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September 21, 2009 7:47 AM PDT

FCC chief proposes new Net neutrality rules

by Marguerite Reardon
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As expected, Federal Communications Commission Chairman Julius Genachowski on Monday outlined a plan to keep the Internet open.

In a speech given at the Brookings Institute, Genachowski proposed that the FCC turn its four principles of network openness official into regulation. And he suggested that the FCC add two more "principles" as part of these new rules.

The existing principles can be summarized this way: Network operators cannot prevent users from accessing lawful Internet content, applications, and services of their choice, nor can they prohibit users from attaching non-harmful devices to the network.

Now Genachowski is proposing two new principles. The first would prevent Internet access providers from discriminating against particular Internet content or applications, while allowing for reasonable network management. The second principle would ensure that Internet access providers are transparent about the network management practices they implement.

Genachowski tried to alleviate fears that the FCC will overstep its bounds and create rules that hamper innovation.

"I am convinced that there are few goals more essential in the communications landscape than preserving and maintaining an open and robust Internet," he said. "I also know that achieving this goal will take an approach that is smart about technology, smart about markets, smart about law and policy, and smart about the lessons of history."

The debate over so-called Net neutrality began heating up about three years ago, when congressional leaders first held hearings on potential laws to ensure that Internet service providers couldn't monkey with traffic. There is no clear definition of the term "Net neutrality," but in general it refers to the concept that Internet users should have unfettered access to content and services. In other words, service providers should not be allowed to either impede or favor access to particular sites or applications.

The discovery that the nation's largest cable operator, Comcast, had slowed down certain kinds of peer-to-peer traffic on its network fanned the flames and sparked public outrage over such practices.

But the fight to create new laws or regulation to protect Net neutrality languished after the FCC publicly admonished Comcast for violating its open Internet principles. These principles aren't regulation and the FCC is somewhat powerless in imposing any real punishment for violating the rules. Still, the slap on the wrist coupled with public outcry was enough to get Comcast to change its practices.

Getting to "greater transparency"
Genachowski reasoned that the principles now need to be actual regulation, and that broadband providers need to know the rules of the road and need to know that they must adhere to rules to ensure open access for everyone.

"We cannot afford to rely on happenstance for consumers, businesses, and policymakers to learn about changes to the basic functioning of the Internet," he said. "Greater transparency will give consumers the confidence of knowing that they're getting the service they've paid for, enable innovators to make their offerings work effectively over the Internet, and allow policymakers to ensure that broadband providers are preserving the Internet as a level playing field."

But large broadband providers such as AT&T, Verizon Communications, and Comcast have opposed new regulation or laws protecting Net neutrality. They argue that imposing new rules would prevent them from managing their networks. And they also argue it would prevent them from introducing tiered pricing to their service line-up.

Genachowski addressed these issues in his speech as well. He assured service providers that the FCC would examine violations of these Net neutrality rules case by case. He also said that the rules are not intended to prevent network operators from handling congestion on their networks. And he specifically said that broadband providers would be able to manage networks when they are congested. He also said that service providers could introduce new tiered services, so long as there is enough Internet capacity to allow for open access to the rest of the Internet.

"I recognize that if we were to create unduly detailed rules that attempted to address every possible assault on openness, such rules would become outdated quickly," he said. "But saying nothing--and doing nothing--would impose its own form of unacceptable cost."

Genachowski also made it clear that the Net neutrality rules he plans to make regulation will be applied to wireless provider, too.

"It is essential that the Internet itself remain open, however users reach it," he said. "The principles I've been speaking about apply to the Internet however accessed."

Genachowski said that the FCC would issue a Notice of Proposed Rulemaking at the its October meeting. And he said the Commission will be seeking input and feedback from anyone interested in contributing to the process of making the rules. For example, he said, the FCC would be looking for input on how to determine whether network management practices are reasonable, what information broadband providers should disclose about their network management practices and how the rules apply to differing platforms, including mobile Internet access services.

As part of the announcement, the FCC launched a new Web site to encourage public participation.

Marguerite Reardon has been a CNET News reporter since 2004, covering cell phone services, broadband, citywide Wi-Fi, the Net neutrality debate, as well as the ongoing consolidation of the phone companies. E-mail Maggie.
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by Mattman704 September 21, 2009 8:17 AM PDT
"Network Management" also known as - "We think you're using too much bandwidth. Pony up more cash, or have no internet til the next billing starts. And did we mention there's a new tier of service for users just like you? YES! Only $29.99 MORE per month! I know! What a deal! ONLY an extra $30 a month to use the Internet like you want/need to! So what'll it be, customer? Extra $30 or bend over and bite down on something?" I hate traffic filtering ISP's. I pay my bill, mind your own business.
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by Stormspace September 21, 2009 8:35 AM PDT
No. It's you're using too much bandwidth for data that isn't ours. Use ours instead and there will be no problems, we don't meter that.
by limaxray September 21, 2009 9:25 AM PDT
Umm, no - network management means quality of service controls - how the ISP should prioritize packets when their resources become maxed out (yes, their resources are limited, especially in a residential deployment). You want time sensitive packets (ie VOIP, games, etc) to be given a higher priority than bulk downloads (FTP,HTTP, bit torrent, etc). You won't notice your downloads being delayed by 200ms, but you will notice your phone convo being delayed half that time. If they don't do this, you'll experience lag in WoW and an annoying delay while on the phone all because your neighbors are maxing out the pipe to your street downloading porn - regardless if you pay for the bottom or top tier package.

