September 28, 2023
FCC FACT SHEET
*
Safeguarding and Securing the Open Internet
Notice of Proposed Rulemaking – WC Docket No. 23-320
Background: This Notice of Proposed Rulemaking, if adopted, would propose to reestablish the Federal
Communications Commission’s (Commission) authority over broadband Internet access service by
classifying it as a telecommunications service under Title II of the Communications Act. While Internet
access has long been important to daily life, the COVID-19 pandemic and the rapid shift of work,
education, and health care online demonstrated how essential broadband Internet connections are for
consumers’ participation in our society and economy. But even as our society has reconfigured itself to
do so much online, there is currently no expert agency ensuring that the Internet is fast, open, and fair.
Since the birth of the modern Internet in the 1990s, the Federal Communications Commission had played
that role, but the Commission abdicated that responsibility in 2018, just as the Internet was becoming
more vital than ever. This Notice proposes to classify broadband Internet access service as a
telecommunications service and provide the Commission with authority necessary to safeguard the open
Internet, advance national security, and protect public safety. The Notice also proposes to reestablish
conduct rules for Internet service providers that would provide a uniform, national approach for
safeguarding Internet openness, replacing the current patchwork of state requirements.
What the Notice of Proposed Rulemaking Would Do:
Propose to reestablish the framework the Commission adopted in 2015 to classify broadband
Internet access service as a telecommunications service and to classify mobile broadband Internet
access service as a commercial mobile service.
Propose that reclassification would provide the Commission with additional authority to
safeguard national security, advance public safety, protect consumers, and facilitate broadband
deployment.
Propose to forbear from 26 Title II provisions, and clarify that the Commission will not regulate
rates or require network unbundling.
Propose to reestablish a uniform, national regulatory approach to protect the open Internet by
preventing broadband Internet access service providers from engaging in practices harmful to
consumers, including:
o Proposing to reinstate straightforward, clear rules that prohibit blocking, throttling, or
engaging in paid or affiliated prioritization arrangements;
o Proposing to reinstate a general conduct standard that would prohibit unreasonable
interference or unreasonable disadvantage to consumers or edge providers; and
o Proposing to retain the disclosure requirements under the current transparency rule and
seeking comment on the means of disclosure, the interplay between the transparency rule
and the broadband label requirements, and any additional enhancements or changes.
*
This document is being released as part of a “permit-but-disclose” proceeding. Any presentations or views on the
subject expressed to the Commission or its staff, including by email, must be filed in WC Docket No. 23-320, which
may be accessed via the Electronic Comment Filing System (https://www.fcc.gov/ecfs/). Before filing, participants
should familiarize themselves with the Commission’s ex parte rules, including the general prohibition on
presentations (written and oral) on matters listed on the Sunshine Agenda, which is typically released a week prior to
the Commission’s meeting. See 47 CFR § 1.1200 et seq.
Federal Communications Commission FCC-CIRC2310-01
Before the
Federal Communications Commission
Washington, D.C. 20554
In the Matter of
Safeguarding and Securing the Open Internet
)
)
)
)
WC Docket No. 23-320
NOTICE OF PROPOSED RULEMAKING
*
Adopted: [] Released: []
By the Commission:
Comment Date: December 14, 2023
Reply Date: January 17, 2024
TABLE OF CONTENTS
I. INTRODUCTION .................................................................................................................................. 1
II. BACKGROUND .................................................................................................................................... 4
III. PROPOSED CLASSIFICATION OF BROADBAND INTERNET ACCESS SERVICE .................. 16
A. Broadband Internet Access Service is Essential ............................................................................ 17
B. Reclassification is Necessary to Ensure Internet Openness, Safeguard National Security,
Protect Public Safety, and Support Other Public Interest Goals .................................................... 21
1. Ensuring Internet Openness ..................................................................................................... 23
2. Safeguarding National Security and Preserving Public Safety ............................................... 25
3. Protecting Consumers’ Privacy and Data Security.................................................................. 40
4. Supporting Access to Broadband Internet Access Service ...................................................... 46
5. Access for Persons with Disabilities ....................................................................................... 54
6. The RIF Order’s Policy Rationales Did Not Justify Reversing the Classification of
Broadband Service .................................................................................................................. 55
C. Scope of Reclassification ............................................................................................................... 58
D. Classifying Broadband Internet Access Service as a Telecommunications Service ...................... 67
E. Classifying Mobile Broadband Internet Access Service as a Commercial Mobile Service .......... 84
F. Preemption of State and Local Regulation of Broadband Service ................................................. 93
IV. PROPOSED FORBEARANCE ........................................................................................................... 97
A. Forbearance Framework ................................................................................................................ 99
B. Proposed Forbearance .................................................................................................................. 103
*
This document has been circulated for tentative consideration by the Commission at its October open meeting.
The issues referenced in this document and the Commission’s ultimate resolution of those issues remain under
consideration and subject to change. This document does not constitute any official action by the Commission.
However, the Chairwoman has determined that, in the interest of promoting the public’s ability to understand the
nature and scope of issues under consideration, the public interest would be served by making this document
publicly available. The FCC’s ex parte rules apply and presentations are subject to “permit-but-disclose” ex parte
rules. See, e.g., 47 C.F.R. §§ 1.1206, 1.1200(a). Participants in this proceeding should familiarize themselves with
the Commission’s ex parte rules, including the general prohibition on presentations (written and oral) on matters
listed on the Sunshine Agenda, which is typically released a week prior to the Commission’s meeting. See 47 CFR
§§ 1.1200(a), 1.1203.
Federal Communications Commission FCC-CIRC2310-01
6
that edge-provider innovation leads to the expansion and improvement of broadband infrastructure.”
18
The court also accepted the Commission’s reinterpretation of section 706 as an independent grant of legal
authority over broadband services.
19
The court nonetheless vacated the no-blocking and anti-
discrimination provisions of the 2010 Open Internet Order, concluding that the rules imposed de facto
common carrier status on providers of broadband Internet access service (BIAS) in violation of the
Commission’s classification of those services as information services.
20
The Verizon court explained that
“broadband providers furnish a service to edge providers, thus undoubtedly functioning as edge
providers’ ‘carriers,’” and held that the 2010 no-blocking and no-unreasonable-discrimination rules
impermissibly “obligated [broadband providers] to act as common carriers.”
21
9. Following the Verizon decision, the Commission adopted the 2015 Open Internet Order,
adopting carefully-tailored rules to prevent specific practices harmful to Internet openness—blocking,
throttling, and paid prioritization—as well as a strong standard of conduct designed to prevent
deployment of new practices that would harm Internet openness, and enhancements to the transparency
rule.
22
The Commission concluded that the Internet’s openness promotes innovation, investment,
competition, free expression, and other national broadband goals, and found that the record supported the
proposition that the Internet’s openness enables the virtuous cycle of innovation.
23
The Commission also
found that broadband providers have both the incentives and ability to harm the open Internet.
24
10. The Commission grounded its open Internet rules in multiple sources of legal authority,
including both section 706 of the Telecommunications Act and Title II of the Act. As it had done
previously, the Commission exercised its authority to interpret ambiguous language in the Act regarding
the classification of broadband services, and classified broadband Internet access services, including
Internet traffic exchange services (or Internet interconnection services), as telecommunications services
under Title II of the Act.
25
Concurrently, the Commission exercised its forbearance authority to forbear
from application of 27 provisions of Title II of the Act and over 700 Commission rules and regulations.
26
The Commission also reclassified mobile broadband service as a commercial mobile service.
27
11. In 2016, the D.C. Circuit upheld the Commission’s 2015 Open Internet Order in full.
28
The Commission had determined that consumer perception of broadband Internet access service
supported classifying it as a telecommunications service, and the court agreed that those conclusions “find
extensive support in the record” and “justify the Commission’s decision to reclassify broadband as a
18
Id. at 644.
19
Id. at 642. The Court also found that that authority did not allow the Commission to subject information services
or providers of private mobile services to treatment as common carriers. Id. at 650 (citing 47 U.S.C. § 153(51) and
47 U.S.C. § 332(c)(2)).
20
Id. at 635-42, 656-59.
21
Id. at 653.
22
Protecting and Promoting the Open Internet, WC Docket No. 14-28, Report and Order on Remand, Declaratory
Ruling, and Order, 30 FCC Rcd 5601, 5603, para. 4 (2015) (2015 Open Internet Order), pet. for review denied, U.S.
Telecom Ass’n v. FCC, 825 F.3d 674 (D.C. Cir. 2016) (USTA), reh’g denied, 855 F.3d 381 (D.C. Cir. 2017), cert.
denied, 139 S. Ct. 453 (2018).
23
See 2015 Open Internet Order, 30 FCC Rcd at 5625-27, paras. 76-77.
24
See id. at 5628-43, paras. 78-101.
25
See id. at 5743-45, paras. 331-35.
26
See id. at 5603, 5838-64, paras. 5, 493-536.
27
Id. at 5778-90, paras. 388-408.
28
See USTA, 825 F.3d 674.
Federal Communications Commission FCC-CIRC2310-01
3
3. Restoring Title II authority will allow the Commission to safeguard and secure the open
Internet in three significant ways. First, this authority will allow the Commission to protect consumers,
including by issuing straightforward, clear rules to prevent Internet service providers from engaging in
practices harmful to consumers, competition, and public safety, and by establishing a uniform, national
regulatory approach rather than disparate requirements that vary state-by-state. Second, reclassification
will strengthen the Commission’s ability to secure communications networks and critical infrastructure
against national security threats. Third, the reclassification will enable the Commission to protect public
safety during natural disasters and other emergencies. Our proposals to safeguard and secure the open
Internet build on several other actions the Commission has taken since the onset of the COVID-19
pandemic to ensure that the public has access to broadband.
1
We believe that the actions we propose
today are critical to protecting the nation’s security and the public’s safety and to ensuring that consumers
and competition can flourish in the modern Internet economy.
II. BACKGROUND
4. As former Chairman Michael Powell noted in 2004, “ensuring that consumers can obtain
and use the content, applications and devices they want . . . is critical to unlocking the vast potential of the
broadband Internet.”
2
In recognition of this fact, in 2005, the Commission unanimously approved the
Internet Policy Statement, which laid out four guiding principles designed to encourage broadband
deployment and “preserve and promote the open and interconnected nature of the public Internet.”
3
These principles sought to ensure that consumers had the right to access and use the lawful content,
applications, and devices of their choice online, and to do so in an Internet ecosystem defined by
competitive markets.
4
1
See, e.g., Affordable Connectivity Program Emergency; Broadband Benefit Program, WC Docket Nos. 21-450 and
20-445, Report and Order and Further Notice of Proposed Rulemaking, 37 FCC Rcd 484 (2022) (taking steps to
ensure broadband connections were affordable through the Emergency Broadband Benefit Program and successor
Affordable Connectivity Program, as directed by Congress); Establishing Emergency Connectivity Fund to Close
the Homework Gap, Report and Order, 36 FCC Rcd 8696 (2021) (extending the benefits of broadband connections
available to schools and libraries to students and patrons who needed connections at home through the Emergency
Connectivity Fund); Promoting Telehealth for Low-Income Consumers; COVID-19 Telehealth Program, WC
Docket Nos. 18-213 and 20-89, Report and Order, 35 FCC Rcd 3366 (2020) (COVID-19 Telehealth Program
Order) (establishing the COVID-19 Telehealth Program to help health care providers provide connected care
services to patients at their homes or mobile locations in response to the pandemic); Improving Competitive
Broadband Access to Multiple Tenant Environments, WC Docket No. 17-142, Report and Order and Declaratory
Ruling, 37 FCC Rcd 2448 (2022) (taking steps to ensure that consumers in multi-tenant environments can obtain
broadband service offerings from competing providers); Implementing the Infrastructure Investment and Jobs Act:
Prevention and Elimination of Digital Discrimination, GN Docket No. 22-69, Notice of Proposed Rulemaking, FCC
22-98 (rel. Dec. 21, 2022) (Digital Discrimination NPRM) (exploring how to address digital discrimination to
ensure every person has equal access to critical broadband connections).
2
Michael K. Powell, Chairman, Federal Communications Commission, Preserving Internet Freedom: Guiding
Principles for the Industry 3, Remarks at the Silicon Flatirons Symposium (Feb. 8, 2004),
https://apps.fcc.gov/edocs_public/attachmatch/DOC-243556A1.pdf.
3
Appropriate Framework for Broadband Access to the Internet over Wireline Facilities; Review of Regulatory
Requirements for Incumbent LEC Broadband Telecommunications Services; Computer III Further Remand
Proceedings: Bell Operating Company Provision of Enhanced Services; 1998 Biennial Regulatory Review-Review
of Computer III and ONA Safeguards and Requirements; Inquiry Concerning High-Speed Access to the Internet
Over Cable and Other Facilities; Internet Over Cable Declaratory Ruling; Appropriate Regulatory Treatment for
Broadband Access to the Internet Over Cable Facilities, GN Docket No. 00-185, CC Docket Nos. 02-33, 01-337,
98-10, 95-20, CS Docket No. 02-52, Policy Statement, 20 FCC Rcd 14986, 14987-88, para. 4 (2005) (Internet
Policy Statement).
4
Subject to “reasonable network management,” the principles were intended to ensure consumers had the right to
(1) “access the lawful Internet content of their choice;” (2) “run applications and use services of their choice;” (3)
“connect their choice of legal devices that do not harm the network;” and (4) enjoy “competition among network
(continued….)
Federal Communications Commission FCC-CIRC2310-01
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29. We also seek comment on how reclassification would support the Commission’s efforts
to safeguard the nation’s communications network infrastructure from equipment and services that pose a
security threat. Pursuant to its universal service authority in section 254 of the Act, its authority to
regulate equipment in sections 302 and 303 of the Act, and new mandates established by Congress
through the Secure and Trusted Communications Networks Act of 2019, as amended, and the Secure
Equipment Act of 2021 to address communications equipment and service that poses an unacceptable risk
to national security,
105
the Commission has undertaken significant efforts to improve supply chain
security. In particular, the Commission has: prohibited the use of universal service fund (USF) support
to purchase or obtain any equipment or services produced or provided by companies posing a national
security threat;
106
prohibited the use of federal subsidies administered by the Commission and used for
capital expenditures to provide advanced communications service to purchase, rent, lease, or otherwise
obtain such equipment or services;
107
created and maintained a list of communications equipment and
services that pose an unacceptable risk to the national security (“covered equipment and services”);
108
established the Secure and Trusted Communications Networks Reimbursement Program (Reimbursement
Program) to reimburse the costs providers incur to remove, replace, and dispose of covered Huawei and
ZTE equipment and services from their networks;
109
and prohibited the authorization of equipment that
poses a threat and the marketing and importation of such equipment in the United States.
110
We seek
comment on how reclassification may allow the Commission to further these efforts. For instance, would
105
Protecting Against National Security Threats to the Communications Supply Chain Through FCC Programs, WC
Docket No. 18-89, Report and Order, Further Notice of Proposed Rulemaking, and Order, 34 FCC Rcd 11423,
11434-35, para. 31 (2019) (Supply Chain First Report and Order); Protecting Against National Security Threats to
the Communications Supply Chain Through FCC Programs, WC Docket No. 18-89, Declaratory Ruling and Second
Further Notice of Proposed Rulemaking, 35 FCC Rcd 7821, 7826-27, para. 20 (2020); Protecting Against National
Security Threats to the Communications Supply Chain Through FCC Programs, WC Docket No. 18-89, Second
Report and Order, 35 FCC Rcd 14284, 14296-98, para. 26-29 (2020) (Supply Chain Second Report and Order);
Protecting Against National Security Threats to the Communications Supply Chain through the Equipment
Authorization Program; Protecting Against National Security Threats to the Communications Supply Chain through
the Competitive Bidding Program; ET Docket No. 21-232, EA Docket No. 21-233, Report and Order, Order, and
Further Notice of Proposed Rulemaking, FCC 22-84 at 19-21, paras. 39-43 (rel. Nov. 25, 2022) (Supply Chain
Equipment Authorization Report and Order); 47 U.S.C. § 254; Secure and Trusted Communications Networks Act
of 2019, Pub. L. No. 116-124, 133 Stat. 158 (2020) (codified as amended at 47 U.S.C. §§ 1601-1609); Secure
Equipment Act of 2021, Pub. L. No. 117-55, 135 Stat. 423 (2021) (codified at 47 U.S.C. § 1601 (Statutory Notes
and Related Subsidiaries)).
106
Supply Chain First Report and Order, 34 FCC Rcd at 11433, para. 26 (stating that this includes prohibitions on
using USF support to maintain, improve, modify, operate, manage, or otherwise support any equipment or services
produced or provided by these companies), aff’d Huawei Technologies USA v. FCC, 2 F.4th 421 (5th Cir. 2021); 47
CFR § 54.9.
107
See Supply Chain Second Report and Order, 35 FCC Rcd at 14326; Protecting Against National Security Threats
to the Communications Supply Chain Through FCC Programs, WC Docket No. 18-89, Third Report and Order, 36
FCC Rcd 11958, 11989, para. 75 (2021) (Supply Chain Third Report and Order); 47 CFR §§ 1.50001 (defining
“advanced communications service” as “high-speed, switched, broadband telecommunications capability that
enables users to originate and receive high-quality voice, data, graphics, and video telecommunications using any
technology with connection speeds of at least 200 kbps in either direction”); 1.50004; 54.10-54.11. The
Commission stated that the definition of “provider of advanced communication services” for purposes of the
Reimbursement Program did not limit program eligibility to providers who offer service to end users, and included
intermediate providers that carry traffic for other carriers only and do not originate or terminate traffic. Supply
Chain Third Report and Order, 36 FCC Rcd at 11991, paras. 82-83.
108
See Supply Chain Second Report and Order, 35 FCC Rcd at 14311-25, paras. 57-92; 47 CFR §§ 1.50002 and
1.50003.
109
See Supply Chain Second Report and Order, 35 FCC Rcd at 14331, para. 108; 47 CFR § 1.50004.
110
See Supply Chain Equipment Authorization Report and Order, FCC 22-84; 47 CFR §§ 2.901-2.910.
Federal Communications Commission FCC-CIRC2310-01
5
enforce open Internet principles based on the Commission’s Title I ancillary authority in Comcast v.
FCC.
8
Following Comcast, the Commission adopted the 2010 Open Internet Order,
9
a codification of the
policy principles contained in the Internet Policy Statement. The 2010 Open Internet Order was based on
broadly accepted Internet norms and the Commission’s extensive regulatory experience in preserving
open and dynamic communications networks.
10
The 2010 Open Internet Order adopted three
fundamental rules governing Internet service providers: (1) no blocking; (2) no unreasonable
discrimination; and (3) transparency.
11
The no-blocking and no-unreasonable-discrimination rules
prevented broadband service providers from deliberately interfering with consumers’ access to lawful
content, applications, and services, while the transparency rule promoted informed consumer choice by
requiring disclosure by service providers of critical information relating to network management
practices, performance, and terms of service.
12
The anti-discrimination rule contained in the 2010 Open
Internet Order operated on a case-by-case basis, with the Commission evaluating the conduct of fixed
broadband service providers based on a number of factors, including conformity with industry best
practices, harm to competing services or end users, and impairment of free expression.
13
7. In order to fit the technical and economic realities of the broadband ecosystem, the
restrictions on blocking and discrimination were made subject to an exception for “reasonable network
management,” allowing service providers the freedom to address legitimate needs such as avoiding
network congestion and combating harmful or illegal content.
14
Additionally, in order to account for
then-perceived differences between the fixed and mobile broadband markets, the 2010 Open Internet
Order exempted mobile service providers from the anti-discrimination rule, and only barred mobile
providers from blocking “consumers from accessing lawful websites” or “applications that compete with
the provider’s voice or video telephony services.”
15
8. The 2010 Open Internet Order was based in part on a revised understanding of the
Commission’s Title I authority—as well as a variety of other statutory provisions including Section 706
of the Telecommunications Act of 1996 (Telecommunications Act or 1996 Act)—and was again
challenged before the D.C. Circuit in Verizon v. FCC.
16
The Verizon court sustained the Commission’s
findings that “absent rules such as those set forth in the [2010] Open Internet Order, broadband providers
represent a threat to Internet openness and could act in ways that would ultimately inhibit the speed and
extent of future broadband deployment,”
17
and concluded that the Commission’s “finding that Internet
openness fosters . . . edge-provider innovation . . . was . . . reasonable and grounded in substantial
evidence” and that the Commission had “more than adequately supported and explained its conclusion
8
See Comcast Corp. v. FCC, 600 F.3d 642, 661 (D.C. Cir. 2010) (Comcast).
9
Preserving the Open Internet; Broadband Industry Practices, GN Docket No. 09-191, WC Docket No. 07-52,
Report and Order, 25 FCC Rcd 17905 (2010) (2010 Open Internet Order).
10
See id. at 17906, para. 1; Protecting and Promoting the Open Internet, GN Docket No. 14-28, Notice of Proposed
Rulemaking, 29 FCC Rcd 5561, 5568, para. 21 (2014) (2014 Open Internet NPRM).
11
2010 Open Internet Order, 25 FCC Rcd at 17906, para. 1.
12
Id.
13
Id. at 17946, paras. 74-75. The 2010 Open Internet Order also address paid prioritization arrangements, and made
clear that “pay for priority” deals and associated network practices were likely to be problematic in a number of
respects. Id. at 17947, para. 76.
14
Id. at 17951-56, paras. 80-92.
15
Id. at 17962, 17959, paras. 104, 99.
16
Verizon v. FCC, 740 F.3d 623, 635-42 (D.C. Cir. 2014) (Verizon).
17
Id. at 645.
Federal Communications Commission FCC-CIRC2310-01
6
that edge-provider innovation leads to the expansion and improvement of broadband infrastructure.”
18
The court also accepted the Commission’s reinterpretation of section 706 as an independent grant of legal
authority over broadband services.
19
The court nonetheless vacated the no-blocking and anti-
discrimination provisions of the 2010 Open Internet Order, concluding that the rules imposed de facto
common carrier status on providers of broadband Internet access service (BIAS) in violation of the
Commission’s classification of those services as information services.
20
The Verizon court explained that
“broadband providers furnish a service to edge providers, thus undoubtedly functioning as edge
providers’ ‘carriers,’” and held that the 2010 no-blocking and no-unreasonable-discrimination rules
impermissibly “obligated [broadband providers] to act as common carriers.”
21
9. Following the Verizon decision, the Commission adopted the 2015 Open Internet Order,
adopting carefully-tailored rules to prevent specific practices harmful to Internet openness—blocking,
throttling, and paid prioritization—as well as a strong standard of conduct designed to prevent
deployment of new practices that would harm Internet openness, and enhancements to the transparency
rule.
22
The Commission concluded that the Internet’s openness promotes innovation, investment,
competition, free expression, and other national broadband goals, and found that the record supported the
proposition that the Internet’s openness enables the virtuous cycle of innovation.
23
The Commission also
found that broadband providers have both the incentives and ability to harm the open Internet.
24
10. The Commission grounded its open Internet rules in multiple sources of legal authority,
including both section 706 of the Telecommunications Act and Title II of the Act. As it had done
previously, the Commission exercised its authority to interpret ambiguous language in the Act regarding
the classification of broadband services, and classified broadband Internet access services, including
Internet traffic exchange services (or Internet interconnection services), as telecommunications services
under Title II of the Act.
25
Concurrently, the Commission exercised its forbearance authority to forbear
from application of 27 provisions of Title II of the Act and over 700 Commission rules and regulations.
26
The Commission also reclassified mobile broadband service as a commercial mobile service.
