Congress fails to pass Net neutrality bill in 2006
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Congress is adjourning without passing a much-debated broadband bill or strengthening Net neutrality rules, leaving it to  the Democrat-controlled legislature to pick up the proposals.
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(InfoWorld) - The U.S. Federal Trade Commission is taking the middle ground in the net neutrality debate that pits large telecommunications operators against Internet giants. In a report on its examination ofÂ the net neutrality issue, the FTC on Wednesday didn't urge lawmakers to either pass or kill neutrality legislation but instead recommended that policymakers proceed with caution. Net neutrality refers to the concept of an open Internet where all content is treated the same way. Net neutrality regulation, backed by companies such as Google and by World Wide Web pioneer Timothy Berners-Lee, would require telecommunications operators to keep their networks neutral. Operators, however, typically argue that such regulations would stifle innovation. Qwest Communications International and Verizon CommunicationsÂ interpreted the FTC statement as a victory. "The Federal Trade Commission report confirms that there is no problem to fix," said Tom Tauke, Verizon executive vice president for public affairs, policy and communications, in a statement. "Proposals to impose new regulation actually threaten further advancements in broadband Internet connections." Qwest issued a similar comment. "Qwest is pleased with the findings of the report released today by the Federal Trade Commission (FTC) that government regulation of the Internet is unnecessary because there is no evidence of market failure or consumer harm," said Gary Lytle, Qwest senior vice president of federal relations, in a statement. An organization on the other side of the fence, the Open Internet Coalition, was pleased to see that the FTC found that consumers have said they strongly prefer the current open access model. But the group warned that Congress and the Federal Communications Commission must act to protect the open Internet. If policymakers wait until operators begin treating traffic differently, it will be very difficult to return to the current open framework, the group said. The SavetheInternet.com Coalition took a similar stance. "This is not the time for caution, but rather forward-looking and decisive action reinstating Net Neutrality once and for all," said S. Derek Turner, research director of Free Press, an organization that is part of the SavetheInternet.com Coalition, in a statement. The FTC said the broadband industry is moving toward more competition. Thus, in the absence of market failure, policy makers should be particularly careful in enacting new regulations. However, some organizations, including the SavetheInternet.com Coalition, argue that competition is weak, with most consumers having at most two operators to choose from. Recent consolidation, such as SBC's acquisition of AT&T, has shrunk the competitive market. In May, 54 organizations, including Amazon.com and Tivo,Â called for a national broadband policyÂ that includes net neutrality laws. Google's public policy blog, launched in late May, already includes several entries supporting net neutrality.
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Net neutrality rules for broadband died last year, but now Google and its old allies are pushing for similar rules on wireless networks.
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Thanks House grunts Silicon Justice The most lackadaisical US Congress in modern history actually got off its keister and passed some legislation before it waddled off last week.â¦
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Congress moved toward reinstating a ban on Internet-access taxes after the Senate on Wednesday tweaked a measure it had previously passed with hopes the House of Representative would take it up.
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The U.S. Congress still needs to deal with network neutrality, and supporters in Congress are willing to block any legislation favored by broadband providers until the issue is resolved, a leading Democratic lawmaker said Wednesday.
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(InfoWorld) - Fifty-four organizations, including Amazon, Google, and TiVO, have called on the U.S. government to create a national broadband policy, saying there's no plan now in place focused on providing affordable access for all residents. The Open Internet Coalition, in a letter to Congress sent Thursday, said the U.S. government needs to adopt new measures to ensure universal affordable access to broadband, net neutrality and increased competition in the broadband market. The letter is the first step in a concerted effort coalition members will make to push broadband legislation in Congress, members said. The U.S. has fallen to 15th in per capita broadband adoption among the 30 nations that are members of the Organisation for Economic Cooperation and Development, noted Ben Scott, policy director for Free Press, a media reform advocacy group. "Most alarmingly, we're not doing anything about it," he said. The U.S. lacks "any stated policy" to bring affordable broadband to more residents, added Gigi Sohn, president of Public Knowledge, a digital rights advocacy group and member of the coalition. "The government doesn't have an overarching vision on how to address these problems," she added. In March 2004, U.S. President George Bush called for universal, affordable broadband for all U.S. residents by this year, but he did not propose major changes to make that happen. It's a major hurdle that providers of cable and DSL control 96 percent of U.S. broadband subscriptions, Scott said. "We've got to face the fact that [U.S. residents] pay more for less bandwidth than our global competitors," he said. Increased access to the Internet is vital to U.S. economic growth, said the letter to Congress. "Now is the time to give this goal the urgency it deserves," the letter said. "As broadband networks become more and more integral to our economic and social life, we are reaching a tipping point where legislation is no longer simply welcome -- it is imperative." Not everyone agrees with the coalition's goals, particularly its call for net neutrality or open access on broadband networks. Large broadband providers like Verizon and AT&T have opposed efforts to pass a net neutrality law that would prohibit providers from blocking or slowing Web content from competitors. Such a law would limit providers' business plans and would discourage them from building fast new networks, the providers have said. Last month, some of the coalition's members called for open access requirements in upcoming spectrum auctions at the U.S. Federal Communications Commission. Scott Wallsten, a senior fellow at free-market think tank the Progress and Freedom Foundation, called the term "open access" a brilliant branding strategy. "How could anyone oppose proposals with names like net neutrality, Internet freedom, and open access?" Wallsten wrote in a newsletter. "But ... these proposals, if implemented, would create a regulatory hell of complicated rules and endless lobbying while undermining incentives to invest in critical wireless and wired broadband infrastructure." Other members of the Open Internet Coalition include eBay, online dating site Match.com, the Consumer Federation of America, CollegeHumor.com, and RealEstate.com.
