Following through on FCC Chairman Julius Genachowski’s September 21 speech at the Brookings Institute, the FCC recently published a Notice of Proposed Rulemaking (NPR). The NPR outlines a process for the FCC to accept input; but more importantly, it establishes a framework for regulating broadband facilities. With this move, the FCC is attempting to achieve a seemingly impossible outcome: to find a compromise that satisfies all sides of the debate surrounding internet regulation.
One side of this debate is comprised of interest groups maintaining that the internet has fueled such a profusion of innovation that it must be protected. The other side, consisting almost exclusively of network operators, fears that overly restrictive regulatory edicts will result in debt and equity capital investments being directed elsewhere.
As with many highly-charged debates of this nature, convincing one side that it’s wrong is rarely possible. Consequently, the regulatory goal is to craft a compromise that balances seemingly conflicting demands. With internet regulation, finding this compromise might not seem possible–particularly given the technical complexity and changing nature of the subject. But Chairman Genachowski may have found a solution that allows each side to claim victory.