The problem comes in when your ISP gives their VOIP service a higher priority than a 3rd party VOIP service - but that is probably already prohibited by anti-trust regulations and this new set of regulations seems to prohibit it more explicitly.
by gfsdfge September 21, 2009 11:43 AM PDT
The ISP are avoiding upgrading their equipment to handle the demand. They sold it, they should honor it.
by Stormspace September 21, 2009 1:46 PM PDT
Quality of service controls are fine, but when metering and caps are not implemented universally it becomes a situation where the ISP(Cable Co) is favoring one provider over another(themselves). Also, even with all the talk of bandwidth caps not one of the cable co's have provided a reliable bandwidth meter, instead putting the onus on the user to track usage.

ISP's should sell only speed and not bandwidth, otherwise innovation will suffer on the internet as people become reluctant to try new services for fear it will push them over their caps. It's also a bait and switch to sell someone an unlimited plan and change to a plan with caps after you get them hooked. I'd rather they cut my speed, and if they don't cut my speed and then implement caps I'll find a way to cut my own speed. Then I'll complain about how slow they are. :)
by usbam September 21, 2009 8:54 AM PDT
These are the same providers who charge tiered pricing for companies that resell bulk long-distance ... the more you commit to ... the cheaper the price.

YouTube already has critical mass ... and transparent or not ... if I want to start my own "MyTube" then I am paying higher rates... that "neutrality" is exactly the same type of cost justifying crap they did with long distance.

But Google and Microsoft should be wiery of this one... because this is a game they won't lose .... the "transparency" is on the provider not on consumer ... and so AT&T, et all can start imposing additional requirements later on their bigger clients and say, "We are doing it to protect our smaller customers"...

This whole farce is simply an attempt at justifying price controls in a marketplace where ISP's are going to have to be required to deliver on what they were actually paid for.
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by ralfthedog September 21, 2009 8:55 AM PDT
I have no problems with caps. If a person is using X capacity they should pay for X capacity. What I don't like is an ISP treating data on port X different than port Y. The customer who uses 500 GB downloading Marmot porn from Bit Torrent should be treated no differently than the person who downloads 500 GB of email or who downloads 500 GB of PPV directly from the ISP.

The ISPs would love to charge Microsoft or Google to disimprove the other service. This would be wrong. Data is data. It all takes up the same space on the pipes.
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by Stormspace September 21, 2009 9:02 AM PDT
Yes, but when they don't charge you for voice data with their service, but do for someone elses? Or video content? That is where this is going. Cable co's do not want you using their pipes to get competing video sources, so if they impose a cap they guarantee you won't get as much from competitors without paying for it.
by marvin25 September 21, 2009 10:48 AM PDT
It is very simple that there is one ISP thru the electric coops giving broadband and doesn't care about the traffic thru their pipes. They provide the bandwidth that the content providers require and they handle the bandwidth as a constant and not the up and down which cable and telecoms give. The content provider have told no on anything as they would drop their customers period. They don't need those customers as they cost more to maintain as they don't give constant bandwidth and have bandwidth and therefore customer service problem. So get to understand that caps they can do in the operation. Understand period that rural America has better Internet and communication than you have period.
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by Stormspace September 21, 2009 11:10 AM PDT
What?
by Mr_fleabite September 21, 2009 1:16 PM PDT
I read the words but I didn't understand a thing. Was this translated by some poor software?
by coltsfan67 September 21, 2009 4:45 PM PDT
Personally, I want the government and FCC to butt out. I have no problem with being charged based on my usage. That's what happens with almost any product or service. If you want 100 gallons of gas, fine. Pay for it. If you only want five gallons that's okay too. Can we ask our representatives to propose "Pump Neutrality" too? If you don't like your ISP, switch to another. These companies will get the picture if they start losing business. Seriously, US Government (&FCC), just butt out!
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by viper396 September 21, 2009 5:18 PM PDT
Have you been paying attention to the news and the economy for the last year? The government "Butting out" of the housing and banking market is what got everyone into finacial mess and the net result is the government actually had to take over some companies. People will follow their nature and without some form of regulation, people tend to screw things up.

'If you don't like your ISP, switch to another. "....that's great and all but what about all those regions that are only serviced by one ISP? Who do you turn to if your ISP is screwing you over?

