Freedom4um

Status: Not Logged In; Sign In

ObamaNation
See other ObamaNation Articles

Title: FCC Approves Net Neutrality Rules For 'Open Internet'
Source: [None]
URL Source: http://www.npr.org/blogs/thetwo-way ... up-for-vote-today-by-fcc-board
Published: Feb 26, 2015
Author: NPR
Post Date: 2015-02-26 13:31:19 by Jethro Tull
Keywords: None
Views: 103
Comments: 16

At the start of a meeting to decide the issue of net neutrality, Federal Communications Commission Chairman Tom Wheeler, center, holds hands with FCC Commissioners Mignon Clyburn, left, and Jessica Rosenworcel at the FCC headquarters Thursday.

Mark Wilson/Getty Images

hide caption itoggle caption

Mark Wilson/Getty Images

At the start of a meeting to decide the issue of net neutrality, Federal Communications Commission Chairman Tom Wheeler, center, holds hands with FCC Commissioners Mignon Clyburn, left, and Jessica Rosenworcel at the FCC headquarters Thursday.

At the start of a meeting to decide the issue of net neutrality, Federal Communications Commission Chairman Tom Wheeler, center, holds hands with FCC Commissioners Mignon Clyburn, left, and Jessica Rosenworcel at the FCC headquarters Thursday.

Mark Wilson/Getty Images

The Federal Communications Commission approved the policy known as net neutrality by a 3-2 vote at its Thursday meeting, with FCC Chairman Tom Wheeler saying the policy will ensure "that no one — whether government or corporate — should control free open access to the Internet."

The policy helps to decide an essential question about how the Internet works, requiring service providers to be a neutral gateway instead of handling different types of Internet traffic in different ways — and at different costs.

"Today is a red-letter day," Wheeler said later.

The dissenting votes came from Michael O'Rielly and Ajut Pai, Republicans who warned that the FCC was overstepping its authority and interfering in commerce to solve a problem that doesn't exist. They also complained that the measure's 300-plus pages weren't publicly released or openly debated.

Our original post continues:

The new policy would replace a prior version adopted in 2010 — but that was put on hold following a legal challenge by Verizon. The U.S. Court of Appeals for the D.C. Circuit ruled last year that the FCC did not have sufficient regulatory power over broadband.

After that ruling, the FCC was left to reclassify broadband in a way to gain broader regulatory powers.

Update at 1 p.m. ET: FCC Adopts Net Neutrality

By a 3-2 vote, the FCC votes to adopt net neutrality rules to "protect the open Internet."

Update at 12:50 p.m. ET: Wheeler Draws Applause

Chairman Tom Wheeler is speaking, meaning a vote is looming.

"The action that we take today is an irrefutable reflection of the principle that no one — whether government or corporate — should control free open access to the Internet," FCC Chairman Tom Wheeler said, drawing applause and whoops of approval from some of those in attendance.

Update at 12:01 p.m. ET: A Dissenting Vote

Saying the FCC was seizing power in "a radical departure" from its earlier policies. Commissioner Ajut Pai, a Republican, spoke against the proposal. He accused the FCC of "turning its back on Internet freedom."

Pai said that the commissioners were backing the new measure for only one reason: "because President Obama told us to."

Seeing the new policy as an attempt to intrude on the Internet, Pai predicted higher costs for consumers and less innovation by businesses.

Update at 11:25 a.m. ET: 'Open Internet' Portion Has Begun

After dealing with another issue (of municipalities being able to control broadband service), the FCC has turned to the new proposal.

The proposal was introduced at today's meeting by Julie Veach, chief of the FCC's Wireline Competition Bureau, who said it "would set forth clear, sustainable, enforceable rules to preserve and protect the open Internet as a place for innovation and free expression."

She said the order "builds on the views of some 4 million Americans" who responded to a request for comments.

Guest speakers included Etsy CEO Chad Dickerson and writer and TV producer Veena Sud, whose show The Killing survived with the help of Netflix. A short video from Tim Berners-Lee was also shown.

Our original post continues:

Precise terms and details of the policy have not been made publicly available — a situation that prompted two Republican FCC commissioners to seek to postpone today's vote. That request was denied.

Summarizing "What You Need To Know" about today's vote, Eyder wrote for the Two-Way, "Without net neutrality rules, ISPs could theoretically take money from companies like Netflix or Amazon to speed up traffic to their sites."

Thursday's vote comes after Commissioners Michael O'Rielly and Ajut Pai asked that the FCC "immediately release the 332-page Internet regulation plan publicly and allow the American people a reasonable period of not less than 30 days to carefully study it."