27
11. In 2016, the D.C. Circuit upheld the Commission’s 2015 Open Internet Order in full.
28
The Commission had determined that consumer perception of broadband Internet access service
supported classifying it as a telecommunications service, and the court agreed that those conclusions “find
extensive support in the record” and “justify the Commission’s decision to reclassify broadband as a
18
Id. at 644.
19
Id. at 642. The Court also found that that authority did not allow the Commission to subject information services
or providers of private mobile services to treatment as common carriers. Id. at 650 (citing 47 U.S.C. § 153(51) and
47 U.S.C. § 332(c)(2)).
20
Id. at 635-42, 656-59.
21
Id. at 653.
22
Protecting and Promoting the Open Internet, WC Docket No. 14-28, Report and Order on Remand, Declaratory
Ruling, and Order, 30 FCC Rcd 5601, 5603, para. 4 (2015) (2015 Open Internet Order), pet. for review denied, U.S.
Telecom Ass’n v. FCC, 825 F.3d 674 (D.C. Cir. 2016) (USTA), reh’g denied, 855 F.3d 381 (D.C. Cir. 2017), cert.
denied, 139 S. Ct. 453 (2018).
23
See 2015 Open Internet Order, 30 FCC Rcd at 5625-27, paras. 76-77.
24
See id. at 5628-43, paras. 78-101.
25
See id. at 5743-45, paras. 331-35.
26
See id. at 5603, 5838-64, paras. 5, 493-536.
27
Id. at 5778-90, paras. 388-408.
28
See USTA, 825 F.3d 674.
Federal Communications Commission FCC-CIRC2310-01
7
telecommunications service.”
29
Among other things, the court rejected claims that Domain Name System
(DNS) and caching required BIAS to be classified as an information service, instead affirming the
Commission’s view that DNS and caching “facilitate use of the network without altering the fundamental
character of the telecommunications service.”
30
The court also rejected arguments that the grant of
extensive forbearance demonstrated that Title II was a poor fit for BIAS, observing that the FCC merely
“followed an express statutory mandate” in section 10 of the Act “requiring it to ‘forbear from applying
any regulation or any provision’ of the Communications Act if certain criteria are met.”
31
Likewise, with
respect to the Commission’s classification of mobile BIAS as a commercial mobile service, the court
found that holding “reasonable and supported by the record.”
32
The court also rejected challenges to the
Commission’s Internet conduct rules, concluding that those rules fell within the Commission’s statutory
authority, provided adequate notice of the conduct that was restricted, and were consistent with the First
Amendment.
33
12. Despite the D.C. Circuit’s decision upholding the Commission’s 2015 Open Internet
Order, and after more than a decade of promoting and supporting policies to protect the openness of the
Internet through basic conduct “rules of the road,” the Commission reversed course in the 2018 RIF
Order, reclassifying BIAS as an information service and eliminating the open Internet conduct rules.
34
The Commission asserted that a transparency rule, together with antitrust and consumer protection laws,
would be sufficient to protect consumers’ use of the Internet.
35
It also included a directive that the RIF
Order “preempt[s] any state or local measures that would effectively impose rules or requirements that
[the Commission has] repealed or decided to refrain imposing . . . or that would impose more stringent
requirements for any aspect of broadband service” addressed in the RIF Order.
36
The Commission
further concluded that “the directives to the Commission in section 706(a) and (b) of the 1996 Act to
promote deployment of advanced telecommunications capability are better interpreted as hortatory, and
not as grants of regulatory authority,”
37
departing from the Commission’s prior interpretation of those
provisions.
38
Upon review in Mozilla v. FCC, the D.C. Circuit identified a number of shortcomings and
limitations in the RIF Order and remanded to the Commission three matters requiring further
consideration.
39
In several respects, the Mozilla court criticized the RIF Order or highlighted the limits of
its analysis, even while concluding that it survived judicial review on those specific issues (if just barely).
For example, regarding the effect of Title II on investment, the court emphasized that the “Petitioners’
skepticism” of evidence that Title II regulation affected BIAS investment was “echoed in the 2018 [RIF
Order]” itself, which recognized the “quite modest probative value” of studies seeking to demonstrate
29
USTA, 825 F.3d at 697-98; see also id. at 704-705 (“[T]he record contains extensive evidence that [BIAS]
consumers perceive a standalone offering of transmission, separate from the offering of information services like
email and cloud storage.”).
30
Id. at 705.
31
Id. at 706.
32
Id. at 714.
33
Id. at 733-44.
34
Restoring Internet Freedom, WC Docket No. 17-108, Declaratory Ruling, Report and Order, and Order, 33 FCC
Rcd 311 (2017) (RIF Order).
35
Id. at 450-52, paras. 239-45.
36
Id. at 427, para. 195.
37
Id. at 470, para. 268.
38
In the 2010 Open Internet Order, the Commission had made clear its interpretation of sections 706(a) and (b) of
the 1996 Act as granting regulatory authority. 2010 Open Internet Order, 25 FCC Rcd at 17969-70, para. 120.
39
Mozilla v. FCC, 940 F.3d 1 (D.C. Cir. 2019) (Mozilla).
Federal Communications Commission FCC-CIRC2310-01
38
Order and the RIF Order recognized this authority.
231
And on review of each of those decisions, the D.C.
Circuit accepted the Commission’s authority to make classification decisions, even when this involved a
change in course.
232
In addressing a prior Commission decision classifying BIAS, in Brand X, the
Supreme Court confirmed not only that an administrative agency can change its interpretation of an
ambiguous statute, but that it “must consider varying interpretations and the wisdom of its policy on a
continuing basis, for example in response to . . . a change in administrations.”
233
In light of this precedent,
we believe that we not only have the authority to classify BIAS, but that we must reevaluate the 2018
information service classification in consideration of the policy rationales and marketplace developments
we have described above as warranting a return to the telecommunications service classification. We
seek comment on this view.
68. In evaluating the classification of BIAS, three definitional terms are relevant. First, the
Act defines “telecommunications” as “the transmission, between or among points specified by the user, of
information of the user’s choosing, without change in the form or content of the information as sent and
received.”
234
Second, the Act defines “telecommunications service” as “the offering of
telecommunications for a fee directly to the public, or to such classes of users as to be effectively
available directly to the public, regardless of the facilities used.”
235
Finally, the Act defines “information
service” as “the offering of a capability for generating, acquiring, storing, transforming, processing,
retrieving, utilizing, or making available information via telecommunications . . . , but does not include
any use of any such capability for the management, control, or operation of a telecommunications system
or the management of a telecommunications service.”
236
When Congress enacted the definitions of
“telecommunications service” and “information service” in the 1996 Act,
237
it substantially incorporated
the “basic” and “enhanced” service classifications from the Computer Inquiries line of decisions.
238
(Continued from previous page)
Broadcasting Co., 351 U.S. 192, 203 (1956) (noting “the power of the Commission” to exercise “the rulemaking
authority necessary for the orderly conduct of its business,” and explaining that sections 4(i) and 303(r) of the Act
“grant general rulemaking power not inconsistent with the Act or law”); AT&T v. Iowa Utils. Bd., 525 U.S. 366, 378
(1999) (stating that “[w]e think that the grant in § 201(b) means what it says: The FCC has rulemaking authority to
carry out the ‘provisions of this Act’”); Brand X, 545 U.S. 967, 980-82 (2005) (the FCC has authority to classify
services—and BIAS, in particular—and to change course in its classification of BIAS if it acknowledges that it is
doing so and justifies its decision); Phila. Television Broad. Co. v. FCC, 359 F.2d 282, 283 (D.C. Cir. 1966)
(recognizing the Commission’s authority to determine whether community antenna television (CATV) “systems are
common carriers within the meaning of the Communications Act”); Nat’l Ass’n of Regul. Util. Comm’rs v. FCC,
525 F.2d 630 (D.C. Cir. 1976) (NARUC I) (affirming the FCC’s classification of Specialized Mobile Radio Systems
(SMRS) as non-common carriers and observing that a different classification could be warranted in the future
“should the actual operations of SMRS appear to bring them within the common carrier definition”).
231
See, e.g., 2015 Open Internet Order, 30 FCC Rcd at 5742, 5743-44, paras. 328, 331-32, 333-35; RIF Order, 33
FCC Rcd at 403-405, paras. 155-56.
232
See, e.g., Mozilla, 940 F.3d at 23-24, 43, 50, 53-54, 55-56, 63-64; USTA, 825 F.3d at 701-702, 704, 708-10, 723-
24.
233
Brand X, 545 U.S. at 981 (quoting Chevron, 467 U.S. at 863-64) (emphasis added; internal quotation marks
omitted).
234
47 U.S.C. § 153(50).
235
47 U.S.C. § 153(53).
236
47 U.S.C. § 153(24).
237
Telecommunications Act of 1996, Pub. L. No. 104-104, § 3(a)(2), 110 Stat. 56, 58-60 (1996), codified at 47
U.S.C. §§ 153(24), 153(50), 153(53).
238
In 1966, the Commission initiated its Computer Inquiries “to ascertain whether the services and facilities offered
by common carriers are compatible with the present and anticipated communications requirements of computer
users.” Regulatory & Policy Problems Presented by the Interdependence of Computer & Comm. Servs., Docket No.
(continued….)
Federal Communications Commission FCC-CIRC2310-01
40
with the Commission’s finding in 2015, we believe that BIAS is best understood as making available
high-speed access to the Internet (that may be bundled with other applications and functions)—and
therefore that it provides telecommunications
244
—and that ISPs offer BIAS to the public for a fee.
Accordingly, we tentatively conclude the best reading of the Act is that BIAS, as offered to and
understood by consumers today, is a telecommunications service rather than an information service. We
seek comment on this tentative conclusion.
70. Broadband Internet Access Service Provides Telecommunications. We tentatively
conclude that BIAS provides “telecommunications” as it is defined under the Act, and seek comment on
this conclusion. As discussed above, the Act defines “telecommunications” as “the transmission, between
or among points specified by the user, of information of the user’s choosing, without change in the form
or content of the information as sent and received.”
245
As discussed above,
246
we believe that users rely on
BIAS to transmit “information of the user’s choosing,” “between or among points specified by the
user.”
247
We further believe, as the Commission has previously found, that the term “points specified by
the user” is ambiguous, and that “uncertainty concerning the geographic location of an endpoint of
communication is irrelevant for the purpose of determining whether a broadband Internet access service is
providing ‘telecommunications.’”
248
We also contend that these points are not constrained to be defined
in one particular format. They may be in the form of an IP address or perhaps more commonly associated
with fully qualified domain names resolved by the DNS, such as www.example.com. This is consistent
with the Commission’s prior deduction that while consumers often do not know the precise physical or
virtual location of the edge provider or other user they want to access, “there is no question that users
specify the end points of their Internet communications” and “would be quite upset if their Internet
communications did not make it to their intended recipients or the website addresses they entered into
their browser would take them to unexpected web pages.”
249
As the Commission explained, “numerous
forms of telephone service qualify as telecommunications even though the consumer typically does not
know the geographic location of the called party,” including cell phone service, toll free 800 service, and
call bridging service.
250
Likewise, the fact that DNS may resolve the same domain name to one or more
virtual locations (e.g., due to load balancing), just as in the toll free arena a single telephone number may
route to multiple locations, “does not transform that service to something other than
telecommunications.”
251
In the RIF Order, the Commission conceded that at least some
telecommunications are used as an input into BIAS and “an ISP makes use of telecommunications” in the
provision of BIAS, but found that it “need not further address the scope of the ‘telecommunications’
definition in order to justify [its] classification of broadband Internet access service,” and did not further
address the Commission’s interpretation and application of the “telecommunications” definition in the
2015 Open Internet Order.
252
We seek comment on the analysis that BIAS provides
“telecommunications,” including whether there is any reason to depart from it.
71. We further tentatively conclude that there is no change or modification to the form or
244
Id.; see also Brand X, 545 U.S. at 1008 (Scalia, J., dissenting) (quoting Cable Modem Declaratory Ruling, 17
FCC Rcd at 4799, para. 1).
245
47 U.S.C. § 153(50).
246
See supra section III.A; see also 2015 Open Internet Order, 30 FCC Rcd at 5761, para. 361.
247
47 U.S.C. § 153(50).
248
2015 Open Internet Order, 30 FCC Rcd at 5761-62, para. 361.
249
Id.
250
Id.
251
Id.
252
RIF Order, 33 FCC Rcd at 341-43, para. 52.
Federal Communications Commission FCC-CIRC2310-01
10
A. Broadband Internet Access Service is Essential
17. While BIAS connections have long been important to full participation in our society and
economy, we believe the COVID-19 pandemic dramatically changed the importance of the Internet today,
and seek comment on our belief. Not unlike other essential utilities, such as electricity and water, BIAS
connections have proved essential to every aspect of our daily lives, from work, education, and
healthcare, to commerce, community, and free expression.
58
BIAS connections were so critical during the
pandemic that Congress undertook a number of federal initiatives to improve the accessibility and
affordability of BIAS across America,
59
finding in the preamble to section 60101 of the bipartisan
Infrastructure Investment and Jobs Act (Infrastructure Act) that “access to affordable, reliable, high-speed
broadband is essential to full participation in modern life in the United States.”
60
A Pew Research Center
survey highlighted this reality, showing that high speed Internet was essential or important to 90 percent
of U.S. adults during the COVID-19 pandemic.
61
That finding is backed by the tremendous use during
the pandemic of text messaging applications, voice services, and video conferencing for work, school,
civic engagement, and connecting with family and communities, accessed through consumers’ fixed and
mobile broadband connections.
62
The increased importance of BIAS connections has persisted post-
58
See Janna Anderson et al., Experts Say the ‘New Normal’ in 2025 Will Be Far More Tech-Driven, Presenting
More Big Challenges, Pew Research Center (Feb. 18, 2021),
https://www.pewresearch.org/internet/2021/02/18/experts-say-the-new-normal-in-2025-will-be-far-more-tech-
driven-presenting-more-big-challenges/; Rahul De’ et al., Impact of digital surge during Covid-19 pandemic: A
viewpoint on research and practice, (June 9, 2020), https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7280123/.
59
See, e.g., Coronavirus Aid, Relief, and Economic Security (CARES) Act, Pub. L. No. 116-136, 134 Stat. 281
(2020) (appropriating $200 million to the Commission for telehealth support through the COVID-19 Telehealth
Program); Consolidated Appropriations Act, 2021, Pub. L. No. 116-260, § 903, 134 Stat. 1182, (2020)
(appropriating an additional $249.95 million in additional funding for the Commission’s COVID-19 Telehealth
Program); id., § 904, 134 Stat. 2129 (establishing an Emergency Broadband Connectivity Fund of $3.2 billion for
the Commission to establish the Emergency Broadband Benefit Program to support broadband services and devices
in low-income households during the COVID-19 pandemic); American Rescue Plan Act of 2021, Pub. L. No. 117-2,
§ 7402, 135 Stat. 4 (2021) (establishing a $7.171 billion Emergency Connectivity Fund to help schools and libraries
provide devices and connectivity to students, school staff, and library patrons during the COVID-19 pandemic);
Infrastructure Act, § 60102 (establishing grants for broadband deployment programs, as administered by NTIA); id.
§ 60401 (establishing grants for middle mile infrastructure); id. § 60502 (providing $14.2 billion to establish the
Affordable Connectivity Program).
60
47 U.S.C. § 1701(1) and (5) (finding also that the pandemic “has underscored the critical importance of
affordable, high-speed broadband for individuals, families, and communities to be able to work, learn, and connect
remotely while supporting social distancing”). See also Digital Equity Act of 2021, 47 U.S.C. §§ 1722(1)(A)-(B),
and 1722(5) (stating it is the sense of Congress that “a broadband connection and digital literacy are increasingly
critical to how individuals (A) participate in society, economy and civic institutions of the United States;” and “(B)
access health care and essential services, obtain education, and build careers” and “achieving digital equity is a
matter of social and economic justice and is worth pursuing”).
61
See Colleen McClain et al., The Internet and the Pandemic: 1. How the internet and technology shaped
Americans’ personal experiences amid COVID-19, Pew Research Center (Sept. 1, 2021) (Pew Research Center:
The Internet and the Pandemic), https://www.pewresearch.org/internet/2021/09/01/how-the-internet-and-
technology-shaped-americans-personal-experiences-amid-covid-19/. See also Responding to COVID-19, NCTA,
https://www.ncta.com/covid-19-overview (last visited Sept. 20, 2023) (“77% of adults think high-speed internet
service is more important now than in the past.”); Ericsson, Connected consumers getting through the pandemic
(June 2020), https://www.ericsson.com/4ac68f/assets/local/reports-papers/mobility-report/documents/2020/emr-
june2020-connectedconsumers_article.pdf (“Across all the surveyed markets, 83 percent of respondents claim that
information and communications technology (ICT) has helped them a lot in coping with the impact of the pandemic
in various ways ”).
62
See Pew Research Center: The Internet and the Pandemic (about eight-in-ten individuals say they connected with
others via video calls during the pandemic, while 71 percent of adults share that text messages or group messaging
apps have helped them at least a little to stay connected and 65 percent said the same about voice calls).
Federal Communications Commission FCC-CIRC2310-01
11
pandemic. Compared to last year, nearly 45 percent of respondents to one survey said their Internet usage
had increased, while the average amount of time respondents spent actively using the Internet on a phone,
tablet, or computers was eight hours, excluding passive activities, such as streaming music or video in the
background.
63
OpenVault reports that almost 50 percent of fixed broadband subscribers in the U.S. used
533 gigabytes (GB) or more of bandwidth per month through the fourth quarter of 2022, compared to
about 10 percent of subscribers in 2017.
64
From year-end 2020 to year-end 2021, monthly data usage per
smartphone subscriber rose to an average of 12.1 GB per subscriber per month—an increase of
approximately 12 percent.
65
We seek comment on how consumers’ usage and view of BIAS has changed
since 2018, when Title II classification was reversed, and particularly since the onset of the pandemic in
2020. In what ways has the importance of BIAS to consumers stayed the same? How should any
evolution in the importance of BIAS to consumers drive our analysis today? We also seek comment on
how the importance of BIAS is expected to evolve going forward.
18. We tentatively conclude that developments in the importance of the Internet to consumers
demonstrate that consumers perceive and use BIAS as a standalone service that provides
telecommunications. In the 2015 Open Internet Order, the Commission concluded that consumers
perceive BIAS both as a standalone offering and as providing telecommunications.
66
The D.C. Circuit
found in USTA that these conclusions had “extensive support in the record and together justify the
Commission’s decision to reclassify broadband as a telecommunications service.”
67
As the D.C. Circuit
recognized, “[e]ven the most limited examination of contemporary broadband usage reveals that
consumers rely on the service primarily to access third-party content.”
68
We believe that the increased
importance of BIAS to consumers since the onset of the pandemic shows that consumers’ perception and
use of BIAS as a standalone telecommunications service is even more pronounced now than it was in
2015. Indeed, consumers’ use of BIAS today appears to go to the very heart of the purposes for which
consumers have historically utilized “telecommunication services”: to “transmi[t], between or among
points specified by the user, of information of the user’s choosing, without change in the form or content
of the information as sent and received.”
69
We seek comment on our tentative conclusion and this
analysis.
19. We also believe that the COVID-19 pandemic, and the increased importance of BIAS to
consumers, has spurred ISPs to market BIAS as a telecommunications service that is essential to
accessing separate data-related “add-on” offerings. In the 2015 Open Internet Order, the Commission
concluded that ISPs “market and offer consumers separate services that are best characterized as (1) a
broadband Internet access service that is a telecommunications service; and (2) ‘add-on’ applications,
content, and services that are generally information services” separate from the underlying broadband
63
Peter Christiansen, 2022 Internet Usage Survey, HighSpeedInternet.com (Sept. 26, 2022),
https://www.highspeedinternet.com/resources/internet-usage-report.
64
OpenVault, Broadband Insights Report (OVBI) 4Q22, 11, 15, https://openvault.com/wp-
content/uploads/2023/02/OVBI_4Q22_Report.pdf.
65
Communications Marketplace Report, GN Docket No. 22-203, 2022 Communications Marketplace Report, FCC
22-103, 62, para. 80 (rel. Dec. 30, 2022) (2022 Communications Marketplace Report). See also Ericsson, Mobility
Report, at 20 (June 2023) (showing mobile data traffic per smartphone in North America was 12.3 GB per month in
2020, was 19.6 GB per month in 2022, and is expected to reach 57.5 GB per month by 2028).); CTIA, 2023 Annual
Survey Highlights (July 25, 2023) (showing that there was 73.7 trillion MB of U.S. wireless data traffic in 2022,
representing a 38 percent increase from 20 trillion MB in 2021).
66
See 2015 Open Internet Order, 30 FCC Rcd at 5765, para. 365.
67
USTA, 825 F.3d at 697-98.
68
Id. at 698.
69
47 U.S.C. § 153(50) (definition of “telecommunications”); id. at § 153(53) (definition of “telecommunications
service”).
Federal Communications Commission FCC-CIRC2310-01
12
service.
70
The Commission specifically found that ISPs market their BIAS “primarily as a conduit for the
transmission of data across the Internet,” with fixed providers distinguishing service offerings on the basis
of transmission speeds, while mobile providers advertise speed, reliability, and coverage of their
networks.
71
Although the RIF Order contended that “ISPs generally market and provide information
processing capabilities and transmission capabilities together as a single service,” it did not provide
examples.
72
Examples of ISP marketing today appear even more focused than in 2015 on the capability
of BIAS to transmit information of users’ choosing between Internet endpoints,
73
rather than its capability
to generate, acquire, store, transform, process, retrieve, utilize, or make available that information.
74
Such
marketing emphasizes faster speeds aimed at connecting multiple devices,
75
unlimited data for mobile
service,
76
and reliable and secure coverage.
77
At the same time, ISPs appear to advertise data-related
offerings as separate services that can be bundled with or added on to their BIAS services, including
subscriptions to unaffiliated video and music streaming services,
78
new devices,
79
access to Wi-Fi
70
See 2015 Open Internet Order, 30 FCC Rcd at 5750, para. 341.
71
Id. at 5757, para. 354.
72
RIF Order, 33 FCC Rcd at 335, para. 46.
73
47 U.S.C. § 153(50) (definition of “telecommunications”); id. at § 153(53) (definition of “telecommunications
service”).
74
47 U.S.C. § 153(24) (definition of “information service”).
75
See, e.g., Comcast Xfinity, Explore Speeds and Prices, https://www.xfinity.com/learn/internet-service (last visited
Sept. 20, 2023) (advertising speed tiers and the appropriate number of devices for each tier); Verizon Fios, Get
Verizon Fios, https://www.verizon.com/home/fios [https://perma.cc/6TSW-R663] (last visited Sept. 20, 2023)
(advertising fiber capacity as enabling “more bandwidth for everyone in your home at the same time”); AT&T,
AT&T Fiber® with All-Fi™, https://www.att.com/internet/fiber [https://perma.cc/NFZ9-QK2U] (last visited Sept.
20, 2023) (advertising fiber service as a means to “[c]onnect all your devices”); see also Charter Spectrum, 4
Benefits of Faster Internet Speed at Home, https://www.spectrum.com/resources/internet-wifi/4-benefits-of-faster-
internet-speed-at-home (last visited Sept. 20, 2023) (“As we connect more users and more devices to our home
networks, high-speed Internet is becoming essential to our lives.”).
