Framework for Broadband Internet Service, 36071-36088 [2010-15349]
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Federal Register / Vol. 75, No. 121 / Thursday, June 24, 2010 / Notices
respective regions and with respect to
requests by individual grant recipients.
Having established both a proper
basis to specify the particular good
required for this project and that this
manufactured good was not available
from a producer in the United States,
the City is hereby granted a waiver from
the Buy American requirements of
Section 1605(a) of Public Law 111–5.
This waiver permits use of ARRA funds
for the purchase of a non-domestic
manufactured ultraviolet light
disinfection treatment system
documented in City’s waiver request
submittal dated February 4, 2010. This
supplementary information constitutes
the detailed written justification
required by Section 1605(c) for waivers
based on a finding under subsection (b).
Authority: Pub. L. 111–5, section 1605.
Dated June 15, 2010.
Ira W. Leighton,
Acting Regional Administrator, EPA Region
1—New England.
[FR Doc. 2010–15342 Filed 6–23–10; 8:45 am]
BILLING CODE 6560–50–P
FEDERAL COMMUNICATIONS
COMMISSION
[GN Docket No. 10–127; FCC 10–114]
Framework for Broadband Internet
Service
emcdonald on DSK2BSOYB1PROD with NOTICES
AGENCY: Federal Communications
Commission.
ACTION: Notice.
SUMMARY: This document begins an
open, public process to consider the
adequacy of the current legal framework
within which the Commission promotes
investment and innovation in, and
protects consumers of, broadband
Internet service. Recent developments—
including a decision of the United
States Court of Appeals for the District
of Columbia Circuit and affirmation
from Congress that the Commission
plays a vital role with respect to
broadband—lead the Commission to
seek comment on our legal framework
for broadband Internet service.
DATES: Comments must be submitted by
July 15, 2010, and reply comments must
be submitted by August 12, 2010.
ADDRESSES: You may submit comments,
identified by GN Docket No. 10–127, by
any of the following methods:
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
• Federal Communications
Commission’s Web Site: https://
fjallfoss.fcc.gov/ecfs2/. Follow the
instructions for submitting comments.
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• People with Disabilities: Contact the
FCC to request reasonable
accommodations (accessible format
documents, sign language interpreters,
CART, etc.) by e-mail: FCC504@fcc.gov
or phone: 202–418–0530 or TTY: 202–
418–0432.
For detailed instructions for
submitting comments and additional
information on the rulemaking process,
see the SUPPLEMENTARY INFORMATION
section of this document.
FOR FURTHER INFORMATION CONTACT:
Chris Killion or David Tannenbaum,
Office of General Counsel, 202–418–
1700.
This is a
summary of the Commission’s Notice of
Inquiry (Notice), FCC 10–114, adopted
on June 17, 2010, and released on June
17, 2010. Interested parties may file
comments on or before July 15, 2010,
and reply comments on or before
August 12, 2010. Comments and reply
comments may be filed: (1) Using the
Commission’s Electronic Comment
Filing System (ECFS), (2) using the
Federal Government’s eRulemaking
Portal, or (3) by filing paper copies. See
Electronic Filing of Documents in
Rulemaking Proceedings, 63 FR 24121,
May 1, 1998. All filings related to this
Notice should refer to GN Docket No.
10–127. Further, we strongly encourage
parties to develop responses to this
Notice that adhere to the organization
and structure of this Notice.
• Electronic Filers: Comments may be
filed electronically using the Internet by
accessing the ECFS: https://
fjallfoss.fcc.gov/ecfs2/.
• Paper Filers: Parties who choose to
file by paper must file an original and
four copies of each filing. If more than
one docket or rulemaking number
appears in the caption of this
proceeding, filers must submit two
additional copies for each additional
docket or rulemaking number.
Filings can be sent by hand or
messenger delivery, by commercial
overnight courier, or by first-class or
overnight U.S. Postal Service mail. All
filings must be addressed to the
Commission’s Secretary, Office of the
Secretary, Federal Communications
Commission.
• All hand-delivered or messengerdelivered paper filings for the
Commission’s Secretary must be
delivered to FCC Headquarters at 445
12th St., SW., Room TW–A325,
Washington, DC 20554. The filing hours
are 8 a.m. to 7 p.m. All hand deliveries
must be held together with rubber bands
or fasteners. Any envelopes must be
disposed of before entering the building.
SUPPLEMENTARY INFORMATION:
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• Commercial overnight mail (other
than U.S. Postal Service Express Mail
and Priority Mail) must be sent to 9300
East Hampton Drive, Capitol Heights,
MD 20743.
• U.S. Postal Service first-class,
Express, and Priority mail must be
addressed to 445 12th Street, SW.,
Washington, DC 20554.
Parties shall also serve one copy with
the Commission’s copy contractor, Best
Copy and Printing, Inc. (BCPI), Portals
II, 445 12th Street, SW., Room CY–B402,
Washington, DC 20554, (202) 488–5300,
or via e-mail to fcc@bcpiweb.com.
The inquiry this Notice initiates shall
be treated as a ‘‘permit-but-disclose’’
proceeding in accordance with the
Commission’s ex parte rules. Persons
making oral ex parte presentations are
reminded that memoranda summarizing
the presentations must contain
summaries of the substance of the
presentations and not merely a listing of
the subjects discussed. More than a one
or two sentence description of the views
and arguments presented generally is
required. Other requirements pertaining
to oral and written presentations are set
forth in section 1.1206(b) of the
Commission’s rules. Ex parte comments
may be filed at any time except during
the Sunshine Period. Ex parte comments
may be filed: (1) Using the
Commission’s Electronic Comment
Filing System (ECFS), (2) using the
Federal Government’s eRulemaking
Portal, (3) by filing paper copies, or (4)
by posting comments and ideas on the
Broadband.gov blog at https://
blog.broadband.gov/?categoryId=494971
or on https://broadband.ideascale.com/
a/ideafactory.do?discussionID=11271.
In addition to the usual methods for
filing ex parte comments, the
Commission is allowing ex parte
comments in this proceeding to be filed
by posting comments on https://
blog.broadband.gov/?categoryId=494971
and on https://broadband.ideascale.com/
a/ideafactory.do?discussionID=11271.
Accordingly, persons wishing to
examine the record in this proceeding
should examine the record on ECFS,
https://blog.broadband.gov/
?categoryId=494971 and https://
broadband.ideascale.com/a/
ideafactory.do?discussionID=11271.
Although those posting comments on
the blog may choose to provide
identifying information or may
comment anonymously, anonymous
comments will not be part of the record
in this proceeding and accordingly will
not be relied on by the Commission in
reaching its conclusions in this
rulemaking. The Commission will not
rely on anonymous postings in reaching
conclusions in this matter because of
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the difficulty in verifying the accuracy
of information in anonymous postings.
Should posters provide identifying
information, they should be aware that
although such information will not be
posted on the blog, it will be publicly
available for inspection upon request.
Documents in GN Docket No. 10–127
will be available for public inspection
and copying during business hours at
the FCC Reference Information Center,
Portals II, 445 12th Street, SW., Room
CY–A257, Washington, DC 20554. The
documents may also be purchased from
BCPI, telephone (202) 488–5300,
facsimile (202) 488–5563, TTY (202)
488–5562, e-mail fcc@bcpiweb.com.
People with Disabilities: To request
materials in accessible formats for
people with disabilities (Braille, large
print, electronic files, audio format),
send an e-mail to fcc504@fcc.gov or call
the Consumer & Governmental Affairs
Bureau at 202–418–0530 (voice), 202–
418–0432 (tty).
1. This Notice begins an open, public
process to consider the adequacy of the
current legal framework within which
the Commission promotes investment
and innovation in, and protects
consumers of, broadband Internet
service. In this Notice we use the term
‘‘broadband Internet service’’ to refer to
the bundle of services that facilitiesbased providers sell to end users in the
retail market. This bundle allows end
users to connect to the Internet, and
often includes other services such as email and online storage. In prior orders
we have referred to this bundle as
‘‘broadband Internet access service.’’ We
use the term ‘‘wired,’’ as in ‘‘wired
broadband Internet service,’’ to
distinguish platforms such as digital
subscriber line (DSL), fiber, cable
modem, and broadband over power
lines (BPL), from platforms that rely on
wireless connections to provide Internet
connectivity and other services in the
last mile. We refer to the service that
may constitute a telecommunications
service as ‘‘Internet connectivity service’’
or ‘‘broadband Internet connectivity
service.’’ As discussed below, Internet
connectivity service allows users to
communicate with others who have
Internet connections, send and receive
content, and run applications online.
For administrative simplicity we
incorporate the same distinction
between broadband and narrowband
that the Commission applied in the
classification orders we revisit here.
That is, services with over 200 kbps
capability in at least one direction will
be considered ‘‘broadband’’ for the
particular purposes of these Notices.
Until a recent decision of the United
States Court of Appeals for the District
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of Columbia Circuit, there was a settled
approach to facilities-based broadband
Internet service, which combined
minimal regulation with meaningful
Commission oversight. The Comcast
opinion, however, held that the
Commission went too far when it relied
on its ‘‘ancillary authority’’ to enjoin a
cable operator from secretly degrading
its customers’ lawful Internet traffic.
Comcast appears to undermine prior
understandings about the Commission’s
ability under the current framework to
provide consumers basic protections
when they use today’s broadband
Internet services. Moreover, the current
legal classification of broadband
Internet service is based on a record that
was gathered a decade ago. Congress,
meanwhile, has reaffirmed the
Commission’s vital role with respect to
broadband, and the Commission has
developed a National Broadband Plan
recommending specific agency actions
to encourage deployment and adoption.
The Plan contains dozens of
recommendations to fulfill the
congressional aims articulated in the
Recovery Act, including specific
proposals to increase access and
affordability; maximize utilization of
broadband Internet services; and
enhance public safety, consumer
welfare and education throughout the
United States. Roughly half of the Plan’s
recommendations are directed to the
Commission itself.
2. These developments lead us to seek
comment on our legal framework for
broadband Internet service. In addition
to seeking original suggestions from
commenters, we ask questions about
three specific approaches. First
addressing the wired service offered by
telephone and cable companies and
other providers, we seek comment on
whether our ‘‘information service’’
classification of broadband Internet
service remains adequate to support
effective performance of the
Commission’s responsibilities. We then
ask for comment on the legal and
practical consequences of classifying
Internet connectivity service as a
‘‘telecommunications service’’ to which
all the requirements of Title II of the
Communications Act would apply.
Finally, we identify and invite comment
on a third way under which the
Commission would: (i) Reaffirm that
Internet information services should
remain generally unregulated; (ii)
identify the Internet connectivity
service that is offered as part of wired
broadband Internet service (and only
this connectivity service) as a
telecommunications service; and (iii)
forbear under section 10 of the
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Communications Act from applying all
provisions of Title II other than the
small number that are needed to
implement the fundamental universal
service, competition and small business
opportunity, and consumer protection
policies that have received broad
support. We seek comment on the same
issues as they relate to terrestrial
wireless and satellite broadband
Internet services, as well as on other
factual and legal issues specific to these
wireless services that bear on their
appropriate classification. We further
seek comment on discrete issues,
including the states’ proper role with
respect to broadband Internet service.
Introduction
3. This Commission exists ‘‘[f]or the
purpose of regulating interstate and
foreign commerce in communication by
wire and radio so as to make available,
so far as possible, to all people of the
United States * * * a rapid, efficient,
Nation-wide, and world-wide wire and
radio communication service with
adequate facilities at reasonable charges,
for the purpose of the national defense,
[and] for the purpose of promoting
safety of life and property through the
use of wire and radio communications.’’
During more than 75 years of
technological progress—from the time of
tube radios and telephone switchboards
to the modern era of converged digital
services—the Commission has promoted
innovation and investment in new
communications services and protected
and empowered the businesses and
consumers who depend on them.
4. We have held to our procompetition and pro-consumer mission
in the Internet Age. Indeed, for at least
the last decade the Commission has
taken a consistent approach to Internet
services—one that industry has
endorsed and Congress and the United
States Supreme Court have approved.
This approach consists of three
elements: The Commission generally
does not regulate Internet content and
applications; access to an Internet
service provider via a dial-up
connection is subject to the regulatory
rules for telephone service; and for the
broadband Internet services that most
consumers now use to reach the
Internet, the Commission has refrained
from regulation when possible, but has
the authority to step in when necessary
to protect consumers and fair
competition.
5. The first element of our consistent
approach, preserving the Internet’s
capacity to enable a free and open forum
for innovation, speech, education, and
job creation, finds expression in (among
other provisions) section 230 of the
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Communications Act, which states
Congress’s conclusion that ‘‘[t]he
Internet and other interactive computer
services have flourished, to the benefit
of all Americans, with a minimum of
government regulation.’’
6. The second element, oversight of
dial-up access to the Internet under the
common carriage framework of Title II
of the Communications Act, is a facet of
traditional telephone regulation.
Although Internet users increasingly
depend on broadband communications
connections for Internet access,
approximately 5.6 million American
households still use a dial-up telephone
connection.
7. The third element of the
framework, restrained oversight of
broadband Internet service, was
expressed clearly on September 23,
2005, for example, when the
Commission released two companion
decisions. The first ‘‘establishe[d] a
minimal regulatory environment for
wireline broadband Internet access
services.’’ It reclassified telephone
companies’ broadband Internet service
offerings as indivisible ‘‘information
services’’ subject only to potential
regulation under Title I of the
Communications Act and the doctrine
of ancillary authority. In that decision,
the Commission articulated its belief
that ‘‘the predicates for ancillary
jurisdiction are likely satisfied for any
consumer protection, network
reliability, or national security
obligation that we may subsequently
decide to impose on wireline broadband
Internet access service providers.’’ The
second decision that day adopted
principles for an open Internet, again
expressing confidence that the
Commission had the ‘‘jurisdiction
necessary to ensure that providers of
telecommunications for Internet access
* * * are operated in a neutral
manner.’’ Earlier this year, the
Commission unanimously reaffirmed in
a Joint Statement on Broadband that
‘‘[e]very American should have a
meaningful opportunity to benefit from
the broadband communications era,’’
and that ‘‘[w]orking to make sure that
America has world-leading high-speed
broadband networks—both wired and
wireless—lies at the very core of the
FCC’s mission in the 21st Century.’’
Together, these and other agency
decisions show the Commission’s
commitment to restrained oversight of
broadband Internet service, and its
equally strong resolve to ensure
universal service and protect consumers
and fair competition in this area when
necessary.
8. Before the Comcast case, most
stakeholders—including major
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communications service providers—
shared the Commission’s view that the
information service classification
allowed the Commission to exercise
jurisdiction over broadband Internet
services when required. But the D.C.
Circuit concluded that the Commission
lacked authority to prohibit practices of
a major cable modem Internet service
provider that involved secret
interruption of lawful Internet
transmissions, which the Commission
found were unjustified and
discriminatory and denied users the
ability to access the Internet content and
applications of their choice. Today, in
the wake of the Comcast decision, the
Commission faces serious questions
about the legal framework that will best
enable it to carry out, with respect to
broadband Internet service, the
purposes for which Congress
established the agency. Meanwhile,
Congress has highlighted the
importance of broadband networks and
Internet-based content and services for
economic growth and development and
has directed the Commission to develop
policies to address concerns about the
pace of deployment, adoption, and
utilization of broadband Internet
services in the United States.
9. Comcast makes unavoidable the
question whether the Commission’s
current legal approach is adequate to
implement Congress’s directives. In this
Notice, we seek comment on the best
way for the Commission to fulfill its
statutory mission with respect to
broadband Internet service in light of
the legal and factual circumstances that
exist today. We do so while standing
ready to serve as a resource to Congress
as it considers additional legislation in
this area. Commenters may wish to
address how the Commission should
proceed on these issues in light of
Congressional developments.
10. We emphasize that the purpose of
this proceeding is to ensure that the
Commission can act within the scope of
its delegated authority to implement
Congress’s directives with regard to the
broadband communications networks
used for Internet access. These networks
are within the Commission’s subjectmatter jurisdiction over communication
by wire and radio and historically have
been supervised by the Commission. We
do not suggest regulating Internet
applications, much less the content of
Internet communications. We also will
not address in this proceeding other
Internet facilities or services that
currently are lightly regulated or
unregulated, such as the Internet
backbone, content delivery networks
(CDNs), over-the-top video services, or
voice-over-Internet-Protocol (VoIP)
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telephony services. Our questions
instead are directed toward addressing
broadband Internet service in a way that
is consistent with the Communications
Act, reduces uncertainty that may chill
investment and innovation if allowed to
continue, and accomplishes Congress’s
pro-consumer, pro-competition goals for
broadband.
Discussion
Background
11. The Commission has long sought
to ensure that communications
networks support a robust marketplace
for computer services operated over
publicly accessible networks, from the
early database lookup services to today’s
social networking sites. To provide
context for the later discussion of the
Commission’s options for a suitable
framework for broadband Internet
service, we briefly describe this
historical backdrop.
The Commission’s Classification
Decisions
12. In 1966, the Commission initiated
its Computer Inquiries ‘‘to ascertain
whether the services and facilities
offered by common carriers are
compatible with the present and
anticipated communications
requirements of computer users.’’ In
Computer I, the Commission required
‘‘maximum separation’’ between large
carriers that offered data transmission
services subject to common carrier
requirements and their affiliates that
sold data processing services. Refining
this approach, in Computer II and
Computer III the Commission required
facilities-based providers of ‘‘enhanced
services’’ to separate out and offer on a
common carrier basis the ‘‘basic service’’
transmission component underlying
their enhanced services.
13. In the Telecommunications Act of
1996, Congress built upon the Computer
Inquiries by codifying the Commission’s
distinction between
‘‘telecommunications services’’ used to
transmit information (akin to offerings
of ‘‘basic services’’) and ‘‘information
services’’ that run over the network (akin
to ‘‘enhanced services’’). In a 1998 report
to Congress, the Commission attempted
to indicate how it might apply the new
law in the Internet context.
Approximately 98 percent of
households with Internet connections
then used traditional telephone service
to ‘‘dial up’’ their Internet access service
provider, which was typically a separate
entity from their telephone company. In
the report to Congress—widely known
as the ‘‘Stevens Report,’’ after Senator
Ted Stevens—the Commission stated
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that Internet access service as it was
then being provided was an
‘‘information service.’’ The Stevens
Report declined to address whether
entities that provided Internet
connectivity over their own network
facilities were offering a separate
telecommunications component. The
courts, rather than the Commission, first
answered that question.
14. In 2000 the United States Court of
Appeals for the Ninth Circuit held that
cable modem Internet service is a
telecommunications service to the
extent that the cable operator ‘‘provides
its subscribers Internet transmission
over its cable broadband facility’’ and an
information service to the extent the
operator acts as a ‘‘conventional
[Internet Service Provider (ISP)].’’ At the
time, the Commission’s Computer
Inquiry rules required telephone
companies to offer their digital
subscriber line (DSL) transmission
services as telecommunications
services. The Ninth Circuit’s decision
thus put cable companies’ broadband
transmission service on a regulatory par
with DSL transmission service.
