February 2016

A New Era of Broadband Deployment

[Commentary] On February 22, the city of Huntsville, Alabama, became the next Google Fiber city. Huntsville will own the fiber network and will lease it to Google. For most other Google Fiber cities, Google has built the fiber network from scratch. With the Huntsville partnership, Google is demonstrating its willingness to offer its services over a network it doesn’t own -- and that’s a game changer.

One year later, network neutrality still faces attacks in court and Congress

On February 26, 2015, the Federal Communications Commission voted 3-2 along party lines to enforce net neutrality rules and preempt state laws that prevent the expansion of municipal broadband networks. But whether either decision will survive past Tom Wheeler’s chairmanship is still an open question.

Republicans in Congress have tried to overturn them, and lawsuits against the commission are still pending. Trade groups representing Internet service providers sued to halt the net neutrality rules and a related reclassification of broadband as a Title II common carrier service. Judges at the US Court of Appeals in Washington, DC, heard oral arguments in December and could issue a decision in the next few months (though no one knows exactly when). North Carolina and Tennessee sued the FCC to preserve state laws that prevent municipal broadband networks from expanding to surrounding cities and towns. Oral arguments in that case are scheduled for March 17. Meanwhile, Republicans have made numerous efforts to eliminate or minimize the impact of the FCC’s rulings, so far unsuccessfully. Some proposals would have simply wiped out the net neutrality rules entirely, such as one bill called the “Internet Freedom Act.” Other proposals are more subtle but could significantly reduce the FCC’s power to enforce rules meant to protect consumers.

Happy Net Neutrali-versary!

[Commentary] One year ago, I witnessed something that may never be seen again inside the windowless hearing room at the Federal Communications Commission: multiple standing ovations.

There was also whooping. The occasion, on Feb. 26, 2015, was the historic vote by the FCC to safeguard the open Internet by passing strong Net Neutrality rules and re-establishing the agency's clear authority under Title II of the Communications Act. Which was a long way of saying: We saved the Internet! Woo-hoo! You should celebrate this first Net Neutrali-versary and remember how sweet that first victory felt. So pop some champagne as you pop open your laptop. Crank up the Kool & the Gang on YouTube to celebrate that you still can. Go ahead and give yourself a standing ovation. Then, get ready. This won't be the last time you're called on to save the Internet.

[Aaron is President and CEO, Free Press]

Sometimes the Best Things in Life Really Are Free

More services and more data, but without more cost. That’s as consumer friendly as you can get. And unsurprisingly, consumers have embraced free data offerings. Free data offerings:

  • Enhance competitive choice. FCC Chairman Wheeler was right – free data services are “highly innovative and highly competitive.” We want operators competing for customers on price, quality and new offerings like free data. It is competition that compels companies to roll out new ways of improving service and consumers win.
  • Encourage experimentation. Free Data may be new to wireless, but it is a common business practice across our economy from toll-free calling to free shipping. The FCC has recognized that toll-free provides callers “with a ‘free’ and convenient way to contact businesses” and “have proven successful for businesses.” Likewise, free shipping offers consumers significant benefit. A recent survey found that over 80% of consumers rated free shipping as “very important” or “important” in making their online shopping decisions. The same pro-consumer concepts apply for Free Data. We want wireless operators to find new ways to deliver for consumers.
  • Meet demand for more data. Consumers demand more and more mobile data, particularly for video services. We want to help meet that demand and promote usage on our smartphones and tablets to embrace the connected life and the Internet of Things (IoT). Free data helps us do that. Consumers can watch more without paying more each month, and they already are doing just that. T-Mobile reported that customers of its Binge On service are watching more than twice the amount of streaming video as they did before. Netflix CEO Reed Hastings noted that his service is “seeing a great reception amongst our users and we’re seeing viewing going up. We hope those kinds of programs expand.” So do we.
  • Help bring everyone online. Over 31.5 million American adults are smartphone-only, and for many low-income and minority communities mobile broadband is the first (and sometimes only) connection to the Internet. Total cost is identified as a key factor for adoption, so finding ways to offer consumers more services and data without driving up cost is an idea we should all embrace.
  • Deliver a better consumer experience. Above all else, we should look at how the average consumers benefits from new plans. Without question, consumers are benefiting from these free data offerings.