76
See, e.g., T-Mobile, Compare our unlimited cell phone plans, https://www.t-mobile.com/cell-phone-plans
[https://perma.cc/FNZ4-QATZ] (last visited Sept. 20, 2023) (advertising all cell phone plans as including “unlimited
5G and 4G LTE data”); USCellular, Unlimited Plans, https://www.uscellular.com/plans/unlimited
[https://perma.cc/L7UJ-EF8D] (last visited Sept. 20, 2023) (offering unlimited data plans) Verizon, Unlimited,
https://www.verizon.com/plans/unlimited [https://perma.cc/L7UJ-EF8D] (last visited Sept. 20, 2023) (same).
77
See, e.g., AT&T, AT&T Wireless, https://www.att.com/wireless [https://perma.cc/Q643-NMVC] (last visited Sept.
20, 2023) (advertising 5G service as fast, reliable, and secure); T-Mobile, What is 5G?, https://www.t-
mobile.com/5g [https://perma.cc/GP3B-ABZT] (last visited Sept. 20, 2023) (advertising 5G as enabling “greater
bandwidth and faster data transfer,” which “creates opportunity for quicker downloads, smoother streaming, and
more responsive and reliable online experiences, even in spots with high network traffic”); Charter Spectrum,
Internet, https://www.spectrum.com/internet (last visited Sept. 20, 2023) (“Surf, stream and stay connected with
speeds and reliability you can count on, even when your whole family is online.”).
78
See, e.g., Verizon Wireless, Unlimited, https://www.verizon.com/plans/unlimited [https://perma.cc/GPG8-JLUN]
(last visited Sept. 20, 2023) (advertising Disney Bundle and Apple One with certain unlimited plans); Charter,
Spectrum, https://www.spectrum.com/packages/peacock-premium-trial (last visited Aug. 24, 2023) (offering
Peacock Premium 12-month subscription with an eligible Spectrum Internet package); T-Mobile, Cell Phone Plans,
https://www.t-mobile.com/cell-phone-plans [https://perma.cc/4F96-DHA3] (last visited Sept. 20, 2023) (offering
Netflix subscription with each plan).
79
See, e.g., USCellular, USCellular, https://www.uscellular.com [https://perma.cc/3KJQ-QQEH] (last visited Sept.
20, 2023) (offering Samsung Galaxy phones with eligible service plan purchase).
Federal Communications Commission FCC-CIRC2310-01
13
hotspots,
80
or mobile security apps.
81
We seek comment generally on how BIAS offerings are advertised
today. Have fixed or mobile ISPs changed their marketing or advertising of BIAS since 2018? We seek
evidence and examples of how the BIAS market is shaped today, and particularly how it has changed in
response to developments in consumers’ perception about the essential nature of BIAS connections. How
does the current marketing of BIAS by ISPs bear on our tentative determination that such service is a
telecommunications service? We also seek comment on ways ISPs’ advertising of bundled services and
devices as “add-ons” to their BIAS offerings has evolved as a result of recent changes in the importance
of BIAS to consumers. How do these additional offerings modify the underlying BIAS offered by the
ISP, if at all?
20. We further seek comment on the development of third-party services and devices that
utilize BIAS. We believe that since the 2018 reclassification of BIAS, and particularly as a result of the
COVID-19 pandemic, there is substantial market proliferation of third-party services and devices and that
consumers’ use of these offerings significantly outweigh their use of ISPs’ affiliated offerings. We seek
comment on this observation. How have trends in third-party services and devices impacted consumer
use of BIAS? In what ways have these services and devices driven demand for fixed and mobile BIAS?
B. Reclassification is Necessary to Ensure Internet Openness, Safeguard National
Security, Protect Public Safety, and Support Other Public Interest Goals
21. Given how essential BIAS is to consumers’ daily lives, we believe that our proposed
reclassification of BIAS as a telecommunications service is necessary to unlock tools the Commission
needs to fulfill its objectives and responsibilities to safeguard this vital service. Critical among these is
enabling the Commission to ensure that the Internet is open and fair, including by establishing a uniform,
national regulatory approach that would provide consistent protections for consumers and certainty for
ISPs. We also believe that the proposed reclassification would enhance the Commission’s ability to
safeguard national security and protect public safety. Further, we anticipate that returning BIAS to its
telecommunications service classification would provide us with better tools to address policy initiatives
to protect consumers when they use communications services and support their ability to access BIAS,
including through the Commission’s universal service programs. We believe the RIF Order’s
reclassification of BIAS as an information service not only inhibits the Commission’s ability to achieve
these outcomes, but that its policy rationales failed to support that reclassification. Below, we seek
comment on these views and on any other considerations bearing on the grounds for us to return to a
telecommunications service classification of BIAS, including the impact of our proposed reclassification
on small ISPs and other small entities. In seeking comment on potential reclassification, we also
welcome the submission of economic analyses that weigh the costs and benefits of the Commission
taking such action. We also invite commenters to identify whether there are any other regulatory
frameworks administered by the Commission, not discussed below, that might be affected by our
proposed reclassification, and seek comment on how such reclassification would affect those frameworks.
22. Beyond these issues, we invite comment on additional public policy considerations we
should examine in our analysis of BIAS classification. For instance, to what extent are there any
reasonable reliance interests we should consider? We expect any commenters claiming reliance to submit
evidence demonstrating the existence, magnitude, and reasonableness of any alleged reliance interests.
80
See, e.g., Comcast Xfinity, Overview, https://www.xfinity.com/overview (last visited Sept. 20, 2023) (offering
Internet with “access 20+ million secure hotspots”); AT&T, AT&T Wi-Fi, https://www.att.com/wi-fi/
[https://perma.cc/69Z2-B7YE] (last visited Sept. 11, 2023) (advertising “access to our nationwide Wi-Fi network . . .
at no extra charge”); Charter Spectrum, Spectrum Out-of-Home WiFi, https://www.spectrum.com/internet/wifi-
access-points (last visited Sept. 11, 2023) (advertising “unlimited use of out-of-home Spectrum WiFi nationwide at
no extra cost”).
81
RIF Order, 33 FCC Rcd at 335, para. 46. See, e.g., AT&T, Compare our wireless plans,
https://www.att.com/plans/wireless/ [https://perma.cc/Q643-NMVC] (last visited Sept. 20, 2023) (stating that all
unlimited plans include AT&T ActiveArmor mobile security).
Federal Communications Commission FCC-CIRC2310-01
59
113. Finally, we also seek comment on any relevant new rules or statutory requirements
enacted subsequent to the forbearance analysis in the 2015 Open Internet Order.
V. PROPOSED OPEN INTERNET RULES
114. Today we propose to return to the basic framework the Commission adopted in 2015 to
protect the openness of the Internet. In 2015, consistent with its longstanding policy approach to protect
Internet openness through basic conduct “rules of the road,” the Commission adopted a set of carefully
tailored conduct rules to prevent specific practices harmful to an open Internet—blocking, throttling, and
paid prioritization—as well as strong standard of conduct designed to prevent deployment of new
practices that would harm Internet openness, and enhancements to the existing transparency rule.
392
In the
RIF Order, the Commission broke with this longstanding approach by altogether eliminating the open
Internet conduct rules,
393
which we believe left consumers exposed to behavior that can hinder their
ability to access the open Internet. Below, we propose to reinstate straightforward, clear rules that are
designed to prevent ISPs from engaging in practices harmful to consumers, competition, and public
safety, and that would provide the basis for a uniform, national regulatory approach toward BIAS.
115. We first propose to reinstate the rules adopted in the 2015 Open Internet Order that
prohibit ISPs from blocking, throttling, or engaging in paid or affiliated prioritization arrangements. We
similarly propose to reinstate the general conduct standard adopted in the 2015 Open Internet Order,
which would prohibit practices that cause unreasonable interference or unreasonable disadvantage to
consumers or edge providers. Finally, with regard to transparency, we propose to retain the current
disclosures, and we seek comment on the means of disclosure, the interplay between the transparency rule
and the broadband label requirements, and any additional enhancements or changes we should consider.
The rules we propose today are consistent with numerous other steps the Commission has taken to ensure
that this country has access to affordable, competitive, secure, and reliable broadband.
394
The proposed
rules would establish clear standards for ISPs to maintain Internet openness and would give the
Commission a solid basis on which to take enforcement action against conduct that prevents people from
fully accessing all of the critical services available through the Internet.
A. Need for Rules
116. We believe that the rules we propose today will establish a baseline that the Commission
can use to prevent and address conduct that harms consumers and competition when it occurs. Above, we
express our belief that consumers perceive and use BIAS as an essential service, critical to accessing
healthcare, education, work, commerce, and civic engagement.
395
Because of its importance, we further
believe it is paramount that consumers be able to use their BIAS connections without degradation due to
blocking, throttling, paid prioritization, or other harmful conduct. The rules we propose today are
designed to ensure these protections. Below, we seek comment on particular issues that inspire the need
for these rules, including protecting public safety, reliance on the Commission’s communications sector
expertise to address harmful conduct, ISPs’ incentives and abilities to harm Internet openness, the effects
of harmful conduct on consumer demand and edge innovation, and how the RIF Order’s oversight
framework addresses harmful conduct. We invite commenters to submit economic analyses that weigh
the costs and benefits of the Commission potentially adopting open Internet rules.
1. Promoting Innovation and Free Expression
117. In the 2015 Open Internet Order, the Commission found that Internet openness helps
392
Id. at 5603, para. 4.
393
RIF Order, 33 FCC Rcd 311.
394
See supra notes 1 and 59.
395
See supra section III.A.
Federal Communications Commission FCC-CIRC2310-01
15
the RIF Order’s hands-off approach to BIAS has led to the very patchwork of state-by-state open Internet
requirements it sought to avoid.
92
We remain concerned that a patchwork of state open Internet
requirements may be burdensome for ISPs, particularly small ISPs, thus hindering the broadband market,
and at the same time, fail to ensure that all consumers are protected from conduct harmful to Internet
openness. We believe that reclassification will put our authority to preempt any inconsistent state laws on
substantially stronger legal footing,
93
thereby enabling the Commission to create a uniform set of open
Internet standards that will apply nationwide. We seek comment on this analysis.
2. Safeguarding National Security and Preserving Public Safety
25. We tentatively conclude that the demonstrated need to address national security and
public safety concerns makes it necessary and timely to revisit the statutory classification of BIAS. The
D.C. Circuit criticized the RIF Order for giving short shrift to the evidence of public safety concerns in
the record before it.
94
The RIF Remand Order, in declining to reclassify BIAS as a telecommunications
service on that basis, largely dismissed such concerns as speculative.
95
But developments in recent years
have highlighted national security and public safety concerns arising in connection with the U.S.
communications sector, ranging from the security risks posed by malicious cyber actors targeting network
equipment and infrastructure to the loss of communications capability in emergencies through service
outages. We believe it is now timely for us to reevaluate the classification of BIAS to ensure the
Commission can use all of its capabilities to address threats to national security and public safety.
26. National Security and Law Enforcement. We tentatively conclude that authority under
applicable Title II provisions, reinforced by the Commission’s existing authority, would enhance the
Commission’s efforts to protect the national defense, a responsibility that underlies its other statutory
obligations.
96
We seek comment generally on how reclassification would advance the Commission’s
(Continued from previous page)
among other things that the petitioners were likely to succeed on the merits of their preemption claim, distinguishing
Mozilla on the theory that it only rejected the FCC’s attempted express preemption there but did not foreclose case-
by-case preemption decisions, and distinguishing the district court decision in ACA Connects based on the
understanding that the California law did not restrict BIAS prices), appeal pending, No. 21-1975 (2d Cir. argued
Jan. 12, 2023).
91
RIF Order, 33 FCC Rcd at 426-27, para. 194.
92
In particular, a number of states adopted laws that conditioned receipt of state funds on compliance with open
Internet principles. See, e.g., SB-822, 2017-2018 Reg. Sess. (Cal. 2018) (adopting open Internet-type requirements);
H.B. 2282, 65th Leg., 2018 Reg. Sess. (Wash. 2018) (similar); H.B. 4155, 79th Leg. Assemb., Reg. Sess. (Or. 2018)
(requiring compliance with certain open Internet-type requirements as a condition of contracting with the state
government); S.289, No. 169, 2018 Sess. (Vt. 2018) (similar); LD 1364, 129th Leg., Reg. Sess. (Me. 2019)
(similar); Colorado S.B. 19-078, 71st Leg., Reg. Sess. (Colo. 2019) (requiring compliance with certain open
Internet-type requirements as a condition of state universal service support); NY Gen. Bus. § 399-zzzzz (N.Y. 2021)
(restricting BIAS prices for low income consumers). Similarly, some states issued executive orders requiring
compliance with certain open Internet-type requirements as a condition of contracting with the state government.
See, e.g., Mont. Exec. Order No. 3-2018 (2018), https://spb.mt.gov/_docs/Laws-Rules-EOs/EOs/EO-03-2018-Net-
Freedom.pdf (amended by Mont. Exec. Order No. 6-2018 (2018), https://spb.mt.gov/_docs/Laws-Rules-
EOs/EOs/EO-06-2018-Amended-Net-Freedom.pdf); N.J. Exec. Order No. 9 (2018); N.Y. Exec. Order No. 175
(2018), https://nj.gov/infobank/eo/056murphy/pdf/EO-9.pdf; R.I. Exec. Order No. 18-02 (2018),
https://governor.ri.gov/executive-orders/executive-order-18-02.
93
See infra section III.F.
94
Mozilla, 940 F.3d at 59-63.
95
See, e.g., RIF Remand Order, 35 FCC Rcd at 12356-68, paras. 49-66.
96
47 U.S.C. § 151 (explaining that among the reasons Congress created the Commission was “for the purpose of the
national defense”); see also The White House, Presidential Policy Directive 21: Critical Infrastructure Security and
(continued….)
Federal Communications Commission FCC-CIRC2310-01
16
fulfillment of its national security responsibilities and how it specifically would affect the Commission’s
efforts, in coordination with other agencies, to protect the nation’s communications networks from
entities and equipment and services that pose threats to national security and law enforcement.
27. We tentatively conclude that our proposed reclassification would enhance the
Commission’s ability to protect the nation’s communications networks from entities that pose threats to
national security and law enforcement pursuant to its authority under section 214 of the Act, and we seek
comment on this tentative conclusion. Under section 214, carriers must be authorized by the Commission
to provide domestic and international telecommunications service in the United States.
97
Section 214,
however, applies to common carriers,
98
and thus does not apply to BIAS under its current classification as
an information service, potentially exposing the nation’s communications networks to national security
and law enforcement threats by entities providing BIAS. In the China Telecom Americas Order on
Revocation and Termination, China Unicom Americas Order on Revocation, and Pacific Networks and
ComNet Order on Revocation and Termination, the Commission extensively evaluated national security
and law enforcement considerations raised by existing section 214 authorizations and determined, based
on the record, that the present and future public interest, convenience, and necessity was no longer served
by those carriers’ retention of their section 214 authority.
99
In particular, the Commission identified
national security and law enforcement concerns with respect to those entities’ access to Internet Points of
Presence (PoPs) (usually located within data centers)
100
and other harms in relation to the services
(Continued from previous page)
Resilience (PPD-21) (Feb. 12, 2013) (directing the FCC to exercise its authority and expertise to identify and
address vulnerabilities in the communications sector).
97
47 U.S.C. § 214. Section 214 applies to carriers, which the Act defines as a person engaged as a common carrier
for hire, in interstate or foreign communications by wire or radio. Id.; 47 U.S.C. § 153(11). See also Process
Reform for Executive Branch Review of Certain FCC Applications and Petitions Involving Foreign Ownership, IB
Docket No. 16-155, Report and Order, 35 FCC Rcd 10927 (2020) (Executive Branch Process Reform Order)
(adopting rules and procedures that streamline and improve the timeliness and transparency of the process by which
the Commission coordinates with the Executive Branch agencies for assessment of any national security, law
enforcement, foreign policy, or trade policy issues regarding certain applications filed with the Commission);
Process Reform for Executive Branch Review of Certain FCC Applications and Petitions Involving Foreign
Ownership, IB Docket No. 16-155, Erratum, 35 FCC Rcd 13164 (2020).
98
See 47 U.S.C. § 153(51) (providing that a telecommunications carrier is a common carrier only insofar as it is
providing telecommunications services).
99
See China Telecom (Americas) Corporation, GN Docket No. 20-109, File Nos. ITC-214-20010613-00346, ITC-
214-20020716-00371, ITC-T/C-20070725-00285, Order on Revocation and Termination, 36 FCC Rcd 15966 (2021)
(China Telecom Americas Order on Revocation and Termination), aff’d China Telecom (Americas) Corp. v. FCC,
57 F.4th 256 (D.C. Cir. 2022); China Unicom (Americas) Operations Limited, GN Docket No. 20-110, File Nos.
ITC-214-20020728-00361, ITC-214-20020724-00427, Order on Revocation, 37 FCC Rcd 1480 (2022) (China
Unicom Americas Order on Revocation), argued 9th Cir. argued Feb. 15, 2023; Pacific Networks Corp. and ComNet
(USA) LLC, GN Docket No. 20-111, File Nos. ITC-214-20090105-00006, ITC-214-20090424-00199, Order on
Revocation and Termination, FCC 22-22, 2022 WL 905270 (Mar. 23, 2022) (Pacific Networks and ComNet Order
on Revocation and Termination), aff’d Pacific Networks Corp. and ComNet (USA) LLC v. FCC, No. 22-1054 (D.C.
Cir. 2023).
100
Today, ISPs provide BIAS through PoPs. See China Telecom Americas Order on Revocation and Termination,
36 FCC Rcd at 16027, paras. 91-92, aff’d, China Telecom (Americas) Corp. v. FCC (“PoPs . . . are physical
locations where the network service provider offers or avails of interconnection or other Internet-related services.
To optimize connectivity among providers, the industry has established ‘Internet Exchange’ or ‘IX’ points, which
are physical data centers in which carriers who wish to participate in public peering can connect to a shared local
area network or optionally avail of point-to-point interconnects for private peering.”); see also Colocation America,
What is a Point of Presence (PoP)? (Oct. 11, 2018), https://www.colocationamerica.com/blog/point-of-presence
(“These Internet POPs usually hold multiple servers, routers, and all other interface equipment. These physical
locations are usually located within data centers. ISPs typically have multiple POPs located around in many
(continued….)
Federal Communications Commission FCC-CIRC2310-01
17
provided by those entities pursuant to section 214 authorization.
101
The Commission concluded that
China Telecom Americas’ (CTA) provision of services pursuant to its section 214 authority, “whether
offered individually or as part of a suite of services—combined with CTA’s physical presence in the
United States, CTA’s ultimate ownership and control by the Chinese government, and CTA’s relationship
with its indirect parent [China Telecommunications Corporation], which itself maintains a physical
presence in the United States—present unacceptable national security and law enforcement risks to the
United States,”
102
and it reached similar conclusions in the other proceedings.
103
We believe the same
national security and law enforcement threats identified in those proceedings equally exist with respect to
entities providing BIAS, and that reclassifying BIAS as a telecommunications service would allow the
Commission to use its section 214 authority to address those threats. We seek comment on this analysis.
28. We also seek comment on other ways the proposed reclassification would enhance the
Commission’s ability to address national security and law enforcement threats by entities providing
BIAS. Are there other specific national security and law enforcement risks in connection with the
provision of BIAS resulting from the current classification of BIAS as an information service? Have
there been relevant and demonstrable changes with respect to how nation-states have sought to exploit the
technological convergence of broadband and other services that present vulnerabilities affecting the
national defense? We ask commenters to provide detailed comments on any regulatory requirements
designed to address such risks that would newly apply to these entities if the Commission were to
reclassify BIAS as a telecommunications service. For instance, could the Commission prohibit ISPs from
entering into Internet traffic exchange arrangements with certain companies that operate data centers or
other Internet Exchange Points in the U.S.? Would reclassification enable the Committee for the
Assessment of Foreign Participation in the United States Telecommunications Services Sector to review
telecommunications licenses or authorizations meeting appropriate thresholds of foreign ownership or
control for national security and law enforcement concerns? Would reclassification increase law
enforcement agencies’ ability to seek lawful assistance, including identification and disruption of illegal
activity, for investigations involving ISP networks? For mobile BIAS, would reclassification extend the
foreign ownership restrictions for wireless common carriers that the Commission applies under section
310(b) of the Act and its implementing rules?
104
In the absence of reclassification, does the Commission
have other authority that it could use that is sufficient to protect the nation’s communications networks
against ISPs that pose national security and law enforcement threats? If so, we ask commenters to
indicate the statutory authority and how the Commission could use such authority to ensure national
security and law enforcement concerns are addressed.
(Continued from previous page)
different areas. Some [ISPs] have thousands of POP locations usually located at Internet Exchange Points (IXP) and
colocation centers. These physical locations allow people to be interconnected to others around the world.”).
101
For instance, in the China Telecom Americas Order on Revocation and Termination, the Commission addressed
concerns that China Telecom (Americas) Corporation’s (CTA) PoPs in the United States “are highly relevant to the
national security and law enforcement risks associated with CTA” and that “CTA’s PoPs in the United States
provide CTA with the capability to misroute traffic and, in so doing, access and/or manipulate that traffic.” See
China Telecom Americas Order on Revocation and Termination, 36 FCC Rcd at 16027, paras. 91-92 (“In cases
where CTA’s PoPs reside in IX points, CTA can potentially access and/or manipulate data where it is on the
preferred path for U.S. customer traffic.”). The Commission also stated that “CTA, like any similarly situated
provider, can have both physical and remote access to its customers’ equipment needed to provide such services,”
and “[t]his physical access to customers’ equipment would allow CTA to monitor and record sensitive information.”
China Telecom Americas Order on Revocation and Termination, 36 FCC Rcd at 16027, para. 93.
102
China Telecom Americas Order on Revocation and Termination, 36 FCC Rcd at 16029, para. 98, aff’d, China
Telecom (Americas) Corp. v. FCC.
103
See China Unicom Americas Order on Revocation, 37 FCC Rcd at 1565, para. 127; Pacific Networks and
ComNet Order on Revocation and Termination, 37 FCC Rcd at 4134, para. 113.
104
47 U.S.C. § 310; 47 CFR §§ 1.5000-1.5004, 20.5.
Federal Communications Commission FCC-CIRC2310-01
77
weighing the costs and benefits, the Commission did not identify specific compliance costs, but rather
identified the costs in the form of forgone benefits.
507
While we do not dispute that some potential
benefits may result from paid prioritization arrangements, we tentatively conclude that the potential harms
to consumers and the open Internet outweigh any speculative benefits.
508
Do commenters agree? Why or
why not? What compliance costs might ISPs incur as a result of such a ban, including small providers?
The Commission also found in 2018 that paid prioritization could be a tool in helping to close the digital
divide by reducing BIAS subscription prices for consumers.
509
Do commenters agree with this
assessment? We tentatively conclude that the Commission’s 2018 finding that existing antitrust and
consumer protection laws, in conjunction with some form of a transparency rule, offer enough protection
against the potential harms caused by paid prioritization arrangements was erroneous. We seek comment
on this tentative conclusion.
161. As part of a rule prohibiting paid prioritization arrangements, we also propose to adopt a
rule concerning waiver of such a ban that establishes a balancing test. Under our waiver rules, the
Commission may waive any rule in whole or in part, “for good cause shown.”
510
A general waiver of the
Commission’s rules is only appropriate if special circumstances warrant a deviation from the general rule
and such a deviation will service the public interest.
511
In 2015, the Commission found that it was
appropriate to adopt specific rules concerning the factors that it will use to examine a waiver request of
the paid prioritization ban.
