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FCC affirming no NN for wireless broadband cements dereg precedents

The most important development for a free market Internet in the last several weeks was the FCC's  5-0 decision March 22nd to declare wireless broadband an unregulated information service.

  • In laymans terms, the FCC officially and unanimously declared that net neutrality is NOT required for wireless broadband going forward. 

Why is this a big deal?

  • The FCC legally cemented the policy precedent of regulatory parity -- for broadband de-regulation.
    • The FCC applied the Supreme Court's seminal "Brand X" de-regulatory ruling that declared cable modems an unregulated info service (2002) -- to all other mainstream broadband facilities, DSL (2005), BPL (2006) and now wireless broadband (2007).      
    • The legal facts of the FCC reiterating the same policy and technology parity logic repeatedly over several years creates a powerful phalanx of deregulatory legal precedent that future regulators will be hard-pressed to reverse piecemeal.
  • If a future FCC Chairman, say a Commissioner Copps in a potential Democratic Administration, wanted to apply Carterfone-like regulations to only wireless, that FCC ruling would likely be ruled in court to be arbitrary and capricious because it singled out wireless and treated that broadband technology much differently than other analogous broadband technologies: cable modem, DSL and BPL.
    • To be fair and legal, the FCC would have to apply new regulations in a technologically-neutral way.
  • What the FCC decided is that wireless is NOT different in a policy or legal sense.
    • This makes it much harder to legally and politically justify any eBay-Skype petition for Carterfone rules for wireless.
    • The savy observer will appreciate that this FCC ruling effectively moots the eBay-Skype petition to apply Carterfone rules to wireless.
      • I fully expect people will continue to talk about wireless Carterfone rules.
      • However, when they have to talk about it in the context of the FCC's Notice of Inquiry into NN, they will find it extremely difficult to justify that wireless is different and requires special rules.

Well done FCC!  Great de-regulatory box out!