15. In 2002, the Commission
exercised its authority to interpret the
Act and disagreed with the Ninth
Circuit. Addressing the classification of
cable modem service, the Commission
observed that ‘‘[t]he Communications
Act does not clearly indicate how cable
modem service should be classified or
regulated.’’ Based on a factual record
that had been compiled largely in 2000,
the Commission’s Cable Modem
Declaratory Ruling described cable
modem service as ‘‘typically includ[ing]
many and sometimes all of the functions
made available through dial-up Internet
access service, including content, e-mail
accounts, access to news groups, the
ability to create a personal Web page,
and the ability to retrieve information
from the Internet, including access to
the World Wide Web.’’ The Commission
noted that cable modem providers often
consolidated these functions ‘‘so that
subscribers usually do not need to
contract separately with another
Internet access provider to obtain
discrete services or applications, such as
an e-mail account or connectivity to the
Internet, including access to the World
Wide Web.’’ The Commission defined
cable modem service as ‘‘a service that
uses cable system facilities to provide
residential subscribers with high-speed
Internet access, as well as many
applications or functions that can be
used with high-speed Internet access.’’
16. The Commission identified a
portion of the cable modem service it
called ‘‘Internet connectivity,’’ which it
described as establishing a physical
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connection to the Internet and
interconnecting with the Internet
backbone, and sometimes including
protocol conversion, Internet Protocol
(IP) address number assignment,
domain name resolution through a
domain name system (DNS), network
security, caching, network monitoring,
capacity engineering and management,
fault management, and troubleshooting.
The Ruling also noted that ‘‘[n]etwork
monitoring, capacity engineering and
management, fault management, and
troubleshooting are Internet access
service functions that are generally
performed at an ISP or cable operator’s
Network Operations Center (NOC) or
back office and serve to provide a steady
and accurate flow of information
between the cable system to which the
subscriber is connected and the
Internet.’’ The Commission
distinguished these functions from
‘‘Internet applications [also] provided
through cable modem services,’’
including ‘‘e-mail, access to online
newsgroups, and creating or obtaining
and aggregating content,’’ ‘‘home pages,’’
and ‘‘the ability to create a personal Web
page.’’
17. The Commission found that cable
modem service was ‘‘an offering . . .
which combines the transmission of
data with computer processing,
information provision, and computer
interactivity, enabling end users to run
a variety of applications.’’ The
Commission further concluded that, ‘‘as
it [was] currently offered,’’ cable modem
service as a whole met the statutory
definition of ‘‘information service’’
because its components were best
viewed as a ‘‘single, integrated service
that enables the subscriber to utilize
Internet access service,’’ with a
telecommunications component that
was ‘‘not . . . separable from the data
processing capabilities of the service.’’
The Commission thus concluded that
cable modem service ‘‘does not include
an offering of telecommunications
service to subscribers.’’
18. When the United States Supreme
Court considered the Cable Modem
Declaratory Ruling in the Brand X case,
all parties agreed that cable modem
service either is or includes an
information service. The Court therefore
focused, in pertinent part, on whether
the Commission permissibly interpreted
the Communications Act in concluding
that cable modem service providers
offer only an information service, rather
than a separate telecommunications
service and information service. The
Court’s opinion reaffirms that courts
must defer to the implementing agency’s
reasonable interpretation of an
ambiguous statute. Justice Thomas,
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writing for the six-Justice majority,
recited that ‘‘ambiguities in statutes
within an agency’s jurisdiction to
administer are delegations of authority
to the agency to fill the statutory gap in
reasonable fashion. Filling these gaps
* * * involves difficult policy choices
that agencies are better equipped to
make than courts.’’ Furthermore, ‘‘[a]n
initial agency interpretation is not
instantly carved in stone. On the
contrary, the agency * * * must
consider varying interpretations and the
wisdom of its policy on a continuing
basis.’’
19. Turning specifically to the
Communications Act, Justice Thomas
wrote: ‘‘[T]he statute fails
unambiguously to classify the
telecommunications component of cable
modem service as a distinct offering.
This leaves federal telecommunications
policy in this technical and complex
area to be set by the Commission.’’ ‘‘The
questions the Commission resolved in
the order under review,’’ Justice Thomas
summed up, ‘‘involve a subject matter
[that] is technical, complex, and
dynamic. The Commission is in a far
better position to address these
questions than we are.’’ Justice Breyer
concurred with Justice Thomas, stating
that he ‘‘believe[d] that the Federal
Communications Commission’s
decision falls within the scope of its
statutorily delegated authority,’’
although ‘‘perhaps just barely.’’
20. In dissent, Justice Scalia, joined by
Justices Souter and Ginsburg, expressed
the view that the Commission had
adopted ‘‘an implausible reading of the
statute[,] * * * thus exceed[ing] the
authority given it by Congress.’’ Justice
Scalia reasoned that ‘‘the
telecommunications component of
cable-modem service retains such ample
independent identity that it must be
regarded as being on offer—especially
when seen from the perspective of the
consumer or end user.’’
21. After the Supreme Court affirmed
the Commission’s authority to classify
cable modem service, the Commission
eliminated the resulting regulatory
asymmetry between cable companies
and other broadband Internet service
providers by issuing follow-on orders
that extended the information service
classification to broadband Internet
services offered over DSL and other
wireline facilities, power lines, and
wireless facilities. The Commission
nevertheless allowed these providers, at
their own discretion, to offer the
broadband transmission component of
their Internet service as a separate
telecommunications service. Exercising
that flexibility, providers—including
more than 840 incumbent local
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telephone companies—currently offer
broadband transmission as a
telecommunications service expressly
separate from their Internet information
service.
The Commission’s Established Policy
Goals
22. In the 1996 Act, Congress made
clear its desire that the Commission
promote the widespread availability of
affordable Internet connectivity
services, directing the Commission to
adopt universal service mechanisms to
ensure that ‘‘[a]ccess to advanced
telecommunications and information
services * * * [is] provided in all
regions of the Nation.’’ Congress also
instructed the Commission to
‘‘encourage the deployment on a
reasonable and timely basis of advanced
telecommunications capability to all
Americans.’’ The Commission’s
classification decisions in the Cable
Modem Declaratory Ruling and the later
follow-on orders were intended to
support the policy goal of encouraging
widespread deployment of broadband.
The Commission’s hypothesis was that
classifying all of broadband Internet
service as an information service,
outside the scope of any specific
regulatory duty in the Act, would help
achieve Congress’ aims.
23. At the same time, the Commission
acted with the express understanding
that its information service
classifications would not impair the
agency’s ability to protect the public
interest. For example, when the
Commission permitted telephone
companies to offer broadband Internet
service as solely an information service,
it emphasized that this new
classification would not remove the
agency’s ‘‘ample’’ Title I authority to
accomplish policy objectives related to
consumer protection, network
reliability, and national security. The
Wireline Broadband Report and Order
thus was accompanied by a Broadband
Consumer Protection Notice, in which
the Commission sought comment on ‘‘a
framework that ensures that consumer
protection needs are met by all
providers of broadband Internet access
service, regardless of the underlying
technology.’’ The Commission stressed
that its ancillary jurisdiction was ‘‘ample
to accomplish the consumer protection
goals we identify.’’ The Commission
similarly referenced the Broadband
Consumer Protection Notice when it
extended the information service
classification to broadband Internet
services offered over power lines and
wireless facilities.
24. On the same day it adopted the
Wireline Broadband Report and Order
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and Broadband Consumer Protection
Notice, moreover, the Commission
unanimously adopted the Internet
Policy Statement. In this Statement, the
Commission articulated four principles
‘‘[t]o encourage broadband deployment
and preserve and promote the open and
interconnected nature of the public
Internet,’’ and to ‘‘foster creation
adoption and use of Internet broadband
content, applications, services and
attachments, and to insure consumers
benefit from the innovation that comes
from competition.’’ The principles are:
• consumers are entitled to access the
lawful Internet content of their choice;
• consumers are entitled to run
applications and use services of their
choice, subject to the needs of law
enforcement;
• consumers are entitled to connect
their choice of legal devices that do not
harm the network; and
• consumers are entitled to
competition among network providers,
application and service providers, and
content providers. All principles are
subject to reasonable network
management.
The Commission expressed
confidence that it had the ‘‘jurisdiction
necessary to ensure that providers of
telecommunications for Internet access
* * * are operated in a neutral
manner.’’
Legal Developments
25. Recent legislative and judicial
developments suggest a need to revisit
the Commission’s approach to
broadband Internet service. Since 2008,
Congress has passed three significant
pieces of legislation that reflect its
strong interest in ubiquitous
deployment of high speed broadband
communications networks and bear on
the Commission’s policy goals for
broadband: the 2008 Farm Bill directing
the Chairman to submit to Congress ‘‘a
comprehensive rural broadband
strategy,’’ including recommendations
for the rapid buildout of broadband in
rural areas and for how federal
resources can ‘‘best * * * overcome
obstacles that impede broadband
deployment’’; the Broadband Data
Improvement Act, to improve data
collection and ‘‘promote the deployment
of affordable broadband services to all
parts of the Nation’’; and the Recovery
Act, which, among other things,
appropriated up to $7.2 billion to
evaluate, develop, and expand access to
and use of broadband services, and
required the Commission to develop the
National Broadband Plan to ensure that
every American has ‘‘access to
broadband capability and * * *
establish benchmarks for meeting that
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goal.’’ In the Recovery Act, Congress
further directed the Commission to
produce a ‘‘detailed strategy for
achieving affordability of such service
and maximum utilization of broadband
infrastructure and service by the
public,’’ and a ‘‘plan for [the] use of
broadband structure and services’’ to
advance national goals such as public
safety, consumer welfare, and
education. These three pieces of
legislation, passed within a span of nine
months, make clear that the
Commission must retain its focus on
implementing broadband policies that
encourage investment, innovation, and
competition, and promote the interests
of consumers.
26. Even more recently, the D.C.
Circuit’s rejection of the Commission’s
attempt to address a broadband Internet
service provider’s unreasonable traffic
disruption practices has cast a shadow
over the Commission’s prior
understanding of its authority over
broadband Internet services. In late
2007, the Commission received a
complaint alleging that Comcast was
blocking peer-to-peer traffic in violation
of the Internet Policy Statement. In
2008, the Commission granted the
complaint and directed Comcast to
disclose specific information about its
network management practices to the
Commission, submit a compliance plan
detailing how it would transition away
from unreasonable network
management practices, and disclose to
the public the network management
practices it intends to use going
forward. Comcast challenged that
decision in the D.C. Circuit, arguing
(among other things) that the
Commission lacks authority to prohibit
a broadband Internet service provider
from engaging in discriminatory
practices that violate the four principles
the Commission announced in 2005.
27. On April 6, 2010, the D.C. Circuit
granted Comcast’s petition for review
and vacated the Commission’s
enforcement decision, holding that the
Commission had ‘‘failed to tie its
assertion of ancillary authority over
Comcast’s Internet service to any
‘statutorily mandated responsibility.’’’
The Commission had argued that ending
Comcast’s secret practices was ancillary
to the statutory objectives Congress
established for the Commission in
sections 1 and 230(b) of the Act. The
court rejected that argument on the
ground that those sections are merely
statements of policy by Congress—as
opposed to grants of regulatory
authority—and thus were not sufficient
to support Commission action against
Comcast. The court also rejected the
Commission’s position that various
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other statutory provisions supported
ancillary authority. As to section 706 of
the Telecommunications Act of 1996,
the court noted that the agency had
previously interpreted section 706 as
not constituting a grant of authority and
held that the Commission was bound by
that interpretation for purposes of the
case. The court also rejected the
agency’s reliance on sections 201, 256,
257, and 623 of the Communications
Act.
Approaches to Classification
28. In light of the legislative and
judicial developments described above,
we seek comment on whether our
existing legal framework adequately
supports the Commission’s previously
stated policy goals for broadband. First,
we ask whether the current information
service classification of broadband
Internet service can still support
effective performance of the
Commission’s core responsibilities.
Second, we ask for comment on the
legal and practical consequences of
classifying the Internet connectivity
component of broadband Internet
service as a ‘‘telecommunications
service’’ to which the full weight of Title
II requirements would apply, and
whether such a classification would
accurately reflect the current market
facts. Finally, we identify and invite
comment on a third way, under which
the Commission would classify the
Internet connectivity portion of
broadband Internet service as a
telecommunications service but would
simultaneously forbear, using the
section 10 authority Congress delegated
to us, from all but a small handful of
provisions necessary for effective
implementation of universal service,
competition and small business
opportunity, and consumer protection
policies.
29. The Commission has frequently
expressed its commitment to protecting
consumers and promoting innovation,
investment, and competition in the
broadband context. We reaffirm that
commitment here and ask commenters
to address—in general terms, as well as
in response to the specific questions
posed below—which of the three
alternative regulatory frameworks for
broadband Internet service (or what
other framework) will best position the
Commission to advance these
fundamental goals. We note that
because the broadband Internet service
classification questions posed in this
part II.B involve an interpretation of the
Communications Act, the notice and
comment procedures we follow here are
not required under the Administrative
Procedure Act. In order to provide the
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greatest possible opportunity for public
comment, however, we are soliciting
initial and reply comments via the
traditional filing mechanisms, as well as
input through our recently expanded
online participation tools.
Continued Information Service
Classification and Reliance on Ancillary
Authority
30. In this part, we seek comment on
maintaining the current classification of
wired broadband Internet service as a
unitary information service. Under this
approach, we would rely primarily on
our ancillary authority to implement the
Commission’s broadband policies. We
seek comment on whether our ancillary
authority continues to provide an
adequate legal foundation. Throughout
the last decade, the Commission has
stated its consistent understanding that
Title I provided the Commission
adequate authority to support effective
performance of its core responsibilities.
Commissioners, including the two
former Chairmen who urged the
information service approach, as well as
cable and telephone companies and
other interested parties, individually
expressed this understanding. In Brand
X, the Supreme Court appeared to
confirm this widely held view, stating
that ‘‘the Commission remains free to
impose special regulatory duties on
facilities-based ISPs under its Title I
ancillary jurisdiction.’’ The Comcast
decision, however, causes us to
reexamine our ability to rely on Title I
as the legal basis for implementing
broadband policies.
31. Some have suggested that
although the D.C. Circuit rejected the
Commission’s theory of ancillary
authority in Comcast, the Commission
can still accomplish many of its most
important broadband-related goals
without changing its classification of
broadband Internet service as a unitary
information service. We seek comment
on the overall scope of the
Commission’s authority regarding
broadband Internet service in the wake
of the Comcast decision. Below we
identify and seek comment on several
particular concerns.
Universal Service
32. Can the Commission reform its
universal service program to support
broadband Internet service by asserting
direct authority under section 254,
combined with ancillary authority
under Title I? AT&T, for example,
observes that section 254 provides that
‘‘[a]ccess to advanced
telecommunications and information
services should be provided in all
regions of the nation,’’ and that the
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Commission’s universal service
programs ‘‘shall’’ be based on this and
other enumerated principles. AT&T
notes that the Commission’s information
service classification for broadband
Internet service creates ‘‘tension’’ with
‘‘the text of Section 254(c)(1), which
states that ‘[u]niversal service is an
evolving level of telecommunications
services that the Commission shall
establish periodically under this
section.’ ’’ But, AT&T suggests, ‘‘[o]ther
evidence in the statutory text makes
clear that Congress did not intend to
disable the Commission from using
universal service to support information
services.’’ For example,
• ‘‘Section 254(b) requires the
Commission to use universal service to
promote access to ‘advanced
telecommunications and information
services,’ ’’
• ‘‘Section 254(c) * * * [refers] to an
‘evolving level of telecommunications
services that the Commission shall
establish periodically under this
section[,]’ ’’ and
• Section 254(c)(2) ‘‘expressly
authoriz[es] the Joint Board and the
Commission to ‘modif[y] * * * the
definition of the services that are
supported by Federal universal support
mechanisms.’ ’’ The reference to
‘‘services’’ in section 254(c)(2) may
suggest that Congress intended
universal service policies to support
information services, even though the
definition of universal service in section
254(c)(1) is explicitly limited to
‘‘telecommunications services.’’
AT&T explains that section 254
‘‘contains competing directives,’’ but
asserts that ‘‘the schizophrenic nature of
Section 254 is simply another example
of the many ways in which the 1996 Act
is not a ‘model of clarity.’ ’’
33. We seek comment on whether we
may interpret section 254 to give the
Commission authority to provide
universal service support for broadband
Internet service if that service is
classified as a unitary information
service. Could we provide support to
information service providers consistent
with section 254(e), which says that
‘‘only an eligible telecommunications
carrier designated under section 214(e)
shall be eligible to receive specific
Federal universal service support,’’ and
214(e), which sets forth the framework
for designating ‘‘telecommunications
carrier[s] * * * eligible to receive
universal service support’’?
34. AT&T posits that even after the
Comcast decision, the Commission
could bolster its reliance on section 254
by also relying on several other
provisions of the Act. First, the
‘‘necessary and proper clause’’ in section
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4(i) of the Act allows the Commission to
‘‘perform any and all acts, make such
rules and regulations, and issue such
orders, not inconsistent with this
chapter, as may be necessary in the
execution of its functions.’’ Second, the
Act makes clear that the Commission’s
‘‘core statutory mission’’ is to ‘‘make
available, so far as possible, to all the
people of the United States * * * a
rapid, efficient, Nation-wide and worldwide wire and radio communication
service with adequate facilities at
reasonable charges.’’ Third, the text of
254, as described above, suggests that
Congress intended the Commission to
support universal broadband Internet
service. Finally, the policy directive in
section 706 of the 1996 Act instructs the
Commission to encourage the
deployment on a reasonable and timely
basis of advanced telecommunications
capability to all Americans. AT&T
contends that section 706’s directive
supports the view that section 254
provides authority for supporting
broadband Internet services with
monies from the Universal Service
Fund. We seek comment on AT&T’s
analysis.
35. The National Cable and
Telecommunications Association
(NCTA) has put forward a similar legal
theory rooted in section 254(h)(2) of the
Communications Act. That section gives
the Commission authority ‘‘to enhance
* * * access to advanced
telecommunications and information
services for all public and non-profit
elementary and secondary school
classrooms, health care providers, and
libraries.’’ NCTA contends that because
‘‘the use of broadband in the home has
become a critical component of the
American education system * * * it is
entirely reasonable to read the statutory
directive to support Internet access for
classrooms to include support for
residential broadband service to
households where it is reasonably likely
that such service would be used for
educational purposes.’’ Could the
Commission interpret section 254(h)(2)
to permit this type of support for
broadband Internet service? Is this
approach a permissible extension of the
Commission’s existing E–Rate program?
Would this approach enable the
Commission to provide support for
broadband Internet service only to
households with school-aged children,
or could the Commission provide
support for adult education as well?
36. Another legal theory for
promoting broadband deployment
under the Commission’s current
classification of broadband Internet
service rests directly on section 706 of
the 1996 Act. Section 706(a) states that
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the Commission ‘‘shall encourage the
deployment on a reasonable and timely
basis of advanced telecommunications
capability to all Americans * * * by
utilizing, in a manner consistent with
the public interest, convenience, and
necessity, price cap regulation,
regulatory forbearance, measures that
promote competition in the local
telecommunications market, or other
regulating methods that remove barriers
to infrastructure investment.’’ Section
706(c) defines ‘‘advanced
telecommunications capability’’ as
‘‘high-speed, switched, broadband
telecommunications capability that
enables users to originate and receive
high-quality voice, data, graphics, and
video telecommunications using any
technology.’’ The D.C. Circuit rejected
section 706(a) as a basis for the
Commission’s Comcast order because
‘‘[i]n an earlier, still-binding order * * *
the Commission ruled that section 706
‘does not constitute an independent
grant of authority,’ ’’ and ‘‘agencies ‘may
not * * * depart from a prior policy sub
silentio.’ ’’ We seek comment on whether
the Commission should revisit and
change its conclusion that section 706(a)
is not an independent grant of authority.