512
We tentatively conclude that it remains appropriate to accompany a rule
prohibiting paid prioritization arrangements with specific guidance on how the Commission would
evaluate subsequent waiver requests. We seek comment on this conclusion. Tracking the language of the
2015 Open Internet Order, we propose to adopt the following rule, and seek comment on this proposal:
The Commission may waive the ban on paid prioritization only if the petitioner
demonstrates that the practice would provide some significant public interest benefit and
would not harm the open nature of the Internet.
162. Following the framework the Commission established in 2015, we propose to require an
applicant seeking a waiver of our proposed rule to prohibit paid prioritization arrangements to make two
related showings. First, the applicant would need to demonstrate that the practice will have some
significant public interest benefit.
513
The applicant could make such a showing by providing evidence that
the practice furthers competition, innovation, consumer demand, or investment.
514
Second, the applicant
would need to demonstrate that the practice does not harm the nature of the open Internet.
515
This second
showing would include, but is not limited to, providing evidence that the practice: (i) does not materially
degrade or threaten to materially degrade the BIAS of the general public; (ii) does not hinder consumer
choice; (iii) does not impair competition, innovation, consumer demand, or investment; and (iv) does not
impede any forms of expression, types of service, or points of view.
516
We seek comment on the
continued relevance of these four examples. Should the Commission consider other factors when
507
Id. at 456-57, para. 253.
508
See 2015 Open Internet Order, 30 FCC Rcd at 5654-55, para. 126.
509
RIF Order, 33 FCC Rcd at 464, para. 260.
510
47 CFR § 1.3.
511
See WAIT Radio v. FCC, 418 F.2d 1153, 1159 (D.C. Cir. 1969); Northeast Cellular Telephone Co. v. FCC, 897
F.2d 1164, 1166 (D.C. Cir. 1990).
512
2015 Open Internet Order, 30 FCC Rcd at 5658, para. 130.
513
Id. at 5658, para. 131.
514
Id.
515
Id.
516
Id.
Federal Communications Commission FCC-CIRC2310-01
19
reclassification give the Commission additional authority to restrict a larger class of entities from using
equipment and services that pose a threat? Additionally, would reclassification give the Commission
more robust authority to require more entities to remove and replace covered Huawei and ZTE
communications equipment and services? Could the Commission prohibit the use of covered equipment
or services in any network infrastructure that is used to route or transmit communications, including data
centers and Internet exchange facilities? Could we use the additional authority under Title II to prohibit
carriers from interconnecting with other carriers who have a PoP within the U.S. and its territories that
use such equipment and services?
111
Are there other ways Title II authority could be used to address
national security threats arising from equipment and services outside the scope of our prior actions? How
does the Commission’s role fit with that of other agencies that help to address potential security threats
from foreign actors to the nation’s communications network and equipment, and how would
enhancements to the Commission’s regulatory authority as a result of reclassification bolster that role?
30. Cybersecurity. We believe that returning BIAS to its telecommunications service
classification would reinforce the Commission’s authority to support its efforts to enhance cybersecurity
in the communications sector, and we seek comment on this tentative conclusion. Among such efforts are
those pursuant to Presidential Policy Directive 21, which tasks the Commission with “identifying
communications sector vulnerabilities and working with industry and other stakeholders to address those
vulnerabilities . . . [and] to increase the security and resilience of critical infrastructure within the
communications sector. . . .”
112
The Commission is actively involved in federal interagency cybersecurity
planning, coordination, and response activities. However, the current classification of BIAS limits the
regulatory and operational actions that the Commission can take to address cyber incidents impacting the
communications sector, as well as other critical infrastructure sectors. For example, the Commission has
limited authority to require providers of non-Title II services (e.g., ISPs) to adopt cybersecurity standards
or performance goals, which inhibits the Commission’s ability to protect U.S. communications services
and infrastructure from cyber-attacks and to ensure that communications devices and equipment do not
pose security risks to other critical infrastructure sectors. We tentatively conclude that the proposed
reclassification could address this issue by enhancing the Commission’s cybersecurity authority, and we
seek comment on this tentative conclusion.
31. Another initiative is the Commission’s inquiry into vulnerabilities threatening the
security and integrity of the Border Gateway Protocol (BGP), which impacts “the transmission of data
from email, e-commerce, and bank transactions to interconnected Voice-over Internet Protocol (VoIP)
and 9-1-1 calls.”
113
The Commission noted that “BGP’s initial design, which remains widely deployed
today, does not include security features to ensure trust in the information that it is used to exchange,”
which allows a bad network actor to “deliberately falsify BGP reachability information to redirect traffic
to itself or through a specific third-party network, and prevent that traffic from reaching its intended
recipient.”
114
Would reclassification provide the Commission with additional authority to address BGP
vulnerabilities?
32. In what other ways could reclassification bolster the Commission’s authority to address
111
Cf. CSRIC, Report on Recommended Best Practices to Improve Communications Supply Chain Security (Sept.
2022).
112
The White House, Presidential Policy Directive 21: Critical Infrastructure Security and Resilience (PPD-21)
(Feb. 12, 2013).
113
Secure Internet Routing, PS Docket No. 22-90, Notice of Inquiry, 37 FCC Rcd 3471, 3471, paras. 1-2 (2022)
(Secure Internet Routing NOI). See also Press Release, Dep’t of Just. and Dep’t of Def., Department of Justice and
Department of Defense Support Federal Communications Commission Inquiry into Internet Security (Sept. 14,
2022), https://www.justice.gov/opa/pr/department-justice-and-department-defense-support-federal-communications-
commission-inquiry.
114
Secure Internet Routing NOI, 37 FCC Rcd at 3471, paras. 1-2.
Federal Communications Commission FCC-CIRC2310-01
20
cybersecurity in the communications sector? For instance, would it strengthen the Commission’s ability
to establish rules mandating that service providers implement cybersecurity practices and risk
management plans? Similarly, would reclassification permit the Commission to consider cybersecurity in
its annual inquiry under section 706 of the Telecommunications Act 1996?
115
For example, could the
Commission determine that only broadband services that meet certain cybersecurity standards constitute
“advanced telecommunications capability”?
116
To what extent would reclassification allow us to address
threats related to the DNS, which enables domain names to resolve to the correct IP addresses, and other
naming protocols? Could the Commission use Title II authority to require ISPs to block IP addresses that
originate malicious software and ransomware? Would reclassification allow the Commission to mandate
the adoption of Communications Security, Reliability, and Interoperability Council (CSRIC) best
practices directed to ISPs and audit or enforce the implementation?
117
Would it likewise enable the
Commission to use Title II authority to require ISPs to implement or certify to their implementation of
network security practices, such as those recommended in Executive Order 14028, the National
Cybersecurity Strategy, or related cybersecurity measures recommended by the Deputy National Security
Advisor?
118
Would reclassification give the Commission sufficient authority to establish cybersecurity
requirements for other components that facilitate communications between end points, such as Internet
exchange facilities and data centers that route communications and deliver applications? Could the
Commission rely on authority in section 218 to require more comprehensive cyber incident reporting?
119
Would reclassification permit the Commission to rely on a broader range of regulatory tools to ensure
network and service reliability and better support an effective 911 and emergency preparedness efforts?
33. Public Safety. We next tentatively conclude that reclassifying BIAS as a
telecommunications service would enable the Commission to advance several public safety initiatives,
and we seek comment on this tentative conclusion. As the Commission recognized in the RIF Remand
Order, “[a]dvancing public safety is one of our fundamental obligations.”
120
Indeed, the Commission is
“required to consider public safety by . . . its enabling act.”
121
The Mozilla court explained that when
“‘Congress has given an agency the responsibility to regulate a market such as the telecommunications
industry that it has repeatedly deemed important to protecting public safety,’ then the agency’s decisions
115
47 U.S.C. § 1302(b) (requiring the Commission, on an annual basis, to initiate notices of inquiry to “determine
whether advanced telecommunications capability is being deployed to all Americans in a reasonable and timely
fashion.”).
116
47 U.S.C. § 1302(d)(1) (“The term ‘advanced telecommunications capability’ is defined, without regard to any
transmission media or technology, as high-speed, switched, broadband telecommunications capability that enables
users to originate and receive high-quality voice, data, graphics, and video telecommunications using any
technology.”).
117
See, e.g., CSRIC, Recommendations to Mitigate Security Risks for Diameter Networks (March 2018); CSRIC,
Legacy Systems Risk Reductions (March 2017).
118
Exec. Order No. 14028, Executive Order on Improving the Nation’s Cybersecurity (May 21, 2021); The White
House, Nat’l Cybersecurity Strategy (March 2023), https://www.whitehouse.gov/wp-
content/uploads/2023/03/National-Cybersecurity-Strategy-2023.pdf; Letter from Anne Neuberger, Deputy Assistant
to the President and Deputy Nat’l Sec. Advisor for Cyber and Emerging Tech., to Corp. Execs. and Bus. Leaders,
The White House (June 2, 2021), https://www.whitehouse.gov/wp-content/uploads/2021/06/Memo-What-We-Urge-
You-To-Do-To-Protect-Against-The-Threat-of-Ransomware.pdf.
119
47 U.S.C. § 218.
120
RIF Remand Order, 35 FCC Rcd at 12336, para. 21.
121
Mozilla, 940 F.3d at 59-60 (quoting Nuvio Corp. v. FCC, 473 F.3d 302, 307 (D.C. Cir. 2006)). See also 47
U.S.C. § 151 (explaining that, among other things, Congress created the Commission “for the purpose of promoting
safety of life and property through the use of wire and radio communications”); 47 U.S.C. § 154(n) (directing the
Commission to take steps to promote the “maximum effectiveness from the use of radio and wire communications in
connection with safety of life and property”).
Federal Communications Commission FCC-CIRC2310-01
82
requirements adopted in the Broadband Label Order, the possible amendments raised in the Broadband
Label Further Notice,
549
and any modifications to the transparency rule that we might adopt here. For
example, to the extent that the content of the required disclosures under the two requirements diverge,
how can we avoid any undue duplication of effort in making each required disclosure, particularly for
small providers? Should the broadband label requirements and the transparency rule as it might be
modified here be legally distinct, or legally interrelated, requirements?
2. Content of Required Disclosures
171. We seek comment on what, if any, additional disclosures should be required under the
transparency rule. As a starting point, we believe that the disclosures required under the current
transparency rule are an appropriate baseline, and we propose to retain them in the transparency rule
going forward. We seek comment on this proposal. As the Commission recently explained when
adopting broadband label requirements, “the transparency rule seeks to enable a deeper dive into details
of broadband Internet service offerings, which could be relevant not only for consumers as a whole, but
also for consumers with particularized interests or needs, as well as a broader range of participants in the
Internet community—notably including the Commission itself.”
550
Are the current requirements of the
transparency rule sufficient to enable that deeper dive into details of broadband Internet service offerings?
172. We seek comment on whether enhancements to the content of disclosures required by the
transparency rule under the 2015 Open Internet Order should be incorporated in a revised transparency
rule here.
551
With respect to required disclosure of commercial terms, the 2015 Open Internet Order
provided additional specifications regarding ISPs’ disclosures about price and related terms and their
relationship with disclosures regarding privacy and redress options.
552
Regarding the disclosure of
performance characteristics, the 2015 Open Internet Order provided additional specifications regarding
the disclosure of network performance
553
and network practices.
554
The RIF Order eliminated those
enhancements under the theory that their burdens to ISPs exceeded their benefits.
555
The Broadband
Label Order, on the other hand, required ISPs to disclose in the broadband labels their typical upload and
download speeds and typical latency metrics associated with their broadband services, noting that speed
in particular “remains the network performance metric of greatest interest to the consumer.”
556
The
Commission similarly found that low delay or latency is important to any application involving users
interacting with each other, a device, or an application.
557
We seek comment on these assessments,
549
See generally Broadband Label Further Notice, FCC 22-86, paras. 131-53 (seeking comment on possible
additions or modifications to the broadband label rules).
550
Broadband Label Order, FCC 22-86, para. 107.
551
See, e.g., 2015 Open Internet Order, 30 FCC Rcd at 5672-77, paras. 162-70 (discussing enhancements to the
content of disclosures required by the transparency rule).
552
2015 Open Internet Order, 30 FCC Rcd at 5672-73, para. 164.
553
Id. at 5673-75, paras. 166-67.
554
Id. at 5676-77, para. 169.
555
RIF Order, 33 FCC Rcd at 437-38, para. 215.
556
Broadband Label Order, FCC 22-86, paras. 37-38 (citing the Eleventh MBA Report in which the Commission
stated that “[s]peed (both download and upload) performance continues to be one of the key metrics reported by the
MBA.” See Eleventh Measuring Broadband America, Fixed Broadband Report, Federal Communications
Commission, Office of Engineering and Technology at 8, 10 (Dec. 31, 2021)).
557
Broadband Label Order, FCC 22-86, para. 41. The Commission declined, however, to require providers to
include information on packet loss in the label, noting that packet loss is less important than upload and download
speeds and latency, and may actually lead to more confusion for most consumers. It also sought additional comment
in the Broadband Label Further Notice about whether there are other service characteristics, beyond speed and
latency, that ISPs should display on the label. See Broadband Label Order, FCC 22-86, para. 46.
Federal Communications Commission FCC-CIRC2310-01
83
including updated evidence regarding the relative costs and benefits of the transparency enhancements
based on experience following the RIF Order. To the extent that the transparency requirements were
intended to provide needed information not only to consumers but also edge providers, the broader
Internet community, and the Commission, how should that affect our assessment of the overall benefits of
the enhanced transparency requirements? Would the enhancements to the transparency rule adopted in
the 2015 Open Internet Order, or other modifications to the current transparency rule, assist the
Commission in monitoring and enforcing compliance with the conduct rules proposed here? Are there
any metrics that are particularly important to some subset of consumers that we should consider including
despite those metrics not being of significant value to the average consumer?
173. In addition, we seek comment on other considerations relevant to possible changes to the
content ISPs may be required to disclose under the transparency rule. For one, we seek comment on
whether a revised transparency rule should incorporate the Commission’s clarifications and guidance
regarding prior versions of the transparency rule. For example, a 2011 Public Notice (2011 Advisory
Guidance) provided “examples of approaches to disclosure that would satisfy the transparency rule,”
558
discussing point-of-sale disclosures, service descriptions, the extent of required disclosures, disclosures
for the benefit of edge providers, and disclosures regarding security measures.
559
A 2014 Public Notice
(2014 Advisory Guidance) summarized the applicability and requirements of the transparency rule and the
potential enforcement consequences if it were violated, and emphasized the importance of consistency
between ISPs’ disclosures under the transparency rule and their advertising claims or other public
statements.
560
And a 2016 Public Notice (2016 Advisory Guidance) provided guidance regarding
acceptable methodologies for disclosure of network performance information and point-of-sale
disclosures consistent with the 2015 Open Internet Order.
561
The RIF Order subsequently eliminated the
enhancements adopted in 2015, and the clarifications in the 2016 Advisory Guidance along with it.
562
The
RIF Order endorsed the clarifications in the 2011 Advisory Guidance,
563
but neither endorsed nor
disclaimed the clarifications in the 2014 Advisory Guidance. We seek comment on whether and to what
extent the Commission should reaffirm, reject, or elaborate on any of that prior guidance in connection
with any modification of the transparency rule here. Are there other areas where additional clarification
or guidance would be beneficial either under the existing transparency rule or a revised transparency rule?
174. We also seek comment on the availability of information that ISPs can or should use to
comply with the content of disclosures required under the current or modified transparency rule. For
example, the RIF Order allowed fixed ISPs participating “in the Measuring Broadband America (MBA)
program [to] disclose their results as a sufficient representation of the actual performance their customers
can expect to experience.”
564
Should we continue that approach here, or make use of the MBA program
558
FCC Enforcement Bureau and Office of General Counsel Issue Advisory Guidance for Compliance with Open
Internet Transparency Rule, Public Notice, 26 FCC Rcd 9411 (EB/OGC 2011) (2011 Advisory Guidance).
559
2011 Advisory Guidance, 26 FCC Rcd at 9413-18.
560
FCC Enforcement Advisory, Open Internet Transparency Rule: Broadband Providers Must Disclose Accurate
Information to Protect Consumers, Public Notice, 29 FCC Rcd 8606, 8606-8607 (EB 2014) (2014 Advisory
Guidance).
561
Guidance on Open Internet Transparency Requirements, Public Notice, 31 FCC Rcd 5330 (CTO/OGC/EB 2016)
(2016 Advisory Guidance).
562
See, e.g., RIF Order, 33 FCC Rcd at 442, para. 225.
563
See, e.g., id. at 440-41, 444-45, paras. 220 n.814, 222 n.818, 229-30.
564
RIF Order, 33 FCC Rcd at 441-42, para. 222 n.818. The Broadband Label Order similarly concluded that fixed
broadband service providers that choose to participate in the MBA program may disclose their results as a sufficient
representation of the actual performance their customers can expect to experience for the relevant speed tier. The
Commission also determined that providers that do not participate may use the methodology from the MBA
program to measure actual performance, or may disclose actual performance based on internal testing, consumer
(continued….)
Federal Communications Commission FCC-CIRC2310-01
84
in some other way? To what extent can or should we allow ISPs to use other specific information sources
or measurement approaches to provide transparency disclosures?
565
Should we clarify that certain sources
of information are permissible to rely on in making the required disclosures? Or should we go further in
particular cases and require the use of certain data sources for reasons of uniformity, reliability, or
otherwise? Should the Commission require ISPs to include additional information in transparency
disclosures regarding their measurement methodologies and practices?
175. Finally, we seek comment on any other considerations relevant to our evaluation of the
appropriate content of required disclosures under the transparency rule. Is there additional content that
we should require? For example, the 2015 Open Internet Order considered, but ultimately did not adopt,
additional disclosure requirements regarding “the source, location, timing, or duration of network
congestion,”
566
packet corruption and jitter,
567
and “disclosures that permit end users to identify
application-specific usage or to distinguish which user or device contributed to which part of the total data
usage.”
568
In light of subsequent experience, should we revisit the decisions not to require such
disclosures? Should the Commission consider requiring more detailed disclosures regarding the
requirements, restrictions, or standards for enforcement of data caps, and if so, how? We also seek
comment on whether different content disclosures should be required for mobile ISPs than for fixed ISPs.
3. Means of Disclosure
176. We seek comment on how best to ensure that the content of the required disclosures is
made available in a timely and effective manner without undue burdens on ISPs, both as a general matter
and in the specific respects discussed below. In the RIF Order, the Commission allowed providers to
make the required disclosures either “on a publicly available, easily accessible website,” or by
“transmit[ting] their disclosures to the Commission,” which would then make them “available on a
publicly available, easily accessible website.”
569
We seek comment on practical experiences with that
approach, and whether that approach should be retained in its current form, modified, or eliminated in
favor of disclosures required specifically on provider websites—as had been the case under prior versions
of the transparency rule. When the Commission recently adopted broadband label rules, it required ISPs
to display labels on their websites, as well as at other points of sale.
570
While it “aim[ed] to give providers
flexibility in how they display labels,” the Commission also sought “to ensure that the labels are
prominently displayed on any device on which the consumer accesses and views the labels, including
mobile devices”
571
and in a uniform format that will best assist consumers in comparing pricing, fees,
performance characteristics, and data allowances across different providers.
572
Are there lessons from the
Commission’s recent experience crafting broadband label requirements that should inform our approach
to the manner of making disclosures under the transparency rule?
(Continued from previous page)
speed test data, or other data regarding network performance, including reliable, relevant data from third-party
sources. Broadband Label Order, FCC 22-86, para. 39.
565
See Broadband Label Further Notice, FCC 22-86, para. 138 (seeking comment on whether there are more
appropriate ways to measure speed and latency other than “typical” for purposes of the label disclosure such as
average or peak speed and latency, and whether it is appropriate to require providers to add another speed metric to
the label in addition to typical speed).
566
2015 Open Internet Order, 30 FCC Rcd at 5675-76, para. 168.
567
Id.
568
Id. at 5677, para. 170.
569
RIF Order, 33 FCC Rcd at 444, para. 229.
570
Broadband Label Order, FCC 22-86, paras. 90-92.
571
Id. at para. 93.
572
Id. at para. 65.
Federal Communications Commission FCC-CIRC2310-01
24
information using BIAS.
38. Furthermore, BIAS is important for public safety communications that occur outside of
emergencies. As the Commission observed in the RIF Remand Order:
[A]s the COVID-19 pandemic has demonstrated, [] many Americans rely[] on
telemedicine over mass-market broadband services for “routine health care, triage, and
basic health advice.” . . . 5G networks’ ability to transmit massive amounts of data in
real time will also help enable new applications that will allow more advanced
communications between the public and health care officials, such as allowing health
care professionals, through ubiquitous wireless sensors, to remotely monitor patients’
health and transmit data to their doctors before problems become emergencies, and to
develop connected ambulance services for faster patient transport.
143
BIAS connections are also playing a more important role in home safety and security as consumers
increasingly purchase home security and monitoring systems that use connected devices to monitor, deter,
and address theft, breaking and entering, and other home threats
144
and BIAS connections are increasingly
important for in-home monitoring of individuals who are elderly or disabled.
145
We seek comment on the
impact that reclassification may have on these and other public safety applications that rely on BIAS.
39. Network Resiliency and Reliability. We tentatively conclude that reclassifying BIAS as a
telecommunications service would enhance the Commission’s ability to ensure the nation’s
communications networks are resilient and reliable, and we seek comment on this tentative conclusion.
For instance, under the Commission’s Network Outage Reporting System (NORS), qualifying
communications providers are required to report to the Commission network outages that satisfy certain
criteria,
146
and the Commission uses this information to advance network resiliency and reliability.
Because this reporting requirement has generally been limited to outages affecting voice services,
147
the
Commission has historically lacked reliable outage information for today’s modern, essential broadband
networks, which inhibits the Commission from fully ensuring the resiliency and reliability of those
networks. Would reclassification support the Commission’s ability to expand the scope of NORS to
require ISPs to submit outage reports in response to service incidents that cause outages or the
degradation of communications services, such as cybersecurity breaches, wire cuts, infrastructure
damages from natural disaster, and operator errors
148
or misconfigurations?
149
Under rules implemented
143
Id. at 12343, para. 30.
144
The Worldwide Smart Home Security Industry is Projected to Reach $4.6 Billion by 2027 -
ResearchAndMarkets.com, BusinessWire (June 20, 2022),
https://www.businesswire.com/news/home/20220620005381/en/The-Worldwide-Smart-Home-Security-Industry-is-
Projected-to-Reach-4.6-Billion-by-2027---ResearchAndMarkets.com (“The Global Smart Home Security Market is
estimated to be USD 1.84 Bn in 2022 and is projected to reach USD 4.61 Bn by 2027, growing at a CAGR of
20.14%.”).
145
Christina Ianzito, Remote Monitoring Systems Can Give Caregivers Peace of Mind, AARP (Jan. 10, 2020),
https://www.aarp.org/caregiving/home-care/info-2020/ces-caregiving-products.html; Rachel Cericola, These Smart
Home Devices Can Enhance Independence for People With Disabilities and Mobility Needs, Wirecutter (April 29,
2022), https://www.nytimes.com/wirecutter/reviews/best-assistive-smart-home-technology-for-disabled/.
146
See 47 CFR § 4.9.
147
See id.
148
Operator errors could include, for example, incidents that reflect or resemble internet routing hijacks using the
Border Gateway Protocol. See, e.g., OECD, Routing Security: BGP Incidents, Mitigation Techniques and Policy
Actions at 12-13 (2022), https://www.oecd-ilibrary.org/science-and-technology/routing-security_40be69c8-
en;jsessionid=CtmViajgbUFWAaAC8wqNlZWSQuFGFXlhzKMQ-eGU.ip-10-240-5-167.
