Add to del.icio.us     Digg this

May 11, 2010

Medley Global Advisors L.L.C., a wireless industry research firm studying the FCC’s plans to reclassify broadband services in order to better regulate them said late yesterday that high-speed Internet service providers are likely to underscore some concerns that any reclassification could impact long-term investments and may not be in the best interests of consumers.

The research company added that litigation likely will follow the FCC’s announcement that it is seeking comment on a plan to regulate broadband services by moving them to the Title II group.

The announcement wasn't well perceived by some observers.

“FCC Chairman Julius Genachowski now has the political cover he needs to enact by year's end or early next year a middle-of-the-road approach using a deregulatory Title II wireless carrier framework for broadband oversight," the research firm said.

"Even if approved by the Democratic-led FCC within that time frame, the controversial initiative opposed by broadband service operators is likely headed for a crash that ties up broadband regulation in years of litigation before policy is clarified,” Medley said.

“Many people have asked about the agency’s next step in view of the recent decision in the Comcast case,” Genachowski said in introducing the concept.

“Our goal is to restore the broadly supported status quo consensus that existed prior to the court decision on the agency’s role with respect to broadband Internet service,” added Genachowski.

The Federal Communications Commission introduced what it is calling a 3rd option for regulating broadband services and is seeking comment on the subject.

The FCC's new plan is in response to a ruling in April that the agency lacks the authority to demand that Internet service providers like Comcast have to offer equal access to anyone who wants to connect to their network.

The ruling is a slap in the face for net-neutrality proponents and could impact the National Broadband Plan recently submitted to Congress.

The FCC said its new measures would:

Recognize the transmission component of high-speed Internet service as a telecommunications service

Not apply sections of the Communications Act that are inappropriate for broadband access service

Apply only a handful of provisions of Title II that were believed to be within the FCC’s purview for broadband

Put in place boundaries to guard against regulatory overreach

According to a statement made in March from the Knight Commission's Digital Inclusion Summit in Washington, the FCC said it is seriously considering using wireless spectrum for free or at least low-cost 3G service.

The Commission said its upcoming National Broadband Plan will consider the use of wireless spectrum for a free or very low cost mobile broadband service.

The FCC is also recommending that its low-cost phone service programs, Lifeline and Link-Up, be expanded to include broadband Internet access as well.

The agency also plans to launch a new program called the National Digital Literacy Corps, which would be similar to programs like AmeriCorps and SeniorCorps.

The FCC's newly proposed Digital Literacy Corps would target vulnerable communities with below-average adoption rates like low-income housing developments, rural towns, tribal lands and areas populated primarily by racial and ethnic minorities.

FCC Commissioner M.Clyburn said in a speech "overall, wireless broadband is one of our generation's most important challenges, primarily because it presents one of our most important opportunities. Universal broadband and the skills to use it can also lower barriers of means and distance to help achieve a more equal opportunity for all Americans."

The FCC's recommendations come as part of its national plan to expand home broadband use to 90 percent of U.S. citizens by 2020.

As of today, about 92.9 million U.S. citizens don't have broadband Internet access at home.

Overall adoption rates are especially low among rural residents, the elderly, the disabled and most ethnic minorities.

In February, the FCC named healthcare and education as two of its top priorities.

Add to del.icio.us     Digg this

Source: The FCC.