February 2016

[Commentary] The federal government just needs to pave the way for the next generation of Wi-Fi. More than ever before, consumers are using technologies that rely on “unlicensed spectrum”—that is, public airwaves that the government hasn’t licensed exclusively to a particular company or person—to access the Internet and connect their devices. But here’s the problem. Unlicensed spectrum is becoming a victim of its own success. With consumer demand at an all-time high, the few bands of unlicensed spectrum that we typically rely on are becoming increasingly congested. Unless we take action now, we’ll see slower speeds, dropped connections, and less innovation in the future. A solution to this problem is within our grasp.

The federal government is currently holding spectrum that could be opened up for unlicensed use. In particular, there is a big chunk of spectrum in what is known as the 5 GHz band. But progress hasn’t been fast enough. This is due in part to concerns that allowing unlicensed use of the 5 GHz band could cause harmful interference to car-to-car communications and crash avoidance systems that the automotive industry is developing. Roadway safety is obviously an important concern. But we think there’s a path forward that would protect automotive R&D and allow millions of consumers to benefit from this public resource. Right now, several federal agencies are studying the issue, including the Federal Communications Commission and the Department of Transportation. It’s critical that the federal government press forward and open up the band. Because the Internet is increasingly becoming a mobile experience, we should work together to anticipate, rather than catch up with, consumer demand. Doing so will spark innovation and spur economic growth.

The Federal Communications Commission adopted its landmark Open Internet Order nearly a year ago. In this the agency made the correct decision to again treat broadband as an essential telecommunication service. But as of February 2016, the rules and the reclassification itself are subject to a court challenge, with a decision due in the next few months. The FCC’s rulings are in effect as the case wends its way through the courts, but wired and wireless broadband providers like Comcast, T-Mobile, AT&T and Verizon are taking advantage of the waiting period to test a series of new pricing and data schemes that harm Internet users and rightfully worry Network Neutrality proponents.

Those big Internet service providers have announced a series of changes to their data-cap policies and have also introduced exemptions to allow their respective customers to get out from under those caps. These schemes differ from each other in some ways, but they have one thing in common: Without the arbitrarily low and punitive data caps some ISPs impose on their customers, these exemptions wouldn’t be a problem. They wouldn’t even exist. You don’t need an exemption if there’s no bad cap. And the ISPs’ eagerness and ability to provide exemptions from their own artificial limits shows they have little or no relationship to the underlying cost of connectivity or network management. Net Neutrality defenders and advocates for broadband users are concerned about the implications of these caps and arbitrary exemptions. The principles in play are clear, and the stakes are high: The open Internet must stay open, and Internet access must be more affordable. This issue brief describes the proposals the major companies have put forward and prescribes the best policies to address them.