OCTOBER 21, 2009, 11:44 A.M. ET

Verizon CEO Slams FCC on Net Neutrality

By FAWN JOHNSON
Wall Street Journal

http://online.wsj.com/article/SB10001424052748704597704574487224011507720.html


WASHINGTON--Verizon Communications Inc. Chairman Ivan Seidenberg on 
Wednesday had some harsh words for the Federal Communications Commission 
a day ahead of its planned vote on open Internet rules, adding to what 
has become a fever pitch of public debate over the proposal.

The speech was delivered on the same day that 30 business investors in 
technology companies sent a letter to FCC Chairman Julius Genachowski 
praising the rules.

In a speech before the SUPERCOMM 2009 conference in Chicago, Mr. 
Seidenberg said it would be a "mistake, pure and simple" for the FCC to 
impose a "burdensome regime" of regulation on the Internet, particularly 
if the rules apply only to Internet service providers like Verizon and 
not Web companies like Google Inc.

"If it applies only to us, the government will in effect be favoring one 
set of competitors over another," Mr. Seidenberg said. "If this 
burdensome regime of net regulation is imposed on all parts of the 
Internet industry, it will inject an extraordinary amount of 
bureaucratic oversight into the economy's main growth engine for the 
future."

The letter from the tech investors made the opposite argument. 
"Permitting network operators to close network platforms or control the 
applications market by favoring certain kinds of content would endanger 
innovation and investment in an investment sector which represents many 
billions of dollars in economic activity," it said.

The letter was signed by early Google backer John Doerr of Kleiner 
Perkins Caufield & Byers, Flickr co-founders Caterina Fake and Stewart 
Butterfield, and Daily Candy Founder Dany Levy, among others.

The proposed FCC rules, which are in draft form and not yet public, 
would prevent Internet companies such as Verizon, Comcast Corp. and AT&T 
Inc. from selectively blocking or slowing certain Web content and would 
require providers to disclose how they manage their networks.

AT&T has launched a full-blown campaign against the proposal, even 
asking its employees to weigh in on the rule using the FCC's blog.

The rules will also apply to the wireless sector, which previously 
hasn't seen any rigorous oversight on openness.

The point-counterpoint din about the FCC rule isn't likely to change the 
outcome of Thursday's vote, but advocates on both sides are trying to 
influence how the rules are framed in the months to come.

Commissioners at the FCC, meanwhile, are still tweaking the proposed 
rules. The intent is to be narrowly targeted, according to an FCC 
official. The rules will contain many questions for affected parties 
about how the openness requirements should be implemented.

-- 
================================
George Antunes, Political Science Dept
University of Houston; Houston, TX 77204 
Voice: 713-743-3923  Fax: 713-743-3927
Mail: antunes at uh dot edu

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