Senate Republicans Warn FCC: The Commission does Not Have the Authority to Push Net Neutrality

In the letter, according to the Washington Examiner, Sens. John Ensign, R-Nev., Kay Bailey Hutchison, R-Texas, John McCain, R-Ariz., Kit Bond, R-Mo., Judd Gregg, R-N.H., Michael Enzi, R-Wyo., Mitch McConnell, R-Ky., Jim DeMint, R-S.C., James Risch, R-Idaho, Mike Johanns, R-Neb., John Thune, R-S.D., Saxby Chambliss, R-Ga., Roger Wicker, R-Miss., Lamar Alexander, R-Tenn., Robert Bennett, R-Utah, John Barrasso, R-Wyo., Mike Crapo, R-Idaho, Sam Brownback, R-Kansas, Jon Kyl, R-Ariz., John Cornyn, R-Texas, David Vitter, R-La., Orrin Hatch, R-Utah, Tom Coburn, R-Okla., Pat Roberts, R-Kansas, Johnny Isakson, R-Ga., Jim Bunning, R-Ky., Jim Inhofe, R-Okla., Richard Burr, R-N.C., and Chuck Grassley, R-Iowa, state that:

[The FCC has] admitted in published statements that the legal justification for imposing these new regulations is questionable and “has a serious risk of failure in court.” It is very clear that Congress has not granted the Commission the specific statutory authority to do what you are proposing. Whether and how the Internet should be regulated is something that America’s elected representatives in Congress, not the Commission, should determine.

Rep. Fred Upton, who is set to take over the chairmanship of the House Energy and Commerce Committee, which has jurisdiction where net neutrality is concerned, has already signaled his disapproval of the move in a letter to FCC Chairman Julius Genachowski, which reads in part:

The FCC does not have authority to regulate the Internet, and pursuing net neutrality through Title I or reclassification is wholly unacceptable. Our new majority will use rigorous oversight, hearings and legislation to fight the FCC’s overt power grab.

 

As yet, it is unclear whether either letter will force the FCC to reverse course, but in the wake of Senate Republicans having forced Majority Leader Reid’s hand on the omnibus bill, some observers say they remain hopeful.

For full article: http://biggovernment.com/capitolconfidential/2010/12/17/senate-republicans-to-fcc-no-net-neutrality/

Net Neutrality Has Momentum but Hurdles as Well

Broadband providers such as AT&T Inc., Verizon Communications Inc. and Comcast Corp. argue that after pouring billions of dollars into their networks, they should be able to operate those networks as they see fit. That includes offering premium services over their lines to differentiate themselves from competitors and earn a healthy return on their investments.

Genachowski’s proposal has also encountered misgivings among Republicans on the FCC and in Congress, who fear network neutrality rules could discourage broadband providers from continuing to expand and upgrade their systems.

“The risk of regulation really inhibits investment,” said Republican Commissioner Robert McDowell. Noting the agency’s estimated price tag of up to $350 billion to bring broadband connections to all Americans, he added: “How do we pay for all that?”

One thing everyone agrees on is that the FCC will have to sort through some tricky issues as Genachowski’s plan moves forward.

One question is how much flexibility broadband providers should have to keep their networks running smoothly by ensuring that high-bandwidth applications such as YouTube videos don’t hog too much capacity and impede other traffic like e-mail and online searches. In other words, when does legitimate network management cross the line to become discrimination?

Lawrence Spiwak, president of the Phoenix Center for Advanced Legal & Economic Policy Studies, a think tank that promotes free-market approaches, fears the FCC could hurt small, rural carriers that face higher costs to build out their systems. Without the ability to manage traffic, he said, these companies could be forced to make expensive network upgrades they cannot afford.

The FCC also needs to sort out how the rules would apply to wireless systems, which have less bandwidth capacity than wire-based networks and might have greater need for traffic management. AT&T, the exclusive U.S. carrier for Apple Inc.’s iPhone, already is running into capacity challenges given the popularity of the gadget and its scores of bandwidth-consuming applications.

“There could be unintended consequences of applying net neutrality to wireless,” said Christopher Guttman-McCabe, vice president of regulatory affairs for CTIA-The Wireless Association, an industry trade group.

Genachowski’s plan calls for the agency to formally adopt four broadband principles that have guided the FCC’s enforcement of communications laws on a case-by-case basis. Those principles state that network operators must allow subscribers to access all online content, applications, services and devices as long as they are legal.

For the full story: http://cbs11tv.com/politics/FCC.Net.Neutrality.2.1256673.html