FCC Chairman Julius Genachowski's speech at the Brookings Institute yesterday could spell lasting implications for any entity with its hands in broadband, wireless or otherwise.
In his speech, Genachowski signaled the FCC's intent to release a Notice of Proposed Rulemaking (NPRM) that would enact a set of rules regarding net neutrality.
Companies gave a range of responses. AT&T voiced its concern that "the FCC appears ready to extend the entire array of net neutrality requirements to what is perhaps the most competitive consumer market in America, wireless services."
AT&T, which has already realized the struggles inherent in managing a wireless broadband network in the face of bandwidth-gobbling devices like the iPhone, claims that net neutrality is based on the assumption that broadband networks are infinitely expandable. "To base policy assumptions on such fallacies is to conduct a risky experiment with American broadband investment, nearly all of which is private investment on which our nation depends," AT&T stated in a public response to Genachowski's speech.
But not everyone believes there's a problem with net neutrality. The VoIP provider Skype responded with applause, as its service would stand to gain from Genachowski's outline yesterday, which noted concern over broadband providers that have "unilaterally block[ed] access to VoIP applications."
CTIA released a statement that raised concerns about the implementation of net neutrality rules. The statement highlighted the differences between fixed and wireless broadband and questioned how a single set of rules will apply to very different situations and services.
Julien Blin, analyst and founder of JBB Research, says that while he doesn't believe the FCC will have an easy go of implementing these kinds of rules, he thinks this is the right time to tackle some of the issues surrounding net neutrality.
"I think it comes at the right time... You can really see from the carrier's standpoint, they're all saying they're ready to open up their networks. As far as VoIP applications, those are still a sensitive topic. Maybe the FCC is trying to push the carriers a little bit to open up and talk," Blin says.
Blin says he understands the carriers' interest in protecting their voice ARPU, yet "I don't see any reason why Skype is allowed to run on the iPhone but Google Voice is not. It's really time for the FCC to step in and say enough is enough. The good old days of anything goes might be over."