FCC Open Internet Order - Separating Fact From Fiction

The Open Internet Order: Preserving and Protecting the Internet for All Americans

The Commission has released the full and final text of the Open Internet Order, which will preserve and

protect the Internet as a platform for innovation, expression and economic growth. An Open Internet

means consumers can go where they want, when they want. It means innovators can develop products

and services without asking for permission. It means consumers will demand more and better

broadband as they enjoy new Internet services, applications and content.

Protecting Consumers, Providing Certainty for Innovators and Investors

Before the Commission adopted this Order, there were no rules preventing broadband providers from

conduct that would threaten the Open Internet. This Order implements bright line rules to ban

blocking, throttling and paid prioritization (or fast lanes ) and, for the first time, the rules fully apply to

mobile.

Open Internet rules are grounded in the strongest possible legal foundation by relying on multiple

sources of authority, including Title II of the Communications Act and Section 706 of the

Telecommunications Act of 1996. However, as part of this Order, the Commission refrains (or

forbears ) from enforcing provisions of Title II that are not relevant to modern broadband

service. Together, Title II and Section 706 support clear rules of the road, providing the certainty

needed by innovators and investors, and the competitive choices and freedom demanded by

consumers.

Separating Fact from Fiction

The Order uses every tool in the Commission's toolbox to make sure the Internet stays fair, fast and

open for all Americans, while ensuring investment and innovation can flourish. We encourage the public

to read the Order, which reflects the input of millions of Americans and allows everyone to separate

myths from fact, such as:

Myth: This is utility-style regulation.

Fact: The Order takes a modernized approach to Title II, tailored for the 21st Century.

There is no utility-style regulation. The Order bars the kinds of tariffing, rate regulation,

unbundling requirements and administrative burdens that are the hallmarks of traditional utility

regulation. No broadband provider will need to get the FCC's approval before offering any price,

product or plan. (paragraphs 37-38, 417, 451-452, 497-505)

Myth: The FCC plans to set broadband rates and regulate retail prices in response to consumer

complaints.

Fact: The Order doesn't regulate retail broadband rates.

Old-style telephone regulation required companies to file tariffs with the FCC and await regulatory

review before they could bring new products to markets - such an approval process does not exist

and is not permitted under this Order. Broadband providers will be able to adjust retail rates

without Commission approval and without having to wait even a minute.

(paragraphs 37, 451-452, 497-505)

Much has been made of the Section 201(b) authority in Title II under which the Commission may

hear complaints and respond to conduct that violates our Open Internet rules. The claim is made

that it will be a back-door form of rate regulation. This exact same authority has existed for

wireless voice service since 1993 and has never produced rate regulation. (paragraphs 38, 409-

410, 421-423)

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Myth: This will increase consumers' broadband bills and/or raise taxes.

Fact: The Order doesn't impose new taxes or fees or otherwise increase prices.

Nothing in the Order imposes or authorizes new taxes or fees. In fact, the Internet Tax Freedom

Act currently bans state and local taxes on broadband access regardless of how the FCC classifies

it. With respect to Universal Service, the Order does not impose mandatory contribution

assessments, but simply allows a current, separate proceeding on how to reform universal

service contributions to proceed. (paragraphs 37, 57-58, 430-433, 488-491)

Myth: This is a plan to regulate the Internet and let the government take over the Internet.

Fact: The Order doesn't regulate Internet content, applications or services or how the Internet

operates, its routing or its addressing.

The Order does not regulate the Internet. It applies to broadband providers - the companies that

connect people's homes to the public Internet. In other words, the Order protects consumers'

and innovators' last-mile access to what's on the Internet-the applications, content or services

that ride on it and the devices that attach to it. It means consumers can go where they want,

when they want and it means innovators can develop products and services without asking for

permission. (paragraphs 25-26, 186-193,336-340,382)

Myth: This proposal means the FCC will get to decide which service plan you can choose.

Fact: The Order doesn't limit consumers' choices or ban broadband data plans.

There is no approval requirement before retail plans, prices or services can be offered to

consumers. Broadband providers will continue to be able to offer new competitive services and

rates. This means that when a broadband provider wants to add a faster tier of service at a new

price, for instance, it is free to do so. Similarly, a broadband provider is free to change pricing

without approval. What providers can't do is engage in behavior that threatens the Open Internet.

(paragraphs 139, 144, 151-153)

Myth: This will embolden authoritarian states to tighten their grip on the Internet.

Fact: The Open Internet rules ensure the Internet continues to be a powerful platform for free

expression, innovation and economic growth.

This Order does not regulate the operation of the Internet nor does it endorse governmental control

of the way people use the Internet. This Order is a strong statement th

LINK:	http://www.fcc.gov/document/fcc-open-internet-order-separating-fact-fi...
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