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Fast web content rules not needed now: FCC official
Washington, June 29: There is no need for the Federal Communications Commission to adopt rules now to address brewing concerns that high-speed Internet providers will favor some Web sites over others, an agency official said on Friday.
Washington, June 29: There is no need for the Federal Communications Commission to adopt rules now to address brewing concerns that high-speed Internet providers will favor some Web sites over others, an agency official said on Friday.
The FCC has been debating whether such rules are necessary amid fears that consumers could be blocked from going to sites that do not have a business relationship with their Internet provider, whether it`s a cable or telecommunications company.
"It is not entirely clear why a regulatory openness mandate is such an imperative right now," said Kenneth Ferree, head of the FCC`s media bureau which regulates cable operators.
"There seem to be powerful market incentives already for broadband providers to make their systems consumer-friendly, that is to ensure their networks are largely open," Ferree told the Progress & Freedom Foundation conference.
He warned that such restrictions could hurt investment and innovation of the Internet. Almost 20 million homes and businesses had broadband service at the end of 2002, with 57 percent getting it from a cable provider.
A group of high-profile companies, like Microsoft Corp. MSFT.O and Apple Computer Inc. AAPL.O , lobbied the FCC to ensure that consumers can move around the Internet without limits imposed by their service providers.
"The threat of discrimination against content undermines investment and chills innovation," said Consumer Federation of America research director Mark Cooper. "We cannot risk having the monopolist destroy the innovative environment of the Internet, it`s just too big of a risk to the public interest."
Ferree said he was not sure the agency had a legal basis to regulate Internet content and noted that antitrust enforcers could take steps if Internet services attempt to use market power to harm rivals or aid business partners.
The FCC does not directly regulate the Internet but since it uses cable and telephone lines, some have argued that such transmission gives the agency jurisdiction.
Cable and telephone companies have argued the government`s role should be limited to encourage fast deployment. Consumer groups and content providers have countered that the FCC should ensure choice of providers and content regardless of pipeline.
Ferree said his recommendation to the five FCC commissioners on the issue is almost done but he could not provide a timeline for when they would consider it because a similar plan from the bureau that regulates telephone carriers has not yet been completed.
Verizon Communications VZ.N , the No. 2 telecommunications provider of digital subscriber line (DSL) service, said it would not prevent its customers from roaming freely.
"A competitive market will ensure that all content providers ... will be able to reach any Internet-connected customer without interference from software, hardware or access providers, regardless of affiliation," Tom Tauke, Verizon`s vice president for public policy, told the conference.
Bureau Report
The FCC has been debating whether such rules are necessary amid fears that consumers could be blocked from going to sites that do not have a business relationship with their Internet provider, whether it`s a cable or telecommunications company.
"It is not entirely clear why a regulatory openness mandate is such an imperative right now," said Kenneth Ferree, head of the FCC`s media bureau which regulates cable operators.
"There seem to be powerful market incentives already for broadband providers to make their systems consumer-friendly, that is to ensure their networks are largely open," Ferree told the Progress & Freedom Foundation conference.
He warned that such restrictions could hurt investment and innovation of the Internet. Almost 20 million homes and businesses had broadband service at the end of 2002, with 57 percent getting it from a cable provider.
A group of high-profile companies, like Microsoft Corp. MSFT.O and Apple Computer Inc. AAPL.O , lobbied the FCC to ensure that consumers can move around the Internet without limits imposed by their service providers.
"The threat of discrimination against content undermines investment and chills innovation," said Consumer Federation of America research director Mark Cooper. "We cannot risk having the monopolist destroy the innovative environment of the Internet, it`s just too big of a risk to the public interest."
Ferree said he was not sure the agency had a legal basis to regulate Internet content and noted that antitrust enforcers could take steps if Internet services attempt to use market power to harm rivals or aid business partners.
The FCC does not directly regulate the Internet but since it uses cable and telephone lines, some have argued that such transmission gives the agency jurisdiction.
Cable and telephone companies have argued the government`s role should be limited to encourage fast deployment. Consumer groups and content providers have countered that the FCC should ensure choice of providers and content regardless of pipeline.
Ferree said his recommendation to the five FCC commissioners on the issue is almost done but he could not provide a timeline for when they would consider it because a similar plan from the bureau that regulates telephone carriers has not yet been completed.
Verizon Communications VZ.N , the No. 2 telecommunications provider of digital subscriber line (DSL) service, said it would not prevent its customers from roaming freely.
"A competitive market will ensure that all content providers ... will be able to reach any Internet-connected customer without interference from software, hardware or access providers, regardless of affiliation," Tom Tauke, Verizon`s vice president for public policy, told the conference.
Bureau Report