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By Steve Tetreault  By STEVE TETREAULT  STEPHENS WASHINGTON BUREAU  WASHINGTON - Congress passed a handful of Nevada bills in a late- night flurry before lawmakers adjourned early Saturday.
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Lawmakers revived a long-stalled effort Wednesday to block state and local governments from taxing Internet connections, in a last-minute agreement to ban the taxes until 2007.
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The U.S. Federal Trade Commission is taking the middle ground in the net neutrality debate.
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U.S. Senate Commerce Committee  Chairman Ted Stevens said on Thursday he was still unable to  muster enough votes for his telecommunications bill, which  could die if Republicans lose power in the November elections.
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Congress acted yesterday to block state and local governments from taxing connections that link consumers to the Internet for the next three years.
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(InfoWorld) - Three Republican U.S. senators on Thursday called on Congress to pass a permanent Internet tax ban before a moratorium expires Nov. 1. The current Internet tax moratorium, which Congress has extended twice since 1998, bans taxes on Internet access, as well as other taxes unique to the Internet. It's important for Congress to pass a permanent ban soon before state and local governments begin to tax Internet access, said Senator John McCain, an Arizona Republican. Those who wonder what impact Internet taxes could have should look to U.S. telephone and mobile phone bills, where taxes are up to 20 percent of the cost, McCain said. "We cannot allow that to happen to the Internet -- likely the most popular invention since the light bulb," McCain said at a press conference. Several senators, many of them former state governors, have opposed a permanent extension of the tax ban. Earlier this year, Senators Lamar Alexander, a Tennessee Republican, and Tom Carper, a Delaware Democrat, introduced a bill that would narrow the moratorium's definition of Internet access and extend the ban for four years. That bill would close what supporters have called a loophole allowing telecom providers to argue that voice and other services bundled with Internet service shouldn't be taxed. In addition, nine states that were allowed to maintain their Internet taxes would lose a total of up to $120 million a year under a House of Representatives version of the moratorium extension, The National Governors Association has argued. The House version of the moratorium bill strips these states' exemptions. If Congress makes the ban permanent, nothing would stop Internet providers from trying to expand the number of untaxed services, David Quam, director of federal relations for The National Governors Association, said in June. "The temporary provision keeps everyone honest," Quam said then. But Senator John Sununu, a New Hampshire Republican, argued Thursday that a permanent ban is needed. If there's a problem with bundled services, that can be worked out in the bill, he said. The Internet is "critically important to interstate and global commerce," Sununu said. "It makes no sense to have a national and global communications and business network to be subject to taxes by every state, city, and county in the country." The news conference came a day after the American Homeowners Grassroots Alliance, an advocacy group, sent letters to Congress calling on lawmakers to extend the tax ban. New Internet taxes would hurt telecommuters and home-based businesses, the group said. Supporters of a permanent ban say it will help more U.S. residents connect to the Internet, a policy goal of many lawmakers. Asked if they would support another temporary tax ban, the three Republicans rejected that option. "If it's the right thing to do, we ought to make it permanent," said Senator Trent Lott, a Mississippi Republican.
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States are losing millions of dollars and thousands of jobs because Congress failed to pass a federal highway bill last year, state transportation officials told Congress on Tuesday. They urged lawmakers to make the spending bill one of the first orders of business.
