February 2015

Aereo's Assets Sold for Peanuts at Bankruptcy Auction

Aereo, the online-TV service backed by Barry Diller that was found to violate copyright law, garnered less than $2 million for its assets at a bankruptcy auction.

The New York-based company had said it expected bidding of $4 million to $31.2 million. TiVo Inc., which makes digital video recorders, was the winning bidder for the online service’s trademark, customer list and certain other assets, Aereo said. RPX Corp., a patent risk-management company, bought Aereo’s patent portfolio. Information-technology consultant Alliance Technologies acquired some equipment.“We are very disappointed with the results of the auction,” William Baldiga, a lawyer for Aereo at Brown Rudnick LLP, said. “This has been a very difficult sales process and the results reflect that.”

Why You're Still Paying So Much to Use Your Phone Overseas

The price of wireless Internet access for most Americans going overseas has barely budged in the past decade -- since before Steve Jobs introduced the iPhone or Google helped make smartphones mainstream. The latest 4G cellular technology rolling out around the world ensures that the technical barriers to roaming are mostly out of the way. But without an incentive, don't expect carriers to voluntarily blow up an insanely profitable side business.

"It’s a complex system; there’s lots of different layers that determine rates, like regulatory and tax issues in different countries," says Debra Lewis, a Verizon spokeswoman. "Our goal, as always, is to provide the best value." Instead of lower prices, many carriers are adapting to changing mobile phone habits through notifications that provide more transparency about pricing, according to Roger Entner, an analyst at Recon Analytics. "There are now alerts when you land that inform you of how expensive it is -- to avoid any kind of nasty surprises," he says. So at least you'll know when you're getting screwed.

European privacy policy is not a cynical anti-competitive plot

[Commentary] US security officials have been taken aback by the vehemence of the response to their incursions on other people’s privacy. They see themselves as doing the right thing and as trying to protect the security of American citizens (and, to a lesser degree, the citizens of America’s allies). This means that some of them are inclined to view people who disagree with them as either driven by knee-jerk anti-Americanism, or driven by other sordid motives such as the zeal to destroy America’s companies. These beliefs don’t really accord with the empirical evidence. America’s officials don’t have to agree with Europeans who see privacy as a fundamental right, but they are less likely to make serious errors if they at least understand them.

[Henry Farrell is associate professor of political science and international affairs at George Washington University]

Google Puts European Operations Under a Single Executive

Matt Brittin, a former Olympic rower, has become Google’s man in Europe. As part of a reorganization of its European operations, Google has appointed Brittin, who is English, to be its top executive in Europe, ending a previous arrangement in which the region was managed by two executives, whose responsibilities were split along geographical lines. The move to reorganize Europe’s operations under a single executive should help Google react more nimbly to regulatory issues that have become the company’s top threat in the region.

The Net Neutrality Vote: FCC Commissioners in their Own Words

Here’s brief excerpts from the statements of the five Federal Communications Commission members during the Feb 26 vote on Open Internet rules.

FCC Chairman Tom Wheeler: For over a decade, the Commission has endeavored to protect and promote the open Internet. FCC Chairs and Commissioners, Republican and Democrat alike, have embraced the importance of the open Internet, and the need to protect and promote that openness. Today is the culmination of that effort, as we adopt the strongest possible open Internet protections. We heard from startups and world-leading tech companies. We heard from ISPs, large and small. We heard from public-interest groups and public-policy think tanks. We heard from Members of Congress, and, yes, the President. Most important, we heard from nearly 4 million Americans who overwhelmingly spoke up in favor of preserving a free and open Internet. We listened. We learned. And we adjusted our approach based on the public record. In the process we saw a graphic example of why open and unfettered communications are essential to freedom of expression in the 21st century. I am incredibly proud of the process the Commission has run in developing today’s historic open Internet protections. I say that not just as the head of this agency, but as a U.S. citizen. Today’s Open Internet Order is a shining example of American democracy at work.

FCC Commissioner Clyburn: James Madison gave life to the First Amendment in a scant 45 words, which are fundamental to the spirit of this great nation. Almost two centuries later, Justice William Brennan would write in the historic 1964 New York Times v. Sullivan decision that “debate on public issues. . . [should be] . . . uninhibited, robust and wide-open.” I believe President Madison and Justice Brennan would be particularly proud of the rigorous, robust, and unfettered debate that has led us to this historic moment. … And what a moment it is. I believe the Framers would be pleased to see these principles embodied in a platform that has become such an important part of our lives. I also believe that they never envisioned a government that would include the input and leadership of women, people of color, and immigrants, or that there would be such an open process that would enable more than four million citizens to have a direct conversation with their government. They would be extremely amazed, I venture to say, because even we are amazed. So here we are, 224 years later, at a pivotal fork in the road, poised to preserve those very same virtues of a democratic society – free speech, freedom of religion, a free press, freedom of assembly and a functioning free market. As we look around the world we see foreign governments blocking access to websites including social media -- in sum, curtailing free speech. There are countries where it is routine for governments, not the consumer, to determine the type of websites and content that can be accessed by its citizens. I am proud to be able to say that we are not among them. Absent the rules we adopt today, however, any Internet Service Provider (ISP) has the liberty to do just that. They would be free to block, throttle, favor or discriminate against traffic or extract tolls from any user for any reason or for no reason at all.

Commissioner Jessica Rosenworcel: We cannot have a two-tiered Internet with fast lanes that speed the traffic of the privileged and leave the rest of us lagging behind. We cannot have gatekeepers who tell us what we can and cannot do and where we can and cannot go online. And we do not need blocking, throttling, and paid prioritization schemes that undermine the Internet as we know it. For these reasons, I support Chairman Wheeler’s efforts and rules today. They use our existing statutory tools, including Title II authority, to put back in place basic open Internet policies that we all rely on but last year our courts took away. The result honors the creative, collaborative, and open Internet envisioned by those who were there at the start, including the legendary Sir Tim Berners-Lee, the creator of the World Wide Web—whom we have had the privilege of hearing from today.

