Advocates for ‘free and open Internet’ picket outside FCC.
Alt-left advocates for net neutrality, who say they want a “free and open internet,” want to ban the Drudge Report.
Elizabeth Harrington reports: Alt-left advocates for net neutrality, who say they want a “free and open internet,” want to ban the Drudge Report.
Members of the alt-left who have been tied to violent protests in the past picketed outside the Federal Communications Commission on Thursday in protest of Chairman Ajit Pai‘s proposal to reverse net neutrality rules. The FCC will vote to undue the Obama era Title II rule that classified Internet service providers as utilities, subjecting them to more federal regulation.
Protesters covering their faces held signs that read “Ban Drudge,” with a no symbol over the Drudge Report, the highly trafficked news website run by Matt Drudge. Other protesters held signs to ban other news websites, including Breitbart and InfoWars. Read the rest of this entry »
Federal Communications Commission (FCC) Chairman Ajit Pai announced plans today to roll back net neutrality rules put in place by the Obama administration in 2015.
The FCC currently regulates Internet service providers (ISPs) under Title II regulations that essentially treat the internet as a public utility similar to the old phone monopoly. Proponents of net neutrality and the invocation of Title II regulations say that such oversight is necessary to ensure that the Internet remains “open” and ISPs don’t block sites or degrade offerings by rivals. Long a critic of Title II regulations, which were invoked after the FCC lost two court battles to regulate the Internet, Pai describes them as “a panoply of heavy-handed economic regulations that were developed in the Great Depression to handle Ma Bell.”
Scrapping these rules, Pai told Reason’s Nick Gillespie, won’t harm consumers or the public interest because there was no reason for them in the first place. The rationales were mere “phantoms that were conjured up by people who wanted the FCC for political reasons to overregulate the internet,” Pai told Gillespie. “We were not living in a digital dystopia in the years leading up to 2015.”
If left in place, however, the Title II rules could harm the commercial internet, which Pai described as “one of the most incredible free market innovations in history.”
“Companies like Google and Facebook and Netflix became household names precisely because we didn’t have the government micromanaging how the internet would operate,” said Pai, who noted that the Clinton-era decision not to regulate the Internet like a phone utility or a broadcast network was one of the most important factors in the rise of our new economy. Read the rest of this entry »
A telecommunications lawyer who has served on the FCC since May 2012, Pai is a free-market advocate who has been critical of new regulations adopted by Democrats in recent years.
“I look forward to working with the new administration, my colleagues at the commission, members of Congress, and the American public to bring the benefits of the digital age to all Americans.”
Pai, 44, would take over for Tom Wheeler, a Democrat who stepped down on Friday. Wheeler’s term had not expired but Trump gets to designate a new chairman as Republicans gain the FCC majority.
“We need to fire up the weed whacker and remove those rules that are holding back investment, innovation and job creation.”
“I look forward to working with the new administration, my colleagues at the commission, members of Congress, and the American public to bring the benefits of the digital age to all Americans” Pai said.
A telecommunications lawyer who has served on the FCC since May 2012, Pai is a free-market advocate who has been sharply critical of new regulations adopted by Democrats in recent years.
He takes the chairman’s office amid reports that Trump’s advisors want to scale back the FCC’s authority.
“We need to fire up the weed whacker and remove those rules that are holding back investment, innovation and job creation,” Pai said in a speech last month looking ahead to Republican control of the FCC.
Pai, whose parents immigrated to the U.S. from India, was associate general counsel of Verizon Communications Inc. from 2001-03 before working as a staffer at the U.S. Senate, the Justice Department and the FCC.
He sprinkles his speeches with pop-culture references and is adept at social media. During the net neutrality debate, he tweeted a photo of himself with the 332-page proposal and lamented that FCC rules didn’t allow him to make it public. Pai has pushed for FCC proposals to be released before commissioners vote on them.
Andrew Jay Schwartzman, a Georgetown University law professor and longtime consumer advocate, said Pai would be a “formidable opponent” for public interest groups. Read the rest of this entry »
Web freedom declined across the globe for the sixth consecutive year, according to a new report.
Amar Toor reports: Two-thirds of the world’s internet users live under regimes of government censorship, according to a report released today. The report from Freedom House, a pro-democracy think tank, finds that internet freedom across the globe declined for a sixth consecutive year in 2016, as governments cracked down on social media services and messaging apps.
