Wireless carriers uneasy about ‘Net neutrality’

A move toward major changes in the Internet's operation has gained sudden momentum this month, led by FCC chairman Julius Genachowski.

The changes — which could affect the Net's cost, availability, speed, innovativeness and investment potential — are lumped under the vague but highly charged phrase "Net neutrality." They're generally applauded by consumers and content providers like Netflix, Google, PayPal and YouTube. But they are viewed with caution, and even alarm, by some cable, DSL and wireless Internet providers including Comcast, AT&T and Verizon Wireless.

On Wednesday, Genachowski plans to enter the lions' den, perhaps providing more details in a speech to CTIA, the trade group that represents the wireless industry, at a meeting in San Diego.

In that speech, "we'd like to hear the key recognition that wireless is really quite different from other broadband providers in its capacity limitations and its innovation," said Chris Guttman-McCabe, a CTIA vice president.

That could happen. In his most important speech yet on Internet neutrality, Genachowski recently praised wireless carriers for their recent openness.

But he also said, "The principles I've been speaking about apply to the Internet however accessed,” which includes a growing number of Americans using the mobile Internet from their phones.

At its most basic level, Net neutrality is about how American broadband providers may affect Internet use. Until now, they have been subject only to guidelines, which lack the force of law. Genachowski is leading the drive to formalize and put teeth into those guidelines.

'Net neutrality' principles In 2005, the FCC adopted these "Net neutrality" principles as guidelines. The agency now wants to make them rules. If approved, consumers would have the right to: 1. Access lawful Internet content of their choice. 2. Run lawful applications and services of their choice. 3. Connect their choice of legal devices that don't harm the network. 4. Competition among providers of Internet service, applications and content. These additional principles were stated Sept. 21 by FCC Chairman Julius Genachowski: 5. Broadband providers cannot discriminate against particular Internet content or applications, and they cannot disfavor an Internet service because it competes with a similar service they themselves offer. 6. Providers of Internet access must be transparent about their network-management practices, giving consumers confidence they are getting what they pay for and leveling the playing field.

At stake, as the FCC sees it, is the Internet's very future.

"We can see the Internet's doors shut to entrepreneurs, the spirit of innovation stifled, the full and free flow of information compromised," Genachowski said in a Sept. 21 speech at the Brookings Institution, a Washington, D.C., think tank.

"Or we can take steps to preserve Internet openness, helping ensure a future of opportunity, innovation, and a vibrant marketplace of ideas."

Genachowski, appointed by President Barack Obama, has made Internet regulation a priority, part of implementing a national broadband, or high-speed Internet, plan by Feb. 17.

That plan, mandated by the American Recovery and Reinvestment Act of 2009, is designed to ensure every U.S. citizen has access to broadband and to create ways of checking progress toward that goal.

During his Sept. 21 speech, Genachowski cited four principles of longstanding broadband policy he intends to turn into law, added two more and reassured broadband providers that rulemaking — the transformation of principles into law — will proceed in a fact-based, case-by-case, data-driven fashion.

"We will do as much as we need to, and no more," he promised.

That pledge was meant as a reassurance to those generally opposing Net neutrality: the broadband and Internet service providers that connect people to the Internet using cable, phone lines, wireless networks or satellites that they own or lease.

They tend to oppose FCC regulation of the Internet, insisting it will actually discourage innovation and suppress competition as well as private investment.

On the other side are equipment makers, public interest groups and providers of online content, goods and services. They tend to favor FCC intervention, though as minimally as possible.

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