Idealists say information on the Net should not be controlled by a pricing or access system which distorts the marketplace of ideas. According to British journalism writer Charlie Beckett neutrality is an essential part of the Internet political economy. The alternatives are to construct a series of balances to look dangerously like over-regulation or else allow big companies set a price structure that restricts access to markets and denies the public choice and information. As the Internet develops as a global, decentralised network, it challenges national sovereignty over citizens and territory. Solving net neutrality is not just an American issue.
Robert McChesney said US neutrality provisions date back to common carriage non-discrimination requirements in the 1934 Communications Act. When the act was changed in 1996, Congress did not explicitly change this requirement. The problem was telecommunications and cable giants began rolling out their cable modem services around the same time and saw Net Neutrality as a barrier to profits. They unsuccessfully lobbied the Clinton administration to exempt the Internet from the provision but found the Bush presidency more accommodating.
In 2002, new FCC boss Michael Powell came to the rescue of the cable companies. The FCC redefined cable modem services as “information services” and removed them from the provisions of the Act. Consumers and competitors appealed the decision. There followed three years of litigation to determine if the FCC had the authority to make the change. That debate ended with the 2005 Brand X case which the divided Supreme Court ruled the FCC had that power. The FCC ruled that neither cable nor DSL broadband services would be subject to Net Neutrality.
With little discussion in the media, the FCC’s ruling suddenly meant 98 percent of the US broadband market would be subject to a biased money-driven view of the Internet. The idea was to create a fasttrack environment for companies willing to pay the premium. Those that refused would get “the slow lane, and probably oblivion,” says McChesney. Although the cable companies did not create the Internet, they could now start charging tolls as if they owned it. As Columbia law professor Tim Wu said, “it’s like the Tony Soprano system…a protection racket, and it’s not an economically productive activity”.
The FCC decision brought together a strange group of bedfellows in opposition. Liberal organisations such as Move.on and ACLU sat with the Christian Coalition and the National Religious Broadcasters. The new media players Google and eBay got all the media attention and helped the idea spread it was simply a clash of Google versus AT&T.
The public clamour woke up minority Democrat members of the FCC and they grabbed their chance in 2006 to insist the huge merger of AT&T with BellSouth include Net Neutrality for two years. After the Democrat victory of that year’s midterms Senators Byron Morgan (D-ND) and Olympia Snowe (R-ME) introduced bipartisan legislation to make Net Neutrality the law of the land. All Democrat presidential candidates endorsed the bill.
The Morgan-Snowe changes were presented as the Internet Freedom Preservation Act of 2008 but it remains stalled in Congress. The FCC used its powers to allow discrimination and many companies did push back against the data transfers of applications such as Bittorent. The wireless industry began complaining that if they had to stop discriminating it could push them beyond their limited capacity affecting the cost of data plans and possible bandwidth caps.
Many people have questioned the government’s ability to come up with meaningful regulation in an era of rapidly-evolving technology that was not counter-productive. Opponents see Net Neutrality as mandating government power over the Internet that will stifle innovation and competition. New Obama-appointee FCC boss Julius Genachowski has signalled his intent to pursue neutrality. That means bringing the broadband and wireless industry back into the fold. In September he said he would adapt the agency’s four 2005 Internet principles (any lawful content, any lawful application, any lawful device, any provider) to prevent ISPs from discriminating against particular Internet content or applications, while allowing for reasonable and transparent network management.
But policy matters move slowly in the FCC which has voted unanimously to begin consideration of the proposed rules. According to Google’s Public Policy Blog that means an official rulemaking proceeding will take place over several months. There will also be public workshops and technical advisory discussions, allowing feedback before the Commission adopts a final set of rules. Right-wing demagogue Glenn Beck calls Net Neutrality “a Marxist Plot” but the reality is, as always, all about naked capitalist greed. Unless every packet of data is neutral, the big telecommunications companies and media corporations will take full control of the Internet.