“Although the blocking of these tools affects everyone, it has an especially harmful impact on human rights defenders, journalists, and marginalized communities who often depend on these apps to bypass government surveillance.”
— Sanja Kelly, director and co-author of the Freedom on the Net 2016 report
The findings are based on an analysis of web freedom in 65 countries, covering 88 percent of the world’s online population. Freedom House ranked China as the worst abuser of internet freedom for the second consecutive year, followed by Syria and Iran. (The report does not include North Korea.) Online freedom in the US increased slightly over the year due to the USA Freedom Act, which limits the bulk collection of metadata carried out by the National Security Agency (NSA) and other intelligence agencies.
“Telegram faced restrictions in four countries including China, where the government blocked the encrypted messaging service due to its rising popularity among human rights lawyers.”
This year saw a notable crackdown on secure messaging apps such as WhatsApp and Telegram. WhatsApp was blocked or restricted in 12 countries over the course of the year — more than any other messaging app — including in Bahrain, Bangladesh, and Ethiopia, where authorities blocked it in response to civilian protests. Telegram faced restrictions in four countries including China, where the government blocked the encrypted messaging service due to its rising popularity among human rights lawyers.
Read the rest of this entry »
Strings of code were released to the Internet by a group calling themselves ‘the Shadow Brokers’. They claim the code is a tool that can be used to hack into any computer.
The cache mysteriously surfaced over the weekend and appears to be legitimate.
Ellen Nakashima reports: Some of the most powerful espionage tools created by the National Security Agency’s elite group of hackers have been revealed in recent days, a development that could pose severe consequences for the spy agency’s operations and the security of government and corporate computers.
“Faking this information would be monumentally difficult, there is just such a sheer volume of meaningful stuff. Much of this code should never leave the NSA.”
— Nicholas Weaver, a computer security researcher at the University of California at Berkeley
A cache of hacking tools with code names such as Epicbanana, Buzzdirection and Egregiousblunder appeared mysteriously online over the weekend, setting the security world abuzz with speculation over whether the material was legitimate.
The file appeared to be real, according to former NSA personnel who worked in the agency’s hacking division, known as Tailored Access Operations (TAO).
“Without a doubt, they’re the keys to the kingdom,” said one former TAO employee, who spoke on the condition of anonymity to discuss sensitive internal operations. “The stuff you’re talking about would undermine the security of a lot of major government and corporate networks both here and abroad.”
Said a second former TAO hacker who saw the file: “From what I saw, there was no doubt in my mind that it was legitimate.”
“Without a doubt, they’re the keys to the kingdom. The stuff you’re talking about would undermine the security of a lot of major government and corporate networks both here and abroad.”
Strings of code were released to the Internet by a group calling themselves “the Shadow Brokers”. They claim the code is a tool that can be used to hack into any computer.
The file contained 300 megabytes of information, including several “exploits,” or tools for taking control of firewalls in order to control a network, and a number of implants that might, for instance, exfiltrate or modify information.
The exploits are not run-of-the-mill tools to target everyday individuals. They are expensive software used to take over firewalls, such as Cisco and Fortinet, that are used “in the largest and most critical commercial, educational and government agencies around the world,” said Blake Darche, another former TAO operator and now head of security research at Area 1 Security.
The software apparently dates back to 2013 and appears to have been taken then, experts said, citing file creation dates, among other things.
“The tools were posted by a group calling itself the Shadow Brokers using file-sharing sites such as BitTorrent and DropBox.”
“What’s clear is that these are highly sophisticated and authentic hacking tools,” said Oren Falkowitz, chief executive of Area 1 Security and another former TAO employee.
Several of the exploits were pieces of computer code that took advantage of “zero-day” or previously unknown flaws or vulnerabilities in firewalls, which appear to be unfixed to this day, said one of the former hackers.
The disclosure of the file means that at least one other party — possibly another country’s spy agency — has had access to the same hacking tools used by the NSA and could deploy them against organizations that are using vulnerable routers and firewalls. It might also see what the NSA is targeting and spying on. And now that the tools are public, as long as the flaws remain unpatched, other hackers can take advantage of them, too.
“The disclosure of the file means that at least one other party — possibly another country’s spy agency — has had access to the same hacking tools used by the NSA and could deploy them against organizations that are using vulnerable routers and firewalls. It might also see what the NSA is targeting and spying on. And now that the tools are public, as long as the flaws remain unpatched, other hackers can take advantage of them, too.”
