Google-Verizon Proposal Seen Influencing FCC Broadband Regulation Negotiations
Some analysts and economists see the Google-Verizon proposal as a step in the right direction, though they're skeptical of some of the principles. Tom Navin, former Wireline Bureau chief, said in a conference call hosted by Credit Suisse Tuesday that the proposal shows some frustration with negotiations on broadband reclassification at the FCC. Google and Verizon, like many other companies, are probably getting tired of uncertainty as the FCC examines net neutrality, said Navin, now with Wiley Rein. Google’s willingness to compromise takes political leverage away from the FCC, he said.
Sign up for a free preview to unlock the rest of this article
Timely, relevant coverage of court proceedings and agency rulings involving tariffs, classification, valuation, origin and antidumping and countervailing duties. Each day, Trade Law Daily subscribers receive a daily headline email, in-depth PDF edition and access to all relevant documents via our trade law source document library and website.
The agreement is an important step in accelerating investment in broadband, from infrastructure to services to applications, said Everett Ehrlich, ESC president. The proposal “moves us towards a workable -- and Congressionally approvable -- regulatory framework that would promote certainty and encourage innovation in applications and online services,” he said. It specifically allows prioritization, he noted, saying it “takes us one step away from the one-size-fits-all Internet and spurs the development of services that require special treatment."
Google and Verizon have done what the FCC has so far failed to do -- forge a meaningful compromise on net neutrality between the two sides -- said Ovum analyst Jan Dawson. Google and Verizon’s approach means “the FCC will now have to gather the key stakeholders together once again to confer on whether they find the deal acceptable, or whether a revised version might form the basis of an agreement,” Dawson said. “The FCC should latch onto this compromise as a key plank of its net neutrality strategy. With some tweaks, it may well turn out to be just the sort of compromise the FCC has been looking for.”
"The intent of the Verizon-Google proposal was likely to force progress and its design is to drive progress towards the agreement provisions,” said Rob Enderle with the Enderle Group. The possible short term impact is that it establishes Verizon and Google as major players and assures them a seat at the table and sets their conditions for easy agreement, he said. However there is a risk that the FCC will see what the companies have done as a threat and move against the proposal.
The most controversial part of the Google-Verizon agreement is the exclusion of both wireless networks and new broadband services from net neutrality requirements, said Carl Howe of Yankee Group. But he believes the proposal’s principles wouldn’t have any negative effect on investment. While wireless is a somewhat competitive market, “variances in coverage render much of that competition moot,” he said. Excluding wireless operators from net neutrality requirements simply allows non-competitive practices like handset exclusivity to extend into the media world, he said.