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1 1 (July 2017)

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Key  Points

  *  The Federal Communications Commission's (FCC) 2015 Open  Internet Order follows
     years of advocacy to implement net neutrality rules, which appears to contravene Congress'
     intention that the internet be free of regulation and the people's will for a free market for
     broadband.
  *  The application of the Title 11 regulatory framework to the internet has harmed consumers
     and innovators.
  *  While proponents claim they want competition in the broadband market, the objective
     of Title 11 is to create a system of government-owned broadband networks under FCC
     control and to significantly reduce, if not eliminate, private-sector provision.


A long-running tech policy debate is whether the
internet should be shaped by the preferences of
regulators and special interests or allowed to evolve
through free-market forces driven by consumers
and innovators. A seemingly innocuous concept,
net neutrality is not officially defined or codified
in the US, but its supporters claim that the Federal
Communications   Commission  (FCC)  needs to
adopt internet regulation to support it. For example,
proponents declare, Net neutrality is the basic
principle that protects our free speech on the Internet.
'Title IP of the Communications Act is what provides
the legal foundation for net neutrality.I In fact, it
is the First Amendment of the US Constitution that
protects free speech, and the terms net neutrality,
blocking, throttling, and prioritization are
nowhere to be found in the aforementioned Title II.
   In 2o5 the FCC adopted the Open Internet Order,
prohibiting specific internet traffic management
techniques, including blocking, throttling, and paid
prioritization, and mandating a general internet


conduct standard. To promulgate the ruling, the
FCC  invoked Title II of the Communications Act
of 1934 (subsequently updated by the 1996
Telecommunications  Act),3 which requires
telecommunications  providers to be treated as
common   carriers. To justify such regulatory
expansion, the FCC pronounced  that the internet
is nothing more than an extension of the circuit-
switched telephone network.4
   The zo5 order marked  a stunning reversal of
long-standing bipartisan policy in a divisive 3-2
vote. Almost immediately, the order was challenged
by nine lawsuits from small and large cable, wireless,
and telecom providers, as well as from Daniel
Berninger, the coinventor of Voice over Internet
Protocol (VoIP), as the order effectively banned his
online application of high-definition voice behind a
platform.s The DC Circuit upheld the order in court,
but petitioners continue to appeal.' In April 2017,
the new FCC  Chairman Ajit Pai launched a Notice
of Proposed Rulemaking to reverse the order.7


AMERICAN   ENTERPRISE INSTITUTE

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