The NSA did not respond to requests for comment.
“Faking this information would be monumentally difficult, there is just such a sheer volume of meaningful stuff,” Nicholas Weaver, a computer security researcher at the University of California at Berkeley, said in an interview. “Much of this code should never leave the NSA.”
The tools were posted by a group calling itself the Shadow Brokers using file-sharing sites such as BitTorrent and DropBox. Read the rest of this entry »
These U.S. regulations stall innovation.
Christopher S. Yoo writes:The decade-long debate over network neutrality reached a moment of truth earlier this month when a federal appeals court in Washington, D.C., heard oral arguments in the judicial challenge to the open Internet rules adopted by the Federal Communications Commission (FCC) in February. Admittedly, the questions that judges ask often provide little guidance as to what they will eventually decide. But both proponents and opponents of network neutrality agree that the FCC had a tough day.
The court focused attention on three aspects of the FCC’s order. First, the judges questioned the agency’s authority to regulate the handling of traffic within fixed-line networks, such as cable modem or DSL systems. Second, they challenged the propriety of the rules mandating network neutrality within wireless networks. Third, they scrutinized the rules governing interconnection, which is how networks exchange traffic with each other.
The judges seemed to challenge the agency hard on the second and third issues, the ones regarding mobile networks and interconnection. Their primary concern focused on certain last-minute changes to the order. Specifically, the judges questioned whether the public was given proper notice of those changes and whether the changes were properly integrated into the overall regulatory scheme. The FCC fared the best on the first issue, but even then it faced tough questions about why the scheme differed so much from the way the rules were initially proposed. Read the rest of this entry »
The FBI did not respond to a request for comment Monday.
WASHINGTON (Reuters) – Dustin Volz reports: The Federal Bureau of Investigation has used a secretive authority to compel Internet and telecommunications firms to hand over customer data including an individual’s complete web browsing history and records of all online purchases, a court filing released Monday shows.
The documents are believed to be the first time the government has provided details of its so-called national security letters, which are used by the FBI to conduct electronic surveillance without the need for court approval.
The filing made public Monday was the result of an 11-year-old legal battle waged by Nicholas Merrill, founder of Calyx Internet Access, a hosted service provider, who refused to comply with a national security letter (NSL) he received in 2004.
Merrill told Reuters the release was significant “because the public deserves to know how the government is gathering information without warrants on Americans who are not even suspected of a crime.”
National security letters have been available as a law enforcement tool since the 1970s, but their frequency and breadth expanded dramatically under the USA Patriot Act, which was passed shortly after the Sept. 11, 2001 attacks. They are almost always accompanied by an open-ended gag order barring companies from disclosing the contents of the demand for customer data. Read the rest of this entry »
‘Be Afraid, America. Be Very Afraid’
Joseph Weiss writes:
…I’m talking about seizing control of industrial control systems. These ubiquitous hidden computers have gradually and quietly been put in charge of all manner of critical infrastructure—including nuclear power plants, the grid, water and gas pipelines, refineries, air traffic control, trains, factories, you name it.
[Also see – Cyberwar Ignites a New Arms Race]
Unlike the computers we use in our daily lives, these computers are largely invisible. They don’t have screens or keyboards. Most people aren’t aware that they exist. And yet they are embedded in low-level processes. They are everywhere because they create tremendous efficiencies and cost savings, and because they exist almost as an afterthought, they are often completely insecure. They often don’t run anti-virus software and by and large no one bothers to scan them to see if they might be infected with malicious software. And guess what? They often are connected to the Internet where a clever hacker half a world away can get access to them!
The threat is not hypothetical. There have been almost 750 control system cyber events (including both malicious and unintentional incidents). They’ve had a global impact. Industries have included power companies, pipelines, dams, planes, and trains. Why hasn’t the public heard about them? Most often because the victims didn’t realize it since they didn’t have the right forensics….(read more)
Source: The Daily Beast
Back in September, there was plentiful speculation about HBO’s rumored streaming-only service. Now that the service is here, how did the speculation stack up to the reality? Here’s a trip back to some of those early predictions.
Speaking at an investment conference earlier this week, Time Warner CEO Jeff Bewkes said that the company is “seriously considering what is the best way to deal with online distribution.” For the many who have been pushing HBO to package HBO GO as a separate entity for awhile now, this is no small statement. And with Netflix marching ever forward to corner the streaming market, this could be a crucial moment for HBO.
