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The Internet Government The Courts News

Court Upholds Internet Deregulation 235

Internet Voting writes "Big telecom companies seem to have won big with the 3rd U.S. Circuit Court of Appeals ruling upholding FCC's ruling deregulating the Internet. Opponents argued that telecoms could now deny third parties access to their telecommunications lines and eliminating competition. From the story: "In its September 2005 ruling, the FCC relieved telephone companies of decades-old regulations that required them to grant competing Internet service providers 'nondiscriminatory' access to their wirelines in order to reach consumers.""
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Court Upholds Internet Deregulation

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  • by InvisblePinkUnicorn ( 1126837 ) on Friday October 19, 2007 @03:06PM (#21047277)
    "Hey, did you see that video on YouTube today?"

    "No, I can't. My ISP doesn't support that part of the internet."

    "Oh... that sucks... well, I can email you the video."

    "From your Comcast address? No, that won't do. My hardware is not Comcast-enabled."
    • Re:I can't wait! (Score:4, Insightful)

      by hobo sapiens ( 893427 ) <POLLOCK minus painter> on Friday October 19, 2007 @03:19PM (#21047499) Journal
      "From your Comcast address? No, that won't do. My hardware is not Comcast-enabled."
      Even without that, things are going that direction. I tried to send a note to a friend's hotmail address the other day. Since I use flat text formatting, it kept on getting rejected by a spam filter and I had to switch to html format to get it to go (needed MORE junk characters, amazingly enough). Gee, I'd bet those eMails would have gone through had I been using hotmail. Denying mail from other providers because it's suspected of being "spam" is really just one step away from only allowing hotmail users to talk to other hotmail users. Thanks, MSFT, for taking a perfectly portable, open, transport mechanism like SMTP and making it incompatible.

      It hit me then that the openness of the internet is under attack from many different vectors, not just on the net neutrality front.
      • Re:I can't wait! (Score:5, Interesting)

        by bmwm3nut ( 556681 ) on Friday October 19, 2007 @03:51PM (#21048003)
        It hit me then that the openness of the internet is under attack from many different vectors, not just on the net neutrality front.

        Yes, you're right, however, I don't fear the loss off "free" communication like the internet currently provides. If we do get to a stage where only Hotmail users can talk to other Hotmail users, or only Comcast customers can see Comcastnet, or whatever, it will be just like the bad old days of AOL, Prodigy, CompuServe, even local BBSes. While the "internet" or whatever we call the "internet" today may turn into a walled garden, I'm sure there will be something out there (yet to be invented) that will allow us unfettered access. As first it will be only nerd friendly (like the early days of the internet), but it will catch on. Even look at how much "freedom" the Chinese have with the internet and that's with the totalitarian government doing it's best to curtail it. For example, look at where we are with wireless mesh networking. If something happened that made the internet not free, you can bet there will be even more research into mesh networking and then you don't even have to worry about the telecom layer, you (the user) control it all.
        • Re: (Score:3, Insightful)

          This was totally what I first thought of.

          I used to have accounts on GEnie and INN, but when a bunch of my friends got Prodigy, I had to buy Prodigy too.

          I was so excited when I got my first real "Email" from CompuServe - it was amazing. I cancelled all my other accounts and kept only CompuServe.

          Now? I guess it's just another old idea that's new again.
        • by HTH NE1 ( 675604 )

          If we do get to a stage where only Hotmail users can talk to other Hotmail users, or only Comcast customers can see Comcastnet, or whatever, it will be just like the bad old days of AOL, Prodigy, CompuServe, even local BBSes. While the "internet" or whatever we call the "internet" today may turn into a walled garden
          Basically taking the "Inter-" out of "Internet".

          ("Internet" being from "inter-network", or "network of networks".)
  • As long as (Score:2, Redundant)

    by Bananatree3 ( 872975 )
    I can access Slashdot, I am hap NO CARRIER
  • Appeal it again. (Score:5, Insightful)

    by dgatwood ( 11270 ) on Friday October 19, 2007 @03:07PM (#21047299) Homepage Journal

    This deregulation is a consumer's worst nightmare. We already have very limited competition in broadband service, and this promises to kill off what little there is.

    • by KiltedKnight ( 171132 ) * on Friday October 19, 2007 @03:13PM (#21047399) Homepage Journal
      I'm sure the Verizon execs are jumping for joy over this.

