohn received endorsements from former FCC officials, but has received some apprehension from some lawmakers and a police association over her stance on end-to-end encryption.

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