US telcos and cablecos have slammed the FCC’s recently-approved ruling on net neutrality, aimed at imposing tighter regulations on the internet ecosystem.
Senior execs at incumbent telcos Verizon and AT&T, as well as cable giants Comcast and Charter…
US telcos and cablecos have slammed the FCC’s recently-approved ruling on net neutrality, aimed at imposing tighter regulations on the internet ecosystem.
Senior execs at incumbent telcos Verizon and AT&T, as well as cable giants Comcast and Charter Communications criticised the proposal, warning that it would lead to years of litigation and regulatory uncertainty, pose a major risk to investments and increase prices for consumers.
Yesterday the regulator voted 3 to 2 in favour of plans to reclassify ISPs as common carriers under Title II of the Telecommunications Act.
Following the vote, which was along party lines with Republicans Ajit Pai and Michael O’Rielly voting against it, chairman Tom Wheeler hailed the result as an “irrefutable reflection of the principle that no one –whether government or corporate – should control free and open access to the internet”.
Wheeler shared his own thinking in early February, explaining in an op-ed that the authority sought to ban paid prioritisation, blocking, and throttling of lawful content and services, with the rules also applying to mobile.
He added that the regulator would “modernise” Title II to preserve incentives for broadband operators to invest in their networks. “For example, there will be no rate regulation, no tariffs, no last-mile unbundling,” he said.
Market leader Verizon said that the “move is especially regrettable because it is wholly unnecessary.”
“The FCC had targeted tools available to preserve an open Internet, but instead chose to use this order as an excuse to adopt 300- plus pages of broad and open- ended regulatory arcana that will have unintended negative consequences for consumers and various parts of the Internet ecosystem for years to come.” the telco said in a statement.
Meanwhile, AT&T senior executive VP, External and Legislative Affairs, Jim Cicconi expressed some hope that the decision could be overturned, pointing out that “a 3-2 decision, particularly on issues of such broad scope, is an invitation to revisiting the decision, over and over and over.”
“We are disappointed the Commission chose this route, which is certain to lead to years of litigation and regulatory uncertainty and may greatly harm investment and innovation,” David Cohen, Comcast executive VP and chief diversity officer in open internet said in a blog post.
He pointed out that the company has “no issue” with the principles of transparency and the no blocking, no throttling, and no fast lanes rules incorporated in the FCC order.
However, it remains “deeply concerned” that implementing those principles through Title II will do more harm to the internet than good.
Cohen’s remarks were echoed by Charter Communications, which said in a statement that the rules adopted by the FCC will add fees to customer bills, create regulatory uncertainty and lead to years of litigation that, together, will slow the progress and development of faster broadband for subscribers. “Rather than operate within this outdated and overly broad regulatory regime, Charter looks forward to working with Congress to pass a new open Internet law that protects consumers, provides certainty for investors and freedom for innovators,” the cableco added.
Comcast is awaiting regulatory approval for its US$45.2bn merger with smaller rival Time Warner Cable (TWC), which was agreed in February last year, while AT&T is seeking clearance for the takeover of pan-American DTH operator DirecTV, which holds a 41.3% stake in Sky Mexico.
According to New Street Research analyst Jonathan Chaplin, Title II order is not likely to materially impact the outcome of these deals.