      You're quite correct. Verizon screwed us as best as they could within the law (FITL), and now they're going to be able to just get their customers with all the sandpaper they can possibly use... and we're not going to have much of a choice.

      This is just further proof of why the entity that maintains the physical lines should not be allowed to also be service providers.

    • Well perhaps if the public gave a damn and threatened to haul out their representatives and tar and feather them, then you might see something different. It is the electorate which encourages the politicians to be whores.
      • The problem is, it's your LOCAL reps that could be doing the most good in this situation!

        The telco's screw you on your local service. It's the wires to your house, your street, your neighborhood. It's not the big ass trunk-lines that connect your city to the next city.

        If everyone leans on their city council reps, or their county council reps, or their mayor, and pushes for their city/county to make cable within their county/city a public utility, the telco's will be left with nothing. Lot of communities are
    • by _xeno_ ( 155264 )

      And the appeal will likely lose again. This isn't an issue for the courts, it's an issue with the FCC and the law. All the court said was that the FCC had the power to make that decision. The fact that the decision is likely wrong (something I agree with) doesn't effect whether or not it's legal.

      If you want a change, write to your representatives or write to the FCC. The courts just rule on what the law says, they don't write it.

      • Better write to your representatives. The FCC is accountable to the President and Congress as far as their oversight role. The FCC don't give a shit what you think of them.
    • by Hatta ( 162192 )
      This deregulation is a consumer's worst nightmare.

      Which is exactly why it went through.
  • by glindsey ( 73730 ) on Friday October 19, 2007 @03:10PM (#21047353)
    You want to deny everybody else access to the wires you laid on public easements, using grants, subsidies, and tax breaks given to you by the government? Fine. Pay all of the back leasing costs and taxes that were handed to you so you could establish your geo-monopolies everywhere. Sounds fair to me.
    • by garcia ( 6573 )
      Pay all of the back leasing costs and taxes that were handed to you so you could establish your geo-monopolies everywhere.

      It's apparent to me that they have already paid the government back for all of that. If they hadn't, the government wouldn't be so happy to tear down the walls for them.

      Oh, you meant pay it back so that it would somehow benefit the consumer? LOL.
    • Hum sorry but to nitpick but there's no reason to pay back a tax-break at least no more than a "mugging-break".

      Granted the lines that were built by the government should be auctionned and the proceeds given to the taxpayers.
      • by andy314159pi ( 787550 ) on Friday October 19, 2007 @03:38PM (#21047797) Journal
        He isn't talking about tax breaks; he is talking about direct infrastructure investment made on behalf of the people of the United States that is now being used for profit by private companies. That, by itself, is not problematic, so long as the the companies have equal access to the infrastructure and the profit making remains entirely competitive.
      • In 1898 Congress voted ina sur-tax on telecommunication (in its infancy) to pay the costs of the Spanish American War. That war ENDED before the tax could be implemented. Regardless, the law was the law and from 1898 till its repeal in 2005 the governemnt collected money ont his tax. You were allowed to request a refund (fill out a zillion forms- but your refund was only for the last 3 years it existed (I think it was 3 years). Phone companies may steal, but government steals more and with their help...
    • by vanyel ( 28049 ) *
      That is actually the right solution: the last mile should be public property, just like roads, sewer and water. Then the telcos, cablecos and isps all get access on equal footing.
  • by Cracked Pottery ( 947450 ) on Friday October 19, 2007 @03:11PM (#21047361)
    The essential problem is the tendency to accelerate the concentration of wealth. Owners can always find proxies to hide the influence of a media outlet. Small players can print any limited distribution screed they want, but it takes a major daily, or a cable channel or a decent powered radio or TV station to get the mass coverage, and those are all going to big corporate ownership. Of course, you don't have to watch, read, or listen, or, especially, believe.
  • by InvisblePinkUnicorn ( 1126837 ) on Friday October 19, 2007 @03:11PM (#21047371)
    Radio Shack will finally have an incentive to start a Universal Adapter ISP that'll bridge the various parts of the internet, which all use slightly-different-sized plugs to transmit data.
  • This is wonderful news! We can finally return to the exciting days of Prodigy, Compuserve, Delphi and AOL-esque walled-garden networks! No more pesky public websites that haven't paid their dues to the gatekeepers! Finally the network operators will have total control over their infrastructure that was built entirely with private funds with all lines running in under and above their own private land.
  • by MobyDisk ( 75490 ) on Friday October 19, 2007 @03:15PM (#21047433) Homepage
    This "regulation" was a step toward making sure that companies could compete evenly and fairly, by limiting the power of a government-granted monopoly. How is allowing the monopoly to grow unabated and block competition equal to deregulation? It isn't.

