March 2016

Pressure from Democratic Reps hasn't swayed FCC on political ad disclosures

Strong pressure from Democratic Reps has not persuaded the Federal Communications Commission to take up a controversial proposal that would require some political TV ads to name the major individual donors behind them. In a letter, FCC Chairman Tom Wheeler said he understood that 168 House Democrats think he “should go farther” but gave no indication that he is willing to do so during an election year. “The fact that 170 members of Congress is a significant statement, the significance of which is not lost on me,” Chairman Wheeler wrote in response to a letter signed by all but 20 Democratic Reps in the House. Chairman Wheeler has said much of the same for the past year. Rep John Yarmuth (D-KY), who sponsors legislation on the issue, said he “certainly expected more than this,” referring to the letter as little more than a thank you note.

Currently, FCC rules require super-PACs and other outside groups to include a sponsorship announcement at the beginning or end of a television ad that reveals the group that is funding it. But Democratic Reps want the names of significant donors included on the screen. Democratic Reps say the current disclosure rules are based on a weak interpretation of the law. They say the sponsorship tags are of no real use to voters, who likely have no idea who is funding groups with generic names like Restore our Future, Priorities USA or Americans for Prosperity. Chairman Wheeler has defended his record on “expanding the public’s access to information about political advertising.” He pointed to the FCC’s rules that now require the FCC to maintain an online database that includes information about ads run on broadcast TV, radio, cable and satellite.

FCC Chairman Wheeler Writes to Reps Upton and Pallone Regarding the Open Internet Order

On March 14, Federal Communications Commission Chairman Tom Wheeler responded to a letter from House Commerce Committee Chairman Fred Upton (R-MI) and Ranking Member Frank Pallone (D-NJ) regarding the Open Internet Order.

Chairman Wheeler wrote, "I understand that the House Energy and Commerce Committee is about to markup HR 2666, the No Rate Regulation of Broadband Internet Access Act. There have been suggestions that the approach in this legislation is consistent with comments I made before the Senate Appropriations Committee [in 2015]. I want to state, respectfully, that it is not...[The] broad forbearance in the Open Internet Order was the basis of my comments to the Senate Appropriations Committee. Senator Boozman asked if I objected to Congress prohibiting the Commission from rate regulation. I responded that if Congress wanted to ensure that a future Commission would be unable to unforbear, I would have no difficulty with it. What I said then remains true today. If Congress in its wisdom decides to make doubly sure that the forbearance in the Open Internet Order is the law of the land, that is Congress's prerogative. But this bill does more than that. It would introduce significant uncertainty into the Commission's ability to enforce the three bright line rules that bar blocking, throttling, and paid prioritization rules, as well as our general conduct rule that would be applied to issues such as data caps and zero rating. It would also cast doubt on the ability of the Commission to ensure that broadband providers receiving universal service subsidies do not overcharge their consumers. Finally, it would hamstring aspects of the Commission's merger review process. I am committed to ensuring that forbearance today is forbearance tomorrow. But I write to make plain that this bill is not consistent with the views I expressed last year."

Don’t Act Surprised by How Net Neutrality Rules Were Written

[Commentary] The Johnson report on how the Federal Communications Commission arrived at its decision to reclassify Internet Service Providers as common carriers under Title II is a 30 page version of that wonderful 20 seconds in Casablanca—Inspector Renault says “I’m shocked, shocked, to find that gambling going on in here” and then is provided his winnings—except that it completely lacks the Inspector’s self-awareness of its own comedy. A completely political document professing shock at discovering circumstantial evidence of politics inside the beltway? That’s pretty darn amusing.

There are two tragedies here. Neither involve actions by the FCC. The first is that taxpayer dollars were spent gathering information (including taking up FCC staff time) and writing the report, when the Committee said nothing that could not be gleaned by spending a buck to buy the Wall Street Journal story on the same subject. The other tragedy is the over investment of political capital on Title II, in ways that cause us to under invest in considering other issues. I admit to being in an exceedingly small minority that believes both the benefits and costs of the decision are exaggerated. For me, there are three core broadband questions: how do we deploy affordable, abundant bandwidth everywhere, how do we get everyone on, and how do we use the broadband platform to better deliver public goods and services? When we address those questions well, we improve the economic and civic prospects of our communities. The Johnson Report does nothing to help with those challenges. Rather, it is taxpayer-funded political theater—comedic yes, but not enough to justify the price–that distracts us from the important and more productive tasks required for leadership in the global information economy.

[Blair Levin is a Non-Resident Fellow at the Brookings Institute Metropolitan Policy Project]

Zero rating: a boon to consumers, or a net neutrality nightmare?

[Commentary] Although the concept of zero rating appeals to consumers who routinely max out their data plans watching Internet video, the program has drawn some criticism from activists that see the well-meaning program potentially undermining the principles of network neutrality, which aspires to enable equal access to all content and services transmitted on the Internet. To review alternative perspectives on this topic, we have compiled the arguments on various sides of this issue:

Zero rating: An asset for the developing world and a wireless innovation -- Aside from first-world consumers maxing out their data plans watching Netflix, zero rating is a useful tool in the developing world.
Zero rating: A Trojan horse intended to weaken net neutrality -- Despite the rush for some companies to embrace zero rating, some activists have questioned whether the benefits outweigh the potential erosion of net neutrality.