Internet & Broadband Classification

The Internet represents a significant development in the capabilities of telecommunication networks but also demonstrates the regulatory problems associated with market and technological convergence.  In many respects, the debate between competitors' access to DSL and cable modem facilities shows the concerns over regulatory asymmetry and the semantics involved around service definitions and long-standing jurisprudential models and FCC policies that apply to different media.  Our discussions in class suggest other governmental institutions (e.g. Courts, Congress, Federal Trade Commission, etc.) have begun to "regulate" the Internet in various fashions. But from the FCC's standpoint and jurisdiction, the Internet has thus far remained an unregulated service.

The study questions pertaining to the Oxman piece reflect the policy position of the FCC. An underlying question that the working paper prompts, is "How exactly may the Commission take credit for stimulating the Internet's growth when the Internet didn't exist in its present form 30 years ago?" As you may recall from our early reading about the FCC, the Office of Plans & Policy (OP&P) is not one of the seven bureaus; rather they serve as an economic and technical policy advisor to the Commission. Often its working paper series, as illustrated by Oxman's piece, help frame ongoing discussion related to an emerging policy issue or trend. Unlike the bureaus, the OP&P does not issue Reports & Orders or rule-making proceedings of any kind.

The Oxman working paper was written before the FCC launched it's inquiry and rulemaking concerning the regulatory classification of broadband (high-speed) Internet access.  The Cable Modem NOI was necessitated by a number of court cases that ruled upon access provisions as well as the concerns raised during the AOL-Time Warner merger. The Brown article offers an assessment of the FCC's current desire to leave broadband providers unregulated and offers a policy solution that will preserve the Internet's characteristics.   In addition, the article discusses the relevant litigation that resulted within the open access debate and provides a summary of DSL and cable modem technology.

Meanwhile, the assigned collection of articles attempt to demonstrate the varied legal attempts and restrictions that governments have implemented to curb their citizenry's access to specific types of information that is made available globally on the Internet.

Jason Oxman, The FCC and the Unregulation of the Internet. OPP Working Paper No. 31,  (distributed via email in pdf format)

1.     In the executive summary, what are identified as FCC policy decisions that have been beneficial to the growth of the Internet?

2.     Do you agree with the following statement: "the Internet has created the information revolution, and it is on its way to becoming the single most important communications tool in existence." Why or why not?

3.     Why is openness so important to the Internet and IP (Internet protocol)?

4.     Nearly 30 years ago in its first Computer Inquiry proceeding, what two important issues concerning the data industry were addressed by the FCC? What were the Commission's findings on these issues (how did they rule and why)?

5.     What regulatory categories happened as a result of Computer II? How did the FCC define these categories of service? What are examples of these services today?

6.     For the Commission, what was the main purpose of Computer III?

7.     Why has the Commission's policy on data processing been so vital to the Internet?

8.     How are basic and enhanced services analogous to oil pipelines, storage facilities and refineries?

9.     Why is Internet service considered an enhanced service?

10.     What does a modem do and why was its growth dependent upon the deregulation of the customer premises equipment market?

11.     What are access charges? Why have enhanced service providers (ESPs) been able to avoid such charges? In the U.S, does the ESP exemption include Internet Service Providers (ISPs)?

12.     As a result of its April '98 progress report on the implementation of universal service as set out in the 1996 Telecommunications Act, do internet service providers have to make contributions to universal service? Why or why not? (You may recall, This question is also discussed in the Frieden law review article on universal service)

13.     Why are incumbent local exchange carriers (LECs) against the longstanding ESP exemption? In particular, what relatively new application/service do they find fault with? (You may recall, this question is also discussed in the Frieden law review article on universal service)

14.     What is the current regulatory status of Internet backbone providers?

15.     According to the executive summary, what are the fundamental lessons learned from the Commission's 30-year approach to data networks? Which one of these lessons is the most important and why?

Brown, Preserving the Public's End-to-End:  A Policy Initiative for Broadband (distributed via email in pdf format)

1.    What is the end-to-end (e2e) network and how may information service classification for broadband threaten the structure and utility of the e2e?

2.    How does broadband over cable work?  What is the speed and capability?  What factor is the speed dependent upon?

3.    How does broadband over DSL work?  What is the speed and capability?  How may distance play a role in the speed of DSL?

4.  In the open access litigation, wow did federal courts classify cable modem service?  Why were local franchising authority attempts to institute open access provisions struck down? 

5.  In comparison, what was the holding of the Comcast case and why is it important to the open access debate?  Do you agree with the judge's holding?  Why or why not?

6.  What rationale does the FCC provide for determining both DSL and cable modems should be classified as information services for regulatory purposes?  Do you agree with their classification?  Why or why not?  

7.   What does Brown propose as a policy initiative that will help preserve the e2e qualities of the Internet will carry forward in a broadband, NGI environment?  According to Brown, how would such a policy initiative for broadband survive judicial review?  Do you agree with his assessments?  Why or why not?