Originally published: March 23, 2012
Last updated: April 5, 2012 - 12:13am
Verizon’s Board of Directors has written a letter to shareholders:
The Board of Directors strongly believes that by requiring the Company to "not privilege, degrade or prioritize any packet transmitted over its wireless infrastructure based on its source, ownership or destination" this proposal will harm Verizon's ability to provide robust and secure wireless broadband service to its customers. The delivery of high-quality and safe wireless Internet access services is a highly complex, technical undertaking. The proponents appear to have no concept of the negative technical and operational ramifications of requiring purely "neutral" routing of Internet traffic. This proposal would substantially interfere with the technical operation of Verizon's wireless broadband network and have a wide-ranging and significant impact on Verizon's business and operations. Among other things, the proposal would prevent Verizon from engaging in reasonable network management practices designed to address potential congestion, security and other wireless network problems and make the network more efficient and more widely available to all customers. The proposal would also prevent Verizon from giving priority to police, fire and military communications over its wireless broadband network in the event of natural disasters or terrorist attacks.
Importantly, this very proposal was rejected by the FCC in its recently adopted rules addressing net neutrality issues. The FCC recognized that managing a broadband network in "non-neutral" ways was critical to ensuring network integrity, providing security capabilities and reducing congestion. It further concluded that wireless networks in particular present unique operational issues and expressly permitted providers to develop differentiated services that this proposal would prevent. The proposal disregards the FCC's conclusions about the importance of network management and would impede Verizon's ability to manage its networks and offer services to meet the needs of its customers.
Finally, Verizon is committed to maintaining an open and vibrant Internet. Verizon already complies with the FCC's net neutrality rules and voluntarily operates its wireless broadband networks in accordance with additional openness principles published on its website. The Board believes that the rigid operational requirements of this proposal will not further the "openness" of the Internet; to the contrary, it would expose Verizon's wireless broadband customers to reduced service quality and security.
For these reasons, the Board strongly opposes the proposal.
The Board of Directors recommends that you vote AGAINST this proposal.
- Verizon shareholders vote down network neutrality proposal
- Verizon investors say network neutrality opposition could harm its reputation
- Open Internet Proposal at Verizon Wins 24.1% of Shareholder Votes
- Verizon Projects Higher Margins and Sustained Revenue Growth in 2014
- Former Commissioners Blast Verizon's Neutrality Stance
- AT&T Must Give Shareholders a Vote on Network Neutrality, SEC Decides
- Verizon Shareholder Proposal on Open Internet Issues Receives Support from Leading Proxy Advisor ISS
- Why is Verizon suing over net neutrality rules it once supported?
- 3 ways your wireless service will change under the FCC's net neutrality rules
- Verizon’s Mobile Video Optimized for Its Network
- Investors to AT&T: Let Shareholders Vote on Open, Free Internet Access for All
- Reaction to Verizon's Network Neutrality Legal Challenge
- Verizon Responds to Shareholders’ Concerns on User Data
- Investment Firm Mount Kellett Urges Clearwire to Fend Off Sprint
- AT&T: Business Data Services 'Compromise' Is Giveaway