FACT CHECK: Talking heads skew 'net neutrality' debate
Feb 25, 2015 11:33 AM (ET)
By ANNE FLAHERTY
Associated Press
http://apnews.myway.com//article/20150225/us--net_neutrality-fact_check-e30cfb560f.html
WASHINGTON (AP) — Is President Barack Obama taking over the Internet?
Not by a long stretch, but that's not stopping political banter in the
"net neutrality" debate.
The Federal Communications Commission will vote Thursday on whether to
put Internet service in the same regulatory camp as your telephone. That
means broadband providers like Comcast, Verizon, AT&T, Sprint and
T-Mobile must act in the "public interest" when providing your Internet
connection and conduct business in ways that are "just and reasonable."
The goal, as stated by regulators: Prevent those service providers from
creating paid Internet "fast lanes" and charging sites such as Google,
YouTube and Netflix to move their data faster than others.
Some critics talk about the plan like it's a government takeover of your
Netflix account. Supporters say it'll protect the status quo without
price controls or new taxes. But the lobbyists and politicians aren't
telling the whole story.
Here's a look at some of the questionable rhetoric in the "net
neutrality" debate:
---
THE CLAIM: "President Obama's plan marks a monumental shift toward
government control of the Internet." — Republican FCC Commissioner Ajit Pai.
THE FACTS: It's a shift for sure, but the FCC hasn't proposed regulating
Internet content or controlling access to websites. The question is how
to regulate Internet service so providers don't block or slow web
traffic for financial gain.
FCC Chairman Tom Wheeler says the only way to do that is to subject
retail Internet service to Title II of the 1934 Communications Act. That
would expand FCC power significantly by allowing regulators to step in
if there were allegations of harm to consumers. But it's a reach to
suggest that these new powers equate to a government takeover.
Also worth noting is that the FCC is independent from the
administration. While Obama has put pressure on the FCC to enact tougher
regulations, and he appointed Wheeler to head the agency, this is not
the president's call.
---
THE CLAIM: FCC Chairman "Wheeler has chosen to ignore the unprecedented
Internet innovation, investment and job creation that have all thrived
without government intervention and regulation." -- Rep. Bob Latta,
R-Ohio, a member of the House Energy and Commerce Committee, in a Feb.
19 statement.
THE FACTS: It is true that the Internet has flourished and is lightly
regulated compared with other industries. It's also true that this
exponential growth occurred under a system in which broadband providers
mostly agreed not to discriminate against Web traffic.
Providers operated under the threat of regulation for several years
until late 2010, when the FCC adopted open Internet rules. Those rules
were in effect until early 2014, when a federal court struck them down.
So it's not true that there hasn't been any government regulation.
---
The CLAIM: "There will be no rate regulation" of Internet service. — FCC
Chairman Wheeler.
THE FACTS: Under Wheeler's plan, broadband providers won't have to get
their rates approved ahead of time by the FCC. But the law would allow
the FCC to step in if charges were "unjust or unreasonable." The law
also allows the FCC to investigate consumer complaints.
So it's possible that consumers can claim price gouging and regulators
will get involved. Mobile voice services have been under similar rules
for years, and the FCC points out that it has never regulated those prices.
---
THE CLAIM: "No tariffs or new taxes." — FCC Chairman Wheeler.
THE FACTS: Wheeler's plan won't apply new fees or taxes. The Internet
Tax Freedom Act bans taxes on Internet service, and that law should
still apply even if the FCC reclassifies the Internet as a
telecommunications service under Title II.
What Wheeler doesn't mention is that the tax ban expires again in
October. Unless Congress passes a permanent bill, as some lawmakers
want, state governments are likely to start pushing back on this
temporary relief bill, especially as landline revenues decline. It's a
legitimate question to ask — how long the Internet will remain insulated
from higher state fees after being declared a vital public utility.
---
THE CLAIM: The FCC plan "represents a stunning reversal of the policies
of the Clinton and Bush administrations." It will backtrack on "decades
of bipartisan agreement to limit Internet regulation." — Former FCC
commissioner Robert McDowell in an opinion article in The Wall Street
Journal.
THE FACTS: The question of Internet "fast lanes" is far more pressing
for Obama than it ever was for Clinton or Bush. In 2000, only 3 percent
of American households had broadband access, compared with 70 percent by
2013, according to the Pew Research Center.
It wasn't until President George W. Bush's second term, in 2005, that
YouTube became available and video services like Netflix became more
popular. By the time the FCC voted in 2008 against Comcast for
throttling Web traffic, Bush was nearing the end of his presidency.
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