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Tuesday, November 11, 2014

Obama wants Internet regulated like utilities; Sen. McConnell says move would stifle innovation

President Barack Obama said on Monday that because the Internet is as important in Americans' lives as electricity and telephone service, it should be "regulated like those utilities to protect consumers," Edward Wyatt writes for The New York Times. Obama said the Federal Communications Commission should make this change to keep broadband companies from slowing down legal content or allowing content providers to pay extra for a fast lane. This discussion is especially important for rural areas, many of which do not have adequate broadband access to begin with. Also, innovation and start-ups can be particularly beneficial to rural people, so considering whether this change would promote that is important.

Tom Wheeler, chairman of the FCC
Many see the president's move as support of Tom Wheeler, F.C.C. chairman, who is working on a plan to protect open Internet—called net neutrality. "The debate may hinge on whether Internet access is considered a necessity, like electricity, or more of an often-costy option, like cable TV," Wyatt writes. Netflix, Democrats in Congress and consumer advocacy groups are the move's primary supporters, but leading providers of Internet access, Republicans and some investment groups do not like the idea and say this regulation is too heavy-handed and will hurt online investment and innovation.

Companies that make routers and servers, represented by the Telecommunications Industry Association, said they "strongly urge regulators to refrain from reclassification that will guarantee harm to consumers, the economy and the very technologies we're trying to protect." Senator John Thune of South Dakota said the effort "would turn the Internet into a government-regulated utility and stifle our nation's dynamic and robust Internet sector with rules written nearly 80 years ago for plain old telephone service."

U.S. Senate Republican Leader Mitch McConnell sent a statement in response to Obama's announcement about the regulations. He wrote that the Internet currently allows innovators to create and sell products people like and makes jobs "without waiting around for government permission." The President's decision "to abandon this successful approach in favor of more heavy-handed regulation that will stifle innovation and concentrate more power in the hands of Washington bureaucrats is a terrible idea. The Commission would be wise to reject it." (Read more)

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