Commissioner Ajit Pai (from his own summary): For twenty years, there’s been a bipartisan consensus in favor of a free and open Internet—one unfettered by government regulation. So why is the FCC turning its back on Internet freedom? It is flip-flopping for one reason and one reason alone. President Obama told it to do so. The Commission’s decision to adopt President Obama’s plan marks a monumental shift toward government control of the Internet. It gives the FCC the power to micromanage virtually every aspect of how the Internet works. It’s an overreach that will let a Washington bureaucracy, and not the American people, decide the future of the online world. One facet of that control is rate regulation. For the first time, the FCC will regulate the rates that Internet service providers may charge and will set a price of zero for certain commercial agreements. The Commission can also outlaw pro-consumer service plans. If you like your current service plan, you should be able to keep your current service plan. The FCC shouldn’t take it away from you. Consumers should expect their broadband bills to go up. The plan explicitly opens the door to billions of dollars in new taxes on broadband. One estimate puts the total at $11 billion a year. Consumers’ broadband speeds will be slower. Compare the broadband market in the US to that in Europe, where broadband is generally regulated as a public utility. Today, 82% of Americans have access to 25 Mbps broadband speeds. Only 54% of Europeans do. Moreover, in the US, average mobile speeds are 30% faster than they are in Western Europe. This plan will reduce competition and drive smaller broadband providers out of business. That’s why the plan is opposed by the country’s smallest private competitors and many municipal broadband providers. Monopoly rules from a monopoly era will move us toward a monopoly. The Internet is not broken. We do not need President Obama’s plan to “fix it.” The plan in front of us today was not formulated at the FCC through a transparent notice-and-comment rulemaking process. As The Wall Street Journal reports, it was developed through “an unusual, secretive effort inside the White House.” Indeed, White House officials, according to the Journal, functioned as a “parallel version of the FCC.” Their work led to the President’s announcement in November of his plan for Internet regulation, a plan which “blindsided” the FCC and “swept aside . . . months of work by [Chairman] Wheeler toward a compromise.” The plan has glaring legal flaws that are sure to keep the Commission mired in litigation for a
long, long time.

Commissioner Michael O’Rielly: Today a majority of the Commission attempts to usurp the authority of Congress by re-writing the Communications Act to suit its own “values” and political ends. The item claims to forbear from certain monopoly-era Title II regulations while reserving the right to impose them using other provisions or at some point in the future. The Commission abdicates its role as an expert agency by defining and classifying services based on unsupported and unreasonable findings. It fails to account for substantial differences between fixed and mobile technologies. It opens the door to apply these rules to edge providers. It delegates substantial authority to the Bureaus, including how the rules will be interpreted and enforced on a case-by-case basis. And, lest we forget how this proceeding started, it also reinstates net neutrality rules. Indeed, it seems that every bad idea ever floated in the name of net neutrality has come home to roost in this item. To read public statements over the last few weeks, one might think that this item uses Title II in some limited way solely to provide support for net neutrality rules and to protect consumers. And a casual observer might be misled to believe that the ends justify the means. Along the way, however, the means became the end. Net neutrality is now the pretext for deploying Title II to a far greater extent than anyone could have imagined just months ago. And that is the reality that the Commission tried to hide by keeping the draft from the public and releasing a carefully worded “fact” sheet in its place. While I see no need for net neutrality rules, I am far more troubled by the dangerous course that the Commission is now charting on Title II and the consequences it will have for broadband investment, edge providers, and consumers.
Statement (Chairman Wheeler)

The Community Broadband Vote: FCC Commissioners in their Own Words

Here’s brief excerpts from the statements of the five Federal Communications Commission members during the Feb 26 vote on petitions filed by two municipal broadband providers asking that the Commission preempt provisions of state laws in North Carolina and Tennessee that restrict the abilities of communities to provide broadband service.

FCC Chairman Tom Wheeler: Today, we take an important step to rid … communities of [“state-level red tape”]. Specifically, we act on petitions filed by the leaders of Chattanooga, Tennessee and Wilson, North Carolina asking the FCC to preempt laws enacted by state legislatures that prohibit them from expanding their successful community-owned broadband networks. The issue is simple: these communities want to determine their own path. Their elected local officials want to be able to take action to meet their communities’ needs for high-speed broadband. But the laws at issue today raise barriers to the deployment of and investment in new broadband networks and infrastructure. That is why I support granting these petitions. The Commission respects the important role of state governments in our federal system, and we do not take the step of preempting state laws lightly. But it is a well-established principle that state laws that directly conflict with federal laws and policy may be subject to preemption in appropriate circumstances. Congress instructed the FCC to encourage the expansion of broadband throughout the nation. Consistent with this statutory mandate, the Commission acts today to preempt two restrictive state laws hampering investment and deployment of broadband networks in areas where consumers would benefit from greater levels of broadband service. This Order reflects our continued commitment to the goals of Section 706 and represents a significant step forward in giving local communities a full range of options for meeting their broadband needs. While the direct effect of our decision today is limited to the two states involved, it sends a clear message: communities should be able to determine their own paths to meet their constituents’ needs.

Commissioner Mignon Clyburn: For those in this room and to others live-streaming it may be hard to imagine just how many people lack the capacity to access the Internet. Millions are trapped in digital darkness, robbed of the opportunity to telecommute in the wake of this winter’s weather madness or keep up with classroom studies due to the ever mounting number of snow days and delayed start times. For scores of Americans the choice of one, let alone multiple broadband networks, is a dream deferred and the promise of universal access remains un-kept. Today’s vote seeks to draw a line in the sand once and for all by removing barriers to deployment and fostering competition consistent with the FCC’s core mission and values. What has been regrettably lost in the thunderous debate over whether constructing municipal broadband networks is a good idea or if one system or another is considered a “success,” is the only question that really matters: Are these laws barriers to broadband infrastructure investment and competition? The Tennessee and North Carolina petitions present this compound question to the Commission and today we conclude that the answer is yes.

