The Jeff Pulver Blog: My Wish list for Chairman Powell's Swan Song and Legacy:

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January 21, 2005

My Wish list for Chairman Powell's Swan Song and Legacy:

Michael Powell announced his plan to step down as Chairman of the FCC. Speculation is that he will stay on through the FCC's March 10 Open Meeting before the reigns are handed over to his replacement. That's less than 2 months to tie up a few loose ends that must be tied up in order to send the IP-based communications industry out into the world with the tools and rules (or absence of rules, if you will) necessary to make the industry self-sustaining. I think Powell has done quite a bit over the past couple of years to enable IP-based communications. Most notably, the pulver and Vonage Orders have given us some degree of jurisdictional certainty and removed the pall of an unworkable patchwork of state regulation (subject to judicial review). Much of the substance still awaits FCC resolution of the FCC's IP-Enabled Services NPRM. I think it will be difficult for Chairman Powell to move this item before March, so the fruits of that proceeding will be subject to the will of a new Chair. Short of the IP-Enabled Services NPRM, there are a few simpler issues (most of which are already in the FCC hopper) that I'd like to see Powell get off his plate before he steps down. I know everyone is going to be bombarding Powell with their own wish lists, but a few additional steps would go a long way to promote IP communications and serve as a beautiful swan song for the Chairman, who, from my perspective, has tried to create a regulatory structure that encourages broadband deployment, ensures a competitive marketplace, and promotes innovation and entrepreneurship. It would be a shame that, but for a few stray issues, we missed our opportunity.

Most importantly, I think Chairman Powell should flesh out what he meant in his Silicon Flatirons and VON speeches when he spoke of consumer empowerment and "Net Neutrality". Chairman Powell enunciated the four net freedoms that all consumers should have in order to maximize the value of the Internet and their communications experience. Chairman Powell indicated that consumers should have the right to access the content and applications of their choice, the right to attach the personal devices of their choice, and the right to service plan information. At the last VON Conference, I think Chairman Powell flagged that he had some intention to take official action to memorialize these net freedoms. What better swan song would there be than for Powell to issue a set of principles setting forth how consumers might be assured these freedoms? Perhaps Powell could even issue a Notice of Inquiry at the March 10 Open Meeting, which NOI could set forth the Net Neutrality principles, establish an FCC role in issuing an annual report on the state of IP communications with ongoing proposals on how to promote broadband and IP communications, and suggest an enforcement mechanism that might ensure that no one could violate the net freedom principles.

Chairman Powell has pointed to IP, the Internet and broadband as the impetus for much of his deregulatory policy. He has also pointed to the ability of the simple net neutrality principles as the vehicle to allow for further deregulation. We, however, cannot point to net neutrality as the enabler of deregulation, then deregulate and never implement the net neutrality principles. That would be an unfair bait and switch on consumers and IP innovators. The deregulated world without meaningful net neutrality principles, is a world in which consumers will be subjected to the unilateral judgment of unregulated monopolists.

Chairman Powell has done much to move the communications industry to a less regulated model, while simultaneously attempting to ensure a sustainable competitive marketplace, an environment that encourages innovation and entrepreneurship, and a regulatory structure that provides for parity across platforms and encourages deployment of more robust, IP-capable, broadband networks. This is an insanely delicate tight-rope walk. As with "Enlightenment", the road to the IP communications future is as sharp and narrow as the razor's edge. I think Chairman Powell has masterfully negotiated the course, but it is essential for him to solidify his vision and the path before he steps down. It is all well and good that Powell has moved on a deregulated path and has attempted to establish parity across platforms and encouraged ubiquitous broadband deployment. Without application of some form of net neutrality or common carrier superstructure, however, consumers and Internet innovators might remain subject to some carrier, some Internet company or some other entities unfair control over the captive consumer. Now, simultaneously with the laxation of the regulatory structure, is the moment for Chairman Powell to adopt the Net Neutrality principles, and ensure that some structure is in place to ensure that consumers can truly control their communications experience and to ensure that innovation can occur at the edge and within the network.

There are a few other stray items on the FCC's plate that could probably be adopted by March. Most notably, the FCC will have to resolve the Level 3 Forbearance Petition by March 22. Adoption of the Level 3 Petition would send a strong signal that VoIP services should not be subjected to the legacy access charge regime. It would also encourage all parties to sit down and finally hammer out a more reasonable, sustainable intercarrier compensation regime.

Michael Powell has demonstrated, during his tenure at the FCC, that he understands the needs of communications innovators and entrepreneurs. He has tried to create a regulatory environment that will simultaneously promote innovations and competition for new communications applications and services and allow for broadband deployment and network upgrades to support new technology and services. We hope that his successor will share his wisdom and vision to further enable America to lead the way in revolutionizing the way people communicate. It was Chairman Powell who eloquently enunciated the need to empower consumers through the promotion of net freedoms, which would allow consumers to control their own communications experience. We trust his successor will build further on the concepts of consumer empowerment and net neutrality to ensure that every consumer has access to a broadband pipe and the freedom to maximize the functionality and value of the Internet and advanced communications.

Posted by jeff on January 21, 2005 03:59 PM | Permalink

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Jeff:

I think you got it wrong, this time. Powell has
been a disaster for those of us who operate
Internet Access companies - an ISP.

And I think that long term his legacy, as the
telecommunications industry remonopolizes, will
hurt VOIP. Powell has given lip service to VOIP,
but in the background events are not so good.

I am an entrepreneur and an innovator - heck, I
won an award at one of your shows many years ago.

And I am trying to get my customer base into VOIP.

But in the face of RBOC "Bundling" am not having
much luck.

Jeff - whatever the RBOCs promise, please recall
that what they do is far more important than what they say they will do. In other words, they say
whatever they think people want to hear - then do
what they think is in their best interest. And
their investment in their switched network would
lead one to think that they really don't want to
support VOIP no matter what they say or promise.

Larry Summers

Posted by: Larry Summers at February 21, 2005 12:59 PM

The FCC has been siting on this for over a year. Why? Well, look at the fact that there is very little in comments posted on WC Docket 03-266. 129 including notices and filing notices.

One would think if this was an important issue, more comments would be filed. Even as of late, L3 submitted on Dec 22, 2004 an ex parte letter still hashing out the scope of its petition.

I would assume after a year plus, they are no closer to a decision, though I could be wrong, than to try and force a decision before Powell leaves. Not smart policy.

Posted by: Frank Muto at January 24, 2005 05:03 PM

January 21, 2005

My Wish list for Chairman Powell's Swan Song and Legacy:

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