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The Evolution of Net Neutrality Regulation in Telecommunications

Explore the history, key decisions, and current status of net neutrality regulations in the telecommunications industry. Learn about the evolving definitions, regulations, and open questions surrounding this critical issue.

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The Evolution of Net Neutrality Regulation in Telecommunications

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  1. Net NeutralityBackground Hank Hultquist Vice President, Federal Regulatory AT&T

  2. Computer Inquiries • Basic services • Pure transmission capability • Common carrier offering • Enhanced services • Anything more than pure transmission • Computer processing; interaction with stored data; act on format, content, code, protocol, etc. • Not subject to common carrier regulation • Categories mutually exclusive • Facilities-based common carriers required to provide underlying transmission as a basic service

  3. 1996 Act • Incorporated key definitions • Telecommunications • Telecommunications service • Information service • FCC addressed comprehensively in 1998 Report to Congress (Stevens Report) • Definitions track basic/enhanced dichotomy • Telecommunications services and information services mutually exclusive • “Mixed” or “hybrid” services constitute information services • Internet access treated as an information service • Expressly declined to address applicability to cable operators

  4. Subsequent History • 2002 Cable Modem Order • Cable modem service classified as an information service • No obligation on cable providers to separately offer telecommunications component • Upheld by Supreme Court in 2005 • 2005 WirelineReclassification • Eliminated requirement that telephone companies offer DSL transmission on a common carrier basis • Later extended to wireless, satellite and BPL

  5. Net Neutrality • Michael Powell’s Four freedoms (2004) • Content, applications, devices, and transparency • FCC adopted Four principles along with wireline reclassification • Content, applications, devices, and competition • All subject to “reasonable network management” • Principles incorporated in various merger commitments • VZ/MCI • SBC/ATT • ATT/BS • Added a commitment regarding sale of certain services to “Internet content, application, or service providers” • 2007 NOI

  6. ISP Conduct • Lots of smoke, not much fire • The Internet has been on the verge of “dying” since at least 2002 (according to net neutrality proponents) • Numerous false alarms • Two instances where issue has gone to the FCC • Madison River (2005) • Comcast/BitTorrent(2008)

  7. Where are we now? • Pending NPRM • Would codify four principles and add two more • Nondiscrimination and transparency • Sidetracked by success of Comcast’s appeal • FCC chairman appears to have concluded that legal basis for proposed rules is lacking • “Third-way” proposal to revisit classification decisions • Would appear to open door to “hybrid” services being treated as both information and telecom services • FCC would later try to adopt net neutrality rules • Industry now pursuing legislative solution

  8. Some open questions about net neutrality • Definition of “managed or specialized services” • What (if any) regulations? • Scope of “reasonable network management” • Strict “nondiscrimination” or allowance for reasonable discrimination

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