Commissioner Jessica Rosenworcel: American enterprise and self-sufficiency are the stuff of legend. But when we really thrive is when we find common cause and come together to get things done. For our forebears, this meant everything from holding barn raisings to building bridges to setting up cooperatives to bring electricity to our nation’s farms. But infrastructure challenges like these are not limited to the past. We have communities that face them today—with broadband. Broadband, after all, is more than a technology—it’s a platform for opportunity. In urban areas, rural areas, and everything in between, high-speed service is now necessary to attract and sustain businesses, expand civic services, and secure a viable future. Without it, no community has a fair shot in the digital age…. today we tear down barriers that prevent [Chattanooga, Tennessee and Wilson, North Carolina] from expanding their broadband service and offering more consumers more competitive choice. I am pleased to offer my support.

Commissioner Ajit Pai: In 1999, Tennessee authorized municipal electric systems to provide Internet service within the boundaries of their service areas. The legislation passed the Tennessee General Assembly 96-0 and the Tennessee Senate 32-0. Each body was under the control of the Democratic Party. Tennessee’s Republican Governor then signed the bill into law. Today, however, three unelected officials in Washington, DC, purport to rewrite Tennessee law on a party-line vote. Specifically, this Order attempts to empower Tennessee municipal electric systems to offer broadband service outside of their service areas—authority which those systems have never possessed. The Order doesn’t contest that Tennessee may prohibit municipal electric systems from offering Internet service altogether. Instead, it claims that Tennessee may not condition such authority on electric systems only serving customers within their service areas. In other words, once the people’s elected representatives allow municipalities to offer any Internet service at all, the camel’s nose owns the tent. This decision, along with the decision to preempt a similar North Carolina law, is odd—and unlawful. Judicial precedent makes clear that the FCC simply does not have the power to do this. In taking this step, the FCC usurps fundamental aspects of state sovereignty. And it disrupts the balance of power between the federal government and state governments that lies at the core of our constitutional system of government. Whatever the merits of any particular municipal broadband project—and to be clear, on this question I take no position, deferring to affected voters and elected officials—I do not believe this agency has the power to preempt.

Commissioner O’Rielly: This order highlights the unprecedented lengths that the Commission is willing to go in undermining the free market system, the Federal statute, the U.S. Constitution, and common sense in order to try to dictate when, where, and how broadband is provided in this country. The Commission is just about to vote to re-write the Communications Act to assume vast new regulatory authority over broadband providers in the next item, and here the Commission has the arrogance to try to re-write state laws as well. The order is both legally infirm and bad public policy. I cannot support it.

A Victory for Everyone Who Uses the Internet

[Commentary] February 26, 2015 marks the greatest commitment ever made to preserve and protect an open and free Internet. On this day, the Federal Communications Commission has acted decisively to protect the rights of Internet users to employ any legal applications, content, devices, and services of their choosing on the broadband networks they rely on. Today, the FCC has made sure that the Internet remains a platform for all consumers, content creators, and innovators, regardless of their ability to pay infrastructure owners special fees for special access. Ten years after the FCC first adopted a policy statement on the Open Internet, we now have strong, enforceable network neutrality rules, consistent with the nation’s core values. The FCC’s action today demonstrates that there is a public interest at stake across all communications media – be they telephone networks, broadcast stations, wireless, or today’s networks of computer networks. At the Benton Foundation, we have always focused on closing the digital divide and supporting digital inclusion, so the most vulnerable populations can participate fully in a diverse media system and in our democracy. Today, the FCC took action to make this a reality.

  • Strong, enforced net neutrality means access.
  • Strong, enforced net neutrality means diversity.
  • Strong, enforced net neutrality means equity.
  • Strong, enforced net neutrality will enhance our democracy.
  • Strong, enforced net neutrality rules are crucial for our most-vulnerable communities.
  • Strong, enforced net neutrality means innovation.

Today’s actions are the result of real-life democracy and the interplay between the American people and the institutions that serve them. Academics, public interest advocates, foundation leaders, legal scholars, members of Congress, and representatives of associations and corporations were able to express their opinions and debate this issue in detail through public comments and visits with FCC policymakers, at FCC round tables and hearings. Best of all, millions of Americans made their voices heard over the past 13 months, writing the FCC to insist on strong, enforceable net neutrality rules. Positions were modulated, changed, refined. And yes, the President weighed in. The Benton Foundation salutes this vital democratic process and the end result which is a victory for everyone who uses the Internet.

Benton Salutes FCC’s Move to Bring More Fiber to More Communities, Sooner

[Commentary] Today, the Federal Communications Commission sided with community-based solutions. Today, the FCC sided with choice. Today, the FCC sided with bringing better broadband everywhere. The FCC today voted to approve the petitions of community broadband providers in Chattanooga, Tennessee, and Wilson, North Carolina, which asked that the FCC to pre-empt provisions of state laws preventing expansion of their very successful networks. The Benton Foundation thanks the FCC for this action. In too many communities around the U.S. – and especially in rural communities – no commercial Internet service providers are offering broadband – and do not plan to. State restrictions on community broadband mean that rural communities have no options at all to build the networks needed to participate in the digital economy. These laws stop localities from finding creative ways to work with private investors and chill the kinds of partnerships and experimentation that should be happening to close the digital divide. Today’s FCC action could bring broadband service to communities where there is none and competition in areas where it does not exist. FCC Chairman Tom Wheeler recognizes that meaningful competition for high-speed wired broadband is lacking. To take advantage of today’s new services, and to incentivize the development of tomorrow’s innovations, Americans need more competitive choices for faster and better Internet connections. Today’s FCC action means that the broadband marketplace will have to be more responsive to competitive forces.