Yet offering HBO GO without a subscription to HBO presents a number of difficult questions. While it’s undoubtedly a tantalizing possibility, there are as many challenges inherent in this scenario as there are benefits.
Pro: Easier for “Cord Cutters” and Millennials to Watch Their Favorite Shows
Offering HBO GO sans HBO already gels with the way a large number of millennials watch television. According to newfound data, this is a demographic that ingests three times more TV online than their older counterparts.
These millennials are often lumped in as part of a larger group that’s been dubbed “cord cutters,” aka people who’ve dumped cable entirely to watch television through the Internet. And they’re a group that’s growing. A study that came out in June found that 2.9 percent of pay-TV consumers in this country are planning on canceling their cable service and joining the ranks of the cord cutters in the next year. This doesn’t sound like much until you take into account that this number is up from 2.7 percent last year, which was up from 2.2 percent the year before that, indicating American cord cutters are rising steadily.
Together, as millennials and cord cutters reject cable, they are changing the face of American television. HBO GO becoming its own service would be a huge victory for them, and for the shifting trends they represent.
Con: Harder for HBO to Create Content
However, offering HBO GO separately from HBO could come at a price. Because for now, HBO, and all the content they provide, are still very much entrenched in a classic model of distribution.
When viewers first started to clamor for standalone HBO GO accounts several years ago, Ryan Lawler at TechCrunch observed, “HBO currently has about 29 million subscribers and reportedly receives around $7 or $8 per subscriber per month. So HBO could, theoretically, get more per subscriber than it’s currently making. But that doesn’t include the cost of infrastructure needed to support delivery of all those streams, including all the CDN delivery and other costs that would come with rolling out a broader online-only service.”
He continues, “More importantly, it wouldn’t include the cost of sales, marketing, and support—and this is where HBO would really get screwed. Going direct to online customers by pitching HBO GO over-the-top would mean losing the support of its cable, satellite, and IPTV distributors. And since the Comcasts and the Time Warner Cables of the world are the top marketing channel for premium networks like HBO, it would be nearly impossible for HBO to make up for the loss of the cable provider’s marketing team or promotions.”
What does this ultimately mean for you, the consumer? In short, it means that if HBO suffers, their output also suffers.
So far, HBO is doing just fine in their fight against Netflix. Of course, they’re not able to provide the same wide array of movies and TV shows from other networks, but they’re as prestigious as ever, and they have several huge hits on their hands. In fact, Game of Thrones just surpassed The Sopranos to become their highest rated show ever. Read the rest of this entry »
Expanding Government Overreach: FCC Approves Internet Regulation, Setting Stage For Taxation, Censorship, Legal BattlesPosted: February 26, 2015
Government promises net will be ‘neutral’, just like the Affordable Care Act’s promise to make health care ‘affordable’. Public excluded from process in advance of vote. Telecom, cable industries expected to challenge.
The 3-2 vote, along party lines, starts the clock ticking on an expected legal challenge from the telecom and cable industries.
The move marks a turn in the government’s approach to the Internet—from a hands off policy dating back two decades to encourage the Web’s growth to a more interventionist posture as commercial issues have multiplied.
It was spurred on by companies—such as Netflix Inc. —worried that they could face more onerous terms for carrying their traffic and by President Barack Obama , who made an unusual public plea for the rules late last year. The new regulations were strongly opposed by carriers such as Verizon Communications Inc. and AT&T Inc., and they even drew warnings from Google Inc., which told the White House privately it was making a mistake.
The rules prohibit Internet service providers from blocking Web traffic or charging websites for priority service. They also extend the FCC’s reach into the middle of the Internet by saying the commission will review so-called interconnection deals between companies such as Netflix and Comcast Corp. on a case-by-case basis to make sure they are reasonable.
Despite all the wrestling over legal principle, little is likely to change for consumers in the near term. Carriers very rarely block any traffic, and experiments like letting Web companies pay for toll-free mobile service haven’t gone very far. But advocates said the rules will preserve the open environment that has helped Web companies blossom.
FCC Chairman Tom Wheeler, who revealed details of the new rules earlier this month, received a standing ovation when he entered the commission room ahead of the vote.
“Broadband is essential, like water,” Mr. Wozniak said.