149
Resilient Networks; Amendments to Part 4 of the Commission’s Rules Concerning Disruptions to
Communications; New Part 4 of the Commission’s Rules Concerning Disruptions to Communications, PS Docket
(continued….)
Federal Communications Commission FCC-CIRC2310-01
25
in 2022, Federal, State, Tribal and Territorial public safety agencies are eligible to obtain direct read-only
access to outage information filed in NORS and the Disaster Information Reporting System (DIRS) for
their jurisdictions.
150
Would reclassification and enhanced NORS reporting afford public safety officials
greater transparency during outages and disasters to assess the operational status of networks for
dissemination of emergency information or to assess where support is needed? Would it support
reliability efforts for calls and texts to 911 and the 988 Suicide and Crisis Lifeline?
151
How, if at all,
would reclassification allow us to further our goal to improve the reliability of wireless networks?
152
Would broadband reclassification give the Commission additional authority to facilitate the use of Wi-Fi
calling during emergencies or network outages,
153
and if so, to what extent could the Commission apply
reliability standards for Wi-Fi calling? Are there other ways that reclassification of BIAS would help us
improve network resiliency and reliability, such as requirements for network upgrades and changes, rules
relating to recovery from network outages, and improving our incident investigation and enforcement
authority? What impact would any such actions have on ISPs, particularly small ISPs?
3. Protecting Consumers’ Privacy and Data Security
40. Since before the adoption of the 1996 Act, the Commission has consistently protected
consumers from activities that undermine their ability to use communications services freely, fairly, and
free from abuse by bad actors. As the communications industry has changed and the tactics used by bad
actors have evolved, so too have the Commission’s efforts. The current information service classification
of BIAS, however, appears to inhibit the Commission’s ability to fully ensure that consumers are
protected from harmful conduct when they use communications services today and able to utilize these
services in a fair and secure manner. We believe that classification of BIAS as a telecommunications
service could support the Commisssion’s efforts to protect consumers’ privacy and data security and
relieve them from unlawful robocalls and robotexts. We seek comment on this view.
41. Privacy and Data Protection. We tentatively conclude that reclassification of BIAS as a
telecommunications service would support the Commission’s efforts to safeguard consumers’ privacy and
data security, and we seek comment on this tentative conclusion. Highlighting the Commission’s
important role in this area, earlier this year, Chairwoman Rosenworcel established the FCC Privacy and
Data Protection Task Force to coordinate the agency’s efforts to protect against and respond to consumer
(Continued from previous page)
Nos. 21-346 and 15-80, ET Docket No. 04-35, Notice of Proposed Rulemaking, 36 FCC Rcd 14802, 148014, para.
30 (2021).
150
Amendments to Part 4 of the Commission's Rules Concerning Disruptions to Communications, PS Docket No.
15-80, Second Report and Order, 36 FCC Rcd 6136 (2022).
151
See Improving 911 Reliability; Reliability and Continuity of Communications Networks, Including Broadband
Technologies, PS Docket Nos. 13-75 and 11-60, Report and Order, 28 FCC Rcd 17476, 17488-91, paras. 36-43
(2013); Amendments to Part 4 of the Commission’s Rules Concerning Disruptions to Communications Improving
911 Reliability New Part 4 of Commission’s Rules Concerning Disruptions to Communications, PS Docket Nos. 15-
80 and 13-75, ET Docket No. 04-35, Second Report and Order, FCC 22-88 (rel. Nov. 18, 2022) (adopting rules
regarding network outage notifications for 911 special facilities); Ensuring the Reliability and Resiliency of the 988
Suicide & Crisis Lifeline; Amendments to Part 4 of the Commission’s Rules Concerning Disruptions to
Communications; Implementation of the National Suicide Hotline Improvement Act of 2018, PS Docket Nos. 23-5
and 15-80, WC Docket No. 18-336, Notice of Proposed Rulemaking, FCC 23-7 (rel. Jan. 27, 2023) (proposing
reliability rules for the 988 Suicide and Crisis Lifeline); Shenandoah Telecommunications Company, File No.: EB-
SED-22-00034239, Order, DA 23-337 (EB Apr. 24, 2023) (settling an investigation related to a 911 outage).
152
See Resilient Networks; Amendments to Part 4 of the Commission’s Rules Concerning Disruptions to
Communications; New Part 4 of the Commission’s Rules Concerning Disruptions to Communications, PS Docket
Nos. 21-346 and 15-80; ET Docket No. 04-35, Report and Order and Further Notice of Proposed Rulemaking, FCC
22-50 (rel. July 6, 2022) (discussing measures to improve the reliability and resiliency of mobile wireless networks).
153
See CSRIC, Report on 911 Service Over Wi-Fi (March 2023).
Federal Communications Commission FCC-CIRC2310-01
102
affiliated entity. The Commission may waive the ban on paid prioritization only if the petitioner
demonstrates that the practice would provide some significant public interest benefit and would
not harm the open nature of the Internet.
(e) General conduct standard. Any person engaged in the provision of broadband Internet access
service, insofar as such person is so engaged, shall not unreasonably interfere with or
unreasonably disadvantage (1) end users’ ability to select, access, and use broadband Internet
access service or the lawful Internet content, applications, services, or devices of their choice, or
(2) edge providers’ ability to make lawful content, applications, services, or devices available to
end users. Reasonable network management shall not be considered a violation of this rule.
(f) Nothing in this part supersedes any obligation or authorization a provider of broadband Internet
access service may have to address the needs of emergency communications or law enforcement,
public safety, or national security authorities, consistent with or as permitted by applicable law, or
limits the providers ability to do so.
(g) Nothing in this part prohibits reasonable efforts by a provider of broadband Internet access
service to address copyright infringement or other unlawful activity.
PART 20 – COMMERCIAL MOBILE SERVICES
4. Revise section 20.3 to read as follows:
§ 20.3 Definitions.
* * * * *
Commercial mobile radio service. * * *
* * * * *
(b) The functional equivalent of such a mobile service described in paragraph (a) of this section, including
a mobile broadband Internet access service as defined in Section 8.2.
* * * * *
Public Switched Network. The network that includes any common carrier switched network, whether by
wire or radio, including local exchange carriers, interexchange carriers, and mobile service providers, that
uses the North American Numbering Plan, or public IP addresses, in connection with the provision of
switched services.
* * * * *
Federal Communications Commission FCC-CIRC2310-01
27
We seek comment on how reclassification of BIAS will affect telecommunications carriers and
equipment manufacturers who interact with ISPs, as well as the customers those entities serve, such as
content creators and edge providers. Would these protections also have national security benefits by, for
example, deterring ISPs from contracting with foreign companies that may pose a national security threat
or are owned by, controlled by, or subject to the jurisdiction or direction of foreign adversaries? Would
these section 222 requirements create a meaningful burden on ISPs, especially small ISPs?
45. Robocalls and Robotexts. We seek comment on whether reclassification can serve to
enhance the Commission’s authority to support consumer privacy by combating illegal robocalls and
robotexts. In recent years, the Commission has undertaken extensive efforts to address these invasive
communications, including by establishing rules for call authentication, robocall mitigation, and call
blocking; expanding requirements and restrictions to robotexts; and taking enforcement action against
providers who originate and transport these communications.
162
Yet bad actors continue to evolve their
techniques to find new ways to interrupt consumers and perpetuate fraud. We note that many illegal
robocalls are transmitted via VoIP networks and many illegal robotexts are transmitted by OTT
messaging services (e.g., iMessage, WhatsApp, and Signal). We seek comment on the extent to which
Title II classification would help the Commission in its efforts to combat these practices. Would Title II
classification grant the Commission oversight to reach a larger class of entities, particularly for messages
and calls delivered via broadband networks? For example, to the extent robotext scams include links to
spoofed websites designed to defraud consumers, would reclassification allow us to require that ISPs
block traffic to IP addresses associated with those websites? Would reclassification allow the
Commission to apply new requirements and restrictions beyond what it can achieve under the sources of
authority the Commission has relied on to date for its robocall and robotext actions? If so, how? Are
there other ways in which reclassification would help the Commission combat illegal robocalls and
robotexts?
4. Supporting Access to Broadband Internet Access Service
46. From the Commission’s inception, it has played a critical role in facilitating the
proliferation of communications networks and ensuring that consumers have access to the services these
networks provide. While these efforts are crucial to the Commission’s mission, we believe that the
information service classification of BIAS has limited the Commission’s efforts to achieve these goals for
the communications service that has become fundamental to consumers’ everyday lives. Classifying
BIAS as a telecommunications service will enable the Commission to better support the deployment of
wireline and wireless infrastructure, advance universal service, and increase the accessibility of
communications networks. We seek comment on this tentative conclusion. We also seek comment on
whether, and how, we could leverage our proposed reclassification in other proceedings to further
encourage access to BIAS by all consumers.
47. Wireline and Wireless Infrastructure. We seek comment on the public policy impact of
our proposed reclassification of BIAS on the Commission’s goals to support investment in and
deployment of wireline and wireless infrastructure. For example, section 224(b) of the Act grants the
Commission clear authority to regulate the rates, terms, and conditions of pole attachments by a cable
162
See FCC, Robocall Response Team: Combating Scam Robocalls & Robotexts, https://www.fcc.gov/spoofed-
robocalls (last updated Aug. 18, 2022); Call Authentication Trust Anchor, WC Docket No. 17-97, Sixth Report and
Order and Further Notice of Proposed Rulemaking, FCC 23-18, (rel. Mar. 17, 2023); Targeting and Eliminating
Unlawful Text Messages; Rules and Regulations Implementing the Telephone Consumer Protection Act of 1991, CG
Docket Nos. 21-402 and 02-278, Report and Order and Further Notice of Proposed Rulemaking, FCC 23-21 (rel.
Mar. 17, 2023); Advanced Methods to Target and Eliminate Unlawful Robocalls; Call Authentication Trust Anchor,
CG Docket No. 17-59, WC Docket No. 17-97, Seventh Report and Order in CG Docket No. 17-59 and WC Docket
No. 17-97, Eighth Further Notice Of Proposed Rulemaking in CG Docket No. 17-59, and Third Notice of Inquiry in
CG Docket 17-5, FCC 23-37 (May 19, 2023).
Federal Communications Commission FCC-CIRC2310-01
28
television system or provider of telecommunications service.
163
Since 2011, the Commission has
undertaken a series of reforms with the goal of improving access to poles to, among other things, help
speed the deployment of broadband infrastructure.
164
However, in the RIF Order, the Commission
effectively eliminated section 224 pole attachment rights of broadband-only providers as a result of its
classifying broadband as an information service.
165
In 2020, following the Mozilla court’s direction that
the Commission “grapple with the lapse in legal safeguards” for broadband-only providers that resulted
from the RIF Order,
166
the Commission concluded that while there were potentially adverse effects to this
class of providers resulting from the loss of pole attachment rights, the benefits of returning BIAS to an
information service classification outweighed any drawbacks.
167
We tentatively conclude that the
Commission erred in its 2020 analysis and believe that reclassifying BIAS as a telecommunications
service will help support the Commission’s goals to facilitate broadband deployment, and we seek
comment on this tentative conclusion. How has the market for broadband-only ISPs changed since 2015,
in particular for new entrants and those ISPs seeking infrastructure access via pole attachments? What
effect has the Commission’s elimination of pole attachment rights for broadband-only ISPs had on the
deployment of broadband, particularly to unserved or underserved areas? How would reinstatement of
pole attachment rights benefit or burden ISPs, particularly small ISPs? As the Commission has
recognized, Congress recently has made available unprecedented levels of federal funding for broadband
buildout, including a variety of programs administered by the National Telecommunications and
Information Administration (NTIA), including the Broadband, Equity, Access, and Deployment Program
(BEAD), the State Digital Equity Capacity Grant Program and its federal counterpart, the Middle Mile
Infrastructure Grant Program, and the Tribal Broadband Connectivity Program.
168
We believe that
ensuring the protections of section 224 are restored to all ISPs, including broadband-only providers, will
pave the way for quicker and less expensive broadband deployment, thereby enabling that funding to go
as far as possible. We seek comment on that view.
48. We also seek comment on how reclassifying BIAS as a telecommunications service and
classifying mobile BIAS as a commercial mobile service will impact the Commission’s authority over
wireless infrastructure.
169
Although section 332(e)(7) of the Act, and Commission interpretation thereof,
163
47 U.S.C. § 224(b).
164
See generally Implementation of Section 224 of the Act; A National Broadband Plan for Our Future, WC Docket
No. 07-245, GN Docket No. 09-51, Report and Order and Order on Reconsideration, 26 FCC Rcd 5240 (2011);
Implementation of Section 224 of the Act; A National Broadband Plan for Our Future, WC Docket No. 07-245, GN
Docket No. 09-51, Order on Reconsideration, 30 FCC Rcd 13731 (2015); Accelerating Wireline Broadband
Deployment by Removing Barriers to Infrastructure Investment, WC Docket No. 17-84, WT Docket No. 17-79,
Third Report and Order and Declaratory Ruling, 33 FCC Rcd 7705 (2018) (2018 Wireline Infrastructure Order);
Accelerating Wireline Broadband Deployment by Removing Barriers to Infrastructure Investment, WC Docket No.
17-84, Second Further Notice of Proposed Rulemaking, 37 FCC Rcd 4144 (2022).
165
See RIF Remand Order, 35 FCC Rcd at 12370-71, paras. 71-72.
166
Mozilla, 940 F.3d at 108-109. “Broadband-only” providers refer to those ISPs that lack a commingled
telecommunications service or cable television system. See RIF Order on Remand, 33 FCC Rcd at 12370, para. 71.
167
RIF Order on Remand, 33 FCC Rcd at 12370-77, paras. 71-81.
168
2022 Communications Marketplace Report at para. 497; Report on the Future of the Universal Service Fund, WC
Docket No. 21-476, Notice of Inquiry, 36 FCC Rcd 18006, 18015, para. 22 (2021).
169
See generally 47 U.S.C. § 337(c)(7); Petition for Declaratory Ruling to Clarify Provisions of Section 332(c)(7) to
Ensure Timely Siting Review, WT Docket No. 08-165, Declaratory Ruling, 24 FCC Rcd 13994, 14016, para. 56
(2009), aff’d, City of Arlington v. FCC, 668 F.3d 229 (5th Cir. 2012) (City of Arlington), aff’d, 569 U.S. 290 (2013);
Accelerating Wireless Broadband Deployment by Removing Barriers to Infrastructure Investment et al., WT Docket
No. 17-79 et al., Declaratory Ruling and Third Report and Order, 33 FCC Rcd 9088 (2018) (2018 Wireless
Infrastructure Order). Section 337(c)(7)(C) defines “personal wireless services” to include CMRS, unlicensed
wireless services, and common carrier wireless exchange access services. 47 U.S.C. § 332(c)(7)(C). In 2012,
(continued….)
Federal Communications Commission FCC-CIRC2310-01
29
regulate state and local authority over the placement, construction, and modification of personal wireless
service facilities, are there ways in which classifying broadband as a telecommunications service can
further advance the Commission’s goals to “improve service quality and lower prices for consumers” for
broadband access?
170
Finally, we also seek comment on how reclassification of BIAS as a
telecommunications service may affect the Commission’s application of the Act’s preemption
frameworks in sections 253(d) and 332(c)(3) regarding infrastructure used to provide broadband-only
services.
171
49. Universal Service. We tentatively conclude that classifying BIAS as a
telecommunications service will strengthen our policy initiatives to support the availability and
affordability of BIAS through USF programs, and we seek comment on this tentative conclusion. The
Communications Act defines universal service as an “evolving level of telecommunications services,”
and charges the Commission with periodically establishing such services.
172
BIAS is now clearly an
essential service upon which consumers rely, and we believe that placing BIAS outside of the
Commission’s Title II authority weakens the Commission’s ability to deliver universal service support for
that essential service, especially in rural areas. We seek comment on this view. In Mozilla, the court
found that the Commission failed to explain how its universal service authority over telecommunications
carriers in section 254(e) of the Act could extend to ISPs without BIAS classified as a
telecommunications service for purposes of the Lifeline program, and it remanded the issue back to the
Commission.
173
Although the Commission conceded in the RIF Remand Order that under a Title I
regime, BIAS could not be a section 254(c) supported service because section 254(c) defines universal
service as an “evolving level of telecommunications services,” it nevertheless asserted a theory under
section 254(e) to enable Lifeline support for BIAS offered by eligible telecommunications carriers
(ETCs), similar to the theory under which the Commission has funded broadband-capable networks
through the High-Cost Program.
174
50. We tentatively conclude that reclassifying BIAS as a telecommunications service will
bolster the Commission’s ability to provide High-Cost and low-income support, and seek comment on
(Continued from previous page)
Congress expressly modified this preservation of local authority by enacting Section 6409(a), which requires local
governments to approve certain types of facilities siting applications “[n]otwithstanding section 704 of the
Telecommunications Act of 1996 [codified in substantial part as Section 332(c)(7)] . . . or any other provision of
law.” Middle Class Tax Relief and Job Creation Act of 2021, Pub L. No. 112-96, 126 Stat. 156 (2012) (codified at
47 U.S.C. § 6409(a)(1)).
170
See 2018 Wireless Infrastructure Order, 33 FCC Rcd at 9093, para. 18 (quoting 47 U.S.C. § 337(c)(7)(B)(v)).
171
2018 Wireline Infrastructure Order, 33 FCC Rcd at 7806, para. 167; 2018 Wireless Infrastructure Order, 33
FCC Rcd at 9108, para. 36.
172
47 U.S.C. § 254(c)(1).
173
Mozilla, 940 F.3d at 68-70.
174
See 47 U.S.C. § 254(c)(1) (defining generally universal service as “an evolving level of telecommunications
services that the Commission shall establish periodically under this section, taking into account advances in
telecommunications and information technologies and services” and considering in the definition of services
supported by universal service support mechanisms the extent to which such services “(A) are essential to education,
public health, or public safety; (B) have, through the operation of market choices by consumers, been subscribed to
by a substantial majority of residential customers; (C) are being deployed in public telecommunications networks by
telecommunications carriers; and (D) are consistent with the public interest, convenience, and necessity”); id. §
254(e) (stating that ETCs “shall be eligible to receive specific Federal universal service support” and that an ETC
receiving universal service support “shall use that support only for the provision, maintenance, and upgrading of
facilities and services for which the support is intended”); RIF Remand Order, 35 FCC Rcd at 12380-86, paras. 87-
98; see also Connect America Fund et al., WC Docket No. 10-90, Report and Order and Further Notice of Proposed
Rulemaking, 26 FCC Rcd 17663, 17685-86, para. 64 (2011) (USF/ICC Transformation Order).
Federal Communications Commission FCC-CIRC2310-01
30
this tentative conclusion. Among other things, we believe that reclassifying BIAS as a
telecommunications service could eventually allow broadband-only providers to once again participate in
the Lifeline program,
175
and would give the Commission the ability to adjust certain service obligations
for ETCs. We further believe that reclassifying BIAS as a telecommunications service would enhance
our ability to connect low-income households in rural areas, including through the Link Up program,
which provides support to reduce connection charges for eligible residents of Tribal lands who subscribe
to telecommunications service from a telecommunications carrier receiving high-cost support.
176
We seek
comment on these views, including how this may impact ISPs, especially smaller ISPs and ISPs serving
rural areas.
51. We also tentatively conclude that classification of BIAS as a telecommunications service
protects public investments in BIAS access and affordability. Since the inception of BIAS, the
Commission, along with other federal and state entities, have made significant investments to ensure that
BIAS networks reach all consumers and are affordable, particularly through the Affordable Connectivity
Program. These efforts increased dramatically since the beginning of the COVID-19 pandemic as
Congress directed a large influx of funding in broadband deployment and consumer access.
177
We believe
our proposed reclassification will enable the Commission to protect these investments on an ongoing
basis by enabling the Commission to ensure the connections supported by these funds align with the other
policy goals we detail here: advancing national security and public safety and protecting consumers. In
doing so, we believe we can ensure these connections continue to achieve their primary purpose of
benefiting consumers. We seek comment on these views.
52. Multiple-Tenant Environments (MTEs). We seek comment on how reclassification may
impact the Commission’s authority to take action to promote tenant choice and competition in the
provision of broadband services to the benefit of those who live and work in MTEs. The Commission has
long prohibited agreements between providers of certain communications services and MTE owners that
grant the provider exclusive access and rights to provide service to the MTE.
178
In 2019, the Commission
175
See Telecommunications Carriers Eligible for Universal Service Support, WC Docket No. 09-197, Order, DA
17-87 (WCB 2017); Telecommunications Carriers Eligible for Universal Service Support, WC Docket No. 09-197,
Order, DA 16-1325, 31 FCC Rcd 12736 (WCB 2016) (designating several broadband providers as Lifeline
Broadband Providers).
176
See 47 CFR §§ 54.413 and 54.414 (establishing Link Up support and the reimbursement process for Link Up).
177
See supra note 59.
178
In two orders adopted in 2000 and 2008, respectively, the Commission prohibited telecommunications carriers
from entering into or enforcing exclusivity contracts with MTE owners in both commercial and residential MTEs.
Promotion of Competitive Networks in Local Telecommunications Markets et al., WT Docket No. 99-217, CC
Docket Nos. 96-98, 88-57, First Report and Order and Further Notice of Proposed Rulemaking in WT Docket No.
99-217, Fifth Report and Order and Memorandum Opinion and Order in CC Docket No. 96-98, and Fourth Report
and Order and Memorandum Opinion and Order in CC Docket No. 88-57, 15 FCC Rcd 22983, 22985, para. 1
(2000); Promotion of Competitive Networks in Local Telecommunications Markets, WT Docket No. 99-217, Report
and Order, 23 FCC Rcd 5385, 5386, para. 5 (2008); see also 47 CFR § 64.2500. And in 2007, the Commission
prohibited certain MVPDs from entering into or enforcing exclusivity contracts with residential MTE owners.
See
Exclusive Service Contracts for Provision of Video Services in Multiple Dwelling Units & Other Real Estate
Developments, MB Docket No. 07-51, Report and Order and Further Notice of Proposed Rulemaking, 22 FCC Rcd
20235, 20236, para. 1 (2007) (2007 Exclusive Service Contracts Order), affirmed, National Cable & Telecommun.
Ass’n v. FCC, 567 F.3d 659 (D.C. Cir. 2009) (applying the prohibition to cable operators and other MVPDs that are
subject to section 628 of the Act, 47 U.S.C. § 548). The Commission defined the scope of this rule to include “a
multiple dwelling unit building (such as an apartment building, condominium building or cooperative) and any other
centrally managed residential real estate development (such as a gated community, mobile home park, or garden
apartment).” 47 CFR § 76.2000(b); see also 2007 Exclusive Service Contracts Order, 22 FCC Rcd at 20238, para.
7. The Fourth Circuit Court of Appeals has applied this prohibition on exclusive access to a homeowners’
association. Lansdowne on the Potomac Homeowners Ass’n v. OpenBand at Lansdowne, LLC, 713 F.3d 187 (4th
Cir. 2013).
Federal Communications Commission FCC-CIRC2310-01
121
Commission does not generally track subsequent business size unless, in the context of assignments or
transfers, unjust enrichment issues are implicated. Additionally, since the Commission does not collect
data on the number of employees for licensees providing these services, at this time we are not able to
estimate the number of licensees with active licenses that would qualify as small under the SBA’s small
business size standard.