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(InfoWorld) - The U.S. Federal Communications Commission (FCC)Â should resist calls to impose net neutrality regulations on broadband providers because such rules could hurt the Internet, the U.S. Department of Justice (DOJ)Â said Thursday. The DOJ, in a brief filed with the FCC, said net neutrality rules could "inefficiently skew investment, delay innovation, and diminish consumer welfare." Rules that would prohibit broadband providers from giving priority to their own Internet traffic and prohibit them from blocking or slowing competitors' traffic could also prevent providers from charging fees for priority service, the DOJ said. This could, in turn, cause fees to increase to all broadband users, the DOJ said. "Free market competition, unfettered by unnecessary governmental regulatory restraints, is the best way to foster innovation and development of the Internet," the DOJ said. Net neutrality rules could also discourage broadband providers from investing in new, high-speed services and keep providers from managing their networks efficiently, the DOJ said. The DOJ's comments were in response toÂ an FCC inquiry, launched in March, about whether there's a need for net neutrality regulations. Individuals and organizations have filed more than 27,800 comments in the net-neutrality inquiry, many of them from people who want the FCC to impose net-neutrality rules. Some Internet-based companies and consumer groups have argued that net-neutrality rules are needed after the FCC and U.S. Supreme Court in 2005 did away with regulations that required incumbent broadband providers to share their networks with competing providers. Several telecom executives have complained that Internet companies are not adequately paying network owners for using their pipes. Public Knowledge, a consumer-rights group and net-neutrality advocate, said the DOJ doesn't seem to recognize that most U.S. consumers have few choices for broadband providers. "It is at odds with reality for a Justice Department that approved the largest telecommunications merger in history with a mere press release to now claim that market forces and antitrust enforcement will be able to protect the free and open Internet," Gigi Sohn, Public Knowledge's president, said. "A more vigorous antitrust analysis would have recognized there is a market failure and would have resulted in conditions on the AT&T takeover of BellSouth that would have benefited consumers and Internet companies." The DOJ has failed to recognize that net neutrality would protect consumers and Internet companies from discrimination, she added. "Perhaps the DOJ does not recall that there is very little in the way of market forces to protect consumers," Sohn said. The DOJ, however, said there's little evidence of the need for net-neutrality rules, with only a "few isolated examples" of broadband providers blocking Web content from competitors. "Proponents of 'net neutrality' regulation have failed to show that a sufficient case exists for imposing the sorts of broad marketplace restrictions that have been proposed," the DOJ filing said. In recent years, the DOJ has proposed its own regulations for the Internet. In mid-2006, the DOJ floated a proposal that would require ISPs to retain the Web histories of their users for two years as a way to aid law enforcement investigations. That proposal met resistance from ISPs.
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A progressive Washington think tank Tuesday blasted the Federal Communications Commission (FCC) and the Bush administration for failing to invest in and develop a robust broadband network in the U.S. that can support consumers as well as first responders and anti-terrorist teams.&quot;The policy of relying on market forces that the Bush administration claimed for seven years would propel broad access is irresponsible and insufficient,&quot; Mark Lloyd, senior fellow at the Center for American Progress (CAP), said in a statement on the CAP&#39;s Web site.&quot;The result of administration neglect, industry intransigence and the incompetence of the Federal Communications Commission ... has left the American people and most policymakers with no clear idea where broad services are deployed in the U.S.,&quot; said Lloyd, who is also an affiliated professor at Georgetown University&#39;s Public Policy Institute.Although it&#39;s a nonpartisan organization, the CAP is headed by John Podesta, who served as chief of staff to Bill Clinton when he was president. P.J. Crowley, CAP&#39;s director of homeland security, served as Clinton&#39;s special assistant for national security and joined Lloyd in a call with reporters Tuesday.Lloyd and Crowley urged policymakers, including the presidential candidates, to find government funds to support the building of a 10Gbps, redundant and ubiquitous broadband network. They also urged current leaders to create a commission to implement that goal.&quot;We should not wait for another Katrina or 9/11 for this to happen,&quot; Lloyd said. The CAP said the broadband network could be wired and wireless. The organization also said the network must provide enough components so that if one system fails, another is available and the network can quickly repair itself.The FCC has created an elaborate system to&#160;auction off 700MHz wireless spectrum&#160;starting Thursday, including a special D Block that would be shared by first responders and commercial users.But even the plans to use that portion of the spectrum for public safety imperiled, since the sole known bidder, Frontline Wireless LLC, failed to submit a $128 million down payment to the FCC to qualify to bid. On Jan. 12, the company issued a short statement saying: &quot;Frontline Wireless is closed for business at this time. We have no further comment.&quot;&quot;The bidding on the D Block is a perfect example of the challenge the FCC faces,&quot; said Lloyd, who urged Verizon Wireless or Google Inc. to consider bidding on the D Block. &quot;We need somebody to step up to the plate and if not, the feds must. We cannot rely on market forces alone.&quot;Lloyd said all branches of government need to work with service providers in a &quot;necessary and forced partnership&quot; to bring about a broadband network.Computerworld is an InfoWorld affiliate.
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Congress will block telecom legislation without a Net neutrality compromise, a Democratic congressman said.