What findings would be necessary to
reverse that interpretation? If the
Commission were to find that section
706(a) is an independent grant of
authority, would that subsection, read
in conjunction with sections 4(i) and
254, provide a firm basis for the
Commission to provide universal
service support for broadband Internet
services?
37. Some parties have suggested that
the Commission could rely on section
706(b) as a source of authority to
support broadband Internet service with
Universal Service Fund money. That
section provides that:
[t]he Commission shall * * * annually
* * * initiate a notice of inquiry concerning
the availability of advanced
telecommunications capability to all
Americans * * * . In the inquiry, the
Commission shall determine whether
advanced telecommunications capability is
being deployed to all Americans in a
reasonable and timely fashion. If the
Commission’s determination is negative, it
shall take immediate action to accelerate
deployment of such capability by removing
barriers to infrastructure investment and by
promoting competition in the
telecommunications market.
We seek comment on whether we
could interpret section 706(b) as an
independent grant of authority.
Specifically, we ask whether Congress’s
direction that the Commission take
‘‘immediate action’’ if it makes a
negative determination about the state
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36077
of broadband deployment authorizes the
Commission to provide universal
service support to spur that deployment.
Would any such support be contingent
on continued negative findings in the
annual broadband availability inquiry?
Under section 706(b), would universal
service programs have to be tailored to
particular geographic areas where
deployment is lagging, or could the
Commission implement the program on
a national basis? Would the Commission
be limited to direct support for
deployment, or could the Commission
interpret section 706(b) also to support
broadband Internet services to lowincome populations, such as is the case
with our support for voice services in
the Lifeline and Link Up programs?
38. For each of these legal theories,
the Commission seeks comment on the
administrative record that would be
needed to successfully defend against a
legal challenge to implementation of the
theory. Would adopting these theories
be consistent with the federal AntiDeficiency Act and Miscellaneous
Receipts Act? What other issues should
the Commission consider in evaluating
these legal theories? Are there other
legal frameworks that would allow us to
promote universal service in the
broadband context without revisiting
our classification decisions?
Privacy
39. The Commission has long
supported protecting the privacy of
users of broadband Internet services. In
2005, the Commission emphasized in
the Wireline Broadband Report and
Order that ‘‘[c]onsumers’ privacy needs
are no less important when consumers
communicate over and use broadband
Internet access than when they rely on
[telephone] services.’’ The Commission
believed at the time that it had
jurisdiction to enforce privacy
requirements, and ‘‘note[d] that long
before Congress enacted section 222 of
the Act,’’ which requires providers of
telecommunications services to protect
confidential information, ‘‘the
Commission had recognized the need
for privacy requirements associated
with the provision of enhanced
services.’’ In 2007, the Commission
extended the privacy protections of
section 222 to interconnected VoIP
services without resolving whether
interconnected VoIP services are
telecommunications services or
information services. More recently, the
National Broadband Plan recommended
that the Commission work with the
Federal Trade Commission (FTC) to
protect consumers’ privacy in the
broadband context. Indeed, we fully
intend that our efforts with regard to
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privacy complement those of the FTC.
We seek comment on the best approach
for ensuring privacy for broadband
Internet service users under the
Commission’s current information
service classification, and any legal
obstacles to protecting privacy that may
exist if the Commission retains that
classification.
Access for Individuals With Disabilities
40. Section 255 requires
telecommunications service providers
and equipment manufacturers to make
their services and equipment accessible
to individuals with disabilities, unless
not readily achievable. Section 251(a)(2)
requires telecommunications carriers
‘‘not to install network features,
functions, or capabilities that do not
comply with the guidelines and
standards established pursuant to
section 255.’’ In the 2005 Wireline
Broadband Report and Order, the
Commission committed to exercise its
authority ‘‘to ensure achievement of
important policy goals of section 255’’ in
the broadband context. In 2007, the
Commission exercised its ancillary
authority to extend section 255 to
interconnected VoIP providers, and in
1999 the Commission similarly relied
on ancillary authority to extend
disability-related requirements to
voicemail and interactive menu
services. The Commission also
exercised ancillary authority to extend
section 225 telecommunications relay
service obligations under the
Commission’s rules to providers of
interconnected VoIP. More recently, a
unanimous Commission stated its belief
that disabilities should not stand in the
way of Americans’ ‘‘opportunity to
benefit from the broadband
communications era.’’ The Commission
has also announced its intent to
consider how ‘‘[t]o better enable
Americans with disabilities to
experience the benefits of broadband.’’
We seek comment on the best legal
approaches to extending disabilityrelated protections to broadband
Internet service users under the
Commission’s current information
service classification. Could we exercise
ancillary authority to ensure access for
people with disabilities? Could the
Commission rely on the mandate in
section 706(a) to ‘‘encourage the
deployment on a reasonable and timely
basis of advanced telecommunications
capability to all Americans,’’ or the
similar directive in section 706(b)?
Public Safety and Homeland Security
41. As noted above, Congress created
the Commission, in part, ‘‘for the
purpose of the national defense, [and]
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for the purpose of promoting safety of
life and property through the use of wire
and radio communications.’’ Comcast
did not address questions of national
defense, public safety, homeland
security, or national security. Are there
bases for asserting ancillary authority
over broadband Internet service
providers for purposes of advancing
such vital and clearly enumerated
Congressional purposes? Could the
Commission use its ancillary authority
as a legal foundation for protecting
cyber security and other public safety
initiatives, such as 911 emergency and
public warning and alerting services,
with respect to broadband Internet
service? Specifically, could the
Commission rely on provisions in Title
I either alone or in combination with
provisions in Title II or Title III to
support these public safety purposes, as
well as data reporting and/or network
reliability and resiliency standards with
respect to broadband Internet services?
As noted below, Title III contains
several provisions that enable the
Commission to impose on spectrum
licensees obligations that are in the
public interest. With the convergence of
the various modes of communications
networks, many broadband Internet
services incorporate wireline and
wireless elements. What would be the
effect if the Commission employed its
Title III authority to achieve public
safety goals with respect to wireless
elements of such converged services?
Could the Commission also regulate
wireline elements of such services
through its Title III and Title I authority
because of the wireless elements
incorporated into these services, or in
the interests of ensuring regulatory
parity and predictability? Could the
Commission rely on the mandate in
section 706(a) to ‘‘encourage the
deployment on a reasonable and timely
basis of advanced telecommunications
capability to all Americans’’ to ensure
the security, reliability and resiliency of
wired broadband Internet services, or to
advance other public safety and
homeland security initiatives?
Addressing Harmful Practices by
Internet Service Providers
42. Although the D.C. Circuit rejected
the legal theory the Commission relied
on to address Comcast’s interference
with its customers’ peer-to-peer
transmissions, some have suggested that
other theories of ancillary authority
could support Commission action to
protect against harmful practices of this
sort. For example, one commentator has
proposed that the Commission assert
ancillary authority pursuant to sections
251(a) and 256 of the Act, which
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address interconnection by
telecommunications carriers. Although
these provisions apply specifically to
telecommunications carriers, the
proposal asserts that they are not
explicitly limited to the
telecommunications services provided
by such carriers.
43. Section 251(a) requires each
carrier ‘‘to interconnect directly or
indirectly with the facilities and
equipment of other telecommunications
carriers.’’ Reading section 251(a) as
limited to telecommunication services,
it has been suggested, ‘‘would make [the
Commission’s] rules promoting
interconnection irrelevant’’ as the major
carriers move increasingly toward
providing services over broadband
Internet networks. Likewise, ‘‘[i]n a
world where traditional public
telecommunications networks and
newer Internet-data-transmission
networks are pervasively
interconnected,’’ it has been asserted, ‘‘it
makes no sense to preclude the FCC’s
interoperability efforts [pursuant to
section 256] from affecting information
services.’’
44. We seek comment on this
reasoning. What factual findings would
the Commission have to make to
support reliance on sections 251(a) and/
or 256 with respect to broadband
Internet service? Would those facts
support exercise of authority sufficient
to implement the Commission’s
broadband policies in full, or in part?
Under this approach, could the
Commission address conduct by
broadband Internet service providers
that are not also telecommunications
carriers? Does reliance on sections
251(a) and 256 limit Commission
authority to protect competition and
consumers to only those networks that
are interconnected with the public
telephone network? If so, what are the
practical implications of this limitation?
What is the significance of the Comcast
decision, which held that ‘‘[t]he
Commission’s attempt to tether its
assertion of ancillary authority to
section 256’’ was flawed in that context
because section 256 states that
‘‘[n]othing in this section shall be
construed as expanding or limiting any
authority that the Commission’’
otherwise has under law? What else
should the Commission consider as it
evaluates the significance of sections
251(a) and 256 in this proceeding?
45. Section 202(a) of the
Communications Act makes it unlawful
for any common carrier to make any
unjust or unreasonable discrimination
in charges, practices, classifications,
regulations, facilities, or services for or
in connection with like communication
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service, directly or indirectly, by any
means or device, or to make or give any
undue or unreasonable preference or
advantage to any particular person, class
of persons, or locality, or to subject any
particular person, class of persons, or
locality to any undue or unreasonable
prejudice or disadvantage.
It has been suggested that ‘‘[i]f
network operators are allowed the
option of offering broadband Internet
access services on a completely
unregulated basis, that option could
enable them to end run Section 202(a)’’
as carriers move toward providing
services over broadband Internet
networks, ‘‘and render that provision a
dead letter.’’ We seek comment on the
factual and legal assumptions
underlying this argument, and whether
this reasoning provides the Commission
authority to address practices of
broadband Internet service providers
that endanger competition or consumer
welfare.
46. As the Commission argued to the
D.C. Circuit in the Comcast case, section
706(a) might also provide a basis for
prohibiting harmful practices of Internet
service providers. As noted above, the
D.C. Circuit gave no weight to section
706(a) because the Commission had
determined in a prior order that section
706(a) is not an independent grant of
authority. We seek comment on the best
reading of section 706(a). We also seek
comment on whether section 706(b)
could provide a legal foundation for
rules addressing harmful practices by
Internet service providers. If so, could
the Commission adopt such rules on a
national basis, or would it have to tailor
its rules to particular geographic areas?
Would its rules depend on continued
negative determinations in the annual
broadband availability report?
47. The Comcast opinion also rejected
arguments that other provisions of Titles
II, III, and VI of the Communications
Act supported the Commission’s action
against Comcast because Internetenabled communications services that
depend on broadband Internet service—
such as VoIP and Internet video
services—may affect the regulated
operations of telephony common
carriers, broadcasters, and cable
operators. The court did not address the
merits of these theories, but rather
rejected them because they were not
sufficiently articulated in the
underlying Commission order. Could
such theories provide sufficient support
for the Commission to address harmful
practices of Internet service providers?
What type of factual record would be
required to support such theories? If the
Commission relied on these theories,
could it prohibit behavior—such as the
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covert blocking of online gaming or ecommerce services, perhaps—that does
not obviously affect services clearly
addressed by Titles II, III, or VI? Could
the Commission rely on sections 624 or
629 of the Act to establish broadband
policy related to cable modem service?
48. We also invite comment on
whether the portions of section 214(a)
addressing discontinuance, reduction,
and impairment of service provide a
potential basis for an assertion of
ancillary authority regarding harmful
Internet service provider practices. That
provision mandates that a common
carrier may not ‘‘impair service to a
community’’ without prior Commission
approval. Impairment, in the section
214(a) context, refers to both ‘‘the
adequacy’’ and ‘‘quality’’ of the service
provided.
49. Are there other statutory
provisions that could support the
Commission’s exercise of ancillary
authority in this area? Do any statutory
provisions preclude such action if the
Commission retains its information
service classification?
50. Other harmful practices by
broadband Internet service providers
may involve a failure to disclose
practices to consumers. For instance,
one problem identified by the
Commission in the Comcast case was
Comcast’s failure to identify to
customers its practice of degrading peerto-peer traffic. If the Commission
maintains its information services
framework for broadband Internet
services, will it have sufficient authority
to address these concerns?
Other Approaches to Oversight
51. Finally, we ask for public input on
whether there are other approaches to
fulfilling our role for broadband Internet
services that would provide meaningful
oversight consistent with maintaining
robust incentives for innovation and
investment. For instance, in a number of
proceedings commenters have suggested
that the Commission should pursue
policies based on standards set by third
parties and enforced by the
Commission. In the Open Internet
proceeding, Verizon and Google suggest
that the Commission could create
technical advisory groups ‘‘comprised of
a range of stakeholders with technical
expertise’’ to develop best practices,
resolve disputes, issue advisory
opinions, and coordinate with
standards-setting bodies. Although
Verizon and Google ‘‘may not
necessarily agree on which federal
agency does or should have authority
over these matters,’’ they ‘‘do recognize
as a policy matter that there should be
some backstop role for federal
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authorities to prevent harm to
competition and consumers if or when
bad actors emerge anywhere in the
Internet space, and * * * agree that
involvement should occur only where
necessary on a case-by-case base basis.’’
Commenters in other proceedings have
suggested similar approaches. We ask
commenters to address whether the
Commission should pursue a regime in
which one or more third parties play a
major role in setting standards and best
practices relative to maintaining our
policy goals for broadband Internet
service. Pursuant to what authority
could the Commission create a third
party advisory group? What authority
could the Commission delegate to such
a third party or third parties? Would it
be appropriate for other federal
governmental entities, such as the FTC,
to have a role in such an approach?
Would the Commission have sufficient
ancillary authority under its information
service framework to serve as a backstop
if the third party is unable to resolve a
dispute or implement a necessary
policy?
Application of All Title II Provisions
52. Title II of the Communications Act
provides the Commission express
authority to implement, for
telecommunications services, rules
furthering universal service, privacy,
access for persons with disabilities, and
basic consumer protection, among other
federal policies. We seek comment on
whether the legal and policy
developments discussed above and the
facts of today’s broadband marketplace
suggest a need to classify Internet
connectivity as a telecommunications
service, so as to trigger this clear
authority. We also ask whether that
approach would be consistent with our
goals of promoting innovation and
investment in broadband, or would
result in overregulation of a service that
has undergone rapid and generally
beneficial development under our
deregulatory approach.
Current Facts in the Broadband
Marketplace
53. In the Cable Modem Declaratory
Ruling, the Commission observed that
‘‘the cable modem service business is
still nascent, and the shape of
broadband deployment is not yet clear,’’
and nearly a decade has passed since
the Commission examined the facts
surrounding broadband Internet service
in the Cable Modem Declaratory Ruling.
In this part we therefore ask whether or
not the facts of today’s broadband
marketplace support a conclusion that
providers now offer Internet
connectivity as a separate
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telecommunications service. In addition
to the specific questions we ask below,
we seek comment on what facts are
most relevant to this inquiry. The
Commission has explained that because
the Act defines ‘‘telecommunications
service’’ as ‘‘ ‘the offering of
telecommunications for a fee directly to
the public[,]’ * * * whether a
telecommunications service is being
provided turns on what the entity is
‘offering * * * to the public,’ and
customers’ understanding of that
service.’’ Similarly, in Brand X, the
majority opinion noted that ‘‘[i]t is
common usage to describe what a
company ‘offers’ to a consumer as what
the consumer perceives to be the
integrated finished product.’’ The Brand
X dissent asserted that ‘‘[t]he relevant
question is whether the individual
components in a package being offered
still possess sufficient identity to be
described as separate objects of the
offer, or whether they have been so
changed by their combination with the
other components that it is no longer
reasonable to describe them in that
way.’’ The Brand X majority opinion
and the dissent examined consumers’
understanding of the services, analogies
to other services, and technical
characteristics of the services being
provided. What factors should the
Commission consider in order to assess
the proper classification of broadband
Internet connectivity service?
54. Status of Current Offerings. Is
wired broadband Internet service (or
any telecommunications component
thereof) held out ‘‘for a fee directly to
the public, or to such classes of users as
to be effectively available directly to the
public,’’ for instance through a tariff
such as the NECA DSL Access Service
Tariff or through facilities-based
Internet service providers’ public Web
sites? A provider is engaged in common
carriage if it ‘‘make[s] capacity available
to the public indifferently’’; it can be
compelled to offer a common carriage
service if ‘‘the public interest requires
common carrier operation of the
proposed facility.’’ If so, we seek specific
examples of such offerings. If not, does
the Commission have legal authority to
compel the offering of a broadband
Internet telecommunications service
that is not currently offered? If legal
authority exists, would it be appropriate
for the Commission to exercise such
authority? Are there First Amendment
constraints on the Commission’s ability
to compel the offering of such a service?
Would such a compulsion raise any
concerns under the Takings Clause of
the Fifth Amendment?
55. Services Offered Today. When the
Commission gathered the record for its
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classification orders, broadband Internet
service was offered with various
services—such as e-mail, newsgroups,
and the ability to create and maintain a
web page—that we described as
‘‘Internet applications.’’ The
Commission understood that
subscribers to broadband Internet
services ‘‘usually d[id] not need to
contract separately’’ for ‘‘discrete
services or applications’’ such as e-mail.
We seek comment on whether this
remains the case. To what extent are
these and other applications and
services sold with wired broadband
Internet service today? Are providers
offering the same applications and
services that they did when the
Commission began building the record
in 2000, or have their offerings changed?
Are these applications and services
always packaged with Internet
connectivity, or can consumers choose
not to purchase them? What test(s)
should the Commission use to evaluate
whether particular features are today
integrated with the underlying Internet
connectivity?
56. Consumer Use and Perception.
Next, we seek comment on how
consumers use and perceive broadband
Internet service. Do customers today
perceive that they are receiving one
unitary service comprising Internet
connectivity as well as features and
functionalities, or Internet connectivity
as the main service, with additional
features and functionalities
simultaneously offered and provided?
We note that under Commission
precedent, services composing a single
bundle at the point of sale—for instance,
local telephone service packaged with
voice mail—can retain distinct
identities as separate offerings for
classification purposes. To what extent
do consumers continue to rely on the
features and applications that are
provided as part of their broadband
Internet service package, and to what
extent have they increased their use of
applications and services offered by
third party providers? For instance,
some users now rely on free e-mail
services provided by companies such as
Yahoo and Microsoft, social networking
sites including Facebook and MySpace,
public message boards like those found
in the Google Groups service, web
portals like Netvibes, web hosting
services like Go Daddy, and blog hosting
services like TypePad. How does the use
of these third party services compare
with the use of similar services offered
by broadband Internet service
providers? To what extent do consumers
rely on their Internet service provider or
other providers for security features and
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spam filtering? To what extent do
consumers rely on their Internet service
provider, as opposed to alternative
providers, for content such as news and
medical advice? To the extent
broadband Internet service providers
offer applications to consumers, do
consumers view them as an integrated
part of the Internet connectivity
offering? To what extent do consumers
today use ‘‘the high-speed wire always
in connection with the informationprocessing capabilities provided by
Internet access’’?