49. 3650–3700 MHz band. Wireless broadband service licensing in the 3650-3700 MHz
band provides for nationwide, non-exclusive licensing of terrestrial operations, utilizing contention-based
technologies, in the 3650 MHz band (i.e., 3650–3700 MHz).
167
Licensees are permitted to provide
services on a non-common carrier and/or on a common carrier basis.
168
Wireless broadband services in
the 3650-3700 MHz band fall in the Wireless Telecommunications Carriers (except Satellite)
169
industry
with an SBA small business size standard that classifies a business as small if it has 1,500 or fewer
employees.
170
U.S. Census Bureau data for 2017 show that there were 2,893 firms that operated in this
industry for the entire year.
171
Of this number, 2,837 firms employed fewer than 250 employees.
172
Thus
under the SBA size standard, the Commission estimates that a majority of licensees in this industry can be
considered small.
50. The Commission has not developed a small business size standard applicable to
3650–3700 MHz band licensees. Based on the licenses that have been granted, however, we estimate that
the majority of licensees in this service are small Internet Access Service Providers (ISPs). As of
November 2021, Commission data shows that there were 902 active licenses in the 3650–3700 MHz
band.
173
However, since the Commission does not collect data on the number of employees for licensees
providing these services, at this time we are not able to estimate the number of licensees with active
licenses that would qualify as small under the SBA’s small business size standard.
51. Fixed Microwave Services. Fixed microwave services include common carrier,
174
private-operational fixed,
175
and broadcast auxiliary radio services.
176
They also include the Upper
167
See 47 CFR §§ 90.1305, 90.1307.
168
See id. § 90.1309.
169
See U.S. Census Bureau, 2017 NAICS Definition, “517312 Wireless Telecommunications Carriers (except
Satellite),” https://www.census.gov/naics/?input=517312&year=2017&details=517312.
170
See 13 CFR § 121.201, NAICS Code 517312 (as of 10/1/22, NAICS Code 517112).
171
See U.S. Census Bureau, 2017 Economic Census of the United States, Employment Size of Firms for the U.S.:
2017, Table ID: EC1700SIZEEMPFIRM, NAICS Code 517312,
https://data.census.gov/cedsci/table?y=2017&n=517312&tid=ECNSIZE2017.EC1700SIZEEMPFIRM&hidePrevie
w=false.
172
Id. The available U.S. Census Bureau data does not provide a more precise estimate of the number of firms that
meet the SBA size standard.
173
Based on a FCC Universal Licensing System search on November 19, 2021,
https://wireless2.fcc.gov/UlsApp/UlsSearch/searchAdvanced.jsp. Search parameters: Service Group = All, “Match
only the following radio service(s)”, Radio Service = NN; Authorization Type =All; Status = Active. We note that
the number of active licenses does not equate to the number of licensees. A licensee can have one or more licenses.
174
See 47 CFR Part 101, Subparts C and I.
175
See id. Subparts C and H.
176
Auxiliary Microwave Service is governed by Part 74 of Title 47 of the Commission’s Rules. See 47 CFR Part
74. Available to licensees of broadcast stations and to broadcast and cable network entities, broadcast auxiliary
microwave stations are used for relaying broadcast television signals from the studio to the transmitter, or between
two points such as a main studio and an auxiliary studio. The service also includes mobile TV pickups, which relay
signals from a remote location back to the studio.
Federal Communications Commission FCC-CIRC2310-01
127
Accordingly, the Commission estimates that the majority of cable system operators are small under this
size standard. We note however, that the Commission neither requests nor collects information on
whether cable system operators are affiliated with entities whose gross annual revenues exceed $250
million.
229
Therefore, we are unable at this time to estimate with greater precision the number of cable
system operators that would qualify as small cable operators under the definition in the Communications
Act.
7. Other Telecommunications
63. Electric Power Generators, Transmitters, and Distributors. The U.S. Census Bureau
defines the utilities sector industry as comprised of “establishments, primarily engaged in generating,
transmitting, and/or distributing electric power.
230
Establishments in this industry group may perform one
or more of the following activities: (1) operate generation facilities that produce electric energy; (2)
operate transmission systems that convey the electricity from the generation facility to the distribution
system; and (3) operate distribution systems that convey electric power received from the generation
facility or the transmission system to the final consumer.”
231
This industry group is categorized based on
fuel source and includes Hydroelectric Power Generation, Fossil Fuel Electric Power Generation, Nuclear
Electric Power Generation, Solar Electric Power Generation, Wind Electric Power Generation,
Geothermal Electric Power Generation, Biomass Electric Power Generation, Other Electric Power
Generation, Electric Bulk Power Transmission and Control and Electric Power Distribution.
232
64. The SBA has established a small business size standard for each of these groups based on
the number of employees which ranges from having fewer than 250 employees to having fewer than
1,000 employees.
233
U.S. Census Bureau data for 2017 indicate that for the Electric Power Generation,
Transmission and Distribution industry there were 1,693 firms that operated in this industry for the entire
year.
234
Of this number, 1,552 firms had less than 250 employees.
235
Based on this data and the
associated SBA size standards, the majority of firms in this industry can be considered small entities.
(Continued from previous page)
a public notice subsequent to the 2001 Subscriber Count PN, the Commission still relies on the subscriber count
threshold established by the 2001 Subscriber Count PN for purposes of this rule. See 47 CFR § 76.901(e)(1).
228
S&P Global Market Intelligence, S&P Capital IQ Pro, Top Cable MSOs 12/21Q (last visited May 26, 2022); S&P
Global Market Intelligence, Multichannel Video Subscriptions, Top 10 (April 2022).
229
The Commission does receive such information on a case-by-case basis if a cable operator appeals a local
franchise authority’s finding that the operator does not qualify as a small cable operator pursuant to § 76.901(e) of
the Commission’s rules. See 47 CFR § 76.910(b).
230
See U.S. Census Bureau, 2017 NAICS Definition, “Sector 22- Utilities, 2211 Electric Power Generation,
Transmission and Distribution,” https://www.census.gov/naics/?input=2211&year=2017&details=2211.
231
See id.
232
Id.
233
See 13 CFR § 121.201, NAICS Codes 221111, 221112, 221113, 221114, 221115, 221116, 221117, 221118,
221121, 221122.
234
See U.S. Census Bureau, 2017 Economic Census of the United States, Selected Sectors: Employment Size of
Firms for the U.S.: 2017, Table ID: EC1700SIZEEMPFIRM, NAICS Code 2211,
https://data.census.gov/cedsci/table?y=2017&n=2211&tid=ECNSIZE2017.EC1700SIZEEMPFIRM&hidePreview=f
alse.
235
Id. The available U.S. Census Bureau data does not provide a more precise estimate of the number of firms that
meet the SBA size standard.
Federal Communications Commission FCC-CIRC2310-01
128
D. Description of Projected Reporting, Recordkeeping, and Other Compliance
Requirements for Small Entities
65. As indicated above, the Notice proposes to return BIAS to its classification as a
telecommunications service under Title II of the Act, and further proposes to reclassify mobile BIAS as a
commercial mobile service. The Notice also proposes to reinstate straightforward, clear rules of the road
that are designed to prevent ISPs from engaging in practices harmful to consumers, competition, and
public safety, and that would provide the basis for a uniform, national regulatory approach toward BIAS.
Specifically, the Notice proposes to adopt rules to prohibit ISPs from blocking, throttling, or engaging in
paid or affiliated prioritization arrangements. The Notice also proposes to reinstate the general conduct
standard adopted in the 2015 Open Internet Order, which would prohibit practices that cause
unreasonable interference or unreasonable disadvantage to consumers or edge providers. Finally, with
regard to transparency, the Notice proposes to retain the current disclosures, and seeks comment on the
means of disclosure, the interplay between the transparency rule and the broadband label requirements,
and any additional enhancements or changes the Commission should consider.
E. Steps Taken to Minimize the Significant Economic Impact on Small Entities,
and Significant Alternatives Considered
66. The RFA requires an agency to describe any significant alternatives that it has considered
in reaching its proposed approach, which may include (among others) the following four alternatives:
(1) the establishment of differing compliance or reporting requirements or timetables that take into
account the resources available to small entities; (2) the clarification, consolidation, or simplification of
compliance or reporting requirements under the rule for small entities; (3) the use of performance, rather
than design, standards; and (4) an exemption from coverage of the rule, or any part thereof, for small
entities.
236
The Commission expects to consider all of these factors when we have received substantive
comment from the public and potentially affected entities.
67. The Commission also expects to consider the economic impact on small entities, as
identified in comments filed in response to the Notice and this IRFA, in reaching its final conclusions and
taking action in this proceeding. We seek comment here on the effect the various proposals described in
the Notice, and summarized above, will have on small entities, and on what effect alternative rules would
have on those entities. How can the Commission achieve its goal of safeguarding the open Internet while
also imposing minimal burdens on small entities? What specific steps could the Commission take in this
regard? As discussed in the Notice, the proposed approach would provide the basis for a uniform,
national regulatory approach rather than disparate requirements that vary state-by-state, which could help
streamline and minimize regulatory requirements for small entities. The Notice also proposes broad
forbearance from statutory requirements and Commission regulations for broadband Internet access
service providers, and we note that the proposed forbearance could substantially lessen the economic
impact of the proposed actions on small entities. The Notice specifically seeks comment on the impact of
reclassification on small businesses and entities, including small ISPs.
F. Federal Rules that May Duplicate, Overlap, or Conflict with the Proposed Rules
68. None.
236
5 U.S.C. § 603(c).
Federal Communications Commission FCC-CIRC2310-01
34
57. Notwithstanding these tentative conclusions, we seek comment generally on how, and the
extent to which, our proposed classification of BIAS as a telecommunications service will affect ISPs’
investment incentives today. Is it possible to evaluate ISPs’ investment incentives independent of any
incentives and investment activity that may result from the billions of dollars in federal and state funding
that has been and will be provided to ISPs to support infrastructure deployment and broadband
connectivity?
203
C. Scope of Reclassification
58. Broadband Internet Access Service. We propose to continue using the definition of
“broadband Internet access service” as a “mass-market retail service by wire or radio that provides the
capability to transmit data to and receive data from all or substantially all internet endpoints, including
any capabilities that are incidental to and enable the operation of the communications service, but
excluding dial-up internet access service,” as well as “any service that the Commission finds to be
providing a functional equivalent of the service described [in the definition] or that is used to evade the
protections set forth” in part 8 of the Commission’s rules.
204
The Commission has chiefly retained this
definition since it first defined broadband Internet access service in the 2010 Open Internet Order.
205
We
seek comment on whether there is any reason to depart from this definition of broadband Internet access
service.
59. Similarly, we propose to continue to define “mass market” as the Commission did in the
2015 Open Internet Order and RIF Order—“a service marketed and sold on a standardized basis to
residential customers, small businesses, and other end-user customers such as school and libraries.”
206
In
addition to including broadband Internet access service purchased with support from the E-Rate, Lifeline,
and Rural Health Care programs, as well as any broadband Internet access service offered using networks
supported by the Connect America Fund or the Rural Digital Opportunity Fund, we propose that such
“mass market” services would also include any broadband Internet access service purchased with support
from the Affordable Connectivity Program and the Connected Care Pilot Program.
207
Consistent with the
2015 Open Internet Order and RIF Order, the proposed definition excludes enterprise service offerings,
which are typically offered to larger organizations through customized or individually negotiated
arrangements, and special access services.
208
We seek comment on our proposal. Should we apply the
modified definition of broadband Internet access service used for the broadband label requirement in this
context to make clear that enterprise services are excluded even when they are supported by the
Commission’s broadband access and affordability programs?
209
60. We also propose to remain consistent with the Commission’s conclusions in prior Orders
to include in the term “broadband Internet access service” those services provided over any technology
platform, including but not limited to wire, terrestrial wireless (including fixed and mobile wireless
203
See NTIA, BroadbandUSA, Federal Funding, https://broadbandusa.ntia.doc.gov/resources/federal/federal-
funding (last visited Sept. 20, 2023).
204
47 CFR § 8.1(b); see also id. Part 8.
205
See 2010 Open Internet Order, 25 FCC Rcd at 17932, para. 44; see also 2015 Open Internet Order, 30 FCC Rcd
at 5745-50, 5883, paras. 336-40 and Appx. A, Final Rules; RIF Order, 33 FCC Rcd at 318-20, paras. 21-25.
206
See 2015 Open Internet Order, 30 FCC Rcd at 5683-84, para. 189; RIF Order, 33 FCC Rcd at 318, para. 21,
n.58.
207
These programs statutorily support BIAS regardless of its classification status.
208
See 2015 Open Internet Order, 30 FCC Rcd at 5683-84, para. 189; RIF Order, 33 FCC Rcd at 318, para. 21,
n.58.
209
See Empowering Broadband Consumers Through Transparency, CG Docket No. 22-2, Order on
Reconsideration, FCC 23-68, at 6-8, paras. 24-26 and Appendix A (rel. Aug. 29, 2023) (Broadband Label
Reconsideration Order).
Federal Communications Commission FCC-CIRC2310-01
35
services using licensed or unlicensed spectrum), and satellite.
210
We seek comment on this proposal. We
continue to intend broadband Internet access service “to cover the entire universe of Internet access
services at issue in the Commission’s prior broadband classification decisions, as well as all other
broadband Internet access services offered over other technology platforms that were not addressed by
prior classification orders.”
211
As in prior orders, we propose that “fixed” broadband Internet access
service refers to a broadband Internet access service that serves end users primarily at fixed endpoints
using stationary equipment, such as the modem that connects an end user’s home router, computer, or
other Internet access device to the Internet, and encompasses the delivery of fixed broadband service over
any medium, including various forms of wired broadband service (e.g., cable, DSL, fiber), fixed wireless
broadband service (including fixed services using unlicensed spectrum), and fixed satellite broadband
service.
212
Likewise, we propose that “mobile” broadband Internet access service refers to a broadband
Internet access service that serves end users primarily using mobile stations, and includes, among other
things, services that use smartphones or mobile-network-enabled tablets as the primary endpoints for
connection to the Internet, as well as mobile satellite broadband service.
213
Consistent with the existing
definition, we propose to include within the definition of broadband Internet access service any such
service, regardless of whether the ISP leases or owns the facilities used to provide the service.
214
We seek
comment on our proposals.
61. We also propose that to the extent coffee shops, bookstores, airlines, private end-user
networks such as libraries and universities, and other businesses acquire broadband Internet access service
from an ISP to enable patrons to access the Internet from their respective establishments, provision of
such service by the premise operator would not itself be considered BIAS unless it was offered to patrons
as a retail mass-market service.
215
Likewise, when a user employs, for example, a wireless router or a Wi-
Fi hotspot to create a personal Wi-Fi network that is not intentionally offered for the benefit of others, we
believe he or she is not offering a broadband Internet access service under our proposed definition,
because the user is not marketing and selling such service to residential customers, small businesses, and
other end-user customers.
216
Such proposed findings are consistent with the manner in which the
Commission has historically defined broadband Internet access service,
217
and we seek comment on any
changed circumstances that would justify a different outcome.
62. We seek comment on whether there are other types of services we should address in
defining the scope of broadband Internet access service. For example, with respect to 5G deployments,
new network architectures and uses of the technology are emerging, including some that offer both
private and public 5G connectivity, like 5G Internet of Things (IoT).
218
We seek comment on how we
should view these services for purposes of defining broadband Internet access service—are these types of
210
See 2015 Open Internet Order, 30 FCC Rcd at 5746-47, para. 337; RIF Order, 33 FCC Rcd at 319, para. 22.
211
RIF Order, 33 FCC Rcd at 319, para. 22; see also 2015 Open Internet Order, 30 FCC Rcd at 5746-47, para. 337
(expressing the same findings regarding the scope of BIAS within the categories of “fixed” and “mobile” broadband
Internet access service).
212
RIF Order, 33 FCC Rcd at 319, para. 22 (footnotes omitted); see also 2015 Open Internet Order, 30 FCC Rcd at
5746-47, para. 337 (footnotes omitted).
213
RIF Order, 33 FCC Rcd at 319, para. 22; see also 2015 Open Internet Order, 30 FCC Rcd at 5746-47, para. 337.
214
2015 Open Internet Order, 30 FCC Rcd at 5746-47, para. 337; RIF Order, 33 FCC Rcd at 319, para. 22.
215
2015 Open Internet Order, 30 FCC Rcd at 5749, para. 340; RIF Order, 33 FCC Rcd at 320, para. 24.
216
2015 Open Internet Order, 30 FCC Rcd at 5749, para. 340; RIF Order, 33 FCC Rcd at 320, para. 25.
217
See 2015 Open Internet Order, 30 FCC Rcd at 5749, para. 340; RIF Order, 33 FCC Rcd at 320, para. 25.
218
See, e.g., Enterprise IoT Insights, “NTT Rolls Out 5G IoT Service in the U.S. via its Transetel Subsidiary,” May
17, 2022, https://enterpriseiotinsights.com/20220517/internet-of-things/ntt-rolls-out-5g-iot-service-us-via-transetel-
subsidiary.
Federal Communications Commission FCC-CIRC2310-01
36
services best viewed as enterprise services excluded from the definition of broadband Internet access
service or should they be treated as non-BIAS data services?
63. Non-BIAS Data Services. We also seek comment on whether to continue excluding non-
BIAS data services (formerly “specialized services”) from the scope of broadband Internet access service.
In the 2015 Open Internet Order, the Commission explained that certain services offered by ISPs that
share capacity with broadband Internet access service over ISPs’ last-mile facilities were not broadband
Internet access service and provided examples and characteristics of services that, at that time, likely fit
within this category of non-BIAS data services.
219
The Commission defined characteristics of these
services, explaining that they (1) are not used to reach large parts of the Internet; (2) are not a generic
platform, but rather a specific “application level” service; and (3) use some form of network management
to isolate the capacity used by these services from that used by broadband Internet access service.
220
We
seek comment on whether these characteristics still appropriately describe non-BIAS data services. Are
there any other characteristics of such services on which we should rely? Are these still appropriate
examples of data services that are outside the scope of broadband Internet access service? Have the
distinctions between mass-market retail and non-BIAS data services changed, particularly from a
consumer, technical, or other perspective, to warrant reconsideration of this exclusion?
64. We also tentatively conclude that we should maintain the 2015 Open Internet Order’s
approach to continue closely monitoring the development of non-BIAS data services.
221
We are
especially concerned about activities that may undermine national security and public safety, consumers’
use of broadband Internet access service, and the ability of consumers to access broadband Internet access
service. We also share the Commission’s concern in the 2015 Open Internet Order “that over-the-top
services offered over the Internet are not impeded in their ability to compete with other data services.”
222
We seek comment on our proposed approach.
65. Internet Traffic Exchange. We next tentatively conclude that broadband Internet access
service, as we propose to define it, includes arrangements for the exchange of Internet traffic by an edge
provider or an intermediary with the ISP’s network, referred to as Internet peering, traffic exchange or
interconnection, to the extent they provide the “capability to transmit data to and receive data from all or
substantially all internet endpoints . . . [and] enable the operation of the communications service.”
223
We
seek comment on this position. As the Commission explained in 2015, “[t]he representation to retail
customers that they will be able to reach ‘all or substantially all Internet endpoints’ necessarily includes
219
2015 Open Internet Order, 30 FCC Rcd at 5696, paras. 207-208. The Commission identified some ISPs’
existing facilities-based VoIP and Internet Protocol-video offerings, connectivity bundled with e-readers, heart
monitors, energy consumption sensors, limited-purpose devices such as automobile telematics, and services that
provide schools with curriculum-approved applications and content as examples of non-BIAS data services. See id.
at 5696-97, para. 208; RIF Order, 33 FCC Rcd at 319-20, para. 23.
220
2015 Open Internet Order, 30 FCC Rcd at 5697, para. 209.
221
In the 2015 Open Internet Order, the Commission emphasized that non-BIAS data services might still be subject
to enforcement action if the Commission determined that: (1) a particular service is providing the functional
equivalent of BIAS; (2) an ISP claimed or attempted to claim that a service that is the equivalent of BIAS is a non-
BIAS data service not subject to any rules that would otherwise apply; or (3) a non-BIAS data service offering is
undermining investment, innovation, competition, and end-user benefits. 2015 Open Internet Order, 30 FCC Rcd at
5697, para. 210.
222
Id.
223
See id. at 5686, para. 194 n.482 (“As a general matter, Internet traffic exchange involves the exchange of IP
traffic between networks. An Internet traffic exchange arrangement determines which networks exchange traffic
and the destinations to which those networks will deliver that traffic. In aggregate, Internet traffic exchange
arrangements allow an end user of the Internet to interact with other end users on other Internet networks, including
content or services that make themselves available by having a public IP address, similar to how the global public
switched telephone networks consists of networks that route calls based on telephone numbers.”).
Federal Communications Commission FCC-CIRC2310-01
37
the promise to make the interconnection arrangements necessary to allow that access”
224
and “the promise
to transmit traffic to and from those Internet end points back to the user.”
225
We tentatively conclude that
the Commission’s findings and rationale regarding Internet traffic exchange in the 2015 Open Internet
Order—that such “edge service” is derivative of broadband Internet access service and constitutes the
same traffic—remain valid,
226
and we seek comment on our tentative conclusion. We observe that the
RIF Order does not appear to dispute the Commission’s previous conclusion that broadband Internet
access service includes this “edge service,” and instead determined that Internet traffic exchange
arrangements were appropriately regulated as an information service by virtue of its conclusion that
broadband Internet access service is an information service. We seek comment on whether there are
circumstances under which “edge service” would not be best characterized as a part of broadband Internet
access service, and how commenters would characterize that service, given the Verizon court’s conclusion
that, in addition to the retail service provided to consumers, “broadband providers furnish a service to
edge providers, thus undoubtedly functioning as edge providers’ ‘carriers.’”
227
We seek comment on the
Verizon court’s characterization of broadband Internet access service in relation to service provided to
both consumers and edge providers. How, if at all, has edge service changed in relation to broadband
Internet access service? Are there any grounds to depart from the Commission’s prior treatment of edge
service and edge providers as a “derivative” service of broadband Internet access service?
66. We also seek comment on whether we should exclude any particular services or functions
from the definition of broadband Internet access service. For example, should we exclude virtual private
network (VPN) services, web hosting services, and/or data storage services
228
from the scope of
broadband Internet access service?
229
While the Commission has previously excluded content delivery
networks (CDNs) and Internet backbone services, including transit arrangements, we seek comment
whether a different approach may be warranted because these services are integral to transmitting data
and delivering communications to Internet endpoints, thus falling within the proposed definition of
“broadband internet access service.” We observe that these services directly or indirectly provide data on
behalf of their clients. For example, while VPN servers reflect one end-point of an underlying
communication stream, they act as a launching pad to forward traffic to the destination identified by the
user. We seek comment on this proposed analysis. Do these services fall within the scope of broadband
Internet access service, as we propose to define it?
D. Classifying Broadband Internet Access Service as a Telecommunications Service
67. The 1996 Act enacted the “telecommunications service” and “information service”
definitional frameworks, and since that time, the Commission and courts have grappled with the
classification of Internet access services as technology and the communications marketplace have evolved
and the Internet has become essential to our daily lives. Courts have long recognized the Commission’s
authority to interpret and implement the Communications Act of 1934.
230
Both the 2015 Open Internet
224
See 2015 Open Internet Order, 30 FCC Rcd at 5610, 5693-94, paras. 28, 204.
