FCC Open Internet Order - Separating Fact From Fiction
12/03/2015
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)
1
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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