FCC Continues Press for Clarity In Web Providers' Delivery Practices
SAN JOSE, Calif. -- Federal Communications Commission Chairman Kevin Martin is bringing his campaign for unfettered Internet access to Silicon Valley Thursday, putting Comcast Corp. on the spot, despite the cable giant's efforts to back away from a policy of limiting the way customers download some Internet files.
The News: FCC Chairman Kevin Martin will hold a hearing on limits placed on Internet traffic.
The Background: A move by Comcast to restrict downloads through file-sharing software has drawn criticism, and is likely to make the company a focus of the hearing.
Outlook: Comcast recently backed away from the restrictions. Broadband providers have argued new FCC rules on traffic aren't necessary.
Mr. Martin will preside over a seven-hour hearing at Stanford University that will explore what responsibilities Internet providers have to deliver traffic fairly, and what phone and cable companies should be telling consumers about the services they can expect for their $40 or $60 a month.
"We'll focus on the disclosure issues and the broader impact these practices are having from the consumer perspective," Mr. Martin said in an interview Wednesday.
If an Internet provider decides to limit traffic in some way to manage its network, that should be "clearly and reasonably disclosed to the consumer," Mr. Martin says. "If people are going to upgrade [their Internet service] they need to understand what they're getting."
Comcast declined an FCC invitation to attend Thursday's hearing, though it appeared at a hearing earlier this year. A Comcast spokeswoman said the company "felt the issues specific to us were well covered at the first hearing, and the focus of this event should be broader than any individual company's issues."
A few years ago, Mr. Martin expressed the view that he didn't think the FCC needed new rules to make sure all online traffic was treated equally -- an issue that has come to be known as net neutrality -- because there were no examples of Internet providers degrading traffic.
But his stance changed last year when Comcast was accused of deliberating dropping some traffic by users of file-sharing service BitTorrent, Inc. Consumer advocates and file-sharing company Vuze Inc. filed complaints at the FCC, accusing Comcast of violating the FCC's net-neutrality principles and asking the agency to wade into the area of deciding what constitutes "reasonable" network-management practices.
Now, the FCC is pressing an investigation into whether phone and cable companies can deliberately slow or block some Internet traffic, and Mr. Martin has strongly suggested companies provide more consumer disclosure before the FCC makes them do so.
Mr. Martin's interest in enforcing the FCC's net-neutrality stand hasn't flagged in recent days, despite efforts by Comcast to cut deals with some file-sharing companies whose users consume an outsized share of the capacity of high-speed networks.
Last month, Comcast and BitTorrent Inc. announced they'd begun collaborating on ways to allow BitTorrent's applications to work more smoothly on the cable company's network. Comcast had a policy of deliberately slowing some traffic flowing over BitTorrent's file-sharing network during peak Internet usage times.
Instead of slowing file-sharing traffic used by specific applications during peak times, Comcast said it would target consumers instead, slowing traffic for those who use too much bandwidth.
Earlier this week, Comcast announced it had teamed up with peer-to-peer software company Pando Networks Inc. to create a "Bill of Rights and Responsibilities" for network owners and consumers who use peer-sharing software. The effort was mocked by consumer advocates and bloggers.
Despite Comcast's efforts, it is not clear Mr. Martin or other FCC officials are willing to let them off the hook.
"I'd be interested in hearing what they're talking about in the 'Bill of Rights,' " said Mr. Martin, who indicated he has not ruled out a third public net-neutrality hearing. "I think we obviously need to continue to focus on the complaint that's in front of us and how that's impacting consumers."
Some FCC officials and telecom lobbyists have privately questioned whether Mr. Martin's interest in investigating Comcast's network-management practices have more to do with his ongoing battle with the cable industry.
Mr. Martin dismisses the speculation, noting that he backed a condition in two mergers -- involving AT&T Inc. and Verizon Communications Inc., respectively -- that required the companies to abide by the FCC's net-neutrality principles.
Mr. Martin's investigation into Comcast's efforts to limit traffic for file-sharing programs set off alarms in Hollywood and the recording industry. Entertainment-industry executives would welcome help from Internet providers to block the illegal online sharing of movies, television shows and music. Several entertainment-industry officials will testify at the FCC's hearing Thursday.
"How should network operators deal with certain kinds of content that's illegal?" Mr. Martin asked. "The commission's net-neutrality principles don't only apply to legal content, but it's important to hear from those people concerned about how the principles might apply."
By: Amy Schatz
Wall Street Journal; April 17, 2008
