Former chairman of the House Energy & Commerce and House Oversight & Government Reform Committees looks at net neutrality
Throughout my decades of service on the House Energy & Commerce Committee, I advocated for rules and laws that put consumers first and placed corporate competitors on a level playing field. That’s why as the internet emerged and access to it exploded, I sponsored legislation to establish net neutrality and strongly supported the Federal Communications Commission’s Open Internet Order, which has been upheld by the courts.
Net neutrality creates fair and open competition, so internet startups and small businesses aren’t blocked by multinational corporate giants. It maximizes consumer choice, giving everyone equal access to all content providers. And it prevents internet service providers from acting as gatekeepers that pick winners and losers by cutting side deals with content providers that pay for “fast lane” access.
The results so far show that net neutrality works as intended. It is benefiting consumers, and spurring innovation and competition in the information economy. But now a new development has come on the scene that some view as a threat to the open internet.
Called free data or zero rating, it’s a plan offered by wireless and wireline providers that gives consumers free unlimited access to certain internet sites and services – often video – without counting against their data caps.
I believe the FCC should follow set rules and look closely at zero rating plans on a case-by-case basis to ensure they don’t violate its Open Internet Order. There is no need to launch a new rulemaking process, as some have proposed, to address this innovation because when structured the right way, free data programs can be fully compatible with net neutrality.
Boiled down to its core, free data programs should be judged on whether they meet the spirit of net neutrality where companies that provide access to the internet are prohibited from discriminating against or censuring any content provider. Content is not singled out for priority treatment. No money changes hands to give someone a leg up. And everything is fully transparent.
In fact, much good can come out of free data plans, especially for lower-income customers who might not have regular access to Wi-Fi – the main way smartphone users can avoid data charges. It can encourage competition, as wireless companies find new ways to differentiate themselves and appeal to certain customers. And while free data offerings tend to focus on providing consumers more of what they want, such as data-heavy videos and music, it has the potential to provide free access to valuable information to improve our health, reduce energy consumption and connect our communities together.
The most prominent example of a free data program is the “Binge On” offering by T-Mobile US – a company I represent because they provide greater competition and consumer choice in this and other areas. The FCC will undertake a thorough review of “Binge On” as it should, but based on my understanding of the plan, I believe it has a structure that is consistent with the Open Internet Order.
With “Binge On,” customers are free to opt in or out as they wish. It allows any video service meeting straightforward technical requirements to participate. No backdoor payments are made. And while it does limit streaming to a lower resolution, this information is disclosed to consumers, who retain the option to instead watch videos in a higher resolution, with the caveat that it then will count against their data plan. Similarly, content providers can opt out of the program and T-Mobile US will stream their videos at native resolution.
In looking at “Binge On” or any free data plan offered by any company, the key standards to meet are openness, transparency and nondiscrimination.
Let’s keep in mind that the internet is essential for most people’s personal and professional lives, and it is increasingly being accessed over mobile devices, especially by Americans with the fewest resources. Plus, mobile video is now the No. 1 way people use mobile data. Given these trends, the question is how can consumers benefit by making informed decisions about when and whether to pay for access to broadband data of their choosing? Free data offerings are one among many possible solutions to the problem. Rather than stifling innovation, the FCC should use its authority to ensure that free data plans benefits consumers and meets the core principles behind net neutrality.
Henry A. Waxman, a past chairman of the House Energy & Commerce and House Oversight & Government Reform Committees, represented California’s 33rd Congressional District from 1975 to 2015.
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