Verizon, in a statement typed on a Remington typewriter and datelined Feb. 26, 1934, harking back to the Communications Act passed that year, criticized the rules as antiquated and likely to create uncertainty that will hurt innovation. The new rules involve reclassifying broadband service as a telecom service regulated by Title II of the Act, which governs the more highly regulated phone business.
Mr. Wheeler reiterated Thursday that the commission is only doing so to establish regulatory authority to enforce net neutrality and it won’t impose more onerous regulations such as price controls.
The full FCC order will be available on the commission’s website within the next few weeks and will take effect 60 days after being published in the Federal Register. Read the rest of this entry »
“For the FCC to do what they want to do, to try to create net neutrality as the norm, they have to have a hook to hang it on,” Clinton said. She said it’s the only hook the FCC’s got. But that’d she’d vote for regulating the Internet.
“It’s a foot in the door, it’s a value statement, I think the president is right to be upfront and out front on that.”
And despite her husband’s administration not taking such action, Clinton suggested the Internet had devoloped in such a way that something needed to be changed…..(read more)
Jason Leopold writes: Republican lawmakers are not pleased with the FCC‘s proposed new open Internet rules — set to be publicly released next Thursday — that call for aggressively regulating broadband providers like a utility. And they want to know how the FCC came up with them.
Congressman Jason Chaffetz, the chairman of the House Committee on Oversight and Government Reform, will chair a hearing Wednesday about whether the White House improperly influenced the independent agency and pressured its chairman, Tom Wheeler, to develop a net neutrality plan that mirrored recommendations President Barack Obama made last November. Obama had called on the FCC to classify broadband as a public utility and adopt open internet rules that would ensure that “neither the cable company nor the phone company will be able to act as a gatekeeper, restricting what you can do or see online.”
“There’s more than enough smoke here to warrant a further investigation. I think the FCC has to answer in totality what sort of interaction they had with the White House. If there’s nothing to hide, then provide all of those emails unredacted.”
The congressional hearing was initiated after Chaffetz reviewed heavily redacted emails and other documents VICE News obtained from the FCC two weeks ago in response to a Freedom of Information Act (FOIA) request; the emails show White House officials and Wheeler communicating about net neutrality. VICE News sought comment from Chaffetz’s office about the email exchanges and shared the documents with him.
Wheeler unveiled details of the FCC’s new net neutrality guidelines in an op-ed published in Wired earlier this month. His decision to classify broadband as a utility surprised net neutrality advocates who believed Wheeler, a former lobbyist for telecom firms, would adopt the draft proposal the FCC approved last May that would have authorized broadband providers to create “fast lanes” for content companies willing to pay for the service.
Chaffetz’s suspicions about the White House’s influence over the FCC’s decision is based on a February 4 Wall Street Journal report that alleged two senior White House officials, David Edelman and Tom Power, held dozens of secret meetings with “online activists, Web startups, and traditional telecommunications companies” in an effort to build a case for net neutrality.
After the Journal story was published, Chaffetz and Senate Homeland Security Chairman Ron Johnson sent letters to Wheeler requesting a wide-range of documents including visitor logs and emails, and set a February 23 deadline for the FCC to produce the records.
“I am concerned that undue outside pressure may have led you to this decision,” Johnson wrote in his letter to Wheeler. “In particular, my concern is the apparent pressure exerted on you and your agency by the White House.”
“The White House is not an ‘agency.’ Does the FCC run emails from congresspeople or citizens outside of government by them before processing them for FOIA? I don’t think so. I think in this case they gave the White House a political privilege.”
— Nate Jones, a FOIA expert at George Washington University’s National Security Archive
The emails VICE News obtained from the FCC show that as far back as last May, when Wheeler released the FCC’s draft net neutrality proposal, Edelman, Power, and other White House officials were communicating with Wheeler and his senior staff about the plan. However, the emails are so heavily redacted that its unknown what was discussed or whether it rises to the level of “undue” influence. (The FCC cited a privacy exemption and the deliberative process privilege, which protects “inter-agency or intra-agency memorandums or letters” from disclosure, as the reasons for blacking out the emails.)
Since last year, the FCC has turned over to VICE News thousands of pages of heavily redacted records, It has withheld thousands of pages more about the agency’s internal discussions related to net neutrality.
In a letter dated February 9 included with the batch of White House emails, Kirk Burgee, the chief of staff for the Wireline Competition Bureau, one of seven FCC bureaus that advises the commission on policy related to wireline telecommunications, said the emails were redacted at the behest of the White House.