57. Marketing Practices. We also seek
comment on how broadband Internet
service providers market their services.
What do broadband Internet service
providers’ marketing practices suggest
they are offering to the public? What
features do broadband Internet service
providers highlight in their
advertisements to consumers? How do
the companies describe their services?
What are the primary dimensions of
competition among broadband Internet
service providers? Are cable modem and
other wired services marketed or
understood differently from each other,
or in a generally similar way?
58. Technical and Functional
Characteristics. In addition, to aid our
understanding of what carriers offer to
consumers, we seek to develop a current
record on the technical and functional
characteristics of broadband Internet
service, and whether those
characteristics have changed materially
in the last decade. For example, DNS
lookup is now offered to consumers on
a standalone basis, and web page
caching is offered by third party content
delivery networks. Web browsers, for
example, are often installed separately
by users. We ask commenters to
describe the technical characteristics of
broadband Internet service, including
identifying those functions that are
essential for web browsing and other
basic consumer Internet activities. What
are the necessary components of web
browsing? How is caching provided to
end users, and how have caching
services changed over time? How do
routing functions and DNS directory
lookup enable users to access
information online?
59. In classifying services, the
Commission has taken into account the
purpose of the feature or service at
issue. For example, some features and
services that meet the literal definition
of ‘‘enhanced service,’’ but do not alter
the fundamental character of the
associated basic transmission service,
are ‘‘adjunct-to-basic’’ and are treated as
basic (i.e., telecommunications) services
even though they go beyond mere
transmission. Do any of the features and
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functionalities offered by broadband
Internet service providers have relevant
similarities to or differences from those
that resemble an information service but
are treated differently under
Commission precedent? Similarly,
which, if any, of the ‘‘Internet
connectivity’’ functions listed in the
Cable Modem Declaratory Ruling fall
within the management exceptions to
the information services category, and
why?
60. Some have suggested that the
Commission should take account of the
different network ‘‘layers’’ that compose
the Internet. Are distinctions between
the functional ‘‘layers’’ that compose the
Internet relevant and useful for
classifying broadband Internet service?
For example, the Commission could
distinguish between physical, logical,
and content and application layers, and
identify some of those layers as
elements of a telecommunications
service and others as elements of an
information service. (As discussed
above, the Commission historically has
distinguished between Internet
connectivity functions and Internet
applications.) If the Commission
adopted this approach, which of the
services offered by wired broadband
Internet service providers should be
included in each category? Are the
boundaries of each layer sufficiently
clear that such an approach would be
workable in practice? Would such an
approach have implications for services
other than broadband Internet service?
61. Competition. We also seek
comment on the level of competition
among broadband Internet service
providers. The Commission adopted the
unitary information service
classification for broadband Internet
services in part ‘‘to encourage facilitiesbased competition.’’ The Commission
envisioned competition among cable
operators, telephone companies,
satellite providers, terrestrial wireless
providers, and broadband-overpowerline (BPL) providers. Has the
market for broadband Internet services
developed as expected, and, if not, what
is the significance for this proceeding of
the market’s actual development?
62. Are there other relevant facts or
circumstances that bear on the
Commission’s application of the
statutory definition of
‘‘telecommunications service’’ to wired
broadband Internet service?
Defining the Telecommunications
Service
63. If the Commission were to classify
a service provided as part of the
broadband Internet service bundle as a
telecommunications service, it would be
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necessary to define what is being so
classified. Here we ask commenters to
propose approaches to defining the
telecommunications service offered as
part of wired broadband Internet
service, assuming that the Commission
finds a separate telecommunications
service is being offered today, or must
be offered.
64. We have previously defined
‘‘Internet connectivity’’ to include the
functions that ‘‘enable [broadband
Internet service subscribers] to transmit
data communications to and from the
rest of the Internet.’’ Identifying a
telecommunications service at a
similarly high level—for instance, as the
service that provides Internet
connectivity—may be appropriate for
this proceeding if a telecommunications
service is classified. Is this approach or
some other mechanism appropriate to
give the Internet service provider
latitude to define its own
telecommunications service? For
instance, would it be desirable for the
Commission to identify only bare
minimum characteristics of an Internet
connectivity service? Or is it necessary
for the Commission to define the
functionality, elements, or endpoints of
Internet connectivity service? What are
the pros and cons of these and other
approaches? Would use of the term
‘‘Internet connectivity service’’ in this
context be unduly confusing because
the Commission has previously defined
that term to include the function of
‘‘operating or interconnecting with
Internet backbone facilities’’ in order to
‘‘enable cable modem service
subscribers to transmit data
communications to and from the rest of
the Internet’’?
65. Commenters should also identify
the particular aspects of broadband
Internet service that do and do not
constitute ‘‘transmission, between or
among points specified by the user, of
information of the user’s choosing,
without change in the form or content
of the information as sent and received.’’
Does the catalog of Internet connectivity
functions provided in the Cable Modem
Declaratory Ruling include all the
functions an end user would need from
its broadband Internet service provider
in order to use the Internet? Are there
other connectivity functions the
Commission should consider? Can the
Commission draw guidance from other
attempts to define the functionality of
an Internet connectivity service, such as
the definition in NECA’s DSL Access
Service Tariff? In its tariff, NECA offers
a DSL data telecommunications service
to end user and Internet service
provider customers. The service
‘‘enables data traffic generated by a
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customer-provided modem to be
transported to a DSL Access Service
Connection Point using the Telephone
Company’s local exchange service
facilities.’’ The Access Service
Connection Point is a point designated
by the telephone company that
‘‘aggregates ADSL Access Service and/or
wireline broadband Internet
transmission service data traffic from
and to suitably equipped Telephone
Company Serving Wire Centers.’’
Consequences of Classifying Internet
Connectivity as a Telecommunications
Service
66. If we were to classify Internet
connectivity service as a
telecommunications service and take no
further action, that service would be
subject to all requirements of Title II
that apply to telecommunications
service or common carrier service. If the
Commission chose, it could provide
support for Internet connectivity
services through the Universal Service
Fund under section 254. Under section
222, the Commission could ensure that
consumers of Internet connectivity
enjoy protections for their private
information. Consumers with
disabilities would see greater
accessibility of broadband services and
equipment under section 255. And the
Commission could protect consumers
and fair competition through
application of sections 201, 202, and
208. Would application of all Title II
requirements to the wired broadband
Internet connectivity service be
consistent with the approach to
broadband Internet service described in
part II.A.2, above? We seek comment on
whether these benefits to classifying
Internet connectivity as a
telecommunications service would
outweigh the costs of doing so,
including the application of numerous
regulatory provisions that the
Commission, in its information service
classification orders, determined should
not apply. Are there any elements of our
framework that the Commission could
not pursue if it adopted a Title II
classification? Under Title II
classification what role, if any, might be
played by third party standard setting
bodies?
Telecommunications Service
Classification and Forbearance
67. In addition to the traditional
information service and
telecommunications service approaches
discussed above, we identify and seek
comment on a third option for
establishing a suitable legal foundation
for broadband Internet and Internet
connectivity services. This third way
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would involve classifying wired
broadband Internet connectivity as a
telecommunications service (as
suggested above), but simultaneously
forbearing from applying most
requirements of Title II to that
connectivity service, save for a small
number of provisions.
68. Specifically, if the Commission
decided, after appropriate analysis, to
classify wired broadband Internet
connectivity (and no other component
of wired broadband Internet service) as
a telecommunications service, it could
simultaneously forbear from applying
all but a handful of core statutory
provisions—sections 201, 202, 208, and
254—to the service. Two other
provisions that have attracted
longstanding and broad support in the
broadband context—sections 222 and
255—might also be implemented for the
connectivity service, perhaps after the
Commission provides guidance in
subsequent proceedings as to how they
will apply in this context. We seek
comment on this third approach, and
whether it would constitute a
framework for broadband Internet
service that is fundamentally consistent
with what the Commission, Congress,
consumer groups, and industry believed
the Commission could pursue under
Title I before the Comcast decision.
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Forbearing To Maintain the
Deregulatory Status Quo
69. In recognition of the need to tailor
the Commission’s policies to evolving
markets and technologies, Congress gave
the Commission in 1996 the authority
and responsibility to forbear from
applying provisions of the
Communications Act when certain
criteria are met, and specifically
directed the Commission to use this
new power to ‘‘encourage the
deployment on a reasonable and timely
basis of advanced telecommunications
capability to all Americans.’’ In typical
forbearance proceedings, a petitioner—
usually a telecommunications service
provider—files a petition seeking relief
from a provision of the Act that applies
to it. The Commission ‘‘shall’’ grant the
requested relief if:
(a) Enforcement of such regulation or
provision is not necessary to ensure that
the charges, practices, classifications, or
regulations by, for, or in connection
with that telecommunications carrier or
telecommunications service are just and
reasonable and are not unjustly or
unreasonably discriminatory;
(b) enforcement of such regulation or
provision is not necessary for the
protection of consumers; and
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(c) forbearance from applying such
provision or regulation is consistent
with the public interest.
In ordinary forbearance proceedings,
therefore, the Commission must make a
predictive judgment whether, without
enforcement of the provisions or
regulations in question, charges and
practices will be just and reasonable,
consumers will be protected, and the
public interest will be served.
70. The forbearance analysis here has
a different posture. The Commission
would not be responding to a carrier’s
request to change the legal and
regulatory framework that currently
applies. Rather, it would be assessing
whether to forbear from provisions of
the Act that, because of our information
service classification, do not apply at
the time of the analysis. Under section
10, the Commission may forbear on its
own motion. If the statutory criteria are
met, the Commission is compelled to
forbear just as if it were responding to
a carrier’s petition. In this situation,
could the Commission simply observe
the current marketplace for broadband
Internet services to determine whether
enforcing the currently inapplicable
requirements is or is not necessary to
ensure that charges and practices are
just and reasonable and not unjustly or
unreasonably discriminatory, whether
application of the requirements is or is
not necessary for the protection of
consumers, and whether applying the
requirements is or is not in the public
interest? Section 10 allows the
Commission to consider forbearance
from requirements that do not currently
apply or may not apply even in the
absence of forbearance.
Identifying the Relevant
Telecommunications Service and
Telecommunications Carriers
71. In this part of the Notice we
assume, solely for purposes of framing
the forbearance option, that the
Commission has decided to classify the
Internet connectivity service underlying
broadband Internet service as a
telecommunications service. Section 10
provides that ‘‘the Commission shall
forbear from applying any regulation or
any provision of this chapter to a
telecommunications carrier or
telecommunications service, or class of
telecommunications carriers or
telecommunications services’’ if certain
criteria are met. The relevant
‘‘telecommunications service’’ would be
Internet connectivity service as the
Commission defines it. The ‘‘class of
telecommunications carriers’’ at issue
would comprise the providers of the
Internet connectivity service identified
as a telecommunications service.
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72. In this proceeding, however, we
do not intend to disrupt the status quo
for incumbent local exchange carriers or
other common carriers that choose to
offer their Internet transmission services
as telecommunications services. Nor do
we propose to alter the status quo with
regard to the application of section
254(k) and related cost-allocation rules
to these carriers. We therefore seek
comment on excepting from forbearance
any carrier that elects to be subject to
the full range of Title II requirements,
and on the mechanism that would be
most suitable for a carrier to make such
an election.
Defining the Geographic Scope for
Analysis
73. Section 10 requires the
Commission to forbear from
unnecessary requirements ‘‘in any or
some of [carriers’] geographic markets.’’
By its terms section 10 requires no
‘‘particular * * * level of geographic
rigor,’’ and the Commission has
flexibility to adopt an approach suited
to the circumstances. The Commission
decisions classifying broadband Internet
service did not rely on any particular,
defined geographic area. Instead, where
those decisions evaluated the state of
the marketplace, they did so ‘‘in view of
larger trends.’’ The 2005 Wireline
Broadband Report and Order granted
forbearance on a nationwide basis. The
Commission has adopted a similar
approach to evaluating the broadband
marketplace in other forbearance
decisions. Given that backdrop, and the
fact that the forbearance discussed here
would be designed to maintain a
deregulatory status quo for wired
broadband Internet service that applies
across the nation, the same approach
may be warranted here, with the effect
that forbearance would be granted or
denied on a nationwide basis. We seek
comment on this approach. If
commenters suggest a more granular
geographic market as is sometimes used
in other forbearance proceedings, we
ask them to address whether such an
approach would be legally required.
Identifying the Provisions of Title II
From Which the Commission Would
Forbear
74. The forbearance option
contemplates a determination not to
apply all but the small number of
provisions of Title II that provide a solid
legal foundation for the Commission to
implement its established broadband
policies. In this part, we seek comment
on declining to forbear from the three
core provisions of Title II—sections 201,
202, and 208. We also seek comment on
whether we should decline to forbear
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from section 254 in order to ensure that
the Commission has clear authority to
pursue universal service goals for
broadband services. And we seek
comment on whether we should decline
to forbear from two other provisions—
sections 222 and 255—that speak to two
other broadband issues the Commission
has believed it can address (customer
privacy and access by persons with
disabilities). We further seek comment
on whether forbearing from any of the
remaining provisions of Title II is
beyond our forbearance authority or
otherwise should be rejected.
75. Exclusions from Forbearance:
Sections 201, 202, and 208. The
Commission has never exercised its
authority under section 10 to forbear
from these three fundamental provisions
of the Act, although it has been asked
to do so on many occasions. In addition
to being consistent with our precedent,
a determination not to forbear from
these core provisions would comport
with Congress’s approach to commercial
mobile radio services (CMRS), such as
cell phone services. In 1993, CMRS
services were still nascent, and Congress
specified in a new section 332(c)(1)(A)
of the Communications Act that
although Title II applies to CMRS, the
Commission may forbear from enforcing
any provision of the title other than
sections 201, 202, and 208. After
Congress gave the Commission broader
forbearance authority in the
Telecommunications Act of 1996, the
Commission considered a petition to
forbear from sections 201 and 202 as
applied to certain CMRS services. The
Commission rejected that forbearance
request, finding that even in a
competitive market those provisions are
critical to protecting consumers.
76. Applying sections 201 and 202
could provide the Commission direct
statutory authority to protect consumers
and promote fair competition, yet allow
the Commission to avoid burdensome
regulation. For example, while CMRS
providers are subject to sections 201 and
202, they do not file tariffs because the
Commission forbore from section 203.
We seek comment on these issues as
well as how to address in any
forbearance analysis the existing agency
rules that have been promulgated under
sections 201 and 202.
77. In addition, we seek comment on
not forbearing from section 208 and the
associated procedural rules. Would the
enforcement regime that would apply if
we enforce only section 208 be
sufficient if we decide to forbear from
the damages and jurisdictional
provisions of sections 206 (carrier
liability for damages), 207 (recovery of
damages and forum election), and 209
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(damages awards)? Would forbearance
from these additional provisions render
enforcement under section 208
procedurally or substantively deficient,
or would section 208 (together with
Title V of the Act) provide the
Commission adequate authority to
identify and address unlawful practices
involving broadband Internet service?
78. Exclusion from Forbearance:
Section 254. Section 254, the statutory
foundation of our universal service
programs, requires the Commission to
promote universal service goals,
including ‘‘[a]ccess to advanced
telecommunications and information
services * * * in all regions of the
Nation.’’ In March 2010, a unanimous
Commission endorsed reform of
universal service programs to
‘‘encourage targeted investment in
broadband infrastructure and emphasize
the importance of broadband to the
future of these programs.’’ Reforming
universal service to encompass
broadband is also a keystone of the
National Broadband Plan. Our current
universal service support programs,
including our high-cost program and
our low-income programs, address
deployment and income-related
adoption barriers for voice. The Plan
recommends that the Commission
provide high-cost and low-income
support that ensures that all households
have the ability to subscribe to a highquality broadband connection that
provides both broadband and voice
services.
79. Two subsections of section 254
bear particularly on whether to forbear
from this universal service provision.
First, section 254(c) defines universal
service as ‘‘an evolving level of
telecommunications service.’’ By not
forbearing from section 254(c), the
Commission would retain clear
authority to support the availability and
adoption of broadband Internet
connectivity service through reformed
high-cost and low-income programs in
the Universal Service Fund.
80. Second, section 254(d) requires all
providers of telecommunications service
to contribute to the Universal Service
Fund on an equitable and
nondiscriminatory basis. Should the
Commission apply the mandatory
contribution requirement to broadband
Internet connectivity providers? If so,
should we delay implementation of the
contribution obligation, through
temporary forbearance or other means,
until the Commission adopts rules
governing specifically how broadband
Internet connectivity providers should
calculate their contribution consistent
with the requirement that all
telecommunications carriers
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‘‘contribute[] on an equitable and
nondiscriminatory basis,’’ possibly as
part of comprehensive Universal Service
Fund reform?
81. If commenters suggest that we
should forbear from applying the
support provisions of section 254 in the
context of broadband Internet
connectivity service, we ask them to
provide alternative proposals to ensure
universal availability of broadband
Internet connectivity services, and to
assess the legal sustainability of
proposed alternatives. If commenters
suggest that we forbear from (or delay)
applying the mandatory contribution
provisions of section 254, what would
be the consequences for the Universal
Service Fund? The Commission has
statutory authority to assess any
provider of interstate
telecommunications if that would serve
the public interest. Nothing in this
Notice should be understood to limit the
Commission’s ability to exercise this
authority during the pendency of this
proceeding.
82. Possible Exclusion from
Forbearance: Section 222. Section 222
of the Communications Act requires
providers of telecommunications
services to protect their customers’
confidential information, as well as
proprietary information of other
telecommunications service providers
and equipment manufacturers. As
discussed above, the Commission has
supported applying this provision in the
broadband context. Section 222 would
appear to provide the Commission clear
authority to implement appropriate
privacy requirements for broadband
Internet connectivity. We question,
however, whether it would be in the
public interest to apply section 222 to
broadband Internet connectivity service
immediately. It might be more effective
for the Commission to interpret the
specific provisions of section 222,
including the definition of ‘‘customer
proprietary network information,’’ in the
broadband context before requiring
broadband Internet connectivity
providers to comply. Proceeding
otherwise could cause confusion and
disparity among broadband Internet
connectivity providers, and confusion
for consumers. Compliance with section
222 could also be more expensive if the
provision took effect immediately, and
we later adopted specific rules. On the
other hand, most providers are already
subject to privacy requirements, at least
for other services they provide; their
costs of immediate compliance with
section 222 may not outweigh the
benefit to consumers of quick assurance
of their privacy while using broadband
Internet connectivity services. In
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addition, section 631 of the
Communications Act requires cable
operators to fulfill certain obligations
with respect to consumer privacy for
cable or ‘‘other service[s]’’ to which a
consumer subscribes. The term ‘‘other
service’’ includes ‘‘any wire or radio
communications service provided using
any of the facilities of the cable operator
that are used in the provision of cable
service.’’ How should the obligations of
sections 222 and 631 be reconciled for
cable operators offering broadband
Internet service? More broadly, we seek
comment on the application of section
222 to any wired broadband Internet
connectivity service that may be
classified as a telecommunications
service, and on whether the public
interest would be served by permitting
section 222 to apply in the absence of
new implementing rules. The
Commission has previously forborne
temporarily from applying a statutory
provision or regulation. In 1994, soon
after Congress authorized the
Commission to deregulate wireless
services, the Commission forbore
temporarily from requiring or permitting
CMRS providers to file tariffs for
interstate access service. And in 2005,
the Commission temporarily forbore
from carrier eligibility requirements for
universal service support, to provide
victims of Hurricane Katrina access to
wireless phone service.
