FCC Set to Approve Extension of Net Neutrality Small Carrier Waiver
New FCC Chairman Ajit Pai wasted no time addressing an extension of the lapsed waiver for small ISPs of the enhanced transparency requirements in the 2015 net neutrality order. Pai said in a statement he circulated for a vote an order that would waive the requirement for five years and extend it to businesses with fewer than 250,000 subscribers. Pai said he and Commissioner Mike O’Rielly already voted yes.
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The original waiver lapsed Jan. 17 and the requirements have been officially in place since then (see 1701170059). The original waiver limited relief to ISPs with fewer than 100,000 subscribers. The vote wasn’t a surprise -- Pai and O’Rielly assured small ISPs the commission won't clamp down on companies not in compliance with the rules after they take control (see 1612190059). Commissioner Mignon Clyburn bemoaned expiration of the waiver. Pai and O'Rielly are expected to pursue more sweeping changes to the rules, approved 3-2 over their strong objections.
The House already approved this session the Small Business Broadband Deployment Act (HR-288), which exempts ISPs with 250,000 or fewer subscribers from the net neutrality order’s enhanced transparency.
“Federal regulations have a disproportionate effect on small businesses -- businesses that are often the linchpin of a more competitive marketplace and that don’t necessarily have compliance resources,” Pai said in a statement. “I believe the FCC should be sensitive to the impact regulations can have on such businesses.” Pai called for prompt approval of the order. “Further delay will only force the companies to divert scarce resources away from investing in rural America and toward filling out needless paperwork,” he said.
“There's no reason to deny information about the services they buy to customers of any ISP, whether it's a large one or a small one,” said Matt Wood, Free Press policy director. “A cable company with 250,000 subscribers isn't what most people consider a small business. In fact, as Chairman Pai must know, the vast majority of small businesses in America are buyers of internet access not sellers of it. The benefits of transparency are clear, while lobbyists varied widely and wildly in the claims they made about the supposed burdens these rules impose.”
Sen. Ed Markey, D-Mass., slammed the Pai action. “Regrettably, Chairman Pai has circulated an exemption that would allow some broadband providers to withhold basic information on services from millions of subscribers,” Markey said in a statement. “It is unacceptable that small shops and stores will pay for broadband without knowing all the commercial terms of the service. Rather than granting carve outs for the broadband industry, the FCC should be ensuring that all consumers have access to all the pricing and performance information they need to make informed decisions about their broadband service.”
“Thank you @AjitPaiFCC and @mikeofcc for voting to protect small businesses across America from needless regulation,” tweeted Sen. Steve Daines, R-Mont.
Associations representing ISPs have been pressing for an extension. “With significant bipartisan support in Congress, it only makes sense to grant a waiver for small businesses,” emailed Steve Berry, president of the Competitive Carriers Association. “The majority of CCA members are small businesses who want to focus on their customers rather than complying with unnecessary obligations, and I encourage the Commission to adopt the bipartisan compromise as soon as possible.”
“The order that Chairman Pai circulated today will free up scarce resources that are needed to maintain and upgrade rural broadband networks," said Jonathan Spalter, president of USTelecom. “This is a very good thing. We hope for unanimous commission action on this encouraging step toward supporting broadband infrastructure and the opportunities it makes available.”