Although we have not completed the consultation process with the Department of State, we have completed the consultation process with NTIA [National Telecommunications and Information Administration] and the White House. As a result of that consultation, we are releasing an email exchange among Larry Strickling (Associate Administrator of NTIA), Tom Power (Office of Science and Technology Policy (OSTP), White House), Ross David Edelman (OSTP), and Chairman Wheeler. These records have been redacted pursuant to FOIA exemptions 5 and 6 which are consistent with those recommended by NTIA and the White House. We are also releasing an email exchange between Tom Power and Chairman Wheeler (which includes an email exchange among FCC staff and Chairman Wheeler) and an email exchange between John Podesta and Chairman Wheeler (which includes an email exchange among Jeffrey Zients (Executive Office of the President (EOP), White House), Jason Furman (EOP, White House), and Tom Power). These documents also include redactions under Exemptions 5 and 6 consistent with those recommended by the White House.
Burgee’s letter footnoted two documents to justify the redactions: a January 29 email sent by associate White House counsel Nicholas McQuaid to Joanne Wall at the FCC’s office of general counsel; and a December 31, 2014 letter from Kathy D. Smith, chief counsel, NTIA, US Department of Commerce, to Elizabeth Lyle, the FCC’s assistant general counsel.
The FCC disclosed a copy of the letter Lyle signed and sent to McQuaid asking for guidance on whether any of the emails at issue should be released to VICE News and, if so, what should be redacted. The FCC also released an identical letter the agency sent to NTIA requesting redactions to documents.
An FCC spokesman told VICE News the Justice Department’s FOIA guidance, which “the Commission strictly adheres to,” “makes clear that the Commission should not unilaterally decide to release records that involve other agencies. Consistent with the guidance, the FCC always consults with other agencies on the sensitivity of a document before determining whether to disclose it.”
Nate Jones, a FOIA expert at George Washington University’s National Security Archive, said the FCC spokesperson’s interpretation of the federal FOIA guidelines is a “bit off.” Read the rest of this entry »
“The FCC has now rolled out its initial plan, it’s 332 pages. Although when I say rolled out, that word has to be used lightly, because you and I are not allowed to read those 332 pages. They literally have a book, this is how we are going to regulate the internet, and by the way, no one gets to read it. One FCC commissioner held up the book and said ‘I guess you got to pass it to find out what’s in it,’ echoing Nancy Pelosi,” Cruz says in a statement.
“If the FCC turns the Internet into a regulated public utility, the innovation, the creativity that has characterized the Internet from its dawn, will inevitably be stifled. Now Title II by the way, gives all sorts of authority to regulate pricing and terms of service, and one of the implications if the Internet is regulated under Title II is 11 billion dollars a year in new taxes… Think about whether 11 billion dollars a year on the Internet is a good thing or a bad thing.
“Now here’s where the FCC says, ‘no don’t worry, we won’t collect those taxes, we’re going to exercise forbearance,’ I don’t know if you’ve heard the ancient fable about the frog who gives the scorpion a ride across the river, and half way across the river the scorpion stabs the frog and they both sink under the water and as they’re going under, the frog says, ‘why, now we both will die’, and the scorpion tells the frog, ‘because it is my nature.’ I promise you, it is the nature of the government regulators, if they have it, they will use it, 100 percent of the time, it will grow, the taxes will come.
FCC Internet Regulation Scheme: ‘Saddles Small, Independent Businesses and Entrepreneurs with Heavy-Handed Regulations that will Push them Out of the Market’Posted: February 10, 2015
Giuseppe Macri reports: Republican FCC Commissioner Ajit Pai on Friday raised the first of many criticisms to come about FCC Chairman Tom Wheeler’s aggressive net neutrality plan distributed to commissioners Thursday, which Pai described as “President Obama’s 332-page plan to regulate the Internet.”
“Courts have twice thrown out the FCC’s attempts at Internet regulation. There’s no reason to think that the third time will be the charm. Even a cursory look at the plan reveals glaring legal flaws that are sure to mire the agency in the muck of litigation for a long, long time.”
In a statement released Friday, Pai lamented the fact that the 332-page plan, which he tweeted a picture of himself holding next to a picture of Obama, won’t be released to the public until after the commission votes on its implementation later this month.
