Geek-Online

The “Broadband Internet Fairness Act” is a bill being prepared by Eric Massa, a congressman from New York that aims at turning the internet into a government regulated utility. 

As the bill states it purpose…

To Authorize the Federal Trade Commission, in consultation with the Federal Communications Commission, to review volume usage service plans of major broadband Internet service providers to ensure that such plans are fairly based on cost.

It sounds fair and reasonable.  There are five finding that this bill revolves around.

1. Increased deployment and adoption of broadband, including high-bandwidth uses of broadband, is key to allow broadband stimulus funds to produce maximal economic recovery and growth, and is key to the network effects of economic benefit associated with the Internet. [Jeff : Government money, government control]
2. No volume usage service plan for broadband Internet access can be just and reasonable unless charges are fairly based on the cost of the usage.  [Jeff: If it costs more to deliver more than they can charge more.  If it costs less than they have to charge less.   Regardless the government says which way.]
3. Volume usage charges for broadband Internet access that are substantially above cost in a market without sufficient competition constitute an unfair and unconscionable proactive, as substantially above-cost pricing has anti-competitive and anti-consumer effects on Internet use, including in particular Internet use for online video delivery. [Jeff:  Making ludicrous amount of money is not anti-competitive.  Regulating how much a company can make is anti-competitive.   The more a company makes in a market the more others will want to be in the market.]
4. The market for video delivery is effectively controlled by companies operating both traditional cable delivery and broadband Internet access services, increasing incentives to raise prices for Internet use in high volumes, to discourage consumers who may wish no longer to subscribe to traditional cable services.  [Jeff: It is true that many content producers are also Internet service providers but they are far from only players in the market.  When cable companies act this way they are opening the door for other Internet service providers.]
5. The Federal Trade Commission Act authorizes the Federal Trade Commission to investigate and remedy consumer pricing practice that in determines to be unfair or anti-competitive, including pricing practices by Internet service providers, as Internet services are not provided on a common carriers basis and therefore are not subject to the common carrier limitation on Federal Trade Commission Jurisdiction. [Jeff: The FTC already has jurisdiction so why do they need a new law?] 

This bill only serves one purpose.  It bring government control of the Internet.  There is a romantic view that Internet is a generic blob of information.  When in fact it is collection of networks.  Most of these networks are private while other are ran by public institutions. 

The proponents of the bill think this will eliminate download caps.  The opposite will happen.  This will be the end of flat rate Internet.  Instead metered Internet will be the norm.  With regulation anytime an ISP wants to change their rate they will need to get permission from the commission.  All ISP will be forced to charge the same rate.  Why would an ISP innovate to improve speed when they cannot charge a premium.

Definitions

Broadband Internet Service:An Internet protocol-based transmission service that enables users to send and receive voice, data, graphics, or a combination thereof.

Major Broadband Internet Service Provider: A broadband Internet service provider that, either directly or through affiliate, provides broadband Internet service to 2,000,000 or more subscribers, as further defined by the rules prescribed by the Commission pursuant to Section 5.

Volume Usage Service Plan: Any choice of broadband Internet service offerings to a residential consumer that includes two or more different sets of rates, terms, or conditions that are directly or indirectly based upon the amount of data actually transmitted to or from the consumer witin a fixed period of time.