FCC Moving 'Very Carefully' on Net Neutrality, Alvarez Says
The FCC is moving “very carefully” and being “as diligent and thoughtful as possible” as it tries to figure out a path forward on net neutrality, said Daniel Alvarez, aide to FCC Chairman Tom Wheeler. Wheeler, as he did earlier this month in saying the “big dogs” (see 1411210040) may sue the agency over net neutrality, wants to “stop the back and forth between the FCC and the courts. We need to come up with something thoughtful and sustainable,” Alvarez said, relating Wheeler’s thoughts at a Practising Law Institute seminar Thursday.
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.
Neither Alvarez nor other FCC officials indicated when the agency may decide the issue. Asked whether the agency may seek more comments in the proceeding, Alvarez said, “Well ... I don’t know.” Wireline Bureau Chief Julie Veach, speaking separately at the event, said the agency is “busy evaluating the record and preparing some options.” Commissioner Mignon Clyburn, in her remarks, said she didn’t know when the commission will act -- “so stop asking.” Indicative of the political pressure over the issue, Republican congressional staff at the event reiterated opposition to a Title II approach by the soon to be GOP majority. “Title II is bad,” said David Quinalty, Senate Commerce Committee Republican policy director.
Clyburn highlighted overhauling Lifeline. After what she called a “whirlwind” year that’s not over yet, Clyburn said the agency has more issues coming up next year, including Lifeline, an issue she said is “critical to closing any digital divides that remain” for the poor and minorities. As she did last month (see 1411120026), Clyburn backed changes that would, among other things, set minimum performance standards but said that raises questions like whether Lifeline should follow Connect America Fund standards.
Clyburn said she’s still evaluating the E-rate proposal scheduled to be taken up at the commission's Dec. 11 meeting. Wheeler is proposing to raise the program’s spending cap by $1.5 billion (see 1411170042), and Commissioner Jessica Rosenworcel in an op-ed in the Huffington Post said the agency needs to “go for it.” Neither Clyburn nor her staff elaborated on whether she’s seeking changes to the draft order.
Commissioner Mike O’Rielly predicted Congress’ new Republican majority would “not be shy” about exercising oversight of the FCC and other agencies. O’Rielly said the commission will likely often have to respond to Congress explaining its decisions and processes. A question when the agency deals with the NPRM it issued earlier this month on the IP transition (see 1411210037), is whether “the commission is going to stand in the way or be a hindrance in the transition.” He was disappointed the agency, in the same vote as the approval of the NPRM, also passed a declaratory ruling toughening the requirement to seek commission approval when retiring legacy infrastructure.
On taking a Title II approach on net neutrality, Quinalty said: “All it does is divide people.” Senate Commerce Committee ranking member John Thune, R-S.D., “does not want to go forward [with Title II] not only because it’s bad policy but it poisons the well for the other conversations we need to have” on other telecommunications issues, Quinalty said. Margaret McCarthy, a Democratic staffer to the House Commerce Committee, said the issue does not need to be partisan, saying broadband providers opposing reclassification have agreed with rules against blocking and other net neutrality protections. “The ‘how’ matters, not just the ‘what,’” Quinalty said. “The last thing we want to see is for the FCC to go back to the well once more and get struck down” in the courts. A Title II approach is “fraught with legal and policy problems,” said House Commerce Committee Majority Chief Counsel David Redl. He said even Title II with forbearance would not be acceptable because forbearance is “neither simple nor straightforward.”
That was echoed by Kathleen Grillo, Verizon senior vice president-federal regulatory affairs, at a wireline panel. Forbearance is not “easy peasy,” she said, citing unsuccessful efforts for the industry to win agency or court forbearance from legacy accounting rules. Angie Kronenberg, Comptel general counsel, said there may be “hurdles” for companies to be forborne from rules to which they are already subject, but “it may be easier” for an industry to be forborne from rules not yet applied to them, as would be the case if broadband is reclassified.
President Barack Obama’s backing of Title II (see 1411100035) was unusual, said Rick Chessen, NCTA senior vice president-law and regulatory policy. “I haven’t seen a president getting so personally and specifically involved,” he said. Obama “used words I never thought I’d hear a president use, like forbearance or Title II. It wasn’t a general statement. ... It was more a road map.” Obama’s statement was “unprecedented,” said Jonathan Adelstein, PCIA president. Wheeler finds himself “bludgeoned” by the left and facing opposition from the industry, he said, leaving him little room to maneuver.
Veach highlighted some issues the bureau will tackle next year, including net neutrality, CAF Phase II, the technology transition, inmate calling service changes, and special access, which she said will be “a very significant issue for us.” The agency’s broadband deployment report is due in January, she noted.