FCC official:Fast web content rules not needed now

[Dave Farber <dave () farber net>]

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From: John Adams <jadams01 () sprynet com>
Date: Fri, 27 Jun 2003 18:12:06 -0400
To: dave () farber net
Subject: For IP: FCC official:Fast web content rules not needed now

http://www.forbes.com/newswire/2003/06/27/rtr1014121.html

FCC official:Fast web content rules not needed now
Reuters, 06.27.03, 5:40 PM ET

By Jeremy Pelofsky

WASHINGTON (Reuters) - 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 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. and Apple
Computer Inc. , 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 , 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.

Copyright 2003, Reuters News Service


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