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Published: Thursday, 5/15/2014

FCC fast-lane Web plan advances

BLOOMBERG NEWS

U.S. regulators advanced a proposal to let Internet-service providers led by AT&T Inc. and Comcast Corp. offer fast lanes for payment from Web companies such as Google Inc. and Facebook Inc.

Federal Communications Commission Chairman Tom Wheeler had enough reluctant support from his two fellow Democrats to win a 3-2 preliminary vote for his proposal, which advocacy groups and Internet companies said undermines the ‘net-neutrality’ ideal of treating Web traffic equally. Wheeler revised the proposal May 12 to add consideration of tougher regulations, including potential rate controls, under the agency’s review.

The vote opens a comment-and-review period intended to lead to a second vote and a final rule later this year. A court in January threw out open-Internet rules the FCC adopted in 2010.

“I will not allow the national asset of an open Internet to be compromised,” Wheeler said. The debate before the agency “is not about whether the Internet must be open, but about how and when we will have rules in place,” Wheeler said.

Democrat Jessica Rosenworcel, renewing criticism that Wheeler had rushed the proposal, voted to advance it today after saying the chairman had “put all options on the table.”

Both Republicans voted against the proposal.

“Nothing less than the future of the Internet depends on how we resolve this disagreement,” said Commissioner Ajit Pai, the agency’s senior Republican. “A dispute this fundamental is not for us, five unelected individuals, to decide,” he said, adding that it should be the job of Congress.

The commission’s other Republican, Michael O’Rielly, said net neutrality “rests on a faulty foundation of make-believe statutory authority.”

‘One Internet’

“There is one Internet,” Wheeler said at the meeting. Allowing fast traffic that “squeezes out” small providers is unacceptable and the agency’s proposed rules seek to stop that from happening, Wheeler said.

Under his proposal, service providers may negotiate deals on a case-by-case basis with content makers such as Netflix Inc. and Amazon.com Inc. for preferential connections to consumers’ TVs and computers.

Internet companies including Amazon, Netflix, Google and Facebook told the agency the plan represents a “grave threat” to an open Internet because it could let service providers discriminate against content providers. Artists signed onto a letter of protest, and protesters encamped outside the FCC.

Protests Disrupt

Prior to the start of the meeting, three members of the audience stood up and started shouting and had to be escorted out of the room today.

Wheeler said the proposal offers a route to rules, ending a decade of debate, that takes heed of the U.S. court’s objections and avoids further litigation.

Wheeler’s proposal also invites the agency to consider tougher rules, drawing warnings from Republican members of Congress including House Speaker John Boehner who oppose such a step.

The tougher rules may lead to rate regulation, according to carriers including largest U.S. cable provider Comcast, biggest telephone company by revenue AT&T and No. 2 phone company Verizon Communications Inc.



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