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ACA Doesn't Buy FCC's Rate Reg Reassurances

Mari Silbey
3/5/2015

One of the biggest concerns for Internet service providers out of last week's FCC net neutrality ruling is the threat of rate regulation.

At yesterday's American Cable Association (ACA) Summit in Washington DC, however, FCC Special Counsel for External Affairs Gigi Sohn told cable operators, "That shouldn't keep you awake at night."

While the Federal Communications Commission (FCC) now plans to classify ISPs as common carriers under Title II of the Communications Act, Sohn pointed out that the agency is also forbearing from "every single administrative mechanism that would make rate regulations possible." Not only did the FCC explicitly state that it wouldn't apply utility-style rate regulation to broadband providers, but Sohn noted that any attempt to do so would be politically unfeasible both now and in the future. (See FCC Vote Shows Net Neutrality Strains.)

"I'd love to see the next chairman get through the Senate and say that they are interested or eager to do rate regulation," declared Sohn.

The ACA and its many cable company members, however, didn't feel all that reassured. In a lunchtime roundtable discussion with the press, ACA Chair and MCTV President Bob Gessner stressed that rate regulation remains a grave concern. Likening it to a "pie-crust promise," Gessner described the promise of forbearance by the FCC as both easily made and easily broken.

As evidence, Gessner recalled Tom Wheeler in 2013 describing regulation of the Internet as a non-starter. "And yet here we are 16 months later," Gessner added, "and it's not only a starter, it's a finisher."


Want to learn more about Title II and its implications for the cable industry? Then check out the agenda for our upcoming Cable Next-Gen Technologies & Strategies event, Tuesday, March 17, 2015, at The Cable Center in Denver.


ACA President and CEO Matt Polka was also adamant on the topic. "There's nothing that says rate regulation will not happen," Polka explained.

Polka also promised that the ACA would respond strongly once the FCC's Open Internet ruling is officially released. That could mean litigation, and it could mean working through Congress for legislative support. "We would love to see Congress engage on this," he said.

But Polka also made it clear that "literally all our options are on the table." At the very least, the perceived threat of rate regulation is very real.

— Mari Silbey, special to Light Reading

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jbtombes
jbtombes
3/9/2015 | 6:49:01 PM
Re: ...
You (KBode) are probably right on the light-touch in the short term. As far as appreciating de-reg...given what little I know about operators (mostly on the cable side) the idea of them waking up in the morning with a prayer on their lips to governement for de-reg or no-reg just seems out of character. Maybe different culture on more highly regulated telco side? And yes (J Stang..) it would be nice to see this ruling. 
Joe Stanganelli
Joe Stanganelli
3/8/2015 | 11:25:03 PM
Re: Open Internet Ruling
I'm still really disgusted that it hasn't been released yet.  Before, the official hold up was that it wouldn't be released until it had been voted on.  The votes are in, the Commissioners' opinions are in.  And it's still hidden from the public.

Some "open" Internet.
Captain_Packets
Captain_Packets
3/8/2015 | 8:14:08 PM
Open Internet Ruling
In the end, we are chasing our tails a bit until the ruling is released in full detail to the public.

Mari, any additional clarity on when that might?
KBode
KBode
3/6/2015 | 7:50:46 AM
...
I honestly feel like the FCC will be so busy trying to show everybody this won't be "heavy handed regulation" that what actual regulation we do see will be minimal. From what I see zero rated apps and interconnection will get cursory glances, but again I highly doubt this FCC's going to suddenly start stomping all over small companies with onerous regulations. Doesn't seem like Wheeler's style. You'd think companies would be more appreciative of the fact they've enjoyed fifteen straight years of deregulation....
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