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US proposes net neutrality rules 'Net neutrality' rules attacked
(about 19 hours later)
The US has proposed new rules that would require internet firms to respect the principle of "network neutrality". US proposals to ensure the net remains an open and neutral platform have drawn criticism from the wireless industry.
The head of the Federal Communications Commission (FCC) said that "all web traffic should be treated equally". The Federal Communications Commission (FCC) has for the first time targeted the wireless world to ensure all web traffic is treated equally.
The new rules are intended to prevent firms throttling bandwidth-sapping web traffic such as streaming video. The new rules would require firms to respect so-called "network neutrality."
Networks on both sides of the Atlantic have long argued for a two-tier system, where those that can pay are given priority over those that cannot. Industry critics argue that the newly proposed rules, combined with existing policies, will stifle innovation and undermine investment.
"There are few goals more essential in the communications landscape than preserving and maintaining an open and robust internet," FCC chairman Julius Genachowski said in a speech at the Brookings Institution, a Washington think tank. However, FCC chairman Julius Genachowski said doing nothing was not an option.
"It is vital that the internet continue to be an engine of innovation, economic growth, competition and democratic engagement." In his first major speech since his appointment earlier in the summer, he told an audience in Washington that the rules were "not about government regulation of the internet".
It is the first time that the Chairman has spoken out on the issue since being appointed in June. "History's lesson is clear. Ensuring a robust and open internet is the best thing we can do to promote investment and innovation," he told the audience at Washington think-tank the Brookings Institution.
'Extraordinary platform' "And while there are some who see every policy decision as either pro-business or pro-consumer, I reject that approach; it's not the right way to see technology's role in America."
He proposed two new rules to guide the FCC's approach to network neutrality. The FCC's proposals are meant to ensure that internet service providers cannot block or slow down traffic, such as bandwidth-hogging video downloads. Operators must also be transparent about network management, it said.
The first would prevent internet service providers (ISPs) from discriminating against bandwidth-intensive web-content and applications by slowing or blocking it. Criticism
"They cannot block or degrade lawful traffic over their networks, or pick winners by favouring some content or applications over others in the connection to subscribers' homes," he said. Almost as soon as Mr Genachowski stepped off the podium, industry critics condemned the inclusion of wireless traffic in the new policy proposals.
"Nor can they disfavor an Internet service just because it competes with a similar service offered by that broadband provider." The FCC says the internet is at a crossroads
The second would mean that ISPs would have to be more transparent about how they manage network traffic. "We are concerned the FCC appears ready to extend the entire array of net neutrality requirements to what is perhaps the most competitive consumer market in America: wireless services," said AT&T's Jim Cicconi.
The two new rules join four previous guiding principles of the FCC, which state that all consumers must be able to access "lawful" content, applications, and services, and attach non-harmful devices to the network. "The internet in America has been a phenomenal success that has spawned technological and business innovation unmatched anywhere else in the world," said David Cohen, executive vice president at Comcast.
"I believe the FCC must be a smart cop on the beat preserving a free and open internet," Mr Genachowski said. "So it's still fair to ask whether increased regulations of the internet is a solution in search of a problem."
"This is not about government regulation of the internet," he added. "It's about fair rules of the road for companies that control access to the internet." Verizon, the nation's biggest cellphone operator, said it believed the FCC has no reason to impose "a new set of regulations that will limit customer choices and affect content providers, application developers, device manufacturers and network builders".
President Barack Obama backed the concept of network neutrality in the presidential race. It also has the support of large companies such as Google, eBay and Amazon. Politicians also weighed in on the proposals.
However, telecommunications firms on both sides of the Atlantic argue that carrying high-bandwidth content, such as video, puts an extra burden on their networks and costs them money. Six Republican senators introduced a measure that would cut the FCC's funding to "develop and implement new regulatory mandates".
They argue the cost should, in part, be borne by the websites or the consumers. Meanwhile, the two Republicans on the FCC's board said they were not convinced that there were widespread problems of internet providers blocking or slowing traffic that needed to be addressed with new rules.
The new rules will be formally proposed at a meeting in October. "Pivotal moment"
However, just as many supporters as critics stood up to praise the FCC's move.
Touch screens are changing the way people use mobiles
The FCC "took an important step in...ensuring that the internet remains a platform for innovation, economic growth, and free expression," wrote Google internet evangelist Vint Cerf, on a company blog
Consumer groups saw the move as a victory.
"This is a tremendous day for millions of us who have been clamouring to keep the internet free from discrimination," said John Silver, executive director of advocacy group Free Press.
Mr Genachowski said the increasing number of people who go online using their mobile phones could not be ignored.
"The revolution in wireless technologies and the creation of path-breaking devices like the BlackBerry and iPhone have enabled millions of us to carry the internet in our pockets and purses."
Gigi Sohn of digital rights group Public Knowledge told BBC News the move was necessary given that "wireless is the next frontier and where the great growth of internet access is going to come from".
Mr Genachowski said he wants as much feedback from consumers, the industry and others on the proposals.
"This is about fair rules of the road for companies that control access to the internet," said the FCC chairman.