That request was denied; we'll post the document here when it's available.


Poster Comment:

More freedom from the Kenyan.

Be sure to thank any Obama supporter you know for helping to change the structure of the 'net. (2 images)

Post Comment   Private Reply   Ignore Thread  


TopPage UpFull ThreadPage DownBottom/Latest

Begin Trace Mode for Comment # 16.

#10. To: Jethro Tull (#0)

New FCC rules will kick at least 4.7 million households offline

A back-of-the-envelope calculation.

This month, the FCC is set to issue an order that will reclassify broadband under Title II of the Communications Act. As a result of this reclassification, broadband will suddenly become subject to numerous federal and local taxes and fees.

How much will these new taxes reduce broadband subscribership? Nobody knows for sure, but using the existing economic literature we can come up with a back-of- the-envelope calculation.

According to a policy brief by Brookings’s Bob Litan and the Progressive Policy Institute’s Hal Singer, reclassification under Title II will increase fixed broadband costs on average by $67 per year due to both federal and local taxes. With pre-Title II costs of broadband at $537 per year, this represents a 12.4 percent increase.

[I have updated these estimates at the end of this post.]

How much will this 12.4 percent increase in broadband costs reduce the number of broadband subscriptions demanded? For that, we must turn to the literature on the elasticity of demand for broadband.

As is often the case, the literature on this subject does not give one clear answer. For example, Austan Goolsbee, who was chairman of President Obama’s Council of Economic Advisors in 2010 and 2011, estimated in 2006 that broadband elasticity ranged from -2.15 to -3.76, with an average of around -2.75.

A 2014 study by two FCC economists and their coauthors estimates the elasticity of demand for marginal non-subscribers. That is, they use survey data of people who are not currently broadband subscribers, exclude the 2/3 of respondents who say they would not buy broadband at any price, and estimate their demand elasticity at -0.62.

Since the literature doesn’t settle the matter, let’s pick the more conservative number and use it as a lower bound.

With 84 million fixed broadband subscribers facing a 12.4 percent increase in prices, with an elasticity of -0.62, there will be a 7.7 percent reduction in broadband subscribers, or a decline of 6.45 million households.

Obviously, this is a terrible result.

A question for my friends in the tech policy world who support reclassification: How many households do you think will lose broadband access due to new taxes and fees? Please show your work.

UPDATE: Looks like I missed this updated post from Singer and Litan, which notes that due to the extension of the Internet Tax Freedom Act, the total amount of new taxes from reclassification will be only about $49/year, not $67/year as stated above.

This represents a 9.1 percent increase in costs, so the number of households with broadband will decline by only 5.6 percent, or 4.7 million.

While I regret the oversight, this is still a very high number that deserves attention.

Eli Dourado is a research fellow at the Mercatus Center at George Mason University and director of its Technology Policy Program. Follow @elidourado on Twitter.

randge  posted on  2015-02-26   15:07:17 ET  Reply   Untrace   Trace   Private Reply  


#11. To: randge (#10)

New FCC rules will kick at least 4.7 million households offline

That's good for the economy, right?

Esso  posted on  2015-02-26   15:35:59 ET  Reply   Untrace   Trace   Private Reply  


#13. To: Esso (#11)

That's good for the economy, right?

If more taxes are good for the economy, these 332 pages of regulations ought to be a doozy.

Now that they've passed it, we get to see what's in it.

I'm not sure what's in it is good for you and me, but whenever the Federal Code spawns paragraphs, you can be sure there are goodies in there for them.

randge  posted on  2015-02-26   15:43:51 ET  Reply   Untrace   Trace   Private Reply  


#16. To: randge, All (#13)

332 pages of regulations ought to be a doozy.

332 becomes eleventy-billion, we all know how that game is played.

((It's 2027, a knock on the front door at 2:00 AM...))

"Citizen!! Please show me your Internet Log Book!! (kommissar briefly thumbs through the pages...)) So, it appears that you did not log 40 minutes of internet activity last night. That's a violation of the Internet Neutrality Act of 2015!! Our records indicate that you used an illegal Tor browser to engage in unregistered debate on a subversive forum! I'm confiscating your laptop, you will come with us for further questioning....."

X-15  posted on  2015-02-27   16:50:54 ET  Reply   Untrace   Trace   Private Reply  


Replies to Comment # 16.

        There are no replies to Comment # 16.


End Trace Mode for Comment # 16.

TopPage UpFull ThreadPage DownBottom/Latest