Proposed Fine Against AT&T Is Regulatory Grandstanding, Former Clyburn Aide Says
The $100 million proposed FCC fine against AT&T for throttling customers with unlimited data plans (see 1506170050) is “regulatory grandstanding at its best,” said Adonis Hoffman, former chief of staff to Commissioner Mignon Clyburn, Friday in an emailed statement. "No…
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matter how egregious ATT's action allegedly may have been, a fine of $100 million takes the FCC's enforcement regime from the ridiculous to the sublime,” said Hoffman, founder of a new think tank, Business in the Public Interest. “Of course, before you get to the fine, you have to get past some dubious legal authority in the first place, which many experts suspect will not stand.” AT&T and the Enforcement Bureau could work out a settlement, but that appears unlikely, said Fletcher Heald lawyer Paul Feldman in a blog post. Feldman said AT&T is not client of his. “That the NAL [notice of apparent liability] was issued (with a $100 million bottom line, to boot) strongly suggests that the parties are too far apart for a settlement,” he said. “Rather, it seems most likely that this matter will be resolved in court.” The proposed fine against AT&T for violating the 2010 net neutrality order through its “Maximum Bit Rate” [MBR] raises an interesting question -- what does unlimited mean” Feldman said. “Not to add any pressure or anything, but bear in mind that if you come up with the wrong answer, it could cost you $100 million. Does that help?” The NAL raises other tough questions, he said. “There’s no question that many consumers felt that they were deceived, and that AT&T could have done more to inform them of the MBR policy,” he said. “But ... did the Transparency Rule require it to do so?" Feldman does not represent AT&T. A former FCC official said the NAL shows that the Enforcement Bureau is quietly emerging as the dominant force within the FCC: “New rules will be made through enforcement proceedings with no opportunity for public notice and comment.”