'Broadband Principles' Eye IP User/Vendor Self-Control

Telecom Policy Report, August 29, 2005

A set of "broadband principles" articulated by one industry group suggests the deregulation direction taking shape among federal policy makers for all Internet Protocol (IP)-based services is likely to require more self discipline, more responsibility and more control by end users and service providers for a fair and healthy market to develop further.

In a 34-page white paper, Principles for Broadband and IP Services, the U.S. Internet Industry Association (USIIA) outlines its major focus on consumers' rights and competitors' obligations in an atmosphere virtually free of traditional, heavy-handed regulatory oversight (TelecomWeb news break, Aug. 26).

Yet the group also advocates the establishment of an industry-led type of policing body or organization for enforcement and conflict- resolution, and this is regarded as an important element among numerous steps needed to migrate toward an eventual environment of "self-regulation" for IP offerings and business conditions.

"This is consistent with the move toward an industry in which consumers, not regulators, have control of the products and services they wish to utilize," the white paper's executive summary states. "This, in turn, eliminates the need for legislation and regulation to cover hypothetical situations that may never actually occur. And it creates an environment in which the industry itself, through a standing industry organization open to all parties, governs itself in order to eliminate the need for government regulation and micro-management of the industry."

The USIIA whitepaper, broadband principles and accompanying statements clearly are drawing off decisions by the Federal Communications Commission and the federal courts as well as the much-debated intentions of the U.S. Congress to completely rewrite or adopt liberal, IP-centric amendments to the Communications Act of 1934 and the Telecommunications Act of 1996.

In the wake of FCC and high-court developments, USIIA President and CEO David P. McClure underlined the group's reaction to FCC decisions that effectively will be loosening rules for telco, cableco and third-party-provided IP, broadband and other telecom offerings (TPR, Aug. 8) as well as the U.S. Supreme Court's decision in the Brand X Internet Services case, which essentially upheld the federal agency's authority to make sweeping deregulatory moves (TelecomWeb news break, Aug. 5, June 30).

"The Court and FCC have done an excellent job of setting the principles that will rule a deregulated broadband marketplace," McClure said in a prepared statement. "But the broadband industry needs to do its part as well, endorsing these principles and using them as the foundation of an effort to better manage the public interest. We have the ability to ensure competition and innovation while protecting consumer rights - and to keep government regulation to a minimum by stepping up to our responsibilities as an industry."

USIIA points out that the FCC's August action includes new rules for data services provided by telcos and adoption of a policy statement to help ensure that telecom networks do not discriminate against the content of competitors; this was followed the Brand X decision that essentially upheld a FCC ruling that freed cablecos from being forced to share their networks with Internet service providers.

The Internet group claims it is building on past principles espoused by other industry groups but, more significantly, on the FCC's policy statement that embraced directions adopting certain "consumer rights" and network connectivity in a deregulation era: the freedom to access the legal content of their choice, to run the applications and services they want (subject to the needs of law enforcement), and to connect to their choice of legal devices so long as they do not harm the network.

Industry Self-Regulation Key

USIIA, however, elaborates with its own Top 10 principles, which it feels balance the interests of business and consumers. In addition, its white paper sets the foundation for an industry body to interpret, implement and enforce the principles through a process of self-regulation.

"Efforts to expand and transform national telecom policies to address the emergence of broadband and other IP-based services - including critical policies for interconnection and access - are best crafted through a balanced process that minimizes government regulation; recognizes commercial contracts enforced by the courts; and promotes industry self-regulation that promotes a healthy and thriving supply chain for the industry," the group says.

Also, USIIA believes self-regulation and enforcement will lead to better industry information and input; the ability for smaller companies within the industry to participate in the process; the strengthening of the Internet supply chain; lower costs for industry and government; and more effective regulations and legislation in the public interest. It maintains the broadband industry and the FCC have achieved some success in implementing initial sets of connectivity principles, but as the business continues to grow and to expand both in market share and the scope of its technologies, these principles need to be formalized, widely adopted and incorporated into the governance process.