    If we changed the law so that banks didn't have to follow standard accounting practices, would that be "deregulation" or "a complete nightmare?" If we removed the requirements that food be edible and properly labeled, would that be "deregulation" too? How about we just eliminate the rule of law, and the constitution, and clear-up a whole lot of regulations?
    • Unfortunately this is the default argument for certain easily-influenced politicians trying to rebrand their vote as "fighting big government".
    • by happyemoticon ( 543015 ) on Friday October 19, 2007 @04:16PM (#21048451) Homepage

      The problem is that they're been able to reach monopoly status during a period of regulation which limited their ability to abuse this status. Competition is supposed to be the force which ensures people will not be taken advantage of, and that they will see the fruits of productivity gains. However, removing the restraints on their powers does not instantly create competition, and the fact that the companies still have de facto monopoly status, tons of resources and no regulation virtually ensures that the customer's going to get fucked.

  • Clarification (Score:5, Informative)

    by prestonmichaelh ( 773400 ) on Friday October 19, 2007 @03:19PM (#21047517)

    After RTFA, I think some may be a little confused as to what this means from just the summary. Some seem to be interpreting this as a blow to net neutrality. As I understand it, that is not the case. What this means is that the owners of the physical lines (AT&T, Verizon, etc.) now can make independent deals with ISPs that don't own the lines (Earthlink, Speakeasy, etc.) instead of having to let them all have access.

    Where this is bad, as I see it, is that now AT&T can basically tell Earthlink that if they want to use their precious copper to bring the Intertubes to peoples homes, it will cost them eleventy billion dollars. So basically, it means AT&T gets to set the price for DSL to whatever they want, and no one else can really compete on price because AT&T can make the cost of use to the third party provider so high that they cannot compete on price. Anyone feel free to correct me if I am misinterpreting something.

    • Re: (Score:3, Informative)

      by stinerman ( 812158 )
      You aren't misinterpreting anything, but the immediate consequence of decreased competition is that neutrality will more likely go by the wayside.
  • ...of rolling blackouts? And can we expect another Enron-type extortion scandal?
    • What's the internet equivalent of rolling blackouts?

      Comcast Broadband

      Can we expect another Enron-type extortion scandal?

      Yes. You don't seriously believe Kenny boy died do you?
      He got plastic surgery and a new identity from connections
      in the Bush administration and is even now masterminding a new
      round of 'deregulation'.

      I am the answer man.

      • Comcast Broadband

        Actually, I think Comcast is more of a brownout ... in other words, it still works, just not as well as it used to.
  • by hxnwix ( 652290 ) on Friday October 19, 2007 @03:30PM (#21047651) Journal
    In the end, the free market will win and the internet will stop being free. It's to be expected given that the same thing has already happened in meat space.

    The only thing left to do is to buy stock in the telcos. That way, you can preserve your dignity by claiming that whereas everyone else is merely raped by the telcos, you are actually raping yourself.
  • by Aire Libre ( 603106 ) on Friday October 19, 2007 @03:30PM (#21047653) Homepage
    It amazes me how the press gets sucked into the lingo. This is not at all a ruling in favor of deregulation. To the contrary, it is a ruling authorizing private regulation of the Internet. Moreover, private regulation in this space is much more dangerous than government regulation because it works. The government can't do much at all to regulate the Internet, thanks in large measure to the First Amendment and thanks in no small measure to the fact that the government does not have any physical control over the transport layer. But the major ISPs do have such control, and are not bound by the First Amendment. In short, this ruling says, in plain English, "Whereas the government may not and cannot regulate communications over the Internet that are protected from suppression by the First Amendment, we hereby free those of you who have the power to suppress freedom of speech to go ahead and do so."
  • by rizzo320 ( 911761 ) on Friday October 19, 2007 @03:33PM (#21047707)
    I don't agree with the ruling, but I don't see the situation as being as "dire" as some suggest. I can't see a major telco blocking access to certain websites or networks due to this "deregulation". If they do, they'll be creating new markets and new competition in which they would have to compete, and probably loose.

