Net Neutrality Mandated in $7.2 Billion Broadband Stimulus Funding

July 3, 2009 No comments

Good news for Net Neutrality. This administration has shown that they are committed to the principals of Net Neutrality based on language in the rules recently released for the broadband stimulus funding. The Broadband Technology Opportunities Program (BTOP) is offering grants for: deploying broadband infrastructure in un/under-served areas; enhancing broadband capacity in public computer centers; and promoting sustainable broadband adoption projects. The rules require all grant winners to follow the FCC’s 2005 Internet Policy Statement as well as specifically calling out neutral traffic routing.

This shows that Net Neutrality is not some impossible to understand arcane rules that is anti-consumer like the opponents try to make you think. Opponents talk about extra government regulation, bureaucracy, and confusion because nobody really knows what it means. If the government can explain it in a few sentences in a 121 page document, then how hard can this concept really be to understand?

These rules are specifically called out and described in the Interconnection and Non-Discrimination Requirements section (Page 113) where they require applicants to commit to five obligations (page 114):

Adhere to the principles contained in the FCC’s Broadband Policy Statement (FCC 05-151 adopted Aug. 5, 2005).
Not favor any lawful Internet applications or content over others.
Display network management policies in a prominent location on the service provider’s web page and provide notice to customers of changes to these policies (awardees must describe any business practices or technical mechanisms they employ, other than standard best efforts Internet delivery, to allocate capacity; differentiate among applications, providers, or sources; limit usage; and manage or block access to illegal or harmful content).
Connect to the public Internet directly or indirectly, such that the project is not an entirely private closed network.
Offer interconnection, where technically-feasible, on reasonable rates and terms to be negotiated with requesting parties. This includes both the ability to connect to the public Internet and physical interconnection for the exchange of traffic.

The second one is very specific here in the description where they say that:

This requirement ensures neutral traffic routing. Without a non-discrimination condition, network operators could give preferential treatment to affiliated services, or charge some application and content providers for “fast lanes” that would put others at a competitive disadvantage.

The document continues with text about the AT&T/Bell South merger requirements and notes that this is a more general version, allowing the carriers more room to cache, manage spam, deal with DNS attacks, etc.

Go a few more pages and on page 118 they continue with the justification:

Overall, these five requirements ensure that public funds will support the public goal of open networks. The standards chosen echo established FCC rules, but avoid detailed regulation and allow for flexibility when network management requires differential treatment or exclusivity.

The section concludes by noting that the rules apply for the life of the facilities and that failure to comply would likely be considered breach of their loan or grant agreements at which point one would assume the money would have to be repaid.

This really is great news. If the government is going to be spending our own tax dollars (stimulus funds) to improve broadband coverage across the country, then access should be equal to all for all content.