83. One aspect of retaining the
information service classification for
broadband Internet service (other than
for the Internet connectivity
telecommunications service that may be
offered separately with broadband
Internet service) is that it minimizes
interference with the FTC’s ability to
enforce the Federal Trade Commission
Act’s prohibition of unfair, deceptive, or
anticompetitive practices by broadband
Internet service providers. Section
5(a)(1) of the FTC Act declares to be
unlawful all ‘‘[u]nfair methods of
competition in or affecting commerce,
and unfair or deceptive acts or practices
in or affecting commerce,’’ but section
5(a)(2) of the FTC Act restricts the FTC’s
ability to enforce this prohibition with
respect to common carrier activities. We
seek comment on how the Commission
might use its authority under section
222 to ensure privacy for users of
Internet connectivity without
significantly compromising the FTC’s
ability to address privacy issues
involving broadband Internet services
and applications.
84. Possible Exclusion from
Forbearance: Section 255. Section 255
requires telecommunications service
providers to make their services
accessible to individuals with
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disabilities, unless not reasonably
achievable. As discussed above, the
Commission has repeatedly expressed
its intent to apply this requirement in
the broadband context.
85. We seek comment on the
appropriateness of implementing
section 255 to ensure that Americans
with disabilities have access to
broadband Internet connectivity
services. As with section 222, might it
be appropriate to apply section 255 only
after a separate notice-and-comment
proceeding that allows detailed
consideration of disabilities-access
issues in the broadband context? We
seek comment on implementation
questions and other issues related to the
application of section 255.
86. Scope of Forbearance Generally.
We believe that the six sections we have
just discussed—sections 201, 202, 208,
222, 254, and 255—could compose a
sufficient set of tools for effecting the
established policy approach and
implementing the Commission’s goals
for 21st Century communications. Are
there others that should be added to this
list? Some provisions of Title II relate
directly or indirectly to the effective
application and enforcement of the six
provisions we have identified. Section
214, for example, deals primarily with
‘‘Extension of Lines’’ yet contains
section 214(e), which provides the
framework for determining which
carriers are eligible to participate in
universal service support programs.
Similarly, section 251(a)(2) directs
telecommunications carriers ‘‘not to
install network features, functions, or
capabilities that do not comply with the
guidelines and standards established
pursuant to section 255,’’ and section
225 establishes the telecommunications
relay services program. Is application of
these or any other provisions of Title II
required to allow effective
implementation and enforcement of the
six provisions identified above? If so,
should the Commission exempt such
provisions from forbearance for
administrative reasons, if this third
approach to classification is adopted?
87. Are there provisions of Title II
from which we lack authority to
forbear? Section 10(a) directs the
Commission to forbear from applying
regulations or provisions of the
Communications Act to
telecommunications carriers or services
in those instances where the
Commission determines that the
particular provision is unnecessary to
ensure that carrier ‘‘charges, practices,
classifications, or regulations * * * are
just and reasonable and are not unjustly
or unreasonably discriminatory;’’
enforcement of such regulation is ‘‘not
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necessary for the protection of
consumers;’’ and forbearance is
consistent with the public interest. We
ask whether section 10 provides
authority to forbear from provisions of
the statute that do not directly impose
obligations on carriers. For example,
section 224 provides the framework for
the Commission’s regulation of pole
attachments, including the rates
therefor. Does section 10 provide the
Commission authority to forbear from
section 224 insofar as it imposes raterelated obligations on the Commission
and utilities that own poles, rather than
on telecommunications carriers or
telecommunications services?
88. Similarly, section 253 permits the
Commission to preempt state
regulations that prohibit the provision
of telecommunications services. Does
section 10 provide the Commission
authority to forbear from section 253,
which does not impose obligations on
telecommunications carriers? If the
Commission were to forbear from
section 253, how would the
Commission’s general authority to
preempt inconsistent state requirements
be affected?
89. Congress created the Commission
in part ‘‘for the purpose of the national
defense, [and] for the purpose of
promoting safety of life and property
through the use of wire and radio
communication.’’ Would it be consistent
with the Commission’s mission with
respect to promoting safety of life and
property, and consumer protection
generally, to forbear from the portions of
section 214(a) that address
discontinuance, reduction, or
impairment of service? Would it be
consistent with our mission to forbear
from section 214(d), which allows the
Commission to require a carrier ‘‘to
provide itself with adequate facilities for
the expeditious and efficient
performance of its service’’; or section
218, which permits the Commission to
‘‘inquire into the management of the
business of all carriers subject to this
Act’’? Does section 10 provide authority
to forbear from these provisions? Should
the Commission exclude them from
forbearance so it may proceed with, for
example, cybersecurity or data gathering
initiatives, or would authority under
sections 201 and 202 (or other
provisions) be sufficient? How would
forbearance from these provisions affect
the Commission’s ability to promote
adequate service to underserved
communities?
90. Also with regard to our national
defense and homeland security mission,
we note that section 229 directs the
Commission to implement the
provisions of the Communications
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Assistance for Law Enforcement Act
(CALEA). CALEA is a separate statute
that requires ‘‘telecommunications
carriers’’ to meet certain assistance
capability requirements in support of
electronic surveillance. The
Commission has previously found that
CALEA’s definition of
‘‘telecommunications carrier’’ is broader
than the definition of
‘‘telecommunications carrier’’ in the
Communications Act. All service
providers that are ‘‘telecommunications
carriers’’ under the Communications Act
are also ‘‘telecommunications carriers’’
subject to CALEA, and some
providers—including facilities-based
broadband Internet access providers—
are subject to CALEA even if they are
not ‘‘telecommunications carriers’’ as
defined in the Communications Act.
Specifically, the Commission held in
2005 that ‘‘facilities-based providers of
any type of broadband Internet access
service, including but not limited to
wireline, cable modem, satellite,
wireless, fixed wireless, and broadband
access via powerline are subject to
CALEA.’’ Thus, it appears that
regardless of whether we maintain the
current statutory classification for
broadband Internet service or classify
Internet connectivity (or some other
service) as a telecommunications
service, CALEA will continue to apply
to these providers. We seek comment on
this analysis. In addition, as we do with
regard to the sections described just
above, we seek comment on whether
section 10 would provide authority to
forbear from section 229, and on
whether forbearance from application of
section 229 would be consistent with
the purposes for which CALEA was
enacted and the public interest. Finally,
we emphasize that section 10 does not
provide the Commission authority to
forbear from provisions of CALEA or
any other statute other than the
Communications Act.
91. Section 257(c) requires the
Commission to make periodic reports to
Congress concerning the elimination of
previously identified barriers to market
entry by entrepreneurs and other small
businesses. This obligation applies to
‘‘the provision and ownership of
telecommunications and information
services’’ and thus applies regardless of
the legal classification of broadband
Internet service and broadband Internet
connectivity service. It thus would
appear that none of the three alternative
approaches suggested here would affect
the Commission’s duty to make the
mandated reports. Nor, given the
importance of lowering barriers to
market entry, do we contemplate any
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circumstance in which it would be
sound policy to cease making the
reports. We seek comment on these
issues and on how best to ensure that
the obligation of section 257(c) is
preserved in this context.
92. We further seek comment on
whether there are provisions of Title II
that would require interpretation even
after forbearance. For example, would
forbearance from section 203 mean that
carriers may not file tariffs even if they
want to, or just that they are not
required to do so? Would the
Commission’s review of transactions
involving providers of broadband
Internet connectivity service be affected
if the Commission forbore from
applying section 214?
93. We also seek comment on whether
there are approaches superior or
complementary to forbearance that the
Commission should consider as means
of easing regulatory burdens. For
example, in the past the Commission
has ‘‘streamlined’’ the statutory
procedures that apply to non-dominant
carriers, and has granted blanket
authority to all carriers under section
214 to provide domestic interstate
services and to construct, acquire, or
operate any domestic transmission line.
Is any similar approach appropriate
here?
94. Finally, we seek comment on the
role of third party standard setting
bodies if the Commission were to adopt
one of the deregulatory approaches
described here.
Application of the Statutory
Forbearance Criteria
95. Charges, Practices, Classifications,
and Regulations. In 2002, when the
Commission decided to classify cable
modem service as an information
service, only 12 percent of American
adults had broadband at home. Now
nearly two-thirds of American adults
use broadband at home. In just the last
two years, home broadband use has
grown more than 25 percent. The
quality and availability of broadband
services continue to improve, with cable
and telephone companies investing
about $20 billion in wireline broadband
capital expenditures in 2008 and about
$18 billion in 2009. As described in the
National Broadband Plan, ‘‘[t]op
advertised speeds available from
broadband providers have increased in
the past few years. Additionally, typical
advertised download speeds to which
consumers subscribe have grown
approximately 20% annually for the last
10 years.’’
96. Still, a number of reported
incidents suggest there is a role for the
Commission. Comcast’s secret
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disruption of its customers’ peer-to-peer
communications, which the
Commission determined to be
unjustified, is one example. There have
been recent reports involving: AT&T’s
alleged failure to deliver DSL service at
the speeds promised; allegations that
although RCN promised subscribers
‘‘fast and uncapped’’ broadband, it
delayed or blocked peer-to-peer file
transfers without users’ knowledge or
consent; and Windstream’s redirection
of subscribers who used the default
search function in the Firefox web
browser to a Windstream ‘‘landing
page.’’ Furthermore, legislative
developments described above suggest
that Congress is not satisfied with the
pace of broadband deployment,
adoption, and utilization.
97. We seek comment on whether, in
light of the current charges, practices,
classifications, and regulations of
broadband Internet connectivity service
providers, it would be consistent with
section 10(a)(1) for the Commission to
forbear from all provisions of Title II
except the six identified provisions. If
we found on the record developed in
response to this Notice that the
marketplace for broadband Internet
connectivity services is operating
sufficiently well with regard to
competition and consumers’ interests,
then retaining only the authority in
sections 201, 202, and 208; reforming
universal service under section 254; and
continuing to enforce the privacy and
access provisions of sections 222 and
255 could be sufficient to address
current and foreseeable future concerns.
98. Protection of Consumers and the
Public Interest. Section 10(b) directs the
Commission, in making its public
interest analysis, to ‘‘consider whether
forbearance from enforcing the
provision or regulation will promote
competitive market conditions.’’ As
discussed above, the goals of any action
to classify broadband Internet
connectivity as a telecommunications
service would include preserving the
Commission’s ability to step in when
necessary to protect consumers and fair
competition, while generally refraining
from regulation where possible. Further,
the Commission has tools to promote
competition for broadband Internet
services that would be unaffected by the
forbearance proposal discussed here.
We seek comment on this element of the
forbearance test.
Maintaining Forbearance Decisions
99. We seek comment on whether, if
we forbore from applying those
provisions of Title II that go beyond
minimally intrusive Commission
oversight, that decision would likely
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endure. Section 10 allows the
Commission to revisit a decision to
forbear. Normally, to depart from a prior
decision, an agency may simply
acknowledge that it is doing so and
provide a rational explanation for the
change, which may or may not need to
be more detailed than the explanation
for the original decision. The agency
‘‘need not demonstrate to a court’s
satisfaction that the reasons for the new
policy are better than the reasons for the
old one.’’ Section 10, though, requires
the Commission to forbear if the
statutory criteria are met. Thus, to
reverse a forbearance decision, the
Commission must find that at least one
of the criteria is no longer met with
regard to a particular statutory
provision. That determination would be
subject to judicial review, and the
Supreme Court has stated that an agency
must ‘‘provide a more detailed
justification than what would suffice for
a new policy created on a blank slate’’
in instances where, for example, ‘‘its
new policy rests upon factual findings
that contradict those which underlay its
prior policy; or when its prior policy
has engendered serious reliance
interests that must be taken into
account.’’ Reversal of forbearance also
might be in arguable tension with
section 706(a) of the 1996 Act, which
directs the Commission to ‘‘encourage
the deployment on a reasonable and
timely basis of advanced
telecommunications capability to all
Americans * * * by utilizing, in a
manner consistent with the public
interest, convenience, and necessity,
* * * regulatory forbearance.’’ We seek
comment on the Commission’s authority
to reverse a forbearance decision
concerning broadband Internet
connectivity service. We also seek
comment on what provisions, if any,
could appropriately be included in a
forbearance order to establish a
heightened standard for justifying future
‘‘unforbearance.’’
100. If the Commission were to elect
the option of classifying Internet
connectivity as a telecommunications
service but forbearing from most of Title
II, then a reviewing court could in
theory uphold the classification
determination but vacate the
accompanying forbearance in whole or
in part. In that situation, the
Commission could maintain the
classification of broadband Internet
connectivity service as
telecommunications service and allow
the relevant provisions of Title II, which
the court restored, to apply. We seek
comment on any lawful mechanisms
that (assuming adoption of the third
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classification option) could be utilized
to address this theoretical situation,
even if that means the Commission
would not, in the post-litigation
situation just described, ultimately
maintain the classification of Internet
connectivity as a telecommunications
service.
Effective Dates
101. If the Commission decided to
alter its current approach to Internet
connectivity service, affected providers
might need time to adjust to any new
requirements. To reflect this, the
Commission could delay the effective
date of a classification (or classification
and forbearance) decision for 180 days
after release, or another suitable period.
Moreover, as discussed above, certain
provisions of Title II, such as sections
222, 254(d), and 255, could be phasedin on an even longer timetable. We seek
comment on the effective date the
Commission should adopt for a
classification decision under one of the
approaches proposed here, or an
alternative approach identified by the
commenter.
Terrestrial Wireless and Satellite
Services
102. The Commission currently
classifies broadband Internet service
solely as an information service
regardless of whether it is provided over
cable facilities, wireline facilities,
wireless facilities, or power lines. At the
same time, the Commission has in the
past taken a deliberate approach to
extending its classification framework.
In particular, though the Commission
had classified all cable modem and
wireline Internet access services as
information services by 2005, it was not
until 2007 that it extended that
classification to wireless broadband
Internet services, even though the first
3G networks went into service in 2003.
103. We seek comment on which of
the three legal frameworks specifically
discussed in this Notice, or what
alternate framework, would best support
the Commission’s policy goals for
wireless broadband. In addition, as the
Commission recently noted in the Open
Internet NPRM, ‘‘there are technological,
structural, consumer usage, and
historical differences between mobile
wireless and wireline/cable networks.’’
We seek comment on whether these
differences are relevant to the
Commission’s statutory approach to
terrestrial wireless and satellite-based
broadband Internet services. Do
consumers today view wireless
broadband as a substitute for wired
services? How are terrestrial wireless
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and satellite Internet services
purchased, provided, and perceived?
104. Several provisions of Title III of
the Communications Act provide the
Commission authority to impose on
spectrum licensees obligations that are
in the public interest. For example,
section 301 provides the Commission
authority to regulate ‘‘radio
communications’’ and ‘‘transmission of
energy by radio.’’ Under section 303, the
Commission has the authority to
establish operational obligations for
licensees that further the goals and
requirements of the Act if the
obligations are in the ‘‘public
convenience, interest, or necessity’’ and
not inconsistent with other provisions
of law. Section 303 also authorizes the
Commission, subject to what the ‘‘public
interest, convenience, or necessity
requires,’’ to ‘‘[p]rescribe the nature of
the service to be rendered by each class
of licensed stations and each station
within any class.’’ Section 307(a)
likewise authorizes the issuance of
licenses ‘‘if public convenience, interest,
or necessity will be served thereby.’’
Section 316 provides a similar test for
new conditions on existing licenses,
authorizing such modifications if ‘‘in the
judgment of the Commission such
action will promote the public interest,
convenience, and necessity.’’ On the
other hand, Title III provides the
Commission no express authority to
extend universal service to wireless
broadband Internet services. We seek
comment on whether these or other
technical, market, or legal
considerations justify different
classification of wireless and wired
broadband Internet services. We also
seek comment on whether our approach
to classification of non-facilities-based
Internet service providers should be
different in the wireless context, or the
same as in the wired context.
105. In addition, section 332 sets forth
various provisions concerning the
regulatory treatment of mobile wireless
service. Sections 332(c)(1) and (c)(3), in
particular, require that CMRS providers
be regulated as common carriers under
Title II of the Act. To what extent
should section 332 of the Act affect our
classification of wireless broadband
Internet services? Section 332(c)(1) gives
the Commission the authority to specify
certain provisions of Title II as
inapplicable to CMRS providers. If the
Commission were to take the third way
described above in the wireless
broadband context, could it and should
it apply section 332(c)(1) as well as
section 10 in its forbearance analysis?
We also seek comment on whether the
Commission would have reason to
apply sections 201 and 202 differently
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to wireless and wired broadband
Internet services.
106. We also ask commenters to
address whether, if the Commission
were to alter its present approach to
broadband Internet service, it would be
preferable for the Commission to
address wireless services at the same
time that it addresses wired services, or
whether there are reasons for the
Commission to defer a decision on
classification of non-wired broadband
Internet services (and any associated
forbearance if a wireless broadband
telecommunications service is
identified).
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Non-Facilities-Based Internet Service
Providers
107. In 1998, the Commission
addressed non-facilities-based Internet
service providers and concluded that
they provided only information
services. In Brand X, Justice Scalia
stated in his dissent that non-facilitiesbased Internet service providers using
telephone lines to provide DSL service
stand in a different position in the eyes
of the consumer than the provider of the
physical connection. Some industry
members have suggested, however, that
providers of Internet connectivity could
avoid compliance with consumer
protection measures by relying on nonfacilities-based affiliates to offer retail
broadband Internet service. We seek
comment on what policy goals we
should have for non-facilities-based
Internet service providers, and what
legal foundation for non-facilities-based
Internet service providers can best
support effective implementation of
those goals.
Internet Backbone Services, Content
Delivery Networks, and Other Services
108. The focus of this proceeding is
limited to the classification of
broadband Internet service. We remain
cognizant that, under the Act, all
information services are provided ‘‘via
telecommunications,’’ and therefore the
use of telecommunications does not, on
its own, warrant the identification of a
separate telecommunications service
component. For example, we do not
intend to address in this proceeding the
classification of information services
such as e-mail hosting, web-based
content and applications, voicemail,
interactive menu services, video
conferencing, cloud computing, or any
other offering aside from broadband
Internet service. Services that utilize
telecommunications to afford access to
particular stored content, such as
content delivery networks, also are
outside the scope of this proceeding.
Nor do we intend here to address or
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disturb our treatment of services that are
not sold by facilities-based Internet
service providers to end users in the
retail market, including, for example,
Internet backbone connectivity
arrangements. In short, the Commission
proposes not to change its treatment of
services that fall outside a
commonsense definition of broadband
Internet service. We seek comment on
whether any of the three legal
approaches described in this Notice
would affect these services directly or
indirectly, and how we should factor
that into our decision-making about the
treatment of broadband Internet service.
