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Will Net Neutrality Make Access Fair for Customers, or Stifle Growth?

As technology improves and more companies and municipalities become involved in the Internet service business, cost will become an issue when it comes to availability and competition.

(Tribune News Service) -- Last week, the Federal Communications Commission posted the Open Internet rules it had adopted on Feb. 26. The 400-page document proclaimed that it was “In the matter of protecting and promoting the Open Internet.”

What the FCC is calling Open Internet is more commonly referred to as “net neutrality.” The basic concept is that broadband Internet service providers cannot discriminate against Internet platforms, content, websites, etc. when providing access, and will not alter the flow of data transfer, regardless of its content or source.

Much discussion before the FCC order was given focused on the idea that the decision would be about censoring the content of the Internet, and that it would impose more regulations. But as advocates explain it, the process is more about the providers not controlling the rate of access of content, or having content providers pay more to have the content delivered faster.

According to www.fcc.gov, “The FCC’s Open Internet rules protect and maintain open, uninhibited access to legal online content without broadband Internet access providers being allowed to block, impair, or establish fast/slow lanes to lawful content.”

Some in the industry view these rules as unfair. As it is, consumers pay their Internet service providers a flat fee, regardless of how much bandwidth is used. With the growth of video streaming, such as Netflix, more bandwidth is being used more often.

“The core of the problem lies in the pricing structure for Internet service. Consumers pay for connection speeds and not by the amount of data consumed,” said Wesley Scott, a technology director for a local school district. “Net neutrality helps the content providers and consumers, but hurts the major telecom providers that make up the backbone of the Internet.”

Scott explained that content providers make more money due to increases in customers, but the ISPs are not able to upgrade bandwidth and infrastructures without charging the customers more.

“I think the right answer is to let the market work. The market tends to work these things out,” said AT&T CEO Randall Stephenson during a recent event in Tulsa. “Let Netflix and AT&T work it out. Let Google and Comcast work it out. Let Verizon and Facebook work it out.”

Handling the Internet in that way could still limit competition and growth of new ISPs, as well as favor certain content providers.

“Many people believe that small, upstart businesses – such as the next great Facebook or Google – would have no chance of happening without Net Neutrality,” said Steve Cypert of Tahlequah on a recent Daily Press Facebook thread. “Mom and Pop home-based businesses would be blocked from potential growth due to the telecoms hogging all of the Internet traffic.”

As technology improves and more companies and municipalities become involved in the Internet service business, cost will become an issue when it comes to availability and competition.

As part of the FCC order, fixed and mobile broadband were reclassified as a telecommunication service. These new services have also been given access to already established utility poles and rights-of-way. This issue has prevented companies such as Google from expanding fiber optic Internet service to certain areas. This will allow for more competition and consumer options.

Some companies, such as AT&T, are expected to fight the FCC’s new rules, and others are waiting to review the document in its entirety.

“There is much to review in this order, and Tahlequah Cable TV will comply fully with the rules, but at this time, nothing we are doing will change,” said Lori Haight, vice president of marketing and client care for WEHCO Media, Tahlequah Cable’s parent company. “Our Internet service does not limit our subscribers with data caps and we do not block or throttle our customers.”

Haight said Tahlequah Cable TV offers direct fiber optic services to commercial business locations that request it.

Lake Region Electric Cooperative features a “fiber-to-the-home” communications network to portions of Cherokee County. Should these companies choose to expand, more ISP options would be available in the area. This new competition could change pricing structures, and offer more job opportunities as buildings are fitted with fiber optic capabilities.

These possibilities of competition and growth are what the FCC claims to be the basis of the Open Internet Order, to “preserve and protect the Internet as a platform for innovation, expression and economic growth.” The committee’s goal was “to make sure the Internet stays fair, fast and open for all Americans, while ensuring investment and innovation can flourish.”

The Commission issued an Open Internet Order in 2010, but portions of it were struck down due to a case against the FCC from Verizon. Before issuing the order, the FCC committee, according to Chairman Tom Wheeler, asked for comments and suggestions from the public.

“We heard from public-interest groups and public-policy think tanks. We heard from members of Congress, and, yes, the president,” said Wheeler. “Most important, we heard from nearly four million Americans who overwhelmingly spoke up in favor of preserving a free and open Internet. In the process, we saw a graphic example of why open and unfettered communications are essential to freedom of expression in the 21st century.”

It will take time to determine whether the major broadband Internet access providers will let the order stand as it is. But for now, providers cannot block access, or impair, degrade, or favor Internet content or traffic. In other words, the “net” is “neutral.”

©2015 the Tahlequah Daily Press (Tahlequah, Okla.) Distributed by Tribune Content Agency, LLC