    Lets say Verizon tries to make Google pay extra to keep the priority of traffic going to YouTube on par with other types of network traffic. Google can either payup, and keep their access, or, decide to go an alternative route, such as working with a different provider to get access to the end user, or build their own network that renders parts of Verizon's network useless. Small providers will collaborate to stay in competition with big ones. The same goes for fiber backbone, and "last mile" service. If they decide to start blocking, others will invest and build, and offer their service as an alternative to those that are blocked, or, overpriced.

    Maybe I'm too optimistic on the situation, but, what else can we hope for?
  • by zappepcs ( 820751 ) on Friday October 19, 2007 @03:34PM (#21047725) Journal
    I don't want them to pay back all the public funds they were give, or the tax breaks etc.

    What I want is to know what percentage of their infrastructure was built with public funds and tax breaks and so on, if that is 45% then I want a 45% discount on my monthly bill.

    For every site that I am unable to reach because of their deregulation, I want compensation on my monthly bill. For every censored email, I want compensation.

    Don't tell me that your 'public internet access' I pay for will only access content you approve of. I will not buy a special car to drive on restricted roads. I will not pay for two services to access both Google and Yahoo. I will simply sue every time I am denied access based on their censorship. Yes, I realize that there may not be any basis for that in law, but we must do something to let them know what their consumers want.
  • by TheWoozle ( 984500 ) on Friday October 19, 2007 @03:35PM (#21047737)

    But lawyers for the FCC argued that the agency properly decided to abandon the regulations because they "imposed significant costs" on telephone companies, "thereby impeding innovation and investment in new broadband technologies and services."

    Of course the big telcos don't want to roll out snazzy new broadband lines if they have to bear the cost of R&D and deployment, and then immediately allow competitors to use their brand new high-speed lines at the price the government insists on. I mean, their competitors can just lay new fiber optic lines themselves, right?

    Oh, wait...the government created the whole mess in the first place with geographical monopolies on the right to run telephone lines, muddied the waters even more by declaring that cable companies are "information services" and thus don't have to share *their* lines, and now want to wash their hands of it and stand back and watch Joe Consumer take it up the ass.

    On a *completely* unrelated note, I suggest that any group of politicians hereafter be called a clusterfuck. (e.g., A herd of cattle, a gaggle of geese, a murder of crows, a clusterfuck of politicians).
    • I really don't think cable companies should have to open up their lines. AFAIK, all their investment was private. The public telephone networks were largely built with government money. If Verizon, AT&T, and Qwest want to take their lines private, they can buy the infrastructure from us.
  • In the large scheme to have the US economy locked into a grinding halt.
  • by MobyDisk ( 75490 ) on Friday October 19, 2007 @03:39PM (#21047805) Homepage
    Where I live, Verizon doesn't offer me DSL. But Cavalier Telephone offers me DSL, over Verizon's lines. (My neighborhood is fairly poor, so Verizon probably thinks we aren't worth it). So does that mean that I won't be able to get DSL then? If that's the case, my only option is Comcast, who doesn't allow me to use Bittorrent. So now I will have only one choice for broadband internet. And it's a company that doesn't believe in neutrality.

    Yay for deregulation!
  • by davmoo ( 63521 ) on Friday October 19, 2007 @03:42PM (#21047849)
    Its easy to get up in arms about this decision, and start poo-pooing how its going to lead to less competition. But here's the reality of the matter.

    In 2008 there will be an election in the US for President. A good chunk of Congress will also be up for grabs. And unless something really radical happens between now and then, in all likelihood the next President is going to be a Democrat, and the Democrats will hold a majority in both houses of Congress. This is what happens when a Republican President falls to a 24 percent approval rating in the polls (and Congress is doing only slightly better).

    Democrats are generally pro-consumer and love regulating things (Republicans, on the other hand, are generally pro-business, and like to deregulate). The first time one of the big telecoms tries to openly block competition, the Dems will be on it like hair on a gorilla. And even the telecoms are smart enough to know that.
    • by t0rkm3 ( 666910 )
      Hate to point it out to you, but Congress is actually slightly worse. Bush is currently at 34.2% average while Congress is still lower at 24.8%. (All the while that people have been jacking with GWB's approval rating, Congress has consistently been lower.)

      Personally, I think the American voter is fairly fatigued and pissed off at the moment. Don't know which way that'll fall though, guess whoever manages to sway the voter more persuasively. The D's with the hand-outs for votes or the R's with tough-talk and
    • Are you looking at the approval rating of Congress overall, or of individual congressmen among their constituents? The latter is routinely higher than the former.

