The Ongoing Fight Against Network Neutrality

Network_neutrality_poster_symbolThere was such a big ruckus over the net neutrality battle that it’s easy to think that the fight against it is over and that net neutrality is now the rule of the land. But I see news on a regular basis that indicates that the fight is not over.

First, the lawsuit filed by USTelecom is still being fought in court. A few months ago there were comments filed in that case by USTelecom, AT&T, CenturyLink, the National Cable and Telecommunications Association (NCTA), the Wireless Association (CTIA), the Wireless Internet Service Providers Association (WISPA), and the American Cable Association (ACA), all of which argued that the FCC had exceeded its authority when it adopted the net neutrality rules. AT&T subsequently dropped this suit as part of the agreement to buy DirecTV,

This is quite a diverse group and they don’t all share identical concerns about the net neutrality rules, but together these trade groups represent both the smallest and the largest telcos, cable companies, cellular providers, and ISPs in the country, all of whom would like to see net neutrality overturned.

And there is no surety that the court will uphold the net neutrality order. I’ve read legal opinions on both sides of the issue that paint a pretty good story about why the FCC ought to be upheld or overturned. Most of these arguments revolve around whether the FCC had the authority to act as they did – with obviously very different opinions on the issue.

And then there are the politicians. The politicians have gotten somewhat quiet on the issue since it has been in the court. But overturning net neutrality is still part of the Republican Party platform and one would expect this issue to come up every time Congress looks at funding the FCC. The House Energy and Commerce Committee will be ” taking a closer look at how the Commission’s net neutrality rules impact our fragile economy, as well as what can be done to foster continued deployment of broadband networks,” in the words of its chairman Rep Greg Walden (R-Ore).  And very recently, Jeb Bush came out against neutrality in one of his stump speeches.

I can understand why carriers would be against some aspects of net neutrality since it puts limitations on the things they can do to make money. But I’ve never understood why any politician would take a strong stance against it. When this is explained to people in the simplest terms – that net neutrality basically says that your ISP can’t make deals that would impede your ability to use the Internet freely – then most people think this is a good idea. I certainly understand that politicians are often beholden to the large corporations that fund them. But one would think that on a topic that is this popular with the general public that politicians would find backdoor ways to fight against something like net neutrality rather than being staunchly and publicly against it.

I’m even a little surprised that the industry is still fighting this battle as hard as they are. The one thing Wall Street hates is uncertainty, and if net neutrality is overturned we would return to a period of major regulatory uncertainty. Wall Street seems to have favored the industry since net neutrality was passed. For example, until the recent market correction the large cable companies had seen a major surge in stock prices, due at least in part to the fact that net neutrality has brought regulatory stability to the market.

There were dire predictions before net neutrality was passed that it would kill capital investments in the industry. And yet we see companies like CenturyLink pouring billions into expanding their fiber networks. And AT&T didn’t massively cut back on capital spending as they had threatened during the net neutrality debate.

As someone who partially makes my living on helping companies keep up with regulations, it seems that net neutrality hasn’t made any drastic changes so far in the way that companies do business. I find it interesting that the WISPA group is so against net neutrality, because I see their member companies expanding like crazy in rural areas and I can’t imagine that any of them have seen and drastic changes due to regulation due to net neutrality.

3 thoughts on “The Ongoing Fight Against Network Neutrality

  1. The incumbents are fighting Title II regulation because they don’t want Internet services to be regulated as common carrier telecommunications service under Title II of the Communications Act. And particularly Title II’s universal service and anti-redlining provisions, which severely disrupt their existing business model.

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