After the FCC’s Net Neutrality Vote, Everyone Has an Opinion

The Federal Communications Commission voted to adopt new network neutrality rules to ensure an Open Internet. Many policymakers, advocates, and companies expressed their opinion afterwards.

President Barack Obama wrote, “Today’s FCC decision will protect innovation and create a level playing field for the next generation of entrepreneurs – and it wouldn’t have happened without Americans like you. More than 4 million people wrote in to the FCC, overwhelmingly in support of a free and fair Internet. Countless others spoke out on social media, petitioned their government, and stood up for what they believe.”

Senate Majority Leader Mitch McConnell (R-KY) said that the rules would strike "a blow to the future of innovation in our country" and destroy the "light touch" that has driven innovation. "The growth of the Internet and the rapid adoption of mobile technology have been great American success stories. And they were made possible by a light regulatory touch," said Sen McConnell.

Senate Commerce Committee Chairman John Thune (R-SD) said, “Despite the Federal Communication Commission’s partisan action to approve a 317-page power grab over the Internet, the fight to keep the Internet unburdened from regulatory overreach is far from over. As parties line up to challenge this action in court, it will soon be time for Congressional Democrats to review the situation and decide if they are prepared to join a bipartisan effort that brings real certainty to American consumers and provides the necessary protections to the Internet. Only action by Congress can fix the damage and uncertainty this FCC order has inflicted on the Internet.” Ranking Member Bill Nelson (D-FL) said, "The expert agency – after thorough review and voluminous public input – has now acted. I look forward to reviewing the details of the FCC’s decision, and I remain willing to continue discussions regarding true bipartisan legislation."

Sens Patrick Leahy (D-VT), Ron Wyden (D-OR), Chuck Schumer (D-NY), Maria Cantwell (D-WA), Sheldon Whitehouse (D-RI), Tom Udall (D-NM), Al Franken (D-MN), Richard Blumenthal (D-CT), Elizabeth Warren (D-MA), Ed Markey (D-MA), and Cory Booker (D-MA) issued a joint statement: “We join with millions of Americans in celebrating today’s victory for consumers, innovators and entrepreneurs. The Commission’s vote is a decisive step to ensure the Internet remains an open platform for consumers and a level playing field for all. Strong net neutrality protections will ensure the Internet remains a dynamic engine of economic growth, democracy and free speech for years to come. By setting forth clear, commonsense open Internet rules, Chairman Wheeler and the FCC have acted to restore certainty for Internet users, as well as every innovator with a dream and an Internet connection.”

Sen Markey, author of the first net neutrality bill introduced in the House of Representatives, went on to say, "Today is an historic day for consumers, innovators, entrepreneurs – anyone who counts on the Internet to connect to the world. Today begins the next chapter in the history of American innovation – it’s our country’s Declaration of Innovation. Today, we say our economy and the free expression of ideas depend on net neutrality. Today, we say net neutrality is here to stay. Reclassifying broadband under Title II is a major victory for consumers, for our democracy, and for our economy. By banning paid prioritization, blocking and throttling, the FCC is applying the principles of nondiscrimination to the broadband world. The free flow of ideas supported by the Internet is creating the jobs, launching the global revolutions and supporting the communications that we rely on every day. I applaud the FCC and Chairman Wheeler for standing up for students in their dorm rooms, activists on the streets, and innovators in their garages. I applaud the FCC for standing up for the best ideas, not merely the best-funded ideas. Today, we celebrate the transformative power of the Internet now and for generations to come.”

Sen. Dean Heller (R-NV) said the ruling would not stand the test of time. "Years from now, I do not believe history will look back fondly at the definitive moment of Mr. Wheeler’s chairmanship of the FCC. Today, under his leadership, the Commission ended over 20 years of bipartisan consensus. With today’s partisan 3-2 vote, the days of leaving the Internet free of government regulation are gone. The rules, hidden from public view until after passage, are borne not from demonstrated market failures but, rather, from perceived concerns originally raised by special interest organizations and candidates, like then-Senator Obama in 2008, fundraising off the net neutrality issue. Now, all Americans will be subject to an Internet rule structure modeled over 80 years ago to address a monopoly in the telephone marketplace. Instead of looking to the future for ways to ensure robust competition in the Internet marketplace, this chairman prefers to look back to a time when President Franklin Roosevelt occupied the White House. "

Sen Ron Johnson (R-WI) said, “Today’s disastrous decision by three unelected bureaucrats at the FCC to regulate broadband services like a public utility speaks more about how broken Washington is than about any need for onerous regulations on the Internet. Since the Clinton administration, the FCC has wisely applied a light regulatory touch to broadband services, resulting in a highly successful broadband industry. The FCC reverses that bipartisan policy decision after consulting with outside interests rather than Congress. The complete lack of transparency and refusal to submit to any congressional oversight is corrupting, and consumers of the Internet will ultimately pay for this travesty with higher costs and slower service.”

“This is a an enormous victory,” said Sen. Al Franken (D-MN). “This is the culmination of years of hard work by countless Americans who believe — just as I do — that the Internet should remain the free and open platform that it’s always been. Net neutrality is important for consumers, for small businesses and startups trying to compete with the big guys, and ultimately, for the innovation that has helped drive our economy for the past several decades. The bottom line is this: the Internet is a vital part of our daily lives, and net neutrality is at the core of how the Internet operates," Franken added. "It is critical to our democracy and our economy that it continue to operate this way."

