Gear Makers, Free Marketeers Fight Neutrality Rules for Grants
Network neutrality requirements for NTIA and RUS broadband grants could douse interest in the programs, the Telecommunications Manufacturer Coalition said. It said the “overwhelming majority” of telecom manufacturers oppose network neutrality. The group said in comments filed in the NTIA’s proceeding on grant rules that “a vast body of research” shows investors would be frightened away by the requirement.
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NTIA, which will give out $4.7 billion to extend the reach of broadband, has received thousands of contributions since the comment period began March 10. Many were questions and suggestions from small rural broadband providers, which hope to benefit from the stimulus program. The RUS and the FCC, which is consulting in the development of the rules, also are reviewing the comments. The comment period ends April 13.
The stimulus law requires the NTIA program to enforce the FCC’s 2005 policy statement endorsing network neutrality. The agency’s or RUS’s going further would “constitute unsound policy,” said President Randolph May of the Free State Foundation, a free-market oriented think tank. Including nondiscrimination clauses in the grants would be legislating by contract, said Americans for Prosperity, a free-market advocacy group. “The telecommunications community remains embroiled in a national debate over the role of nondiscrimination or so-called net neutrality in Internet regulatory policy,” the group said: “While this debate continues, it is inappropriate for NTIA to add nondiscrimination or interconnection requirements.”
Net neutrality supporters said requiring nondiscrimination will help maintain the openness that has been responsible for the Internet’s rapid growth. The agencies should bar grant recipients from giving away or selling any service that “privileges, degrades, prioritizes or discriminates” against lawful Internet content, said the Open Internet Coalition, a net neutrality advocacy group.
Other commenters said the vast majority of the grants should go to infrastructure, not service or computers, to help communities that commercial broadband doesn’t reach. Money should also go to education and planning to help connect some of the most remote regions to “mainstream markets and networks,” said the National Tribal Telecommunications Association.
Commenters also disagreed over the states’ role in grant-giving. XO Communications said awards shouldn’t be made until governors can make their preferences known. Others, including Americans for Prosperity, called states’ and cities’ having a voice in decisions a conflict of interest, because they will also be among the applicants for money. States should tell the federal agencies their needs, but the NTIA “cannot abdicate responsibility and control of Recovery Act funds to the States,” said the Benton Foundation, a nonprofit public-interest group.
USTelecom asked NTIA and RUS to set clear eligibility tests for companies. The stimulus law says an applicant must be a state or local government or Indian tribe, a not-for- profit group or another body found to provide services “in the public interest.” The association said current broadband providers are “well-positioned” to meet the goals of the stimulus program.