109. In a separate proceeding, the
Commission has asked for public
comment on the treatment of other
services (including Internet-Protocolbased voice and subscription video
services) that may be provided over the
same facilities used to provide
broadband Internet service to
consumers, but that have not been
classified by the Commission. The
Commission has described these as
‘‘managed’’ or ‘‘specialized’’ services, and
recognized ‘‘that these managed or
specialized services may differ from
broadband Internet services in ways that
recommend a different policy approach,
and it may be inappropriate to apply the
rules proposed here to managed or
specialized services.’’ We do not intend
to address the classification or treatment
of these services in this proceeding. We
seek comment on whether any of the
three legal approaches identified in this
Notice would affect these services
directly or indirectly, and how we
should factor that into our decisionmaking about the treatment of Internet
connectivity service.
State and Local Regulation of
Broadband Internet and Internet
Connectivity Services
110. We also ask commenters to
address the implications for state and
local regulation that would arise from
the three proposals described above.
Under each of the three approaches,
what would be the limits on the states’
or localities’ authority to impose
requirements on broadband Internet
service and broadband Internet
connectivity service?
111. We anticipate that if a state were
to impose requirements on broadband
Internet connectivity service or
broadband Internet service that are
contrary to a Commission decision not
to apply similar requirements, we
would have authority under the
Communications Act and the
Supremacy Clause of the United States
Constitution (Article III, section 2) to
preempt those state requirements. In
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addition, section 10(e) provides that ‘‘[a]
State commission may not continue to
apply or enforce any provision of this
Act that the Commission has
determined to forbear from applying.’’
We seek comment on the application of
these provisions in the context of
broadband Internet service and
broadband Internet connectivity service,
the states’ role in the broadband
marketplace, and how our decision to
apply or not apply section 253 could
relate to this authority.
Related Actions
112. We seek comment on whether
there are actions we can and should take
outside the proceeding this Notice
initiates to implement the established
policy approach to broadband Internet
service. As one example, the
Commission could decline to pursue the
‘‘open access’’ policies for cable modem
service on which the Commission
sought comment in 2002 when it
decided to classify cable modem service
as a single information service. We seek
comment on terminating the docket
initiated by the notice of proposed
rulemaking that accompanied the Cable
Modem Declaratory Ruling, and we
invite additional proposals.
Procedural Matters
Paperwork Reduction Act
113. This document does not contain
proposed information collection(s)
subject to the Paperwork Reduction Act
of 1995 (PRA), Public Law 104–13. In
addition, therefore, it does not contain
any new or modified ‘‘information
collection burden for small business
concerns with fewer than 25
employees,’’ pursuant to the Small
Business Paperwork Relief Act of 2002,
Public Law 107–198, see 47 U.S.C.
3506(c)(4).
Ex Parte Presentations
114. The inquiry this Notice initiates
shall be treated as a ‘‘permit-butdisclose’’ proceeding in accordance with
the Commission’s ex parte rules.
Persons making oral ex parte
presentations are reminded that
memoranda summarizing the
presentations must contain summaries
of the substance of the presentations
and not merely a listing of the subjects
discussed. More than a one or two
sentence description of the views and
arguments presented generally is
required. Other requirements pertaining
to oral and written presentations are set
forth in § 1.1206(b) of the Commission’s
rules.
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Ordering Clause
115. Accordingly, it is ordered that,
pursuant to the authority contained in
sections 4(i), 4(j), 10, 218, 303(b), 303(r),
and 403 of the Communications Act of
1934, as amended, 47 U.S.C. 154(i),
154(j), 160, 218, 303(b), 303(r), and 403,
this Notice of Inquiry is adopted.
Federal Communications Commission.
Marlene H. Dortch,
Secretary.
[FR Doc. 2010–15349 Filed 6–23–10; 8:45 am]
FEDERAL FINANCIAL INSTITUTIONS
EXAMINATION COUNCIL
[Docket No. AS10–2]
Appraisal Subcommittee; Rules of
Operation; Amendment
AGENCY: Appraisal Subcommittee of the
Federal Financial Institutions
Examination Council.
ACTION: Notice of amendment to rules
governing the Chairperson and Vice
Chairperson of the Appraisal
Subcommittee.
BILLING CODE 6712–01–P
The Appraisal Subcommittee
(Subcommittee) of the Federal Financial
Institutions Examination Council is
amending the following sections:
Section 3.04 of the Rules of
Operation, which sets forth the term of
the Chairperson and designation of a
person to act in the absence of the
Chairperson, as amended will define the
Chairperson’s term to expire on March
31 every even-numbered year. The
language to designate a person to act in
the Chairperson’s absence will be
deleted due to the proposed amendment
for selection of a Vice Chairperson. A
subsection 3.04.a will be added which
sets forth the selection process of the
Vice Chairperson, and describes the
Vice Chairperson’s term and duties.
Section 3.06 of the Rules of Operation
designates the Vice Chairperson to
preside over Subcommittee meetings in
the Chairperson’s absence.
DATES: Effective Date: Immediately.
FOR FURTHER INFORMATION CONTACT:
James R. Park, Executive Director, at
(202) 595–7575, or Alice M. Ritter,
General Counsel, at (202) 595–7577, via
Internet e-mail at jim@asc.gov and
alice@asc.gov, respectively, or by U.S.
Mail at Appraisal Subcommittee, 1401
H Street, NW., Suite 760, Washington,
DC 20005.
SUPPLEMENTARY INFORMATION: The
Subcommittee, on May 29, 1991,
adopted Rules of Operation, which were
published at 56 FR 28561 (June 21,
1991). The Rules of Operation describe,
among other things, the organization of
Subcommittee meetings, notice
requirements for meetings, quorum
requirements and certain practices
regarding the disclosure of information.
The Subcommittee approved by
notation vote on May 5, 2010,
substantive revisions to Sections 3.04
and 3.06 of the Rules of Operation to
address the appointment of a Vice
Chairperson for the Subcommittee.
The Subcommittee is publishing new
Sections 3.04, 3.04.a and 3.06 to
conform with 5 U.S.C. 552(a)(1)(C),
which requires the publication of
SUMMARY:
FEDERAL DEPOSIT INSURANCE
CORPORATION
emcdonald on DSK2BSOYB1PROD with NOTICES
Sunshine Act Meeting
Pursuant to the provisions of the
‘‘Government in the Sunshine Act’’ (5
U.S.C. 552b), notice is hereby given that
at 10:23 a.m. on Tuesday, June 22, 2010,
the Board of Directors of the Federal
Deposit Insurance Corporation met in
closed session to consider matters
related to the Corporation’s supervision
and resolution activities.
In calling the meeting, the Board
determined, on motion of Director
Thomas J. Curry (Appointive), seconded
by Vice Chairman Martin J. Gruenberg,
concurred in by Director John E.
Bowman (Acting Director, Office of
Thrift Supervision), Director John C.
Dugan (Comptroller of the Currency),
and Chairman Sheila C. Bair, that
Corporation business required its
consideration of the matters which were
to be the subject of this meeting on less
than seven days’ notice to the public;
that no earlier notice of the meeting was
practicable; that the public interest did
not require consideration of the matters
in a meeting open to public observation;
and that the matters could be
considered in a closed meeting by
authority of subsections (c)(2), (c)(4),
(c)(6), (c)(8), (c)(9)(A)(ii), (c)(9)(B), and
(c)(10) of the ‘‘Government in the
Sunshine Act’’ (5 U.S.C. 552b(c)(2),
(c)(4), (c)(6), (c)(8), (c)(9)(A)(ii), (c)(9)(B),
and (c)(10)).
The meeting was held in the Board
Room of the FDIC Building located at
550–17th Street, NW., Washington, DC.
Dated: June 22, 2010.
Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2010–15496 Filed 6–22–10; 4:15 pm]
BILLING CODE P
VerDate Mar<15>2010
16:47 Jun 23, 2010
Jkt 220001
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Frm 00031
Fmt 4703
Sfmt 4703
agency rules of operation in the Federal
Register. The notice and publication
requirements of 5 U.S.C. 553 do not
apply to the adoption of Sections 3.04
and 3.06 because it is a ‘‘rule of agency
organization, procedure, or practice’’
exempt from the public notice and
comment process under 5 U.S.C.
553(b)(3)(A).
Based on the foregoing, the
Subcommittee adopts new Sections
3.04, 3.04.a and 3.06 of the Rules of
Operation, as follows, effective
immediately:
Rules of Operation
*
*
*
*
*
Article III Members of the Subcommittee
*
*
*
*
*
Section 3.04. Chairperson of the
Subcommittee. The Council shall elect a
Chairperson of the Subcommittee. The
term of office of the Chairperson shall
be for a two-year term. Section
1104(a)(12 U.S.C. 3333(a)). The
Chairperson’s term shall expire on
March 31 every even-numbered year.
The Chairperson shall carry out all
duties required by the Act and these
Rules and shall perform such other
duties as from time to time may be
assigned by the Subcommittee
Section 3.04.a. Vice Chairperson of
the Subcommittee. The outgoing
Chairperson shall serve as the Vice
Chairperson for a period of one year,
with the term ending March 31. During
the March meeting, the Subcommittee
shall vote upon a Vice Chairperson to
serve for the next one-year term, which
shall coincide with the second year of
the Chairperson’s two-year term. It is
anticipated that the Vice Chairperson
could serve as the next Chairperson, if
so elected by the Council. The Vice
Chairperson shall assist the Chairperson
as needed, and shall act on behalf of the
Subcommittee in the absence or
incapacity of the Chairperson.
*
*
*
*
*
Section 3.06. Organization of
Subcommittee Meetings.
(a) The Chairperson of the
Subcommittee shall preside at
Subcommittee meetings. In his or her
absence, the Vice Chairperson shall
preside at such Subcommittee meeting.
(b) The Secretary, or in the absence of
the Secretary, any person designated by
the Chairperson, shall draft and transmit
the minutes of the meeting to each
member. The Executive Director is
appointed to serve as Secretary, and
shall be responsible for recording the
minutes, including the full text of each
resolution voted on by the
Subcommittee and the substance of each
action voted on by the Subcommittee as
E:\FR\FM\24JNN1.SGM
24JNN1
Agencies
[Federal Register Volume 75, Number 121 (Thursday, June 24, 2010)]
[Notices]
[Pages 36071-36088]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-15349]
=======================================================================
-----------------------------------------------------------------------
FEDERAL COMMUNICATIONS COMMISSION
[GN Docket No. 10-127; FCC 10-114]
Framework for Broadband Internet Service
AGENCY: Federal Communications Commission.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: This document begins an open, public process to consider the
adequacy of the current legal framework within which the Commission
promotes investment and innovation in, and protects consumers of,
broadband Internet service. Recent developments--including a decision
of the United States Court of Appeals for the District of Columbia
Circuit and affirmation from Congress that the Commission plays a vital
role with respect to broadband--lead the Commission to seek comment on
our legal framework for broadband Internet service.
DATES: Comments must be submitted by July 15, 2010, and reply comments
must be submitted by August 12, 2010.
ADDRESSES: You may submit comments, identified by GN Docket No. 10-127,
by any of the following methods:
Federal eRulemaking Portal: https://www.regulations.gov.
Follow the instructions for submitting comments.
Federal Communications Commission's Web Site: https://fjallfoss.fcc.gov/ecfs2/. Follow the instructions for submitting
comments.
People with Disabilities: Contact the FCC to request
reasonable accommodations (accessible format documents, sign language
interpreters, CART, etc.) by e-mail: FCC504@fcc.gov or phone: 202-418-
0530 or TTY: 202-418-0432.
For detailed instructions for submitting comments and additional
information on the rulemaking process, see the SUPPLEMENTARY
INFORMATION section of this document.
FOR FURTHER INFORMATION CONTACT: Chris Killion or David Tannenbaum,
Office of General Counsel, 202-418-1700.
SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Notice
of Inquiry (Notice), FCC 10-114, adopted on June 17, 2010, and released
on June 17, 2010. Interested parties may file comments on or before
July 15, 2010, and reply comments on or before August 12, 2010.
Comments and reply comments may be filed: (1) Using the Commission's
Electronic Comment Filing System (ECFS), (2) using the Federal
Government's eRulemaking Portal, or (3) by filing paper copies. See
Electronic Filing of Documents in Rulemaking Proceedings, 63 FR 24121,
May 1, 1998. All filings related to this Notice should refer to GN
Docket No. 10-127. Further, we strongly encourage parties to develop
responses to this Notice that adhere to the organization and structure
of this Notice.
Electronic Filers: Comments may be filed electronically
using the Internet by accessing the ECFS: https://fjallfoss.fcc.gov/ecfs2/.
Paper Filers: Parties who choose to file by paper must
file an original and four copies of each filing. If more than one
docket or rulemaking number appears in the caption of this proceeding,
filers must submit two additional copies for each additional docket or
rulemaking number.
Filings can be sent by hand or messenger delivery, by commercial
overnight courier, or by first-class or overnight U.S. Postal Service
mail. All filings must be addressed to the Commission's Secretary,
Office of the Secretary, Federal Communications Commission.
All hand-delivered or messenger-delivered paper filings
for the Commission's Secretary must be delivered to FCC Headquarters at
445 12th St., SW., Room TW-A325, Washington, DC 20554. The filing hours
are 8 a.m. to 7 p.m. All hand deliveries must be held together with
rubber bands or fasteners. Any envelopes must be disposed of before
entering the building.
Commercial overnight mail (other than U.S. Postal Service
Express Mail and Priority Mail) must be sent to 9300 East Hampton
Drive, Capitol Heights, MD 20743.
U.S. Postal Service first-class, Express, and Priority
mail must be addressed to 445 12th Street, SW., Washington, DC 20554.
Parties shall also serve one copy with the Commission's copy
contractor, Best Copy and Printing, Inc. (BCPI), Portals II, 445 12th
Street, SW., Room CY-B402, Washington, DC 20554, (202) 488-5300, or via
e-mail to fcc@bcpiweb.com.
The inquiry this Notice initiates shall be treated as a ``permit-
but-disclose'' proceeding in accordance with the Commission's ex parte
rules. Persons making oral ex parte presentations are reminded that
memoranda summarizing the presentations must contain summaries of the
substance of the presentations and not merely a listing of the subjects
discussed. More than a one or two sentence description of the views and
arguments presented generally is required. Other requirements
pertaining to oral and written presentations are set forth in section
1.1206(b) of the Commission's rules. Ex parte comments may be filed at
any time except during the Sunshine Period. Ex parte comments may be
filed: (1) Using the Commission's Electronic Comment Filing System
(ECFS), (2) using the Federal Government's eRulemaking Portal, (3) by
filing paper copies, or (4) by posting comments and ideas on the
Broadband.gov blog at https://blog.broadband.gov/?categoryId=494971 or
on https://broadband.ideascale.com/a/ideafactory.do?discussionID=11271.
In addition to the usual methods for filing ex parte comments, the
Commission is allowing ex parte comments in this proceeding to be filed
by posting comments on https://blog.broadband.gov/?categoryId=494971 and
on https://broadband.ideascale.com/a/ideafactory.do?discussionID=11271.
Accordingly, persons wishing to examine the record in this proceeding
should examine the record on ECFS, https://blog.broadband.gov/?categoryId=494971 and https://broadband.ideascale.com/a/ideafactory.do?discussionID=11271. Although those posting comments on
the blog may choose to provide identifying information or may comment
anonymously, anonymous comments will not be part of the record in this
proceeding and accordingly will not be relied on by the Commission in
reaching its conclusions in this rulemaking. The Commission will not
rely on anonymous postings in reaching conclusions in this matter
because of
[[Page 36072]]
the difficulty in verifying the accuracy of information in anonymous
postings. Should posters provide identifying information, they should
be aware that although such information will not be posted on the blog,
it will be publicly available for inspection upon request.
Documents in GN Docket No. 10-127 will be available for public
inspection and copying during business hours at the FCC Reference
Information Center, Portals II, 445 12th Street, SW., Room CY-A257,
Washington, DC 20554. The documents may also be purchased from BCPI,
telephone (202) 488-5300, facsimile (202) 488-5563, TTY (202) 488-5562,
e-mail fcc@bcpiweb.com.
People with Disabilities: To request materials in accessible
formats for people with disabilities (Braille, large print, electronic
files, audio format), send an e-mail to fcc504@fcc.gov or call the
Consumer & Governmental Affairs Bureau at 202-418-0530 (voice), 202-
418-0432 (tty).
1. This Notice begins an open, public process to consider the
adequacy of the current legal framework within which the Commission
promotes investment and innovation in, and protects consumers of,
broadband Internet service. In this Notice we use the term ``broadband
Internet service'' to refer to the bundle of services that facilities-
based providers sell to end users in the retail market. This bundle
allows end users to connect to the Internet, and often includes other
services such as e-mail and online storage. In prior orders we have
referred to this bundle as ``broadband Internet access service.'' We
use the term ``wired,'' as in ``wired broadband Internet service,'' to
distinguish platforms such as digital subscriber line (DSL), fiber,
cable modem, and broadband over power lines (BPL), from platforms that
rely on wireless connections to provide Internet connectivity and other
services in the last mile. We refer to the service that may constitute
a telecommunications service as ``Internet connectivity service'' or
``broadband Internet connectivity service.'' As discussed below,
Internet connectivity service allows users to communicate with others
who have Internet connections, send and receive content, and run
applications online. For administrative simplicity we incorporate the
same distinction between broadband and narrowband that the Commission
applied in the classification orders we revisit here. That is, services
with over 200 kbps capability in at least one direction will be
considered ``broadband'' for the particular purposes of these Notices.
Until a recent decision of the United States Court of Appeals for the
District of Columbia Circuit, there was a settled approach to
facilities-based broadband Internet service, which combined minimal
regulation with meaningful Commission oversight. The Comcast opinion,
however, held that the Commission went too far when it relied on its
``ancillary authority'' to enjoin a cable operator from secretly
degrading its customers' lawful Internet traffic. Comcast appears to
undermine prior understandings about the Commission's ability under the
current framework to provide consumers basic protections when they use
today's broadband Internet services. Moreover, the current legal
classification of broadband Internet service is based on a record that
was gathered a decade ago. Congress, meanwhile, has reaffirmed the
Commission's vital role with respect to broadband, and the Commission
has developed a National Broadband Plan recommending specific agency
actions to encourage deployment and adoption. The Plan contains dozens
of recommendations to fulfill the congressional aims articulated in the
Recovery Act, including specific proposals to increase access and
affordability; maximize utilization of broadband Internet services; and
enhance public safety, consumer welfare and education throughout the
United States. Roughly half of the Plan's recommendations are directed
to the Commission itself.
2. These developments lead us to seek comment on our legal
framework for broadband Internet service. In addition to seeking
original suggestions from commenters, we ask questions about three
specific approaches. First addressing the wired service offered by
telephone and cable companies and other providers, we seek comment on
whether our ``information service'' classification of broadband
Internet service remains adequate to support effective performance of
the Commission's responsibilities. We then ask for comment on the legal
and practical consequences of classifying Internet connectivity service
as a ``telecommunications service'' to which all the requirements of
Title II of the Communications Act would apply. Finally, we identify
and invite comment on a third way under which the Commission would: (i)
Reaffirm that Internet information services should remain generally
unregulated; (ii) identify the Internet connectivity service that is
offered as part of wired broadband Internet service (and only this
connectivity service) as a telecommunications service; and (iii)
forbear under section 10 of the Communications Act from applying all
provisions of Title II other than the small number that are needed to
implement the fundamental universal service, competition and small
business opportunity, and consumer protection policies that have
received broad support. We seek comment on the same issues as they
relate to terrestrial wireless and satellite broadband Internet
services, as well as on other factual and legal issues specific to
these wireless services that bear on their appropriate classification.