"More mandates and regulations on American innovation and entrepreneurship are not the answer, and that’s why Republicans will continue our efforts to stop this misguided scheme," said House Speaker John Boehner (R-OH)

"The FCC, led by three Democrat bureaucrats hand-picked by President Obama, approved a secret plan to fundamentally undermine a free and open Internet," said Rep. Doug Lamborn (R-CO). "This decision ushers in a new era of government micro-management that will discourage private investment in new networks and stifle the innovation that has allowed the Internet to flourish. With the recent failures and mismanagement of Obamacare, it is astounding that anyone would think that heavy handed regulation by government bureaucrats can manage the Internet. This is a solution in search of a problem. I look forward to serious Congressional pushback against this secretive effort which threatens America's continued leadership in the global Internet economy."

"Today the FCC voted to regulate the Internet like a 1930s era public utility," said Rep. Marsha Blackburn (R-TN). "It is indisputable that re-classifying the Internet in this manner will lead to billions of dollars in new fees and taxes for consumers. More importantly, Title II net neutrality is a Trojan horse for a government takeover of the Internet. The courts have already rejected the FCC's attempts to regulate the Internet. The light touch that has allowed the Internet to prosper will be replaced by a heavy-handed approach that will stifle innovation and hand control over placement of content to the government."

The Republican members of the House Communications Subcommittee (yes, every member) said, “Resorting to Great Depression-era rules will trigger a stampede to the courts, unleashing years of lawsuits and uncertainty at a time when US leadership and the Internet economy are more important than ever. We believe the Internet has worked well under current rules, but we were – and we remain – willing to come to the table with legislation to answer the calls for legally sustainable consumer protections for the free and open Internet that has fostered a generation of innovation, economic growth, and global empowerment. Republicans, Democrats, consumer groups, and investors all agree that we need sustainable protections to preserve the Internet as we know it. A 3-2 party-line vote is not the policy consensus this issue deserves. Consumers, investment in state-of-the-art networks, and job creation all stand to lose from today’s heavy-handed decision. And transparency has all but evaporated during this broken process. Once these rules finally emerge from the shadows, it will become clear that the FCC’s action today does not end the debate.”

“Today is a historic day for the Internet Age," said Rep. Doris Matsui (D-CA), a member of the House Communications Subcommittee. "After a record four million public comments and months of debate, the FCC has passed strong net-neutrality rules that will protect consumers, small businesses, and encourage innovation. I am pleased that the rules ensure that so-called paid prioritization schemes never see the light of day in our economy. Americans will not experience Internet slow lanes or gatekeepers hindering traffic. Small businesses, startups, libraries, and hospitals will not be forced to cut special paid agreements simply to provide their content or service online. With the absolute ban on paid prioritization, the rules adopted today by the FCC will ensure that all data is treated equally – a cornerstone principle of the Internet. The next Google or Amazon, the kid in the garage or dorm room that has a good idea but little capital, will succeed based on the strength of their ideas, not whether they can pay for prioritized service online."

"Millions of American consumers, entrepreneurs, innovators, and others who rely on a free and open Internet asked for effective, enforceable net neutrality protections and they received them today," said House Communications Subcommittee Ranking Member Anna Eshoo (D-CA), who represents Silicon Valley. "The FCC's vote ensures Internet users will have the strongest possible protections against blocking, throttling and discrimination of online content by their wired and wireless broadband providers...The rules are grounded in the strongest possible legal footing by reclassifying broadband under Title II of the Communications Act, the same basic consumer protections used for telephone service. Yelp gave these net neutrality rules 'five stars.' I give the action taken by the FCC today a perfect 10! This is an epic battle between David and Goliath, and David won this round."

"I applaud the FCC and chairman Wheeler for taking this historic step to ensure that the Internet remains an open platform for free expression, innovation, and competition," said Rep. Mike Doyle (D-PA). "The Internet is the most powerful platform for communication and commerce ever created, and the Commission's actions today will ensure that the Internet remains free from both government and corporate control. Innovators shouldn't need to ask permission or pay gatekeepers to deploy new products and services online, and the FCC's action today ensures that this remains true. This is an incredible win for consumers, entrepreneurs, and the millions of Americans who called on the FCC to protect the Open Internet."

The National Association of State Utility Consumer Advocates (NASUCA) congratulated the FCC for the “forward-looking classification.” “Now, in the 21st Century, the communications networks are transitioning to broadband, and regulation is as necessary as ever to protect consumers and to ensure that the network owners do not discriminate.”

Michael Weinberg, Senior Vice President of Public Knowledge, said, “After an unprecedented outpouring of public support, today the FCC voted to enact the strongest net neutrality rules in history. By embracing its Title II authority and creating clear, bright-line rules against blocking and discrimination, Chairman Wheeler and the FCC have earned a reputation as defenders of an Open Internet. This day would not have happened without the support of the millions of Americans who commented with the FCC, called Congress, and wrote to the White House. This bipartisan wave of Open Internet supporters from across the country came together to make it clear to their government that it had a crucial role in protecting an Open Internet. After months and years of hard work and advocacy, today is a day to celebrate. Thank you, FCC, for standing up for consumers to achieve this historic victory for net neutrality. Your landmark work will be remembered by the American people.”

“Today's vote is the biggest win for the public interest in the FCC’s history. It's the culmination of a decade of dedicated grassroots organizing and advocacy. Millions of people came to the defense of the open Internet to tell Washington, in no uncertain terms, that the Internet belongs to all of us and not just a few greedy phone and cable companies,” said Free Press President and CEO Craig Aaron. “There’s no doubt that the cable and telecom monopolies and their hired guns will ramp up their lies and lobbying in an attempt to take this victory away from Internet users. But we're ready to fight back to defend this historic win. We need an open, fast, affordable and secure Internet for everyone. Today's vote moves us one step closer to that reality."

