CTIA: Net regulation not in nation’s best interest

The cellular industry said a new staff report by the Federal Trade Commission undermines not only the case for net neutrality but the debate over broadband regulation as well.
“The Internet regulation scheme has forever been built on a hypothetical, ‘what-if’ scenario and today this flimsy theory has met yet another round of cold, hard, real-world facts that render it unworthy of our nation’s attention and resources,” said Steve Largent, president of cellphone trade association CTIA. “I think the overwhelming majority of Americans, regardless of political party affiliation, would agree that as a nation we have some serious challenges ahead of us. Yet by virtually every responsible measure, regulating the Internet is not one of them-it’s not even close.”
The FTC report said the government should be in no rush to regulate the Internet.
“This report recommends that policy makers proceed with caution in the evolving, dynamic industry of broadband Internet access, which generally is moving toward more-not less-competition. In the absence of significant market failure or demonstrated consumer harm, policy makers should be particularly hesitant to enact new regulation in this area,” said FTC Chairman Deborah Platt Majoras.
The report said the FTC, Justice Department and Federal Communications Commission have jurisdiction over broadband Internet access, particularly competition and consumer protection.
Public Knowledge, an advocacy group supporting net neutrality, said the FTC report did not go far enough.
“The report falls far short in its analysis of a competitive market and the related issue of net neutrality,” said Gigi Sohn, president of Public Knowledge. “Despite the fervent wishes of the FTC staff, there is not a competitive market for high-speed Internet services. New technologies, particularly wireless technologies, are not soon going to have the same robust qualities or market penetration as the duopoly cable and telephone-company services.”
One FTC member, though voting with the other four commissioners to approve the report, seemed to agree.
“The report also soberly reminds us that regulation often has unintended side-effects. That is surely true. But it seems to me equally clear that this report shows that doing nothing may have its costs as well,” said Commissioner Jonathan Leibowitz.