We further seek comment on discrete issues, including the states'
proper role with respect to broadband Internet service.
Introduction
3. This Commission exists ``[f]or the purpose of regulating
interstate and foreign commerce in communication by wire and radio so
as to make available, so far as possible, to all people of the United
States * * * a rapid, efficient, Nation-wide, and world-wide wire and
radio communication service with adequate facilities at reasonable
charges, for the purpose of the national defense, [and] for the purpose
of promoting safety of life and property through the use of wire and
radio communications.'' During more than 75 years of technological
progress--from the time of tube radios and telephone switchboards to
the modern era of converged digital services--the Commission has
promoted innovation and investment in new communications services and
protected and empowered the businesses and consumers who depend on
them.
4. We have held to our pro-competition and pro-consumer mission in
the Internet Age. Indeed, for at least the last decade the Commission
has taken a consistent approach to Internet services--one that industry
has endorsed and Congress and the United States Supreme Court have
approved. This approach consists of three elements: The Commission
generally does not regulate Internet content and applications; access
to an Internet service provider via a dial-up connection is subject to
the regulatory rules for telephone service; and for the broadband
Internet services that most consumers now use to reach the Internet,
the Commission has refrained from regulation when possible, but has the
authority to step in when necessary to protect consumers and fair
competition.
5. The first element of our consistent approach, preserving the
Internet's capacity to enable a free and open forum for innovation,
speech, education, and job creation, finds expression in (among other
provisions) section 230 of the
[[Page 36073]]
Communications Act, which states Congress's conclusion that ``[t]he
Internet and other interactive computer services have flourished, to
the benefit of all Americans, with a minimum of government
regulation.''
6. The second element, oversight of dial-up access to the Internet
under the common carriage framework of Title II of the Communications
Act, is a facet of traditional telephone regulation. Although Internet
users increasingly depend on broadband communications connections for
Internet access, approximately 5.6 million American households still
use a dial-up telephone connection.
7. The third element of the framework, restrained oversight of
broadband Internet service, was expressed clearly on September 23,
2005, for example, when the Commission released two companion
decisions. The first ``establishe[d] a minimal regulatory environment
for wireline broadband Internet access services.'' It reclassified
telephone companies' broadband Internet service offerings as
indivisible ``information services'' subject only to potential
regulation under Title I of the Communications Act and the doctrine of
ancillary authority. In that decision, the Commission articulated its
belief that ``the predicates for ancillary jurisdiction are likely
satisfied for any consumer protection, network reliability, or national
security obligation that we may subsequently decide to impose on
wireline broadband Internet access service providers.'' The second
decision that day adopted principles for an open Internet, again
expressing confidence that the Commission had the ``jurisdiction
necessary to ensure that providers of telecommunications for Internet
access * * * are operated in a neutral manner.'' Earlier this year, the
Commission unanimously reaffirmed in a Joint Statement on Broadband
that ``[e]very American should have a meaningful opportunity to benefit
from the broadband communications era,'' and that ``[w]orking to make
sure that America has world-leading high-speed broadband networks--both
wired and wireless--lies at the very core of the FCC's mission in the
21st Century.'' Together, these and other agency decisions show the
Commission's commitment to restrained oversight of broadband Internet
service, and its equally strong resolve to ensure universal service and
protect consumers and fair competition in this area when necessary.
8. Before the Comcast case, most stakeholders--including major
communications service providers--shared the Commission's view that the
information service classification allowed the Commission to exercise
jurisdiction over broadband Internet services when required. But the
D.C. Circuit concluded that the Commission lacked authority to prohibit
practices of a major cable modem Internet service provider that
involved secret interruption of lawful Internet transmissions, which
the Commission found were unjustified and discriminatory and denied
users the ability to access the Internet content and applications of
their choice. Today, in the wake of the Comcast decision, the
Commission faces serious questions about the legal framework that will
best enable it to carry out, with respect to broadband Internet
service, the purposes for which Congress established the agency.
Meanwhile, Congress has highlighted the importance of broadband
networks and Internet-based content and services for economic growth
and development and has directed the Commission to develop policies to
address concerns about the pace of deployment, adoption, and
utilization of broadband Internet services in the United States.
9. Comcast makes unavoidable the question whether the Commission's
current legal approach is adequate to implement Congress's directives.
In this Notice, we seek comment on the best way for the Commission to
fulfill its statutory mission with respect to broadband Internet
service in light of the legal and factual circumstances that exist
today. We do so while standing ready to serve as a resource to Congress
as it considers additional legislation in this area. Commenters may
wish to address how the Commission should proceed on these issues in
light of Congressional developments.
10. We emphasize that the purpose of this proceeding is to ensure
that the Commission can act within the scope of its delegated authority
to implement Congress's directives with regard to the broadband
communications networks used for Internet access. These networks are
within the Commission's subject-matter jurisdiction over communication
by wire and radio and historically have been supervised by the
Commission. We do not suggest regulating Internet applications, much
less the content of Internet communications. We also will not address
in this proceeding other Internet facilities or services that currently
are lightly regulated or unregulated, such as the Internet backbone,
content delivery networks (CDNs), over-the-top video services, or
voice-over-Internet-Protocol (VoIP) telephony services. Our questions
instead are directed toward addressing broadband Internet service in a
way that is consistent with the Communications Act, reduces uncertainty
that may chill investment and innovation if allowed to continue, and
accomplishes Congress's pro-consumer, pro-competition goals for
broadband.
Discussion
Background
11. The Commission has long sought to ensure that communications
networks support a robust marketplace for computer services operated
over publicly accessible networks, from the early database lookup
services to today's social networking sites. To provide context for the
later discussion of the Commission's options for a suitable framework
for broadband Internet service, we briefly describe this historical
backdrop.
The Commission's Classification Decisions
12. In 1966, the Commission initiated its Computer Inquiries ``to
ascertain whether the services and facilities offered by common
carriers are compatible with the present and anticipated communications
requirements of computer users.'' In Computer I, the Commission
required ``maximum separation'' between large carriers that offered
data transmission services subject to common carrier requirements and
their affiliates that sold data processing services. Refining this
approach, in Computer II and Computer III the Commission required
facilities-based providers of ``enhanced services'' to separate out and
offer on a common carrier basis the ``basic service'' transmission
component underlying their enhanced services.
13. In the Telecommunications Act of 1996, Congress built upon the
Computer Inquiries by codifying the Commission's distinction between
``telecommunications services'' used to transmit information (akin to
offerings of ``basic services'') and ``information services'' that run
over the network (akin to ``enhanced services''). In a 1998 report to
Congress, the Commission attempted to indicate how it might apply the
new law in the Internet context. Approximately 98 percent of households
with Internet connections then used traditional telephone service to
``dial up'' their Internet access service provider, which was typically
a separate entity from their telephone company. In the report to
Congress--widely known as the ``Stevens Report,'' after Senator Ted
Stevens--the Commission stated
[[Page 36074]]
that Internet access service as it was then being provided was an
``information service.'' The Stevens Report declined to address whether
entities that provided Internet connectivity over their own network
facilities were offering a separate telecommunications component. The
courts, rather than the Commission, first answered that question.
14. In 2000 the United States Court of Appeals for the Ninth
Circuit held that cable modem Internet service is a telecommunications
service to the extent that the cable operator ``provides its
subscribers Internet transmission over its cable broadband facility''
and an information service to the extent the operator acts as a
``conventional [Internet Service Provider (ISP)].'' At the time, the
Commission's Computer Inquiry rules required telephone companies to
offer their digital subscriber line (DSL) transmission services as
telecommunications services. The Ninth Circuit's decision thus put
cable companies' broadband transmission service on a regulatory par
with DSL transmission service.
15. In 2002, the Commission exercised its authority to interpret
the Act and disagreed with the Ninth Circuit. Addressing the
classification of cable modem service, the Commission observed that
``[t]he Communications Act does not clearly indicate how cable modem
service should be classified or regulated.'' Based on a factual record
that had been compiled largely in 2000, the Commission's Cable Modem
Declaratory Ruling described cable modem service as ``typically
includ[ing] many and sometimes all of the functions made available
through dial-up Internet access service, including content, e-mail
accounts, access to news groups, the ability to create a personal Web
page, and the ability to retrieve information from the Internet,
including access to the World Wide Web.'' The Commission noted that
cable modem providers often consolidated these functions ``so that
subscribers usually do not need to contract separately with another
Internet access provider to obtain discrete services or applications,
such as an e-mail account or connectivity to the Internet, including
access to the World Wide Web.'' The Commission defined cable modem
service as ``a service that uses cable system facilities to provide
residential subscribers with high-speed Internet access, as well as
many applications or functions that can be used with high-speed
Internet access.''
16. The Commission identified a portion of the cable modem service
it called ``Internet connectivity,'' which it described as establishing
a physical connection to the Internet and interconnecting with the
Internet backbone, and sometimes including protocol conversion,
Internet Protocol (IP) address number assignment, domain name
resolution through a domain name system (DNS), network security,
caching, network monitoring, capacity engineering and management, fault
management, and troubleshooting. The Ruling also noted that ``[n]etwork
monitoring, capacity engineering and management, fault management, and
troubleshooting are Internet access service functions that are
generally performed at an ISP or cable operator's Network Operations
Center (NOC) or back office and serve to provide a steady and accurate
flow of information between the cable system to which the subscriber is
connected and the Internet.'' The Commission distinguished these
functions from ``Internet applications [also] provided through cable
modem services,'' including ``e-mail, access to online newsgroups, and
creating or obtaining and aggregating content,'' ``home pages,'' and
``the ability to create a personal Web page.''
17. The Commission found that cable modem service was ``an offering
. . . which combines the transmission of data with computer processing,
information provision, and computer interactivity, enabling end users
to run a variety of applications.'' The Commission further concluded
that, ``as it [was] currently offered,'' cable modem service as a whole
met the statutory definition of ``information service'' because its
components were best viewed as a ``single, integrated service that
enables the subscriber to utilize Internet access service,'' with a
telecommunications component that was ``not . . . separable from the
data processing capabilities of the service.'' The Commission thus
concluded that cable modem service ``does not include an offering of
telecommunications service to subscribers.''
18. When the United States Supreme Court considered the Cable Modem
Declaratory Ruling in the Brand X case, all parties agreed that cable
modem service either is or includes an information service. The Court
therefore focused, in pertinent part, on whether the Commission
permissibly interpreted the Communications Act in concluding that cable
modem service providers offer only an information service, rather than
a separate telecommunications service and information service. The
Court's opinion reaffirms that courts must defer to the implementing
agency's reasonable interpretation of an ambiguous statute. Justice
Thomas, writing for the six-Justice majority, recited that
``ambiguities in statutes within an agency's jurisdiction to administer
are delegations of authority to the agency to fill the statutory gap in
reasonable fashion. Filling these gaps * * * involves difficult policy
choices that agencies are better equipped to make than courts.''
Furthermore, ``[a]n initial agency interpretation is not instantly
carved in stone. On the contrary, the agency * * * must consider
varying interpretations and the wisdom of its policy on a continuing
basis.''
19. Turning specifically to the Communications Act, Justice Thomas
wrote: ``[T]he statute fails unambiguously to classify the
telecommunications component of cable modem service as a distinct
offering. This leaves federal telecommunications policy in this
technical and complex area to be set by the Commission.'' ``The
questions the Commission resolved in the order under review,'' Justice
Thomas summed up, ``involve a subject matter [that] is technical,
complex, and dynamic. The Commission is in a far better position to
address these questions than we are.'' Justice Breyer concurred with
Justice Thomas, stating that he ``believe[d] that the Federal
Communications Commission's decision falls within the scope of its
statutorily delegated authority,'' although ``perhaps just barely.''
20. In dissent, Justice Scalia, joined by Justices Souter and
Ginsburg, expressed the view that the Commission had adopted ``an
implausible reading of the statute[,] * * * thus exceed[ing] the
authority given it by Congress.'' Justice Scalia reasoned that ``the
telecommunications component of cable-modem service retains such ample
independent identity that it must be regarded as being on offer--
especially when seen from the perspective of the consumer or end
user.''
21. After the Supreme Court affirmed the Commission's authority to
classify cable modem service, the Commission eliminated the resulting
regulatory asymmetry between cable companies and other broadband
Internet service providers by issuing follow-on orders that extended
the information service classification to broadband Internet services
offered over DSL and other wireline facilities, power lines, and
wireless facilities. The Commission nevertheless allowed these
providers, at their own discretion, to offer the broadband transmission
component of their Internet service as a separate telecommunications
service. Exercising that flexibility, providers--including more than
840 incumbent local
[[Page 36075]]
telephone companies--currently offer broadband transmission as a
telecommunications service expressly separate from their Internet
information service.
The Commission's Established Policy Goals
22. In the 1996 Act, Congress made clear its desire that the
Commission promote the widespread availability of affordable Internet
connectivity services, directing the Commission to adopt universal
service mechanisms to ensure that ``[a]ccess to advanced
telecommunications and information services * * * [is] provided in all
regions of the Nation.'' Congress also instructed the Commission to
``encourage the deployment on a reasonable and timely basis of advanced
telecommunications capability to all Americans.'' The Commission's
classification decisions in the Cable Modem Declaratory Ruling and the
later follow-on orders were intended to support the policy goal of
encouraging widespread deployment of broadband. The Commission's
hypothesis was that classifying all of broadband Internet service as an
information service, outside the scope of any specific regulatory duty
in the Act, would help achieve Congress' aims.
23. At the same time, the Commission acted with the express
understanding that its information service classifications would not
impair the agency's ability to protect the public interest. For
example, when the Commission permitted telephone companies to offer
broadband Internet service as solely an information service, it
emphasized that this new classification would not remove the agency's
``ample'' Title I authority to accomplish policy objectives related to
consumer protection, network reliability, and national security. The
Wireline Broadband Report and Order thus was accompanied by a Broadband
Consumer Protection Notice, in which the Commission sought comment on
``a framework that ensures that consumer protection needs are met by
all providers of broadband Internet access service, regardless of the
underlying technology.'' The Commission stressed that its ancillary
jurisdiction was ``ample to accomplish the consumer protection goals we
identify.'' The Commission similarly referenced the Broadband Consumer
Protection Notice when it extended the information service
classification to broadband Internet services offered over power lines
and wireless facilities.
24. On the same day it adopted the Wireline Broadband Report and
Order and Broadband Consumer Protection Notice, moreover, the
Commission unanimously adopted the Internet Policy Statement. In this
Statement, the Commission articulated four principles ``[t]o encourage
broadband deployment and preserve and promote the open and
interconnected nature of the public Internet,'' and to ``foster
creation adoption and use of Internet broadband content, applications,
services and attachments, and to insure consumers benefit from the
innovation that comes from competition.'' The principles are:
consumers are entitled to access the lawful Internet
content of their choice;
consumers are entitled to run applications and use
services of their choice, subject to the needs of law enforcement;
consumers are entitled to connect their choice of legal
devices that do not harm the network; and
consumers are entitled to competition among network
providers, application and service providers, and content providers.
All principles are subject to reasonable network management.
The Commission expressed confidence that it had the ``jurisdiction
necessary to ensure that providers of telecommunications for Internet
access * * * are operated in a neutral manner.''
Legal Developments
25. Recent legislative and judicial developments suggest a need to
revisit the Commission's approach to broadband Internet service. Since
2008, Congress has passed three significant pieces of legislation that
reflect its strong interest in ubiquitous deployment of high speed
broadband communications networks and bear on the Commission's policy
goals for broadband: the 2008 Farm Bill directing the Chairman to
submit to Congress ``a comprehensive rural broadband strategy,''
including recommendations for the rapid buildout of broadband in rural
areas and for how federal resources can ``best * * * overcome obstacles
that impede broadband deployment''; the Broadband Data Improvement Act,
to improve data collection and ``promote the deployment of affordable
broadband services to all parts of the Nation''; and the Recovery Act,
which, among other things, appropriated up to $7.2 billion to evaluate,
develop, and expand access to and use of broadband services, and
required the Commission to develop the National Broadband Plan to
ensure that every American has ``access to broadband capability and * *
* establish benchmarks for meeting that goal.'' In the Recovery Act,
Congress further directed the Commission to produce a ``detailed
strategy for achieving affordability of such service and maximum
utilization of broadband infrastructure and service by the public,''
and a ``plan for [the] use of broadband structure and services'' to
advance national goals such as public safety, consumer welfare, and
education. These three pieces of legislation, passed within a span of
nine months, make clear that the Commission must retain its focus on
implementing broadband policies that encourage investment, innovation,
and competition, and promote the interests of consumers.
26. Even more recently, the D.C. Circuit's rejection of the
Commission's attempt to address a broadband Internet service provider's
unreasonable traffic disruption practices has cast a shadow over the
Commission's prior understanding of its authority over broadband
Internet services. In late 2007, the Commission received a complaint
alleging that Comcast was blocking peer-to-peer traffic in violation of
the Internet Policy Statement. In 2008, the Commission granted the
complaint and directed Comcast to disclose specific information about
its network management practices to the Commission, submit a compliance
plan detailing how it would transition away from unreasonable network
management practices, and disclose to the public the network management
practices it intends to use going forward. Comcast challenged that
decision in the D.C. Circuit, arguing (among other things) that the
Commission lacks authority to prohibit a broadband Internet service
provider from engaging in discriminatory practices that violate the
four principles the Commission announced in 2005.
27. On April 6, 2010, the D.C. Circuit granted Comcast's petition
for review and vacated the Commission's enforcement decision, holding
that the Commission had ``failed to tie its assertion of ancillary
authority over Comcast's Internet service to any `statutorily mandated
responsibility.''' The Commission had argued that ending Comcast's
secret practices was ancillary to the statutory objectives Congress
established for the Commission in sections 1 and 230(b) of the Act. The
court rejected that argument on the ground that those sections are
merely statements of policy by Congress--as opposed to grants of
regulatory authority--and thus were not sufficient to support
Commission action against Comcast. The court also rejected the
Commission's position that various
[[Page 36076]]
other statutory provisions supported ancillary authority. As to section
706 of the Telecommunications Act of 1996, the court noted that the
agency had previously interpreted section 706 as not constituting a
grant of authority and held that the Commission was bound by that
interpretation for purposes of the case. The court also rejected the
agency's reliance on sections 201, 256, 257, and 623 of the
Communications Act.
Approaches to Classification
28. In light of the legislative and judicial developments described
above, we seek comment on whether our existing legal framework
adequately supports the Commission's previously stated policy goals for
broadband. First, we ask whether the current information service
classification of broadband Internet service can still support
effective performance of the Commission's core responsibilities.
Second, we ask for comment on the legal and practical consequences of
classifying the Internet connectivity component of broadband Internet
service as a ``telecommunications service'' to which the full weight of
Title II requirements would apply, and whether such a classification
would accurately reflect the current market facts. Finally, we identify
and invite comment on a third way, under which the Commission would
classify the Internet connectivity portion of broadband Internet
service as a telecommunications service but would simultaneously
forbear, using the section 10 authority Congress delegated to us, from
all but a small handful of provisions necessary for effective
implementation of universal service, competition and small business
opportunity, and consumer protection policies.