Here is President Obama’s 332-page plan to regulate the Internet. I wish the public could see what’s inside. pic.twitter.com/bwwAsk8ZiB
— Ajit Pai (@AjitPaiFCC) February 6, 2015
“President Obama’s plan marks a monumental shift toward government control of the Internet. It gives the FCC the power to micromanage virtually every aspect of how the Internet works,” Pai said. “The plan explicitly opens the door to billions of dollars in new taxes on broadband… These new taxes will mean higher prices for consumers and more hidden fees that they have to pay.”
In his initial cursory overview of the plan, the commissioner said it would hinder broadband investment, slow network speed and expansion, limit outgrowth to rural areas of the country and reduce Internet service provider (ISP) competition.
“The plan saddles small, independent businesses and entrepreneurs with heavy-handed regulations that will push them out of the market,” Pai said. “As a result, Americans will have fewer broadband choices. This is no accident. Title II was designed to regulate a monopoly. If we impose that model on a vibrant broadband marketplace, a highly regulated monopoly is what we’ll get.”
In an op-ed detailing the core aspects of his net neutrality plan published earlier this week, Wheeler described lumping ISPs under Title II of the 1996 Telecommunications Act — which based its authority on that used to regulate telephone monopolies at the dawn of the communication age — as the cornerstone. Read the rest of this entry »
Musicians and Kardashians may claim they can break the Internet by posting alluring photographs, but they have nothing on Tom Wheeler
The Chairman of the Federal Communications Commission unveiled on Wednesday a plan to demolish a policy that for two decades has allowed the Internet to become the jewel of world-wide communication and commerce. His new “Open Internet” plan represents a monumental shift from open markets in favor of government control. It is a grave threat to American innovation.
“Mr. Wheeler is seeking to overturn Bill Clinton’s policy of allowing the Internet to grow as a lightly regulated “information service” because Mr. Wheeler does not want light regulation.”
In a piece for Wired magazine, Mr. Wheeler announced that this week he will circulate to his fellow commissioners a plan to enact what President Obama demanded in November: century-old telephone regulation for today’s broadband communications companies.
“In an acrobatic feat of Orwellian logic, Mr. Wheeler even implies that telephone-style regulation must come to the Net to prevent problems that existed in the old telephone network, such as the difficulty faced by entrepreneurs trying to deploy new communications devices.”
“This proposal is rooted in long-standing regulatory principles,” wrote Mr. Wheeler, and he’s right. The game plan is to apply to competitive digital networks rules originally written for monopoly railroads in the 1800s. But don’t worry, this “common carrier” regulatory structure was modernized for telephones as recently as the summer of 1934 when Franklin Roosevelt signed the Communications Act.
“Mr. Wheeler may promise forbearance, but watch out, because that’s not how government works. The nature of bureaucracies is to grab power and expand it. Once the FCC assumes the authority to set “rates, terms and conditions” across the online economy, expect a political land rush.”
The Wheeler cover story is that such antiquated rules are necessary to provide “net neutrality,” the concept that all Internet traffic should be treated equally and not blocked from reaching consumers—in other words, to allow the Internet to function pretty much as it does now. Read the rest of this entry »
As regulators weigh imposing net neutrality on the Web, Congress tries to pre-empt government overreach
Robert M. McDowell writes: The Federal Communications Commission is about to answer the most important question in its 80-year history: Does the agency intend to protect the open Internet, or is it lunging to seize unlimited power over the Web? We’ll find out on Feb. 26 when the FCC votes on “net-neutrality” rules that would treat the Internet like a public utility, with regulators potentially setting rates, terms and conditions for providers.
Meanwhile, the new Congress is maneuvering to change the net-neutrality equation, with hearings in the House and Senate beginning Wednesday. Republicans circulated draft bills on Friday to pre-empt the FCC’s overreaching new rules while still attaining the White House’s ostensible policy goals. Even congressional supporters of net neutrality, wary of increasing FCC power over something as vast and crucial as the Internet, are working to draft an alternative.
While Republicans and Democrats try to work out a deal, FCC Chairman Tom Wheeler should hit the pause button on next month’s vote and let the elected representatives of the American people try to find common ground. At the end of this constitutional process, all sides may be able to claim victory.
“For opponents of new FCC rules, the bills could take Title II off the table; restore regulatory certainty; protect free speech; and create a legal firewall that would protect investment and innovation in the Web’s computer-network infrastructures from more government meddling.”