Malkia Cyril, executive director of the Center for Media Justice, said, “The Center for Media Justice — home of the Media Action Grassroots Network — vigorously applauds today's vote for Title II Net Neutrality. On this historic day, the FCC rejected separate and unequal representation online and proved that a small group of committed people can make very big changes. Instead of capitulating to the virulent race-baiting and industry lies, or cowering before the threat of legal action or legislation, today the FCC codified rules that lock in place the power of the Internet to help close gaps in equity that disadvantage communities of color.”

“The open Internet is the platform that allows ordinary people to speak with an unfiltered voice, and Net Neutrality is what protects that. A new civil rights movement is now flourishing in this country in response to tragic and unjust police violence in Ferguson, Staten Island, and many other communities. But without Net Neutrality, the voices of everyday people wouldn’t have a chance. Today the FCC has taken crucial steps toward protecting a vital tool in the fight for equality and justice. This victory shows that people power can sometimes triumph over corporate dollars,” Rashad Robinson, executive director of ColorOfChange.org

Arturo Carmona, executive director of Presente.org, said, “Today we celebrate the FCC's decision to protect Net Neutrality. This is an important win for the rights of Latinos and all people of color. Our ability to produce our own content, speak for ourselves, and use the Internet as a crucial tool for engaging in our democracy has been protected. We need to ensure that the fight to protect Net Neutrality is protected and that the FCC is empowered to do its job as a regulatory agency."

“This is a historic day and a historic victory,” said Jessica Gonzalez, executive vice president and general counsel of the National Hispanic Media Coalition. “As people of color, we have come to rely on the open Internet to educate ourselves, organize for social change, engage in the political process and push back against a history of discrimination and exclusion in traditional media. I applaud the FCC majority for sifting through the nonsense arguments of a few Internet service providers and their massive team of lobbyists, and siding with the American people for a truly open Internet.”

Joseph Torres, senior external affairs director of Free Press, said, “The FCC's decision today is a victory in the struggle for racial justice in our country. It’s simply hard to fight for the health and well-being of communities of color if we aren’t able to speak for ourselves. While we celebrate today’s victory, we know we’re going to need to continue to fight for our digital rights to ensure our voices are never silenced.”

"America’s libraries collect, create and disseminate essential information to the public over the Internet, and ensure our users are able to access the Internet and create and distribute their own digital content and applications. Network neutrality is essential to meeting our mission in serving America’s communities,” said ALA President Courtney Young. “Today’s FCC vote in favor of strong, enforceable net neutrality rules is a win for students, creators, researchers and learners of all ages."

Ellen Bloom, senior director of federal policy for Consumers Union, said, “It would be hard to overstate how big of a deal this is for consumers and the future of the Internet. It’s a huge win after years of fierce debates and massive opposition from the biggest providers of Internet service. We’re not out of the woods yet. We’re into the woods, really. We expect opponents to look for every angle they can to stop these rules, whether in court or in Congress. It should be obvious, with the millions of people who spoke out in favor of these rules, that the battle should end now. We’re going to keep the pressure on to preserve these consumer protections.”

“Big Telecom just lost – and it lost because millions of grassroots activists spoke out for Net Neutrality,” said Becky Bond, political director and vice president at CREDO Mobile. “Today’s vote marks the culmination of over a decade of organizing to protect the Internet from a corporate takeover.”

“The Writers Guild of America, East, AFL-CIO, has supported net neutrality from the beginning and applauds today’s vote by the Federal Communications Commission to reclassify the Internet under Title II of the Communications Act," WGAE said in a statement. "As a union of creative professionals, over the years we have mobilized our members to ask the Federal Communications Commission to embody the principles of net neutrality in solid policy language and meaningful, enforceable rules. We joined millions of Americans who took action to protect an open Internet. What has been accomplished today will prevent powerful media and technology giants from treating the Internet like a private toll road, with the speediest lanes reserved for those with the deepest pockets."

"Popular victories like today’s are so unusual that three Congressional committees are investigating how this happened," said David Segal, executive director of Demand Progress. "If the net neutrality effort had followed the usual playbook, if Comcast, Verizon, and AT&T had defeated the American people, nobody would be wondering why.”

“This is an incredible moment for so many artists and independent labels who fought to preserve an open and accessible Internet for almost a decade," said Future of Music Coalition CEO Casey Rae. "Creators of all political persuasions and backgrounds embody the very spirit of what net neutrality supporters have sought to achieve in this fight: the ability to compete on a level playing field without discrimination from just a few powerful ISPs. This historic day is a testament to what can be achieved when the creative community comes together with a diverse array of advocates and activists to stand up for free expression and entrepreneurship. We are proud and grateful to see the results of principled and sustained engagement on an issue that will shape the future of music for generations to come."

Doug Brake, telecommunications policy analyst at the Information Technology and Innovation Foundation (ITIF), said, “This Title II classification puts a dark cloud of uncertainty over what has otherwise been a bright spot in our economy. It is unclear how these regulations will be implemented and what sections of Title II the Commission can successfully forbear from. Much of what has been settled law will again be up for debate. Furthermore, it is unclear whether the controversial Title II move will survive court challenges or a Republican administration. This path will also make it much harder to do pro-consumer network management, and is more likely to balkanize the Internet into distinct private networks and specialized services. What we need here are not the “strongest possible” rules, but flexible, balanced guidelines and ongoing oversight to allow good traffic differentiation and prevent practices that are anti-competitive or otherwise legitimately harm the open Internet.”

