Wednesday, June 27, 2007

Reax To FTC Broadband Report

The FTC on Wednesday urged caution on imposing so-called network neutrality regulations designed to prevent high-speed Internet providers from potentially acting as content gatekeepers. A 170-page report states that some proprietary deals and data prioritization could actually benefit consumers.

There are more details in Technology Daily’s PM Edition. But for now, let’s focus on the reactions that flooded our inboxes shortly after the document was released...

Mike McCurry and Christopher Wolf, co-chairs of the Hands Off the Internet coalition, said: “Once again, independent experts have looked at the net neutrality issue and asked, ‘Where’s the beef? There’s an explosion in broadband deployment in America now, which is creating jobs and making high-speed connections more affordable.”

Kyle McSlarrow, president and CEO of the National Cable and Telecommunications Association, said the report “wisely recommends continued cautious monitoring of broadband development in the U.S.” and suggests that policymakers should consider unintended consequences of regulation on broadband services.

Steve Largent, president of the wireless trade group CTIA, said: “The Internet regulation scheme has forever been built on a hypothetical, ‘what-if’ scenario and today this flimsy theory has met yet another round of cold, hard, real-world facts that render it unworthy of our nation’s attention and resources. The facts about this debate have never been more clear. When it comes to the competitive and innovative broadband marketplace the consumer sits in the driver’s seat.”

U.S. Telecom Association President and CEO Walter McCormick Jr. said: “The FTC found what consumers already know – that they have a variety of competitive choices from cable, DSL, wireless, satellite and other alternative providers for high-speed Internet services, and there is no problem that requires regulation of the Internet.”

Public Knowledge President Gigi Sohn said the report fell short in its analysis of a competitive market and the related issue of net neutrality. “Despite the fervent wishes of the FTC staff, there is not a competitive market for high-speed Internet services. New technologies, particularly wireless technologies, are not soon going to have the same robust qualities or market penetration as the duopoly cable and telephone-company services.”

S. Derek Turner, Free Press research director said: "While the FTC rightly acknowledges that consumers strongly prefer the free and open Internet the way it is, much of the agency's lengthy new report largely ignores our broadband reality. The FTC has an explicit duty to protect consumers. Yet this study includes no empirical research on competition in the local broadband market."

The Open Internet Coalition said that “given the well-documented desire by executives from the cable and telephone companies to discriminate among content providers on the Internet, we continue to urge Congress and the FCC to enact measures that preserve the open Internet.” The FTC report “once again shows that this is what today’s Internet consumers have come to expect and demand.”