29. The Commission has frequently expressed its commitment to
protecting consumers and promoting innovation, investment, and
competition in the broadband context. We reaffirm that commitment here
and ask commenters to address--in general terms, as well as in response
to the specific questions posed below--which of the three alternative
regulatory frameworks for broadband Internet service (or what other
framework) will best position the Commission to advance these
fundamental goals. We note that because the broadband Internet service
classification questions posed in this part II.B involve an
interpretation of the Communications Act, the notice and comment
procedures we follow here are not required under the Administrative
Procedure Act. In order to provide the greatest possible opportunity
for public comment, however, we are soliciting initial and reply
comments via the traditional filing mechanisms, as well as input
through our recently expanded online participation tools.
Continued Information Service Classification and Reliance on Ancillary
Authority
30. In this part, we seek comment on maintaining the current
classification of wired broadband Internet service as a unitary
information service. Under this approach, we would rely primarily on
our ancillary authority to implement the Commission's broadband
policies. We seek comment on whether our ancillary authority continues
to provide an adequate legal foundation. Throughout the last decade,
the Commission has stated its consistent understanding that Title I
provided the Commission adequate authority to support effective
performance of its core responsibilities. Commissioners, including the
two former Chairmen who urged the information service approach, as well
as cable and telephone companies and other interested parties,
individually expressed this understanding. In Brand X, the Supreme
Court appeared to confirm this widely held view, stating that ``the
Commission remains free to impose special regulatory duties on
facilities-based ISPs under its Title I ancillary jurisdiction.'' The
Comcast decision, however, causes us to reexamine our ability to rely
on Title I as the legal basis for implementing broadband policies.
31. Some have suggested that although the D.C. Circuit rejected the
Commission's theory of ancillary authority in Comcast, the Commission
can still accomplish many of its most important broadband-related goals
without changing its classification of broadband Internet service as a
unitary information service. We seek comment on the overall scope of
the Commission's authority regarding broadband Internet service in the
wake of the Comcast decision. Below we identify and seek comment on
several particular concerns.
Universal Service
32. Can the Commission reform its universal service program to
support broadband Internet service by asserting direct authority under
section 254, combined with ancillary authority under Title I? AT&T, for
example, observes that section 254 provides that ``[a]ccess to advanced
telecommunications and information services should be provided in all
regions of the nation,'' and that the Commission's universal service
programs ``shall'' be based on this and other enumerated principles.
AT&T notes that the Commission's information service classification for
broadband Internet service creates ``tension'' with ``the text of
Section 254(c)(1), which states that `[u]niversal service is an
evolving level of telecommunications services that the Commission shall
establish periodically under this section.' '' But, AT&T suggests,
``[o]ther evidence in the statutory text makes clear that Congress did
not intend to disable the Commission from using universal service to
support information services.'' For example,
``Section 254(b) requires the Commission to use universal
service to promote access to `advanced telecommunications and
information services,' ''
``Section 254(c) * * * [refers] to an `evolving level of
telecommunications services that the Commission shall establish
periodically under this section[,]' '' and
Section 254(c)(2) ``expressly authoriz[es] the Joint Board
and the Commission to `modif[y] * * * the definition of the services
that are supported by Federal universal support mechanisms.' '' The
reference to ``services'' in section 254(c)(2) may suggest that
Congress intended universal service policies to support information
services, even though the definition of universal service in section
254(c)(1) is explicitly limited to ``telecommunications services.''
AT&T explains that section 254 ``contains competing directives,''
but asserts that ``the schizophrenic nature of Section 254 is simply
another example of the many ways in which the 1996 Act is not a `model
of clarity.' ''
33. We seek comment on whether we may interpret section 254 to give
the Commission authority to provide universal service support for
broadband Internet service if that service is classified as a unitary
information service. Could we provide support to information service
providers consistent with section 254(e), which says that ``only an
eligible telecommunications carrier designated under section 214(e)
shall be eligible to receive specific Federal universal service
support,'' and 214(e), which sets forth the framework for designating
``telecommunications carrier[s] * * * eligible to receive universal
service support''?
34. AT&T posits that even after the Comcast decision, the
Commission could bolster its reliance on section 254 by also relying on
several other provisions of the Act. First, the ``necessary and proper
clause'' in section
[[Page 36077]]
4(i) of the Act allows the Commission to ``perform any and all acts,
make such rules and regulations, and issue such orders, not
inconsistent with this chapter, as may be necessary in the execution of
its functions.'' Second, the Act makes clear that the Commission's
``core statutory mission'' is to ``make available, so far as possible,
to all the people of the United States * * * a rapid, efficient,
Nation-wide and world-wide wire and radio communication service with
adequate facilities at reasonable charges.'' Third, the text of 254, as
described above, suggests that Congress intended the Commission to
support universal broadband Internet service. Finally, the policy
directive in section 706 of the 1996 Act instructs the Commission to
encourage the deployment on a reasonable and timely basis of advanced
telecommunications capability to all Americans. AT&T contends that
section 706's directive supports the view that section 254 provides
authority for supporting broadband Internet services with monies from
the Universal Service Fund. We seek comment on AT&T's analysis.
35. The National Cable and Telecommunications Association (NCTA)
has put forward a similar legal theory rooted in section 254(h)(2) of
the Communications Act. That section gives the Commission authority
``to enhance * * * access to advanced telecommunications and
information services for all public and non-profit elementary and
secondary school classrooms, health care providers, and libraries.''
NCTA contends that because ``the use of broadband in the home has
become a critical component of the American education system * * * it
is entirely reasonable to read the statutory directive to support
Internet access for classrooms to include support for residential
broadband service to households where it is reasonably likely that such
service would be used for educational purposes.'' Could the Commission
interpret section 254(h)(2) to permit this type of support for
broadband Internet service? Is this approach a permissible extension of
the Commission's existing E-Rate program? Would this approach enable
the Commission to provide support for broadband Internet service only
to households with school-aged children, or could the Commission
provide support for adult education as well?
36. Another legal theory for promoting broadband deployment under
the Commission's current classification of broadband Internet service
rests directly on section 706 of the 1996 Act. Section 706(a) states
that the Commission ``shall encourage the deployment on a reasonable
and timely basis of advanced telecommunications capability to all
Americans * * * by utilizing, in a manner consistent with the public
interest, convenience, and necessity, price cap regulation, regulatory
forbearance, measures that promote competition in the local
telecommunications market, or other regulating methods that remove
barriers to infrastructure investment.'' Section 706(c) defines
``advanced telecommunications capability'' as ``high-speed, switched,
broadband telecommunications capability that enables users to originate
and receive high-quality voice, data, graphics, and video
telecommunications using any technology.'' The D.C. Circuit rejected
section 706(a) as a basis for the Commission's Comcast order because
``[i]n an earlier, still-binding order * * * the Commission ruled that
section 706 `does not constitute an independent grant of authority,' ''
and ``agencies `may not * * * depart from a prior policy sub silentio.'
'' We seek comment on whether the Commission should revisit and change
its conclusion that section 706(a) is not an independent grant of
authority. What findings would be necessary to reverse that
interpretation? If the Commission were to find that section 706(a) is
an independent grant of authority, would that subsection, read in
conjunction with sections 4(i) and 254, provide a firm basis for the
Commission to provide universal service support for broadband Internet
services?
37. Some parties have suggested that the Commission could rely on
section 706(b) as a source of authority to support broadband Internet
service with Universal Service Fund money. That section provides that:
[t]he Commission shall * * * annually * * * initiate a notice of
inquiry concerning the availability of advanced telecommunications
capability to all Americans * * * . In the inquiry, the Commission
shall determine whether advanced telecommunications capability is
being deployed to all Americans in a reasonable and timely fashion.
If the Commission's determination is negative, it shall take
immediate action to accelerate deployment of such capability by
removing barriers to infrastructure investment and by promoting
competition in the telecommunications market.
We seek comment on whether we could interpret section 706(b) as an
independent grant of authority. Specifically, we ask whether Congress's
direction that the Commission take ``immediate action'' if it makes a
negative determination about the state of broadband deployment
authorizes the Commission to provide universal service support to spur
that deployment. Would any such support be contingent on continued
negative findings in the annual broadband availability inquiry? Under
section 706(b), would universal service programs have to be tailored to
particular geographic areas where deployment is lagging, or could the
Commission implement the program on a national basis? Would the
Commission be limited to direct support for deployment, or could the
Commission interpret section 706(b) also to support broadband Internet
services to low-income populations, such as is the case with our
support for voice services in the Lifeline and Link Up programs?
38. For each of these legal theories, the Commission seeks comment
on the administrative record that would be needed to successfully
defend against a legal challenge to implementation of the theory. Would
adopting these theories be consistent with the federal Anti-Deficiency
Act and Miscellaneous Receipts Act? What other issues should the
Commission consider in evaluating these legal theories? Are there other
legal frameworks that would allow us to promote universal service in
the broadband context without revisiting our classification decisions?
Privacy
39. The Commission has long supported protecting the privacy of
users of broadband Internet services. In 2005, the Commission
emphasized in the Wireline Broadband Report and Order that
``[c]onsumers' privacy needs are no less important when consumers
communicate over and use broadband Internet access than when they rely
on [telephone] services.'' The Commission believed at the time that it
had jurisdiction to enforce privacy requirements, and ``note[d] that
long before Congress enacted section 222 of the Act,'' which requires
providers of telecommunications services to protect confidential
information, ``the Commission had recognized the need for privacy
requirements associated with the provision of enhanced services.'' In
2007, the Commission extended the privacy protections of section 222 to
interconnected VoIP services without resolving whether interconnected
VoIP services are telecommunications services or information services.
More recently, the National Broadband Plan recommended that the
Commission work with the Federal Trade Commission (FTC) to protect
consumers' privacy in the broadband context. Indeed, we fully intend
that our efforts with regard to
[[Page 36078]]
privacy complement those of the FTC. We seek comment on the best
approach for ensuring privacy for broadband Internet service users
under the Commission's current information service classification, and
any legal obstacles to protecting privacy that may exist if the
Commission retains that classification.
Access for Individuals With Disabilities
40. Section 255 requires telecommunications service providers and
equipment manufacturers to make their services and equipment accessible
to individuals with disabilities, unless not readily achievable.
Section 251(a)(2) requires telecommunications carriers ``not to install
network features, functions, or capabilities that do not comply with
the guidelines and standards established pursuant to section 255.'' In
the 2005 Wireline Broadband Report and Order, the Commission committed
to exercise its authority ``to ensure achievement of important policy
goals of section 255'' in the broadband context. In 2007, the
Commission exercised its ancillary authority to extend section 255 to
interconnected VoIP providers, and in 1999 the Commission similarly
relied on ancillary authority to extend disability-related requirements
to voicemail and interactive menu services. The Commission also
exercised ancillary authority to extend section 225 telecommunications
relay service obligations under the Commission's rules to providers of
interconnected VoIP. More recently, a unanimous Commission stated its
belief that disabilities should not stand in the way of Americans'
``opportunity to benefit from the broadband communications era.'' The
Commission has also announced its intent to consider how ``[t]o better
enable Americans with disabilities to experience the benefits of
broadband.'' We seek comment on the best legal approaches to extending
disability-related protections to broadband Internet service users
under the Commission's current information service classification.
Could we exercise ancillary authority to ensure access for people with
disabilities? Could the Commission rely on the mandate in section
706(a) to ``encourage the deployment on a reasonable and timely basis
of advanced telecommunications capability to all Americans,'' or the
similar directive in section 706(b)?
Public Safety and Homeland Security
41. As noted above, Congress created the Commission, in part, ``for
the purpose of the national defense, [and] for the purpose of promoting
safety of life and property through the use of wire and radio
communications.'' Comcast did not address questions of national
defense, public safety, homeland security, or national security. Are
there bases for asserting ancillary authority over broadband Internet
service providers for purposes of advancing such vital and clearly
enumerated Congressional purposes? Could the Commission use its
ancillary authority as a legal foundation for protecting cyber security
and other public safety initiatives, such as 911 emergency and public
warning and alerting services, with respect to broadband Internet
service? Specifically, could the Commission rely on provisions in Title
I either alone or in combination with provisions in Title II or Title
III to support these public safety purposes, as well as data reporting
and/or network reliability and resiliency standards with respect to
broadband Internet services? As noted below, Title III contains several
provisions that enable the Commission to impose on spectrum licensees
obligations that are in the public interest. With the convergence of
the various modes of communications networks, many broadband Internet
services incorporate wireline and wireless elements. What would be the
effect if the Commission employed its Title III authority to achieve
public safety goals with respect to wireless elements of such converged
services? Could the Commission also regulate wireline elements of such
services through its Title III and Title I authority because of the
wireless elements incorporated into these services, or in the interests
of ensuring regulatory parity and predictability? Could the Commission
rely on the mandate in section 706(a) to ``encourage the deployment on
a reasonable and timely basis of advanced telecommunications capability
to all Americans'' to ensure the security, reliability and resiliency
of wired broadband Internet services, or to advance other public safety
and homeland security initiatives?
Addressing Harmful Practices by Internet Service Providers
42. Although the D.C. Circuit rejected the legal theory the
Commission relied on to address Comcast's interference with its
customers' peer-to-peer transmissions, some have suggested that other
theories of ancillary authority could support Commission action to
protect against harmful practices of this sort. For example, one
commentator has proposed that the Commission assert ancillary authority
pursuant to sections 251(a) and 256 of the Act, which address
interconnection by telecommunications carriers. Although these
provisions apply specifically to telecommunications carriers, the
proposal asserts that they are not explicitly limited to the
telecommunications services provided by such carriers.
43. Section 251(a) requires each carrier ``to interconnect directly
or indirectly with the facilities and equipment of other
telecommunications carriers.'' Reading section 251(a) as limited to
telecommunication services, it has been suggested, ``would make [the
Commission's] rules promoting interconnection irrelevant'' as the major
carriers move increasingly toward providing services over broadband
Internet networks. Likewise, ``[i]n a world where traditional public
telecommunications networks and newer Internet-data-transmission
networks are pervasively interconnected,'' it has been asserted, ``it
makes no sense to preclude the FCC's interoperability efforts [pursuant
to section 256] from affecting information services.''
44. We seek comment on this reasoning. What factual findings would
the Commission have to make to support reliance on sections 251(a) and/
or 256 with respect to broadband Internet service? Would those facts
support exercise of authority sufficient to implement the Commission's
broadband policies in full, or in part? Under this approach, could the
Commission address conduct by broadband Internet service providers that
are not also telecommunications carriers? Does reliance on sections
251(a) and 256 limit Commission authority to protect competition and
consumers to only those networks that are interconnected with the
public telephone network? If so, what are the practical implications of
this limitation? What is the significance of the Comcast decision,
which held that ``[t]he Commission's attempt to tether its assertion of
ancillary authority to section 256'' was flawed in that context because
section 256 states that ``[n]othing in this section shall be construed
as expanding or limiting any authority that the Commission'' otherwise
has under law? What else should the Commission consider as it evaluates
the significance of sections 251(a) and 256 in this proceeding?
45. Section 202(a) of the Communications Act makes it unlawful for
any common carrier to make any unjust or unreasonable discrimination in
charges, practices, classifications, regulations, facilities, or
services for or in connection with like communication
[[Page 36079]]
service, directly or indirectly, by any means or device, or to make or
give any undue or unreasonable preference or advantage to any
particular person, class of persons, or locality, or to subject any
particular person, class of persons, or locality to any undue or
unreasonable prejudice or disadvantage.
It has been suggested that ``[i]f network operators are allowed the
option of offering broadband Internet access services on a completely
unregulated basis, that option could enable them to end run Section
202(a)'' as carriers move toward providing services over broadband
Internet networks, ``and render that provision a dead letter.'' We seek
comment on the factual and legal assumptions underlying this argument,
and whether this reasoning provides the Commission authority to address
practices of broadband Internet service providers that endanger
competition or consumer welfare.
46. As the Commission argued to the D.C. Circuit in the Comcast
case, section 706(a) might also provide a basis for prohibiting harmful
practices of Internet service providers. As noted above, the D.C.
Circuit gave no weight to section 706(a) because the Commission had
determined in a prior order that section 706(a) is not an independent
grant of authority. We seek comment on the best reading of section
706(a). We also seek comment on whether section 706(b) could provide a
legal foundation for rules addressing harmful practices by Internet
service providers. If so, could the Commission adopt such rules on a
national basis, or would it have to tailor its rules to particular
geographic areas? Would its rules depend on continued negative
determinations in the annual broadband availability report?
47. The Comcast opinion also rejected arguments that other
provisions of Titles II, III, and VI of the Communications Act
supported the Commission's action against Comcast because Internet-
enabled communications services that depend on broadband Internet
service--such as VoIP and Internet video services--may affect the
regulated operations of telephony common carriers, broadcasters, and
cable operators. The court did not address the merits of these
theories, but rather rejected them because they were not sufficiently
articulated in the underlying Commission order. Could such theories
provide sufficient support for the Commission to address harmful
practices of Internet service providers? What type of factual record
would be required to support such theories? If the Commission relied on
these theories, could it prohibit behavior--such as the covert blocking
of online gaming or e-commerce services, perhaps--that does not
obviously affect services clearly addressed by Titles II, III, or VI?
Could the Commission rely on sections 624 or 629 of the Act to
establish broadband policy related to cable modem service?
48. We also invite comment on whether the portions of section
214(a) addressing discontinuance, reduction, and impairment of service
provide a potential basis for an assertion of ancillary authority
regarding harmful Internet service provider practices. That provision
mandates that a common carrier may not ``impair service to a
community'' without prior Commission approval. Impairment, in the
section 214(a) context, refers to both ``the adequacy'' and ``quality''
of the service provided.
49. Are there other statutory provisions that could support the
Commission's exercise of ancillary authority in this area? Do any
statutory provisions preclude such action if the Commission retains its
information service classification?
50. Other harmful practices by broadband Internet service providers
may involve a failure to disclose practices to consumers. For instance,
one problem identified by the Commission in the Comcast case was
Comcast's failure to identify to customers its practice of degrading
peer-to-peer traffic. If the Commission maintains its information
services framework for broadband Internet services, will it have
sufficient authority to address these concerns?
Other Approaches to Oversight
51. Finally, we ask for public input on whether there are other
approaches to fulfilling our role for broadband Internet services that
would provide meaningful oversight consistent with maintaining robust
incentives for innovation and investment. For instance, in a number of
proceedings commenters have suggested that the Commission should pursue
policies based on standards set by third parties and enforced by the
Commission. In the Open Internet proceeding, Verizon and Google suggest
that the Commission could create technical advisory groups ``comprised
of a range of stakeholders with technical expertise'' to develop best
practices, resolve disputes, issue advisory opinions, and coordinate
with standards-setting bodies. Although Verizon and Google ``may not
necessarily agree on which federal agency does or should have authority
over these matters,'' they ``do recognize as a policy matter that there
should be some backstop role for federal authorities to prevent harm to
competition and consumers if or when bad actors emerge anywhere in the
Internet space, and * * * agree that involvement should occur only
where necessary on a case-by-case base basis.'' Commenters in other
proceedings have suggested similar approaches. We ask commenters to
address whether the Commission should pursue a regime in which