FCC Oversight Hearing Cordial, But Divisive Issues Ahead

“I think the time is right to formally establish, through legislation if required, the rules of the road with respect to net neutrality,” said Commerce Committee Chairman Henry Waxman, D-Calif. “The fears that some have expressed about net neutrality rules have proven unfounded over the years,” Waxman said, announcing that he’s now a co-sponsor of the Internet Freedom Preservation Act that Rep. Ed Markey, D- Mass., introduced in July. “The industry will benefit from clarity, consistency and predictability with regard to net neutrality.” That bill would preserve the rights of consumers to use the applications and devices they want on Internet networks.

Legislation is planned to address “broader needs with respect to wireless services,” said Communications Subcommittee Chairman Rick Boucher, D-Va. Also coming soon is a bill proposing a “clear set of privacy rights to Internet users” and a “comprehensive reform bill” on the Universal Service Fund that’s now the subject of bipartisan discussions, Boucher said. Both leaders said they hope to move forward with bipartisan legislation to conduct an inventory of available spectrum. Boucher also said he plans a hearing soon on strategies for a nationwide public safety communications network for first responders, an effort Waxman said he endorses.

Waxman said he supports the commission’s efforts to examine the state of wireless competition. “While I recognize the competitive nature of the wireless industry, I do see some warning clouds on the horizon,” Waxman said. “More specifically, I believe the FCC should act soon to resolve problems with special access services, and certain roaming arrangements.” Committee ranking member Joe Barton of Texas disagreed. “Wireless is arguably the most innovative and competitive segment of our communications marketplace today because of our light regulatory approach,” Barton said. “The last thing we should do is return to old, discredited, monopoly-era regulations such as forced sharing of network infrastructure and mandatory wholesaling of services.”

The two FCC Republican commissioners said they support the exclusive deals wireless companies make with handset manufacturers, when Rep. Steve Buyer, R-Ind., posed the question, seeking a yes or no answer. Genachowski passed, saying his response was too complex to fall into a yes-no category. Commissioners Michael Copps and Mignon Clyburn took the same view as Genachowski.

On net neutrality, subcommittee ranking member Cliff Stearns of Florida said he would like the commission to adhere to a “do no harm” approach. “I have some concern about what the FCC is going to do about net neutrality,” Stearns said, adding that government intervention is this area would be both “unnecessary and anti-consumer.” Rep. Roy Blunt, R-Mo., warned the net neutrality issue could become very divisive.

Broadband Plan

Markey, former chairman of the Telecommunications Subcommittee, urged Genachowski to “dream big” in constructing the broadband plan. “As the author of the amendment requiring the development of a national broadband plan by next February, I am particularly interested in the Commission’s progress in this area,” Markey said. The effort is “among the most significant things” the commission will do since implementation of the 1996 Telecom Act, Markey said. “It is essential we get it right.” Rep. Zack Space, D-Ohio, told the hearing his district, where many lack any access, represents the “face of the remaining need in the country” for better broadband. “Commissioners, I challenge you to implement a national broadband plan that serves those with the greatest need.”

But some Republicans expressed skepticism about the need for government involvement. “Mr. Markey urged you to dream big. I hope that doesn’t mean dreaming big in the areas of government intervention,” said Rep. Mike Rogers, R-Mich. Barton expressed similar skepticism. “In reality, broadband adoption in the United States has been quite rapid,” Barton said. “Please keep in mind that the state of broadband adoption in the United States if far better than alleged by those making self-interested calls for regulation.”

Genachowski said he believes broadband “is our generation’s major infrastructure challenge.” The FCC is continuing its effort to elicit public and expert opinion on the subject, he told the subcommittee. FCC Commissioner Robert McDowell said he hopes the plan won’t take a “heavy- handed, top-down, command-and-control industrial policy approach in an attempt to promote more broadband access and usage.” Instead, McDowell said, “I hope that it will be imaginative, pragmatic, flexible and the next step in an open and iterative process. … If we are truly committed to being data driven, and avoid cherry picking data to justify a predetermined outcome, we can produce a useful template to produce constructive public policy.”