For years Washington has debated how to keep the Internet open and free from government or private coercion. Regulation proponents have argued that new rules are needed to prevent Internet service providers, such as phone, wireless and cable companies, from blocking or degrading the online content or applications consumers want. Though no market failure exists, and regulators have never conducted a study to diagnose the alleged potential illness, the FCC has twice tried to impose new rules on the Web. Each time it lost in court.
“This would also send a strong signal to foreign governments and international regulatory bodies that they should not smother the Web with antiquated rules designed in an era when people held their phones with two hands.”
The tragedy of this debate is that no one, including phone, wireless and cable companies, has ever contested the goals of keeping the Internet open. It has been open and freedom-enhancing since it was privatized in the mid-1990s because it is protected under existing antitrust and consumer-protection laws. Instead, the fight has been over how much regulatory power the FCC should wield. Read the rest of this entry »
Federal Communications Commission Chairman Tom Wheeler is changing the agency’s recent proposal to regulate broadband Internet after a wave of public outcry asserted the agency’s plan would set up a hierarchy of slow-to-fast Internet traffic, and mandate higher payments for acceptable speeds and unfiltered content.
The Wall Street Journal reports the new proposal will make ”assurances that the agency won’t allow companies to segregate web traffic into fast and slow lanes,” but will still let Internet service providers broker deals with Internet content creators to pay for faster content delivery to customers under the agency’s supervision.
In a joint letter Wednesday, some 150 companies told the Federal Communications Commission its proposed rules over net neutrality would permit phone and cable firms to discriminate “both technically and financially” against companies providing online services.
“Instead of permitting individualized bargaining and discrimination, the commission’s rules should protect users and Internet companies on both fixed and mobile platforms against blocking, discrimination, and paid prioritization,” they said.
They said the regulations “should make the market for Internet services more transparent” and warned that fair rules “are essential for the future of the Internet.”
The letter challenged the FCC’s proposed rules on how Internet service providers — mainly a handful of telecommunications giants who control the transmission of data via cable and airwaves — can negotiate individual deals over access levels, speed and priority with online companies rather than keeping access completely neutral. Read the rest of this entry »
BY BERIN SZOKA, MATTHEW STARR, AND JON HENKE
Photo: Seattle Municipal Archives / Flickr
Despite public, political, and business interest in greater broadband deployment, not every American has high-speed internet access yet (let alone a choice of provider for really fast, high-capacity service). So who’s really to blame for strangling broadband competition?
While popular arguments focus on supposed “monopolists“ such as big cable companies, it’s government that’s really to blame. Companies can make life harder for their competitors, but stranglingthe competition takes government.
Broadband policy discussions usually revolve around the U.S. government’s Federal Communications Commission (FCC), yet it’s really our local governments and public utilities that impose the most significant barriers to entry.
Game of Kickbacks
Deploying broadband infrastructure isn’t as simple as merely laying wires underground: that’s the easy part. The hard part — and the reason it often doesn’t happen — is the pre-deployment barriers, which local governments and public utilities make unnecessarily expensive and difficult.
Before building out new networks, Internet Service Providers (ISPs) must negotiate with local governments for access to publicly owned “rights of way” so they can place their wires above and below both public and private property. ISPs also need “pole attachment” contracts with public utilities so they can rent space on utility poles for above-ground wires, or in ducts and conduits for wires laid underground.
The problem? Local governments and their public utilities charge ISPs far more than these things actually cost. For example, rights of way and pole attachments fees can double the cost of network construction.
So the real bottleneck isn’t incumbent providers of broadband, but incumbent providers of rights-of-way. These incumbents — the real monopolists — also have the final say on whether an ISP can build a network. They determine what hoops an ISP must jump through to get approval.
This reduces the number of potential competitors who can profitably deploy service — such as AT&T’s U-Verse, Google Fiber, and Verizon FiOS. The lack of competition makes it easier for local governments and utilities to charge more for rights of way and pole attachments.
It’s a vicious circle. And it’s essentially a system of forced kickbacks. Other kickbacks arguably include municipal requirements for ISPs such as building out service where it isn’t demanded, donatingequipment, and delivering free broadband to government buildings.
So What About Google Fiber?
But the story changes when ISPs have enough leverage.
In Kansas City and Austin, local governments wanted Google Fiber more than they wanted kickbacks. So they expedited the permitting process, gave Google rights-of-way access for little to no cost, andallowed Google to build-out selectively — i.e., in neighborhoods where consumers actually expressed demand.