WSJ: Net Neutrality Rules a Threat
April 18th, 2006 by Chris KinnanAn editorial in today’s Wall Street Journal captures the state of the telecom debate in Congress. It celebrates the progress on cable franchise reform, but alerts readers to the threat posed by net neutrality laws:
But [this] bill also threatens to introduce a whole new wave of regulatory requirements by codifying “Net neutrality” rules in law.
Last year the FCC published a non-binding set of Net neutrality “principles” laying out what consumers are “entitled” to — basically, choices about the content they see, the devices they use and the networks they connect to. However, giving the FCC the power to enforce these rules against Web sites and network owners alike would open a Pandora’s box of intrusive regulation and litigation.
The far better solution would be to start from scratch, a la Mr. DeMint’s Senate bill. It says, in effect, that telecom companies should be regulated on the basis of fair competition standards used everywhere else in the economy. Rather than trying to legislate competitive outcomes, as the 1996 Telecommunications Act did, Congress could allow open-field running save for anyone who violates antitrust rules.
For years, regulators and “consumer advocates” have argued that telecom is “too important” to be left to market forces. Something like the opposite is closer to the truth. In a digital age, telecom is too important for policy to hinge on arbitrary distinctions between “information” and “telecommunications,” or to be held hostage to thousands of rent-seeking municipal agencies. It’s time for a rethink, and the more fundamental, the better.
April 20th, 2006 at 6:31 am
I agree with the sentiment that government regulation will do more harm than good. Consumers are already protected by the market and by current FCC regulations. To invite Congress in to legislate only opens Pandoras Box, imho.
April 20th, 2006 at 12:31 pm
The WSJ has it right. Net Neutrality warrants only one Comment: “Keep government out of the business of regulating the internet. “
April 20th, 2006 at 4:07 pm
The WSJ hit the nail on the head with this editorial. The debate should not be one about how many new regulations can be created, but rather, one that looks at how to remove existing regulations that are protecting Internet providers’ and telecom companies’ monopolies. It is time the monopolies be regulated by fair competition standards used everywhere else in the economy.
April 24th, 2006 at 5:57 am
You’re right, Cannon. The last thing we need is Congress regulating the internet to death.