No Need for 'Network Neutrality' Regulation, FTTH Council Tells Commission

June 15, 2007 - Washington, DC – In comments filed today with the Federal Communications Commission, the Fiber-to-the-Home (FTTH) Council urged the FCC not to adopt a principle of non-discrimination in the transmission of content over the Internet. To do so, said the FTTH Council, would be to respond to a problem that doesn’t presently exist with regulation that would inhibit investment in and harm further development of the Internet.

Weighing in on the so-called “network neutrality” debate, the FTTH Council said in its filing that “there is no evidence that network platform providers are engaging in anticompetitive behavior, harming end-users or content and applications providers. Rather, there is a complex set of forces in the market for the delivery of information from content and applications providers to consumers that are balanced.”

In its submission, the Council, which represents a broad range of private and public entities engaged in every segment of the broadband industry, cited evidence from its own investigation into alleged discriminatory practices in the movement of data across the Internet to end users. From its studies, which included declarations from content and information providers, the Council found that the potential for harm “is greatly reduced because the market for end-user access to content and applications providers via the Internet is dynamic, with new technologies constantly being developed and implemented, old ones being improved, and new services introduced to maintain a ‘balance of power’ in the market.”

“Our exhaustive review was conducted by service provider and vendor Council members who are highly knowledgeable regarding network architectures and operations,” said Joe Savage, FTTH Council President. “They looked extensively into whether there are exclusionary practices in accessing residential broadband services and whether there is reason for government intervention. On both counts, the answer is a resounding ‘No.’”

There is a “heightened state of vigilance” regarding discriminatory practices on the Internet, the Council said in its FCC submission, and “the development and implementation of countermeasures by content and applications providers, as well as end-users, greatly diminishes the likelihood of any gains stemming from potential anticompetitive activity.”

The Council said that because congestion on the Internet is becoming a problem due to the proliferation of video and other high-bandwidth applications, some differentiation of content is necessary – and, in fact, healthy – to assure reasonable bandwidth management, network security, quality of service and the proper functioning of certain applications such as VoIP. At the same time, it noted that networks with increased bandwidth “are far less prone to congestion and thus have little need to prioritize transmissions. In essence, greater capacity makes the non-discrimination debate recede.”

Rather than contribute to the “mismatch between the rapid speed of the evolving Internet and the lugubrious pace of regulatory decision-making,” the Council suggested that “the Commission can exercise its authority and use its resources much more productively by further encouraging the deployment of FTTH and other high-bandwidth networks.”

The complete version of the FTTH Council’s 76-page filing can be found at the organization’s website at www.ftthcouncil.org.

About the Fiber-to-the-Home Council – Now in its sixth year, the Fiber-to-the-Home Council is a non-profit organization established to help its members plan, market, implement and manage FTTH solutions. Council membership includes municipalities, utilities, developers, and traditional and non-traditional service providers, creating a cohesive group to share knowledge and build industry consensus on key issues surrounding fiber to the home. Communities and organizations interested in exploring FTTH options may find information on the FTTH Council web site at www.ftthcouncil.org.