“Today’s action by the FCC is the wrong path for achieving broadband deployment in all parts of the United States,” said USTelecom President Walter McCormick. “It redefines the Internet, inserts the federal government deeply into its management, and invites other countries to do the same. In reversing longstanding bipartisan precedent, and imposing public utility regulation on the most dynamic sector of our nation’s economy, the FCC is adopting policies that were not designed – nor ever intended – for the Internet. History has shown that common carrier regulation slows innovation, chills investment, and leads to increased costs on consumers. What is remarkable is that the commission’s overreach is so unnecessary. Broadband service providers are operating in complete conformance with the open Internet standards advanced by the president, we agree with the standards, we support their adoption in regulation by the FCC under Section 706, and we support their enactment into law. We will now turn to the courts for review, and given the broad consensus that exists on the underlying objectives, will look forward to working with the Congress on a bipartisan basis to advance legislation.” USTelecom lobbies on behalf of the telecommunications industry.

National Cable and Telecommunications Association CEO Michael Powell said, “Today, the FCC took one of the most regulatory steps in its history. It began regulating the Internet, abruptly abandoning a bipartisan national commitment to limited government involvement that has reigned for decades. This extraordinary action has been justified by the desire to preserve net neutrality, but the FCC Order goes well beyond that reasonable objective. The FCC has taken the overwhelming support for an open Internet and pried open the door to heavy-handed government regulation in a space celebrated for its free enterprise. The Commission has breathed new life into the decayed telephone regulatory model and applied it to the most dynamic, free-wheeling and innovative platform in history.”

"FCC actions are supposed to be based on data, not conjecture," American Cable Association President Matthew Polka said. "Yet, in adopting the Open Internet Order today, the FCC ignores uncontested data in the record demonstrating that imposing Title II regulation on small and mid-sized ISPs beyond the three 'bright line' net-neutrality rules will impose burdens without benefit to an open Internet. As a result of this ‘unreasoned' action, the FCC inflicts upon small and mid-sized ISPs unwarranted and irreparably harmful common-carrier rules that have nothing to do with ensuring net neutrality."

AT&T’s Jim Cicconi wrote a lengthy response after the vote. He said, “Today, an Administration and an FCC that appeared headed toward another bipartisan win on net neutrality were driven instead to a partisan fight. The 3-2 FCC vote, along party lines, for sweeping new regulation of the Internet, is a rejection of the compromise win and an embrace, however reluctant, of the political fight. It’s unfortunate that this single issue, more than any other, has over the course of ten years caused a divisive spirit to spread to an agency that has long sought unanimity on significant long term issues, and generally found it.”

Comcast’s David Cohen wrote, “Today, the FCC voted 3-2 to adopt new Open Internet rules – rules that we support and agree should be put in place as legally enforceable by the FCC. Unfortunately, the FCC also decided to reclassify broadband as a telecommunications service under Title II of the Communications Act of 1934. We are disappointed the Commission chose this route, which is certain to lead to years of litigation and regulatory uncertainty and may greatly harm investment and innovation, when the use of Section 706 alone would have provided a much more certain and legally sustainable path. We fully embrace the open Internet principles that have been laid out by President Obama and Chairman Wheeler and that now have been adopted by the FCC. We just don’t believe statutory provisions designed for the telephone industry and adopted when Franklin D. Roosevelt was president should be stretched to govern the 21st century Internet.”

“- --- -.. .- -.-- .----. ... -.. . -.-. .. ... .. --- -. -... -.-- - .... . ..-. -.-. -.-. - --- . -. -.-. ..- -- -... . .-. -... .-. --- .- -.. -... .- -. -.. .. -. - . .-. -. . - ... . .-. ...- .. -.-. . ... .-- .. - .... -... .- -.. .-.. -.-- .- -. - .. --.- ..- .- - . -.. .-. . --. ..- .-.. .- - .. --- -. ... .. ... .-,” tapped out Verizon’s wacky PR team. The company’s release -- dated Feb 26, 1934 – says, “The Federal Communications Commission approved an order urged by President Obama that imposes rules on broadband Internet services that were written in the era of the steam locomotive and the telegraph." Michael Glover -- Verizon senior vice president, public policy and government affairs – goes on to say that the FCC decided to “encumber broadband Internet services with badly antiquated regulations is a radical step that presages a time of uncertainty for consumers, innovators and investors. Over the past two decades a bipartisan, light- touch policy approach unleashed unprecedented investment and enabled the broadband Internet age consumers now enjoy.”

After FCC Lifts Municipal Broadband Restrictions, the Reaction Flows In

The Federal Communications Commission preempted state laws in Tennessee and North Carolina that prevented broadband providers in the two states from meeting local demand for broadband service. Here’s the reaction.

House Commerce Committee Chairman Fred Upton (R-MI) and Communications and Technology Subcommittee Chairman Greg Walden (R-OR), “Preemption of state law is a limited power reserved to the U.S. Congress. Today’s 3-2 vote is as disappointing as it is predictable with this commission where political victory is so often put ahead of the rule of law and the economy’s best interest. The FCC should respect the decisions of each state - whether to allow their municipalities to build out broadband networks or not. A one-size-fits-all approach from unelected Washington bureaucrats prevents states and municipalities from making the tough choices to allocate precious taxpayer dollars.”

“I salute the FCC’s vote to preserve the rights of communities trying to make important broadband investments,” Sen Cory A. Booker (D-NJ) said. “As mayor of Newark, I saw how cities are often in the best position to innovate and find solutions to the specific challenges facing their residents. Sadly, some states have enacted laws that bar cities from connecting their communities. With this vote, the FCC is standing up for the rights of municipalities over special interests that may not find it profitable to invest in low-income and rural areas. It’s another step in the right direction as Americans seek to leverage their strengths in the digital age.”

“Tearing down barriers that prevent communities from developing local solutions when there is little or no choice in Internet service provider is one of the great challenges for competition and innovation in the broadband marketplace,” Sen. Edward J. Markey (D-MA) said. “Today’s action by the FCC will support the ability of municipalities to decide for themselves whether or not they would like to build their own broadband networks and provide community members with high speed Internet service. I applaud the FCC for using its authority to support greater local choice and end restrictions placed upon local communities to make these decisions for themselves.”

