Nation’s telecom policy is tilting in favor of industry
NEW YORK — The Federal Communications Commission is starting to chip away at hard-fought protections on privacy and competition.
These measures, put in place before President Donald Trump took office, had upset the phone and cable industries. The new administration says consumers win if businesses face less regulation and have more incentives to invest. But consumer advocates worry these changes give broadband providers that own media businesses more power to favor their own services, among other things.
The changes are small and easily overlooked. But they’re the first shots in what could turn into a fullfledged war over Obamaera net neutrality rules, which were designed to keep phone and cable giants from favoring their own internet services and apps.
Overturning these rules would also likely reverse a privacy measure meant to keep broadband providers from using and selling customer data without permission. Net neutrality
It’s no secret Trump’s FCC chief, Ajit Pai, wants to cut regulations that he believes are holding back faster, cheaper internet.
Pai takes special aim at net neutrality rules, which regulate broadband as a utility and bar providers from playing favorites by offering speedier access to, say, their own streamingvideo services. Pai considers these rules a mistake that slows investment in internet infrastructure. His goal is to expand internet access, especially in rural areas where choices are limited.
But an aggressive overhaul of net neutrality could be politically and legally difficult. For a telecom policy, net neutrality is popular with consumers, drawing attention from comedian John Oliver and spurring people to flood the FCC with roughly 4 million comments (not all in support, of course). A federal appeals court upheld the rules in June. ‘Zero-rating’ plans
When Barack Obama was president, the FCC used its power to go after “zero-rating” plans, which give subscribers free data so long as they stick with their carrier’s own streaming-TV service, like AT&T’s DirecTV Now. Zero rating may be popular with consumers — hey, free data! — but the FCC under Obama had argued that letting internet providers play favorites undermines streaming-video competition and ultimately leaves consumers worse off.
After Pai took office, the FCC reversed that stance and gave a thumbsup to AT&T and other carriers with zero-rating policies. Online privacy
The agency has also blocked part of a broadband privacy measure that requires companies like Comcast and Verizon to take “reasonable measures” to secure customer information like financial data or web browsing histories.
The remaining privacy rules, which aren’t in effect yet, are now under threat. Under these rules, phone and cable companies must ask permission before using or selling your data.
Phone and cable companies have complained that these rules are tougher than what internet advertising behemoths like Google and Facebook face.
Pai says he wants to work with the Federal Trade Commission, another D.C. regulator, to come up with broadband privacy rules that are more in line with the laxer standards for internet companies.
Republican lawmakers have proposed spiking them completely. Democrats say that would leave consumers vulnerable and allow companies like Verizon or AT&T able to sell consumer information to advertisers.