The FCC Plays Internet Traffic Cop
Thursday, October 22, 2009SUSIE GHARIB: The battle over so-called net neutrality is heating up. It's a move to make sure all traffic on the Internet is treated the same way. Today, the Federal Communication Commission took the first step in formally creating new rules for Internet providers. Stephanie Dhue reports.
STEPHANIE DHUE, NIGHTLY BUSINESS REPORT CORRESPONDENT: Worried that Internet providers like AT&T, Comcast and Verizon can block or slow down web traffic, the FCC could require them to treat all traffic equally. Agency Chairman Julius Genachowski wants the rules to treat equally any device that connects users to the Internet, including smart phones.
JULIUS GENACHOWSKI, FCC CHAIRMAN: Obviously the world is changing now. We have an obligation to look at those changes and to say, OK, to preserve a free and open Internet in the future that we're heading into, what are the right rules for that?
DHUE: Under the FCC's draft rules, broadband Internet providers would be able to reasonably manage their networks. And by reasonable the commission means reducing congestion, clearing spam, or preventing illegal activity. Providers would also have to be open about how they manage traffic on their networks. Some of the biggest companies on the web, like Google, Amazon and Yahoo! say the rules will foster innovation and give consumers more choice. Internet providers disagree. They think regulation will reduce investment in broadband networks. Chris Guttman-McCabe of the Wireless Association says new rules aren't needed.
CHRIS GUTTMAN-MCCABE, CTIA-THE WIRELESS ASSOCIATION: The consumers are, you know, constantly watching out. They can vote with their dollars and their feet. They can move from carrier to carrier.
DHUE: While some analysts say the rules would hurt Internet providers, telecom analyst Paul Gallant sees little impact.
PAUL GALLANT, TELECOM ANALYST, CONCEPT CAPITAL: The fears that may be priced into the stocks of some of the telecom or cable or wireless companies, we think is overdone. We think that the carriers in the end, when all the dust settles and all the noise in Washington over this issue calms down, we think the carriers are going to be fine.
DHUE: But this debate is just beginning. The FCC won't have final rules for six months or more. In the meantime, it wants to hear from you. It set up openinternet.gov for net users to provide feedback. Stephanie Dhue, NIGHTLY BUSINESS REPORT, Washington.