Net Neutrality is about insuring that all ISP's abide by the same rules. Someone has to be in place to enforce those rules and that is the government. You used gas stations as an example....do you not realize the amount of regulation and oversight that occurs to insure fair competition between gas stations? They oversee even the simplest things at the pump, such as when a pump says it pumped 1 gallon, 1 gallon in actually delivered, not .9 or less. Likewise, net Neutrality isn't about the Government intruding into our lives and taking over, it's about insuring that everyone is treated equally.
by ktmotox September 21, 2009 5:00 PM PDT
Net Neutrality means that all content providers (e.g. news.cnet.com, news.yahoo.com) pay the same price for the same service from a broadband service provider. Broadband service providers should not be allowed to give preferential treatment to some content providers over others.

Net Neutrality has nothing to do with content consumers, bandwidth caps, or slowing down some ports.
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by Stormspace September 21, 2009 7:22 PM PDT
It is now and it should be. Most ISP's are in effect local monopolies and should be regulated. Especially when services that compete with the ISP are being offered online. If the ISP's had their way they'd charge for every service offered on line that duplicated their offerings. Comcast is already doing that to a certain extent by placing a cap on usage so that online video doesn't proliferate on their network, they offer no bandwidth meters to track usage, and ban a user that exceeds that amount regardless of the reason, legal or not. Time Warner Cable wanted to implement 5GB caps. 5GB CAPS! At the same price as the unlimited they now offer. They didn't have a meter either and are certainly going after online video.

Also keep in mind that more than one reliable study has shown that costs to the ISP's do not go up with usage, so why should we pay more? This is a blatant attempt buy the ISP's to bilk the consumer and people that buy into it by saying we should pay for what we use simply don't understand the technology.
by IceMageCom October 20, 2009 2:53 PM PDT
Bandwidth caps aren't there at the moment since the users will simply swap to an ISP that doesn't have one/ has a much higher cap.

And yes, a 5GB cap is ridiculous, and is obviously targeting online video, since it uses far more than that. I believe a Net Neutrality hearing (if the legislation passes) would show that the ISP is giving preferential treatment to users of their own video services (a violation) since the video passes over the same network (cable) and doesn't count against them.
by flowerboy2001 September 21, 2009 5:19 PM PDT
It should be noted that the European Union is heading in the opposite direction with the legislative effort the Telecompackage. If that legislation goes through in the coming months, American companies providing webservices, like Google, Facebook, Ebay and others will not be able to compete on equal terms with European companies in Europe. While at the same time European companies will be able to compete unhindered in the USA.

Its vitally important that the Obama administration immediately starts to put serious pressure on the EU to also implement the same principles of an open internet. Otherwise American companies will soon find themselves at a serious disadvantage, just as European consumers who will find themselves limited to using web-services of an inferior quality.
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by Richard Wixom September 21, 2009 7:17 PM PDT
404 hijackings by ISPs, Webhosts, Browser companies and computer manufacturers have become RAMPANT and need to be stopped before they become totally out of control. These companies serve up whatever they want (could be a political statement, ads, porn, trademark infringement, etc.) whenever someone tries to access a page not on your website -- and YOU have no say. It's akin to the US Post Office sending all undeliverable mail to a mass marketing firm (rather than returning as "undeliverable"). If a request was not made to these companies then the communication should be privileged with these companies given NO right to substitute in their own content. Where will it end? Will they start keyword spamming, creating back links, or serving porn using non-existing pages against your domain? All look possible. Clearly this needs to be illegal NOW.
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by IceMageCom October 20, 2009 2:43 PM PDT
Sounds like a shady ISP to me. I pay for my own webhosting and don't get this at all. However, if your ISP does this, it's likely that you signed an agreement (digitally or in ink) that says they can.
by IceMageCom October 20, 2009 2:48 PM PDT
Unfortunately, I believe the Net Neutrality rules should also include something along the lines of defining abusive behavior on the internet for any kind of internet access provider, as well as provide a centralized point to allow ISPs to collaborate with each other for these individuals. The reason we have strained internet access in many locations is due to abusive users.
No I'm not affiliated with any telcos, but this is an issue, and I believe it's a major concern for ISPs.

As for not being able to "tier" their services, they should just shut their mouths, because that's exactly what Net Neutrality is designed to prevent. Just because I pay top dollar shouldn't mean I can access CNet.com while you cannot. It designed to keep the internet whole, and prevent preferential treatment of data for aristocratic internet users. They can still tier their internet the way they do now, via Bandwidth. However, they've hit a road block, since casual users have no need for more than 3mbps. They just wanna find a way to bleed their pockets more.
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by wildenfirst October 20, 2009 7:39 PM PDT
When I can buy television a la carte I may be willing to consider pay as I go internet.
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About Signal Strength

Marguerite Reardon has been covering the telecom beat for more than a decade and knows more about wireless and IP networking than she cares to admit. She has been a senior writer for CNET News since 2003, covering all things wireless and broadband related from iPhone launches to major telephone company mergers to IPTV developments. She often appears as an expert on news networks, including CNBC, MSNBC, NPR, and the BBC. Maggie loves visiting CNET's headquarters in San Francisco, but she's an East Coaster at heart, living and working in Manhattan.

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