“This vote is good news for folks in small towns and rural areas,” Sen. Claire McCaskill (D-MO) said. “I’m glad the FCC set a precedent that acknowledges the internet needs of residents in our smaller communities—who deserve the same access as everyone else to the internet—and the jobs and business opportunities the internet brings.”

“More and more communities across the country are recognizing that access to high-speed broadband is an economic and educational necessity,” Sen. Angus King (I-ME) said. “In areas where affordable access to next-generation speeds doesn’t exist, forward-looking towns and cities – like Rockport, South Portland, and Ellsworth in Maine – are partnering with broadband providers to connect their public buildings, businesses, and residences. Today’s decision to clear the way for the expansion of municipal broadband projects sends an important message of support to localities around the country that are taking charge of their economic futures.”

“Expanding access to the Internet is key for economic growth in rural Oregon and the rest of the U.S.,” Sen. Ron Wyden (D-OR) said. “Whether it’s getting the next big thing out of the garage, allowing a student quick access to information or increasing broadband competition, everyone benefits when communities can provide broadband. Today’s vote will foster innovation and let communities make their own decisions about how to expand broadband.”

Baller Herbst Stokes & Lide, lead counsel to Wilson and EPB in their proceedings before the FCC, applauds the Commission for removing the protectionist provisions of North Carolina and Tennessee law that have prevented Wilson and EPB from investing in advanced communications capabilities and bringing competition to areas outside their current broadband Internet access service areas, including unserved and underserved areas. Section 706 of the Telecommunications Act of 1996 requires the FCC to ensure that broadband is being deployed on a reasonable and timely basis to all Americans. If the FCC determines that advanced communications capabilities are not being deployed to all Americans in a reasonable and timely manner, Section 706 requires the FCC to “take immediate action to accelerate deployment…by removing barriers to infrastructure investment and by promoting competition.” In removing the provisions of NC and TN law that prevented Wilson and EPB from expanding their networks, the FCC is acting in accordance with the dictates of Section 706 and is paving the way for many businesses and residents of North Carolina and Tennessee to gain access to Wilson’s and EPB’s state-of-the-art fiber networks and services.

Chris Lewis, Vice President of Government Affairs at Public Knowledge, “We applaud this decision by the FCC and congratulate Chattanooga and Wilson citizens on their victory. When an incumbent provider cannot or will not provide high-speed broadband, many local communities have no choice but to do it themselves. Today's decision by the FCC affirms the right of every community, no matter how small, to make these decisions for themselves and ensure that they are not left out of the 21st century marketplace. Local communities should be able to decide what broadband economic development projects they start without state laws crafted by cable lobbyists blocking their way. Local taxpayers are savvy enough to make these tough choices and assume the risk of the investment of their own tax dollars.”

“Today is a turning point in the debate over broadband investment in our towns and cities," said Joshua Stager, policy counsel for New America’s Open Technology Institute. "The commission's decision to remove barriers in Chattanooga and Wilson is a victory for consumer choice, market competition, and local self-determination. These regulatory barriers limit consumer choice in places that need more broadband competition, not less. Cities can’t compete in a global economy without robust broadband infrastructure. Local government can play a critical role in network development, particularly in areas where incumbent providers are not meeting local needs," Stager added. "Indeed, our research has consistently found that some of the fastest and most affordable broadband in America comes from community networks. All localities should be free to make these kinds of smart investments in their own infrastructure."

“NTCA–The Rural Broadband Association has urged policymakers time and again to take stock of what has worked in deploying advanced networks and delivering sustainable, high-quality communications services in communities across the country,” said NTCA Senior Vice President of Policy Michael Romano. “Unfortunately, today’s decision pre-empting several state laws appears to cast about for ‘the next big thing’ in broadband deployment and may put private investment at risk, rather than building upon existing efforts that leverage the best combination of public and private solutions to solve broadband challenges. In addition, as NTCA has explained to the FCC, there are serious doubts as to whether the path chosen in today’s pre-emption order is legally sustainable, meaning that the decision is more likely to generate regulatory uncertainty than solve those broadband challenges. With the decision behind us, we hope that the commission will now turn its attention back to building upon proven initiatives and leveraging existing efforts to realize and then sustain our shared national broadband vision.”

“We share the commission’s interest in accelerating broadband deployment to unserved Americans," USTelecom president Walter McCormick said."However, today’s action to pre-empt the judgment of elected state legislatures on the best approach to having their local municipalities deliver broadband services is a distraction from the hard work of improving the regulatory climate for all broadband providers to invest in new and improved infrastructure, and serves little purpose given the likelihood that it will be overturned by the courts. The FCC could best facilitate further investment and competition in broadband services by focusing its efforts on removing the regulatory hurdles to a smooth transition to IP networks, fully implementing Phase II of the Connect America Fund, updating the rural Universal Service Fund for broadband, and taking additional steps to lower the costs of access to local rights-of-way and pole attachments that can make up 20 percent of the cost of deploying fiber.”

Katie McAuliffe, executive director of Digital Liberty, noted that Chattanooga Electrical Power Board has large debts, adding: "It received over $111 million in stimulus money and borrowed almost $400 million in bonds to build a fiber optic grid in a place that other providers were already serving perfectly well. In Chattanooga, two to three providers were already available to Tennesseans. This debt, of course, rests not on the EPB, but on the taxpayers in all of the EPB service areas whether they receive municipal broadband or not."

Heather Gold, president of the Fiber to the Home (FTTH) Council Americas, said: "The FTTH Council applauds the FCC for taking this step to further enable deployment of fiber to the home. Communities are hungry for bandwidth — for their economies, healthcare, education and quality of life. Citizens should be able to use all available assets to encourage all entities — ILECs, CLECs, utilities and municipalities — to deploy leading edge, future proof networks."