      (Not getting into any of your other points, don't have enough time)
  • I wonder how much of these telecom giveaways, including this half-handed "deregulation" that will let telcos do to the rest of the Internet what they did to DSL competitors (ie. kill it), and the NSA spying immunity, are grabbed because telcos just have all kinds of evidence incriminating politicians fool enough to talk openly on their phones?

    Such a power can never be broken. Not with the existing generation of crooked politicos, with no relief in the foreseeable future.
  • ... and we didn't even get a tee shirt.

  • But never in New York.

    It really saddens me that those agencies charged with upholding the public trust and regulating natural monopolies to prevent their abuse have actually been using their power to turn the United States into a technological backwater. It won't be long before third world countries have better technology infrastructure than we, and unfortunately, we the consumer will foot the bill.

    Nothing like the Telcos getting rich as the US falls farther and farther behind, technologically speak

  • This is a green light for corporate regulation of the internet.

    At least government regulation is, at some level, accountable by democratic process. Corporate regulation is not. (Wallet voting is not democratic.)
  • But with John "I never met a corporation I didn't like" Roberts at the helm, I am not hopeful.

    And now I will predict the future: the state of U.S. broadband will continue to stagnate as the rest of the world moves to higher and higher speeds. Your monthly bill will now steadily rise, and your speeds will not. I don't know how much longer I will be able to hang onto my ISP now (Earthlink leases lines from Verizon, who owns almost all of the infrastructure under Manhattan) and I'm sure that when Verizon "tak

  • From the perspective of "searching" we're pretty darn close to "Google is The Internet".

    Now that Telecommunications Carriers no longer have to allow anyone else (ie competitors) access to Telco Owned infrastructure.....

    Perhaps all those billions and billions of miles of dark fibre infrastructure that Google has been buying for the past several years will be Put To Good Use.

    But what will they call it?
    • gNet?
    • gWeb?
    • gTubes?
    • gSpace?
    • gWorld?
    • DataSphere?
    • gSingularity?

    Personally my vote is for calling it the Googl

  • Expected (Score:3, Insightful)

    by xigxag ( 167441 ) on Friday October 19, 2007 @06:46PM (#21050585)
    For years, the US political system has relied on this sort of wink-wink-nudge-nudge attitude by the common voter. We can talk smack against the "libruls" and "political correctness" and express our devotion to the freewheeling marketplace, but in the back of our minds we take it for granted that, wink-wink-nudge-nudge, the courts will come and rescue us whenever the business tycoons we vote into power get too absurd in their obeisance to their own wallets. But surely, by now, after a generation of primarily right-wing judicial appointees, we see that the situation has changed. The courts are no longer the last bastion of liberal social policies. Nor should they be. Let's stop expecting the old men in robes to bail us out of the messes we are in. We are a nation of laws, and we owe it to ourselves and our descendants to have laws in place that express our true political will.

    Of course, that means we actually have to pay attention to whom we elect into Congress, and to what they do once they're there. Even worse, we'll have to stop being hypocrites and realize that most of us actually want a life cocooned by taxes and regulation. Are we up to that?
       
  • how long before (Score:3, Interesting)

    by Spiked_Three ( 626260 ) on Friday October 19, 2007 @08:25PM (#21051515)
    How long will it be before the phone company, and their physical infrastructure becomes irrelevant? Can the wireless networks now provided primarily for cell phones replace the copper wire that we are so dependent on any time soon? I sure hope so. I think the best thing that can happen in the long run, is for the phone company to shoot itself in the foot and generate enough interest to get themselves replaced. The sooner the better. Hopefully the power line companies see this de-regulation, and start using their infrastructure to bring internet access to homes. Then the phone company would have real competition. I hope. Then again, they could be like the clueless cable TV operators who seemed to be doing a real shitty job of it.

    I watched a TV program the other night. It was an early 1960's version of what the future would bring. They showed handheld telephones (we have them), space flight to the moon (been there), instant food cooking (ala Microwave ovens), tiny refrigerator sized computers (we have more than they imagined) and of course, a telephone system with video. Every prediction came true, except the one the phone company has prevented. The technology has been there for decades, but there is no motivation for the monopolies to innovate. The entire world suffers stagnation as a result. Now, I'm not one to bash self made monopolies. I personally believe in some cases even though they are a monopoly they can be driven by market pressures to improve, but in the case of the phone company it has been an apathetic selfish government sponsored pig. I hope they die soon.

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