225
Id. at 5748, para. 339; see also USTA, 825 F.3d at 713 (explaining that the issue in Verizon was the
Commission’s failure to classify BIAS as a Title II service, but that the Commission overcame this by reclassifying
broadband “and the interconnection arrangements necessary to provide it” as a telecommunications service).
226
See 2015 Open Internet Order, 30 FCC Rcd at 5748, para. 339 (referring to a broadband provider’s promise to
transmit traffic to and from Internet end points back to the user as the “edge service”).
227
Verizon, 740 F.3d at 653.
228
For purposes of this NPRM, “data storage services” refers to the provision of access to data storage platforms.
The term is distinct from “caching,” which involves the temporary storage of data for purposes of delivering content
to specific endpoints.
229
See 2015 Open Internet Order, 30 FCC Rcd at 5749, para. 340; RIF Order, 33 FCC Rcd at 320, paras. 24-25.
230
See, e.g., Nat’l Broad. Co. v. United States, 319 U.S. 190, 219 (1943) (“[i]n the context of the developing
problems to which it was directed, the Act gave the Commission . . . expansive powers”); United States v. Storer
(continued….)
Federal Communications Commission FCC-CIRC2310-01
38
Order and the RIF Order recognized this authority.
231
And on review of each of those decisions, the D.C.
Circuit accepted the Commission’s authority to make classification decisions, even when this involved a
change in course.
232
In addressing a prior Commission decision classifying BIAS, in Brand X, the
Supreme Court confirmed not only that an administrative agency can change its interpretation of an
ambiguous statute, but that it “must consider varying interpretations and the wisdom of its policy on a
continuing basis, for example in response to . . . a change in administrations.”
233
In light of this precedent,
we believe that we not only have the authority to classify BIAS, but that we must reevaluate the 2018
information service classification in consideration of the policy rationales and marketplace developments
we have described above as warranting a return to the telecommunications service classification. We
seek comment on this view.
68. In evaluating the classification of BIAS, three definitional terms are relevant. First, the
Act defines “telecommunications” as “the transmission, between or among points specified by the user, of
information of the user’s choosing, without change in the form or content of the information as sent and
received.”
234
Second, the Act defines “telecommunications service” as “the offering of
telecommunications for a fee directly to the public, or to such classes of users as to be effectively
available directly to the public, regardless of the facilities used.”
235
Finally, the Act defines “information
service” as “the offering of a capability for generating, acquiring, storing, transforming, processing,
retrieving, utilizing, or making available information via telecommunications . . . , but does not include
any use of any such capability for the management, control, or operation of a telecommunications system
or the management of a telecommunications service.”
236
When Congress enacted the definitions of
“telecommunications service” and “information service” in the 1996 Act,
237
it substantially incorporated
the “basic” and “enhanced” service classifications from the Computer Inquiries line of decisions.
238
(Continued from previous page)
Broadcasting Co., 351 U.S. 192, 203 (1956) (noting “the power of the Commission” to exercise “the rulemaking
authority necessary for the orderly conduct of its business,” and explaining that sections 4(i) and 303(r) of the Act
“grant general rulemaking power not inconsistent with the Act or law”); AT&T v. Iowa Utils. Bd., 525 U.S. 366, 378
(1999) (stating that “[w]e think that the grant in § 201(b) means what it says: The FCC has rulemaking authority to
carry out the ‘provisions of this Act’”); Brand X, 545 U.S. 967, 980-82 (2005) (the FCC has authority to classify
services—and BIAS, in particular—and to change course in its classification of BIAS if it acknowledges that it is
doing so and justifies its decision); Phila. Television Broad. Co. v. FCC, 359 F.2d 282, 283 (D.C. Cir. 1966)
(recognizing the Commission’s authority to determine whether community antenna television (CATV) “systems are
common carriers within the meaning of the Communications Act”); Nat’l Ass’n of Regul. Util. Comm’rs v. FCC,
525 F.2d 630 (D.C. Cir. 1976) (NARUC I) (affirming the FCC’s classification of Specialized Mobile Radio Systems
(SMRS) as non-common carriers and observing that a different classification could be warranted in the future
“should the actual operations of SMRS appear to bring them within the common carrier definition”).
231
See, e.g., 2015 Open Internet Order, 30 FCC Rcd at 5742, 5743-44, paras. 328, 331-32, 333-35; RIF Order, 33
FCC Rcd at 403-405, paras. 155-56.
232
See, e.g., Mozilla, 940 F.3d at 23-24, 43, 50, 53-54, 55-56, 63-64; USTA, 825 F.3d at 701-702, 704, 708-10, 723-
24.
233
Brand X, 545 U.S. at 981 (quoting Chevron, 467 U.S. at 863-64) (emphasis added; internal quotation marks
omitted).
234
47 U.S.C. § 153(50).
235
47 U.S.C. § 153(53).
236
47 U.S.C. § 153(24).
237
Telecommunications Act of 1996, Pub. L. No. 104-104, § 3(a)(2), 110 Stat. 56, 58-60 (1996), codified at 47
U.S.C. §§ 153(24), 153(50), 153(53).
238
In 1966, the Commission initiated its Computer Inquiries “to ascertain whether the services and facilities offered
by common carriers are compatible with the present and anticipated communications requirements of computer
users.” Regulatory & Policy Problems Presented by the Interdependence of Computer & Comm. Servs., Docket No.
(continued….)
Federal Communications Commission FCC-CIRC2310-01
39
Under the Computer Inquiries, facilities-based telephone companies were obligated to offer the
transmission component of their enhanced service offerings—including broadband Internet access service
offered via DSL—to unaffiliated enhanced service providers on nondiscriminatory terms and conditions
pursuant to tariffs or contracts governed by Title II.
239
Thus, there is no disputing that until 2005, Title II
applied to the transmission component of DSL service.
240
Further, because the statutory definitions
substantially incorporated the Commission’s terminology under the Computer Inquiries, Commission
decisions regarding the distinction between basic and enhanced services—in particular, decisions
regarding features that are “adjunct to basic” services—are relevant to our analysis, as discussed further
below, because the Commission’s definition of “adjunct to basic” services has been instrumental in
determining which functions fall within the “telecommunications systems management” exception to the
“information service” definition.
69. We tentatively conclude that both a reasonable and the best reading of these definitional
provisions supports classifying BIAS as a telecommunications service. As explained in the 2015 Open
Internet Order, “the critical distinction between a telecommunications and an information service turns on
what the provider is ‘offering.’”
241
If the provider is offering “telecommunications” to the public for a
fee, then the service is necessarily a telecommunications service.
242
Thus, in 2015, the Commission
interpreted these terms to classify BIAS as a telecommunications service, finding that BIAS, as then
offered, is sufficiently independent from the information services that ISPs may also offer.
243
Consistent
(Continued from previous page)
16979, Notice of Inquiry, 7 FCC 2d 11, 11-12, para. 2 (1966) (Computer I Notice of Inquiry) (subsequent history
omitted). In the Computer II and Computer III decisions, the Commission required telephone companies that
provided “enhanced services” over their own transmission facilities to separate out and offer on a common carrier
basis the transmission component underlying their enhanced services. Amendment of Section 64.702 of the
Comm’n’s Rules & Regs, Second Computer Inquiry, Final Decision, 77 FCC 2d 384, 417-35, 461-75, paras. 86-132,
201-31 (1980) (Computer II Final Decision), aff’d sub nom. Computer & Commc’ns Indus. Ass’n v. FCC, 693 F.2d
198 (D.C. Cir. 1982); Amendment of Section 64.702 of the Comm’n’s Rules & Regs. (Third Computer Inquiry), CC
Docket No. 85-229, Phase I, Report and Order, 104 FCC 2d 958, para. 4 (1986) (Computer III Phase I Order),
recon., 2 FCC Rcd 3035 (1987) (Computer III Phase I Reconsideration Order), further recon., 3 FCC Rcd 1135
(1988) (Computer III Phase I Further Reconsideration Order), second further recon., 4 FCC Rcd 5927 (1989)
(Computer III Phase I Second Further Reconsideration Order); Phase I Order and Phase I Recon. Order vacated
sub nom. California v. FCC, 905 F.2d 1217 (9th Cir. 1990) (California I); CC Docket No. 85-229, Phase II, 2 FCC
Rcd 3072 (1987) (Computer III Phase II Order), recon., 3 FCC Rcd 1150 (1988) (Computer III Phase II
Reconsideration Order), further recon., 4 FCC Rcd 5927 (1989) (Phase II Further Reconsideration Order); Phase
II Order vacated, California I, 905 F.2d 1217 (9th Cir. 1990); Computer III Remand Proceeding, CC Docket No.
90-368, 5 FCC Rcd 7719 (1990) (ONA Remand Order), recon., 7 FCC Rcd 909 (1992), pets. for review denied sub
nom. California v. FCC, 4 F.3d 1505 (9th Cir. 1993) (California II); Computer III Remand Proceedings: Bell
Operating Company Safeguards and Tier 1 Local Exchange Company Safeguards, CC Docket No. 90-623, 6 FCC
Rcd 7571 (1991) (BOC Safeguards Order), BOC Safeguards Order vacated in part and remanded sub nom.
California v. FCC, 39 F.3d 919 (9th Cir. 1994) (California III), cert. denied, 514 U.S. 1050 (1995); Computer III
Further Remand Proceedings: Bell Operating Company Provision of Enhanced Services, CC Docket No. 95-20,
Notice of Proposed Rulemaking, 10 FCC Rcd 8360 (1995) (Computer III Further Remand Notice), Further Notice
of Proposed Rulemaking, 13 FCC Rcd 6040 (1998) (Computer III Further Remand Further Notice); Report and
Order, 14 FCC Rcd 4289 (1999) (Computer III Further Remand Order),
recon., 14 FCC Rcd 21628 (1999)
(Computer III Further Remand Reconsideration Order).
239
See Computer II Final Decision, 77 FCC 2d at 475, para. 231; see also Wireline Broadband Classification Order,
20 FCC Rcd at 14866-68, para. 24. We note that a large number of rural local exchange carriers (LECs) have also
chosen to offer broadband transmission service as a telecommunications service subject to the provisions of Title II.
240
See, e.g., Wireline Broadband Classification Order, 20 FCC Rcd at 14858, para. 5.
241
2015 Open Internet Order, 30 FCC Rcd at 5757, para. 355.
242
Id. at 5757, para. 355.
243
Id. at 5757-58, para. 356.
Federal Communications Commission FCC-CIRC2310-01
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with the Commission’s finding in 2015, we believe that BIAS is best understood as making available
high-speed access to the Internet (that may be bundled with other applications and functions)—and
therefore that it provides telecommunications
244
—and that ISPs offer BIAS to the public for a fee.
Accordingly, we tentatively conclude the best reading of the Act is that BIAS, as offered to and
understood by consumers today, is a telecommunications service rather than an information service. We
seek comment on this tentative conclusion.
70. Broadband Internet Access Service Provides Telecommunications. We tentatively
conclude that BIAS provides “telecommunications” as it is defined under the Act, and seek comment on
this conclusion. As discussed above, the Act defines “telecommunications” as “the transmission, between
or among points specified by the user, of information of the user’s choosing, without change in the form
or content of the information as sent and received.”
245
As discussed above,
246
we believe that users rely on
BIAS to transmit “information of the user’s choosing,” “between or among points specified by the
user.”
247
We further believe, as the Commission has previously found, that the term “points specified by
the user” is ambiguous, and that “uncertainty concerning the geographic location of an endpoint of
communication is irrelevant for the purpose of determining whether a broadband Internet access service is
providing ‘telecommunications.’”
248
We also contend that these points are not constrained to be defined
in one particular format. They may be in the form of an IP address or perhaps more commonly associated
with fully qualified domain names resolved by the DNS, such as www.example.com. This is consistent
with the Commission’s prior deduction that while consumers often do not know the precise physical or
virtual location of the edge provider or other user they want to access, “there is no question that users
specify the end points of their Internet communications” and “would be quite upset if their Internet
communications did not make it to their intended recipients or the website addresses they entered into
their browser would take them to unexpected web pages.”
249
As the Commission explained, “numerous
forms of telephone service qualify as telecommunications even though the consumer typically does not
know the geographic location of the called party,” including cell phone service, toll free 800 service, and
call bridging service.
250
Likewise, the fact that DNS may resolve the same domain name to one or more
virtual locations (e.g., due to load balancing), just as in the toll free arena a single telephone number may
route to multiple locations, “does not transform that service to something other than
telecommunications.”
251
In the RIF Order, the Commission conceded that at least some
telecommunications are used as an input into BIAS and “an ISP makes use of telecommunications” in the
provision of BIAS, but found that it “need not further address the scope of the ‘telecommunications’
definition in order to justify [its] classification of broadband Internet access service,” and did not further
address the Commission’s interpretation and application of the “telecommunications” definition in the
2015 Open Internet Order.
252
We seek comment on the analysis that BIAS provides
“telecommunications,” including whether there is any reason to depart from it.
71. We further tentatively conclude that there is no change or modification to the form or
244
Id.; see also Brand X, 545 U.S. at 1008 (Scalia, J., dissenting) (quoting Cable Modem Declaratory Ruling, 17
FCC Rcd at 4799, para. 1).
245
47 U.S.C. § 153(50).
246
See supra section III.A; see also 2015 Open Internet Order, 30 FCC Rcd at 5761, para. 361.
247
47 U.S.C. § 153(50).
248
2015 Open Internet Order, 30 FCC Rcd at 5761-62, para. 361.
249
Id.
250
Id.
251
Id.
252
RIF Order, 33 FCC Rcd at 341-43, para. 52.
Federal Communications Commission FCC-CIRC2310-01
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content of information during transmission, and seek comment on this analysis. In 2015, the Commission
explained that “the packet payload (i.e., the content requested or sent by the user) is not altered by the
variety of headers that a provider may use to route a given packet” and therefore, the “form and content of
the information” is the same when an IP packet is sent by the sender as when the same packet is received
by the recipient.
253
We seek comment on whether this analysis of packet transmission remains accurate
and relevant today. Have there been any developments or changes in how BIAS is provisioned that
would cause us to reconsider this analysis? How do ISPs transmit data information from one point on the
network to another? How does it differ from how PSTN calls are transmitted today?
72. Broadband Internet Access Service is a Telecommunications Service. Here, we propose
to build off our tentative conclusion that BIAS provides telecommunications and our belief that current
factual circumstances show that consumers perceive BIAS as a standalone offering used to access third-
party services and, as such, ISPs routinely market BIAS widely to the general public.
254
Viewed together,
ISPs would necessarily offer BIAS “for a fee directly to the public, or to such classes of users as to be
effectively available directly to the public, regardless of the facilities used,”
255
and therefore we
tentatively conclude that BIAS is a telecommunications service as defined in the Act. We seek comment
on our tentative conclusion and assessment. We further propose to find that the implied promise to make
arrangements for exchange of Internet traffic as part of the BIAS offering does not constitute a private
carriage arrangement, and that the rationale adopted in the 2015 Open Internet Order remains
persuasive.
256
We seek comment on this approach. How do Internet traffic arrangements with negotiated
terms differ from mass-market services offered to the public? Have there been any significant
developments in the Internet traffic exchange market since 2015 that would cause us to reconsider these
proposals? We observe that in 2015, the Commission concluded that “some individualization in pricing
or terms is not a barrier to finding that a service is a telecommunications service,”
257
and the RIF Order
does not appear to disturb this finding. We seek comment on this analysis.
73. Broadband Internet Access Service Is Not Best Classified an Information Service. We
tentatively conclude that, as offered today, BIAS is not an information service under the best reading of
the Act. The Act defines an information service as the offering “of a capability for generating, acquiring,
storing, transforming, processing, retrieving, utilizing, or making available information via
telecommunications.”
258
We believe that the Commission’s reasoning in the RIF Order—that because
BIAS has the “capability” to be used to engage in the activities within the information service definition,
it is best interpreted as an information service
259
—is flawed. Concluding that BIAS “is an information
service irrespective of whether it provides the entirety of any end user functionality or whether it provides
end user functionality in tandem with edge providers,”
260
as the Commission did in the RIF Order, fails to
recognize the relationship of BIAS transmission services to other functions, which may be offered by
253
2015 Open Internet Order, 30 FCC Rcd at 5762-63, para. 362.
254
See supra section III.A.
255
47 U.S.C. § 153(53) (defining “telecommunications service”).
256
2015 Open Internet Order, 30 FCC Rcd at 5764-65, para. 364 (explaining that ISPs have “voluntarily undertaken
an obligation to arrange to transfer that traffic on and off its network,” thus holding themselves out to carry all edge
provider traffic to customers regardless of source and regardless of whether the edge provider has a specific
arrangement with the broadband provider, and that “[m]erely asserting that the traffic exchange component of the
service may have some individualized negotiation does not alter the nature of the underlying service”).
257
2015 Open Internet Order, 30 FCC Rcd at 5763-64, para. 363.
258
47 U.S.C. § 153(24).
259
RIF Order, 33 FCC Rcd at 322-25, paras. 30-32.
260
Id. at 323-24, para. 31.
Federal Communications Commission FCC-CIRC2310-01
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either the ISP or a third party of the end user’s choice.
261
Logically, under the framework set out in the
RIF Order, even traditional switched telephone service would be classified as an information service, as it
provides customers with the ability to make information available to others (e.g., public service
announcements), retrieve information from others, and process and utilize stored information from others
(e.g., by interacting with a call menu). We tentatively conclude that the best and more reasonable
interpretation of the statutory language is that BIAS is a telecommunications service, while the
applications that run over BIAS either constitute distinct information services or fall within the exception
to the information service definition for capabilities used “for the management, control, or operation of a
telecommunications system or the management of a telecommunications service.”
262
We seek comment
on this proposed analysis.
74. We tentatively conclude that companion services, such as DNS and caching, when
provided with BIAS, fit within the telecommunications systems management exception to the definition
of “information service,” and therefore when these services are provided with BIAS, they do not convert
BIAS into an information service. We seek comment on this tentative conclusion. The Act’s
telecommunications systems management exception excludes from the definition of “information service”
“any use of any such capability for the management, control, or operation of a telecommunications
system or the management of a telecommunications service.”
263
In the 2015 Open Internet Order, the
Commission concluded that when DNS and caching are offered with BIAS, they “either fall within the
telecommunications systems management exception or are separate offerings that are not inextricably
integrated with broadband Internet access service, or both.”
264
In the RIF Order, the Commission took a
contrary view, concluding that “DNS and caching functionalities . . . offered by ISPs[] are integrated
information processing capabilities offered as part of broadband Internet access service to consumers
today.”
265
On review of the RIF Order, Judge Millet explained in her concurrence that “the question is
whether the combination of transmission with DNS and caching alone can justify the information service
classification. If we were writing on a clean slate, that question would seem to have only one answer
given the current state of technology: No.”
266
She added that “new factual developments call[ed] for
serious technological reconsideration and engagement through expert judgment. Instead, the
Commission’s exclusive reliance on DNS and caching blinkered itself off from modern broadband reality,
and untethered the service ‘offer[ed]’ from both the real-world marketplace and the most ordinary of
linguistic conventions.”
267
We intend to guide our decisionmaking about the role of DNS and caching
based on today’s broadband reality, and we seek information on the present circumstances.
75. We tentatively conclude that the Commission’s 2015 analysis provides the more
reasonable application of the relevant statutory terms and Commission precedent to DNS functionality
with respect to BIAS,
268
and we seek comment on this tentative conclusion. In the 2015 Open Internet
261
See id. at 339, para. 50.
262
47 U.S.C. § 153(24).
263
47 U.S.C. § 153(24).
264
2015 Open Internet Order, 30 FCC Rcd at 5765, para. 365.
265
RIF Order, 33 FCC Rcd at 325, para. 33.
266
Mozilla, 940 F.3d at 90 (Millett, J., concurring); see also id. at 94-95 (Wilkins, J., concurring) (“As Judge
Millett’s concurring opinion persuasively explains, we are bound by the Supreme Court’s decision in [Brand X],
even though critical aspects of broadband Internet technology and marketing underpinning the Court’s decision have
drastically changed since 2005.”).
267
Mozilla, 940 F.3d at 91 (Millett, J., concurring).
268
2015 Open Internet Order, 30 FCC Rcd at 5765-69, paras. 366-69.
Federal Communications Commission FCC-CIRC2310-01
43
Order, the Commission analogized DNS to adjunct-to-basic services,
269
such as speed dialing, call
forwarding, and computer-provided directory assistance, and concluded that because it is effectively
equivalent to routing information and does not alter the fundamental character of the telecommunications
service, it falls within the telecommunications systems management exception to the definition of
“information service.”
270
The RIF Order rejected the adjunct-to-basic comparison largely based on its
contention that adjunct-to-basic services and the telecommunications systems management exception
must be viewed narrowly, effectively to only include functions that solely facilitate transmission.
271
Because it concluded that DNS, as then used, is a core function of BIAS that provides more than a
functionally integrated address-translation capability, it determined that DNS did not fall within the
exception.
272
We tentatively disagree with the RIF Order’s narrow characterization of adjunct-to-basic
services and the telecommunications systems management exception as not mandated by the statutory
language; however, even under that unnecessarily narrow characterization, we believe DNS would fall
under the telecommunications management exception, as its fundamental purpose is to route
information—i.e., to facilitate transmission.
76. We further believe that even if DNS did not fall within the telecommunications systems
management exception to the Act’s definition of “information services,” it is not so inextricably
intertwined so as to convert the entire BIAS offering into an information service, consistent with the
Commission’s finding in 2015.
273
In support of the 2015 Open Internet Order’s conclusion, the
Commission explained that IP packet transfer can work without DNS and that DNS lookup is available
through third parties.
274
In the RIF Order, the Commission argued that even though DNS can also be
provided by third parties, the focus should remain on the capabilities that ISPs offer, which it concluded is
a single, inextricably intertwined information service.
275
However, in her Mozilla concurrence, Judge
Millet noted that “DNS, much like email, is now free and widely available to consumers in the Internet
marketplace.”
276
We tentatively conclude that the 2015 Open Internet Order’s showing that DNS is not a
necessary component of BIAS, which the RIF Order did not dispute, provides the better rationale for
evaluating whether DNS transforms the entire BIAS offering into an information service, and tentatively
269
“Adjunct-to-basic” functions were those features and services that met the literal definition of “enhanced service”
but did not alter the fundamental character of the associated basic transmission service and thus were treated as basic
(i.e., telecommunications) services even though they went beyond mere transmission. See Amendment of Section
64.702 of the Comm’n’s Rules & Regs, Second Computer Inquiry, Final Decision, 77 FCC 2d 384, 421, para. 98
(1980) (Computer II Final Decision), aff’d sub nom. Computer & Commc’ns Indus. Ass’n v. FCC, 693 F.2d 198
(D.C. Cir. 1982); AT&T Corp. Petition for Declaratory Ruling Regarding Enhanced Prepaid Calling Card Services,
Regulation of Prepaid Calling Card Services, WC Docket Nos. 03-133 and 05-68, Order and Notice of Proposed
Rulemaking, 20 FCC Rcd 4826, 4831, para. 16 (2005), aff’d, AT&T Corp. v. FCC, 454 F.3d 329 (D.C. Cir. 2006);
Non-Accounting Safeguards Order, Report and Order and Further Notice of Proposed Rulemaking, 11 FCC Rcd
21905, 21958, para. 107 n.245 (1997); North American Telecommunications Association Petition for Declaratory
Ruling Under §64.702 of the Commission's Rules Regarding the Integration of Centrex, Enhanced Services, and
Customer Premises Equipment, 101 FCC 2d 349, 360, para. 26 (1985) (NATA/Centrex Order). The Commission
has held that such functions: (1) must be “incidental” to an underlying telecommunications service—i.e., “‘basic’ in
purpose and use” in the sense that they facilitate use of the network; and (2) must “not alter the fundamental
character of [the telecommunications service].” See NATA/Centrex Order, 101 FCC 2d at 359-61, paras. 24, 27, 28.
