U.S. Chamber Disappointed with FCC Chairman's 'Third Way' Broadband Framework Proposal

WASHINGTON, D.C.—The U.S. Chamber of Commerce today expressed disappointment that Federal Communications Commission (FCC) Chairman Julius Genachowski has decided to craft a complicated and legally dubious regulatory path in response to last month's ruling on net neutrality by the U.S. Court of Appeals for the D.C. Circuit.

"Given these turbulent economic times and the enormous cost of building out broadband infrastructure, the United States cannot afford policies that create regulatory uncertainty and hinder private-sector investment in this critical technology," said William L. Kovacs, Chamber senior vice president for Environment, Technology, and Regulatory Affairs. "Imposing these new requirements on broadband providers is counter to the intent of Congress and would unravel more than a decade of policies that have allowed the Internet to flourish."

Title II of the Communications Act of 1934 was originally designed to regulate common carrier telephone companies during the time of rotary phones and analog technology. Under Title II, common carriers have to share their infrastructure with competitors and are subject to government regulation of their prices and services. When the law was updated in 1996, Congress decided not to expand traditional telephone regulation to new and advanced services, such as broadband. Now, Chairman Genachowski plans to pursue a path that would impose parts of Title II on broadband service providers.

"This is a backward plan that could stifle investment in future broadband for generations," said Kovacs. "Today's dynamic, innovative, and competitive market should not be saddled with common carrier regulations originally developed for a bygone era."

Over the past decade, the FCC has issued a series of decisions declaring that broadband should not be subject to the onerous requirements of Title II regulation, according to the Chamber. As a result, broadband service providers have invested hundreds of billions of dollars into developing their networks. Reversing course and applying Title II to broadband would deter future investment, slow innovation, and harm consumer choice.

The U.S. Chamber of Commerce is the world's largest business federation representing the interests of more than 3 million businesses of all sizes, sectors, and regions, as well as state and local chambers and industry associations.

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