270
2015 Open Internet Order, 30 FCC Rcd at 5765-69, paras. 366-69.
271
RIF Order, 33 FCC Rcd at 331, para. 39.
272
Id. at 326-27, para. 34.
273
See 2015 Open Internet Order, 30 FCC Rcd at 5769-70, para. 370.
274
See id.
275
RIF Order, 33 FCC Rcd at 338-39, paras. 49-50.
276
Mozilla, 940 F.3d at 90 (Millett, J., concurring).
Federal Communications Commission FCC-CIRC2310-01
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conclude that it does not. We seek comment on this tentative conclusion. Does the Commission’s 2015
analysis of DNS as it relates to BIAS remain relevant, accurate, and persuasive? Why or why not? Are
there any technical or commercial developments that should cause us to reconsider this analysis?
77. For the same reasons the Commission found in 2015, we believe that caching,
277
when
provided in connection with BIAS, is “used to facilitate the transmission of information so that users can
access other services, in this case by enabling the user to obtain ‘more rapid retrieval of information’
through the network,” and thus falls within the telecommunications systems management exception. We
seek comment on this analysis. The Commission concluded otherwise in the RIF Order, finding that
“ISP-provided caching does not merely ‘manage’ an ISP’s broadband Internet access service and
underlying network, it enables and enhances consumers’ access to and use of information online” and that
because it is “useful to the consumer,” caching does not fall within the telecommunications systems
management exception.
278
However, we do not believe consumers consider caching capabilities when
purchasing BIAS. We seek comment regarding the technical and commercial aspects of caching, how
caching functionality is both provisioned by ISPs and offered to customers, as well as the relevance (if
any) of Commission precedent as applied to caching today.
78. In particular, given that web pages today change constantly and are often customized on a
per-user basis, we question whether ISPs cache popular content requested by multiple users to supply the
same web page when requested later, rather than fetching the page anew. Further, as Judge Millett
observed in Mozilla, caching “does not work when users employ encryption,” which as of 2017
constituted a majority of Internet traffic, which suggests “that caching no longer enjoys the pride of place
ascribed to it” by the RIF Order.
279
We seek comment on whether ISPs use this practice and, to the extent
that commenters contend they do, why (given the ever-changing nature and high customization of
contemporary web pages). In addition, should the Commission distinguish between caching by ISPs and
the kind of caching that third-party content providers use to keep copies of content (such as videos and
images, but possibly also web pages) closer to users? We preliminarily conclude that caching of this kind
is not provided by ISPs and thus is not a part of BIAS, and as such does not transform BIAS into an
information service.
79. We also seek comment on whether there are other functionalities provided or offered
with BIAS, besides DNS and caching, that might fall into the telecommunications systems management
exception, as well as on other add-on information services offered in conjunction with BIAS and how
they might affect our analysis with respect to the classification of BIAS. The 2015 Open Internet Order
identified examples of processing-related capabilities that fall within the telecommunications systems
management functions, such as security virus protection and blocking denial of service attacks,
280
as well
as add-on information services such as cloud-based storage services, email, and spam protection that were
often offered in conjunction with BIAS but were not inextricably intertwined with it.
281
Consistent with
the Commission’s finding in 2015, we propose that “such services are not inextricably intertwined with
[BIAS], but rather are a product of the provider’s marketing decision not to offer the two separately,”
282
and seek comment on this proposal. We believe that, to the extent BIAS is offered along with other
capabilities that would otherwise fall into the “information service” definition, such an offering does not
turn BIAS into a functionally integrated information service. Are there examples of other information
277
Caching is the storing of copies of content at locations in the network closer to subscribers than their original
sources.
278
RIF Order, 33 FCC Rcd at 332-33, para. 42.
279
Mozilla, 940 F.3d at 91 (Millett, J., concurring).
280
2015 Open Internet Order, 30 FCC Rcd at 5771-72, para. 373.
281
Id. at 5773, paras. 376-77.
282
Id. at 5773, para. 376 (internal quotations omitted); see Brand X, 545 U.S. at 1009, n.4 (Scalia, J., dissenting).
Federal Communications Commission FCC-CIRC2310-01
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services or capabilities that are often offered by ISPs in conjunction with BIAS? How do consumers view
and use these products in relation to their BIAS subscription? How has the market for third-party
information services offered in tandem with BIAS developed since the RIF Order was adopted? We also
seek comment on any devices or applications, such as Wi-Fi hotspots, wearables, appliances, and other
IoT devices that an ISP may include with its BIAS offering and how they may function both in
conjunction with and apart from the underlying BIAS. How does a secondary market for such devices
and applications impact our interpretation that they are separable information services?
80. Major Questions Doctrine Applicability. We seek comment on whether, and if so how,
the major questions doctrine—the notion that Congress is expected to speak clearly when delegating
authority in certain extraordinary cases
283
—should inform the conclusions we reach based on the text and
structure of the Act. In the USTA decision, the D.C. Circuit reasoned that Brand X conclusively held that
the Commission has the authority to determine the proper statutory classification of BIAS and that its
determinations are entitled to deference, and so there is no need to consult the major questions doctrine
here.
284
In opinions respecting the denial of rehearing en banc, several judges debated how (if at all) the
major questions doctrine would otherwise apply to the issue.
285
The RIF Order did not directly dispute
this conclusion, but stated that the doctrine supported its decision to classify BIAS as an information
service in order to steer clear of any major questions doctrine issues.
286
81. What factors are relevant to the Commission’s consideration of whether the major
questions doctrine applies to the classification of BIAS, taking account of evolving Supreme Court
precedent? Among other factors, we ask that commenters consider the extent to which this matter falls
within the Commission’s recognized expertise and authority as the federal regulator responsible for
“regulating interstate and foreign commerce in communications by wire and radio so as to make
available, so far as possible, . . . wire and radio communications service with adequate
communications
facilities at reasonable charges.”
287
In light of relevant Commission precedent, both before and shortly
after Congress adopted the 1996 Act, classifying analogous transmission services—including the
transmission component of broadband Internet access service offered via digital subscriber line (DSL)—
as common carrier services,
288
what basis is there, if any, for concluding that the Commission’s proposed
classification action here is an exercise of “newfound power” not previously recognized?
289
Has Congress
acted or failed to act on proposals to clarify the proper classification of broadband in subsequent years,
and to what extent does such action or inaction inform the Commission’s exercise of its claimed
classification authority or the application of the major questions doctrine?
290
82. We also seek comment on how and to what extent each relevant factor should affect the
Commission’s analysis of whether the classification of BIAS implicates the major questions doctrine.
283
See, e.g., Biden v. Nebraska, 143 S. Ct. 2355, 2372-75 (2023); West Virginia v. EPA, 142 S. Ct. 2587, 2606-14
(2022); FDA v. Brown & Williamson Tobacco Corp., 529 U.S. 120, 160 (2000) (Brown & Williamson).
284
USTA, 825 F.3d at 704; see also U.S. Telecom Ass’n v. FCC, 855 F.3d at 383-88 (Srinivasan, J., and Tatel, J.,
concurring in the denial of rehearing en banc).
285
Compare U.S. Telecom Ass’n v. FCC, 855 F.3d at 383 (Srinivasan, J., and Tatel, J., concurring in the denial of
rehearing en banc) (“The question posed by the doctrine is whether the FCC has clear congressional authorization to
issue the rule. The answer is yes.”), with id. at 402-08 (Brown, J., dissenting from the denial of rehearing en banc)
and id. at 417-26 (Kavanaugh, J., dissenting from the denial of rehearing en banc).
286
RIF Order, 33 FCC Rcd at 407-408, para. 161
287
47 U.S.C. § 151; see West Virginia v. EPA, 142 S. Ct. at 2612-13 (considering whether an agency has
“‘comparative expertise’ in making [the] policy judgments” at issue).
288
See supra para. 68.
289
See West Virginia v. EPA, 142 S. Ct. at 2610-12.
290
See West Virginia v. EPA, 142 S. Ct. at 2614.
Federal Communications Commission FCC-CIRC2310-01
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Commenters should consider how the relevant factors apply to the specific proposals here. For example,
should the Commission evaluate the applicability of the major questions doctrine for BIAS as a whole, or
should it distinguish between or among particular categories of BIAS offerings? How would the major
questions doctrine apply in the case of particular rules we might adopt if we determine BIAS meets a
given statutory classification?
83. Separately, even assuming arguendo that the major questions doctrine were applied to
our classification of BIAS, we seek comment on whether Congress has spoken sufficiently clearly in the
Act—in definitional provisions or more generally—to satisfy that standard.
291
E. Classifying Mobile Broadband Internet Access Service as a Commercial Mobile
Service
84. In addition to our proposed return to the 2015 Open Internet Order’s classification of
BIAS as a telecommunications service, we propose to return to that Order’s classification of mobile
BIAS as a commercial mobile service.
292
In the alternative, even if mobile BIAS does not meet the
definition of “commercial mobile service,” we propose to find that it is the functional equivalent of a
commercial mobile service and, therefore, not private mobile service.
85. Section 332(d)(1) of the Act defines “commercial mobile service” as “any mobile
service . . . that is provided for profit and makes interconnected service available (A) to the public or (B)
to such classes of eligible users as to be effectively available to a substantial portion of the public, as
specified by regulation by the Commission.”
293
As an initial matter, we tentatively conclude that mobile
BIAS is a “mobile service” because subscribers access the service through their mobile devices. Next, we
tentatively conclude that mobile BIAS is provided “for profit” because ISPs offer it to subscribers with
the intent of receiving compensation. We also tentatively conclude that mobile BIAS is widely available
to the public, without restriction on who may receive it.
86. We also propose to return to the 2015 Open Internet Order’s determination that mobile
BIAS is an interconnected service.
294
Section 332(d)(2) states that the term “interconnected service”
means “service that is interconnected with the public switched network (as such terms are defined by
regulation by the Commission). . . .”
295
In the 2015 Open Internet Order, the Commission reached the
conclusion that mobile BIAS was an interconnected service through the application of an updated
definition of “public switched network” that included networks that use public IP addresses.
296
In doing
so, the Commission highlighted the Commission’s longstanding determination from the Second CMRS
Report and Order that the term “public switched network” “should not be defined in a static way” as “the
291
See U.S. Telecom Ass’n v. FCC, 855 F.3d at 383 (Srinivasan, J., and Tatel, J., concurring in the denial of
rehearing en banc) (“Assuming . . . that the rule in this case qualifies as a major one so as to bring the doctrine into
play, the question posed by the doctrine is whether the FCC has clear congressional authorization to issue the rule.
The answer is yes.”). The 1996 Act incorporated the relevant statutory definitions in the Act, which the
Commission has broad authority to implement. See, e.g., 47 U.S.C. §§ 154(i), 201(b), 303(r); see also City of
Arlington, 569 US at 293, 307 (2013). The 1996 Act also required the Commission to adopt rules or orders that
turned on the interpretation of those statutory definitions. See, e.g., 47 U.S.C. §§ 160, 224, 251, 253, 254.
292
2015 Open Internet Order, 30 FCC Rcd at 5778-90, paras. 388-408.
293
47 U.S.C. § 332(d)(1).
294
2015 Open Internet Order, 30 FCC Rcd at 5779-5788, paras. 390-402.
295
47 U.S.C. § 332(d)(2). By stating that the terms “interconnected service” and “public switched network” shall be
defined by regulation by the Commission, the statute expressly delegates to the Commission the authority to define
these terms.
296
2015 Open Internet Order, 30 FCC Rcd at 5779-86, paras. 391-99.
Federal Communications Commission FCC-CIRC2310-01
47
network is continuously growing and changing because of new technology and increasing demand.”
297
The Commission reversed course in the RIF Order, reinstating the prior definition of “public switched
network.”
298
We believe the Commission’s decision in the RIF Order fails to align with the technological
reality and widespread use of mobile BIAS. The ubiquity of mobile BIAS that the Commission
recognized in 2015 is even more pronounced today, as mobile broadband networks have continued to
develop and grow in the intervening years, with more users and increased mobile data traffic. In 2022,
there was more than 73 trillion megabytes of mobile data traffic exchanged in the United States,
representing a 38 percent increase from the previous year.
299
Continued growth of mobile BIAS is
expected, with one forecast predicting that there will be 410 million 5G mobile subscriptions in North
America by 2028.
300
In light of these factors, we propose to return to the 2015 Open Internet Order’s
modernized definition of “public switched network” in section 20.3 of our rules,
301
specifically defining
the term to mean “the network that includes any common carrier switched network, whether by wire or
radio, including local exchange carriers, interexchange carriers, and mobile service providers, that use[s]
the North American Numbering Plan, or public IP addresses, in connection with the provision of switched
services.”
302
We believe this definition, which includes IP addresses, embodies the current technological
landscape and the widespread use of mobile broadband networks, and is therefore more consistent with
the Commission’s recognition that the public switched network will grow and change over time. We seek
comment on this analysis and our proposed approach.
87. We further propose to reach the same conclusion the Commission did in the 2015 Open
Internet Order that mobile BIAS is interconnected with the “public switched network,” as we propose to
define it today.
303
The 2015 Open Internet Order found that mobile BIAS should be considered
interconnected because it was a broadly available mobile service that provided users with the ability to
send and receive communications to all other users of the Internet.
304
Given the “universal access” and
expected future growth of mobile BIAS, the 2015 Open Internet Order determined that finding mobile
BIAS to be interconnected and a commercial mobile service was consistent with Congress’ objective in
section 332 of the Act in creating a symmetrical regulatory framework among similar mobile services that
were available to the public.
305
Mobile BIAS remains a broadly available mobile service that provides its
users with the ability to send and receive communications and is an essential component of today’s
technology landscape. As discussed above, there has been a marked increase in the amount of mobile
data traffic in recent years, and continued growth is predicted. Given the continued widespread use and
availability of mobile BIAS, we propose to find that mobile BIAS is an interconnected service, and
propose to support this finding by applying the Commission’s analysis from the 2015 Open Internet
297
Id. at 5779, para. 391 (citing Second Report and Order Implementing Sections 3(n) and 332 of the
Communications Act, as Amended by Section 6002(b) of the Omnibus Reconciliation Act of 1993, GN Docket No.
93-252, Second Report and Order, 9 FCC Rcd 1411, 1436, para. 59 (1994)). For example, services that use 4G and
5G technology are now IP-based and leverage broadband architecture.
298
RIF Order, 33 FCC Rcd at 355, para. 75.
299
CTIA, 2023 Annual Survey Highlights (July 25, 2023), https://www.ctia.org/news/2023-annual-survey-
highlights.
300
Ericsson, Wireless Mobility Report (June 2023), https://www.ericsson.com/en/reports-and-papers/mobility-
report/reports/june-2023.
301
47 CFR § 20.3 (definition of “public switched network”).
302
2015 Open Internet Order, 30 FCC Rcd at 5779, para. 391.
303
Id. at 5785-86, para. 398.
304
Id. at 5785-86, paras. 398-99.
305
Id.
Federal Communications Commission FCC-CIRC2310-01
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Order
306
to today’s marketplace. We seek comment on our proposed approach.
88. We also propose to rely on the Commission’s analysis from the 2015 Open Internet
Order that mobile BIAS is an interconnected service for the additional reason that it provides users with
the capability to communicate with other users of the Internet and with people using telephone numbers
through VoIP applications.
307
The 2015 Open Internet Order found that “users on mobile networks can
communicate with users on traditional copper based networks and IP based networks, making more and
more networks using different technologies interconnected.”
308
It further identified mobile VoIP, as well
as over-the-top mobile messaging, as “among the increasing number of ways in which users communicate
indiscriminately between [North American Numbering Plan (NANP)] and IP endpoints on the public
switched network.”
309
Since 2015, mobile BIAS users continue to communicate using these tools, with
85 percent of Americans owning a smartphone that offers access to VoIP and over-the-top
communications apps.
310
We seek comment on whether there have been any material changes in
technology, the marketplace, or other facts that would warrant refinement or revision of the analysis
regarding the interconnected nature of mobile BIAS from the 2015 Open Internet Order.
89. In connection with this approach, we seek comment on whether we should readopt the
2015 Open Internet Order’s revised definition of “interconnected service” in section 20.3 of the
Commission’s rules.
311
That Order defined “interconnected service” to mean a service that gives
subscribers the ability to “communicate to or receive communications from other users of the public
switched network,” removing the requirement that such service provide the ability to communicate with
all other users of the public switched network.
312
It did so to ensure that services that provide the
capability to access all other users, including through the use of OTT services, but limit that access in
certain limited ways, are not excluded from the definition of “interconnected service.”
313
The RIF Order
reverted to the prior definition, concluding that “the best reading of ‘interconnected service’ is one that
enables communication between its users and all other users of the public switched network” and that the
service “must itself provide interconnection to the public switched network using the NANP.”
314
We seek
comment on whether it is necessary to return to the definition of “interconnected service” in the 2015
Open Internet Order to ensure that all appropriate services are covered by the definition.
90. Because we also propose to reclassify mobile BIAS as a telecommunications service, we
believe that classifying it as a commercial mobile service would avoid the inconsistency that would result
if the service were both a telecommunications service and a private service. The Commission explained
this reasoning in the 2015 Open Internet Order, and we propose to adopt a consistent rationale here.
315
The Commission stated that, because it determined mobile BIAS to be a telecommunications service,
“designating it also as commercial mobile service subject to Title II is most consistent with Congressional
intent to apply common carrier treatment to telecommunications services.”
316
The Commission found that
306
Id. at 5779-88, paras. 390-402.
307
Id. at 5786-87, paras. 400-401.
308
Id. at 5787, para. 401.
309
Id.
310
Pew Research Center, Mobile Fact Sheet (Apr. 7, 2021), https://www.pewresearch.org/internet/fact-
sheet/mobile/.
311
2015 Open Internet Order, 30 FCC Rcd at 5778-88, para. 402, n.1175; 47 CFR § 20.3.
312
2015 Open Internet Order, 30 FCC Rcd at 5778-88, para. 402, n.1175.
313
See id. at 5787-88, para. 402.
314
See RIF Order, 33 FCC Rcd at 356-57, 358, paras. 77, 80.
315
2015 Open Internet Order, 30 FCC Rcd at 5788, para. 403.
316
Id.
Federal Communications Commission FCC-CIRC2310-01
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classifying mobile BIAS as a commercial mobile service was necessary “to avoid a statutory
contradiction that would result if the Commission were to conclude both that mobile broadband Internet
access was a telecommunications service and also that it was not a commercial mobile service. A
statutory contradiction would result from such a finding because, while the Act requires that providers of
telecommunications services be treated as common carriers, it prohibits common carrier treatment of
mobile services that do not meet the definition of commercial mobile service. Finding mobile broadband
Internet access service to be commercial mobile service avoids this statutory contradiction and is most
consistent with the Act’s intent to apply common carrier treatment to providers of telecommunication
services.”
317
We seek comment on this proposal.
91. In the alternative, to the extent that mobile BIAS falls outside the definition of
“commercial mobile service,” we propose to find that it is the functional equivalent of a commercial
mobile service and, thus, not private mobile service. The Commission found that mobile BIAS service
was functionally equivalent to commercial mobile service because, “like commercial mobile service, it is
a widely available, for profit mobile service that offers mobile subscribers the capability to send and
receive communications on their mobile device to and from the public. Although the services use
different addressing identifiers, from an end user’s perspective, both are commercial services that allow
users to communicate with the vast majority of the public.”
318
The RIF Order found that the 2015 Open
Internet Order’s focus on the public’s “ubiquitous access” to mobile BIAS alone was “insufficient” to
establish functional equivalency and that the test established in the Second CMRS Report and Order
provided a more thorough consideration of factors of whether a service is closely substitutable for a
commercial mobile service.
319
We seek comment on both of these analyses. As the RIF Order
acknowledged, however, the Commission has discretion to determine whether services are functionally
equivalent.
320
Congress expressly delegated authority to the Commission to determine whether a
particular mobile service may be the functional equivalent of a commercial mobile service, defining
“private mobile service” as “any mobile service . . . that is not a commercial mobile service or the
functional equivalent of a commercial mobile service, as specified by regulation by the Commission.”
321
For the reasons outlined in the 2015 Open Internet Order and in light of the continued increased use and
distribution of mobile broadband services and devices, we propose to find that mobile BIAS is the
functional equivalent of commercial mobile service.
322
We seek comment on this proposal and on any
other or different definition of “functional equivalent” that the Commission should adopt.
92. We anticipate that returning mobile BIAS to its classification as a commercial mobile
service and reinstating openness requirements on a larger set of mobile ISPs will allow mobile providers
that would become subject to such rules to continue to be able to compete successfully in the marketplace
and continue to have incentives to develop new products and services. For example, the Commission has
applied open access rules to upper 700 MHz C Block licensees, including Verizon Wireless, for more
than a decade, and the mobile operators subject to these requirements have continued to compete
successfully in the marketplace.
323
We seek comment on this view and on any policy consequences that
317
Id.
318
Id. at 5789, para. 404.
319
RIF Order, 33 FCC Rcd at 361, para. 84.
320
Id.
321
47 U.S.C. § 332(d)(3).
322
RIF Order, 33 FCC Rcd at 361, para. 84.
323
Service Rules for the 698-746, 747-762 and 777-792 MHz Bands; Revision of the Commission's Rules to Ensure
Compatibility with Enhanced 911 Emergency Calling Systems; Section 68.4(a) of the Commission's Rules
Governing Hearing Aid-Compatible Telephones; Biennial Regulatory Review-Amendment of Parts 1, 22, 24, 27,
and 90 to Streamline and Harmonize Various Rules Affecting Wireless Radio Services; Former Nextel
Communications, Inc. Upper 700 MHz Guard Band Licenses and Revisions to Part 27 of the Commission's Rules;
(continued….)
Federal Communications Commission FCC-CIRC2310-01
50
commenters believe may result from the proposed reclassification of mobile BIAS.
F. Preemption of State and Local Regulation of Broadband Service
93. We seek comment on how best to exercise our preemption authority to ensure that BIAS
is governed by a national, uniform framework. We agree with the RIF Order that “the regulation of
broadband Internet access service should be governed principally by a uniform set of federal regulations,
rather than by a patchwork that includes separate state and local requirements.”
324
The RIF Order
adopted an expansive preemption decision intended to achieve that objective, but the D.C. Circuit in
Mozilla concluded that the RIF Order “fail[ed] to ground its sweeping Preemption Directive . . . in a
lawful source of statutory authority,” and vacated that preemption action.
325
The D.C. Circuit concluded
that “in any area where the Commission lacks the authority to regulate, it equally lacks the power to
preempt state law.”
326
A number of states quickly stepped in to fill that void, adopting their own unique
regulatory approaches for BIAS, including their own versions of open Internet requirements, and even
measures like regulation of retail rates that the 2015 Open Internet Order found unnecessary.
327
We
anticipate that our proposed regulatory approach to BIAS will remedy the infirmities the D.C. Circuit
identified in the RIF Order’s approach, and we seek comment on the best way to use our preemption
authority to guard against state and local requirements that not only can lead to a regulatory patchwork,
but also those that we may affirmatively choose to reject.
94. We seek comment on the best sources of preemption authority for us to use to preserve a
national regulatory framework. For one, we anticipate that the regulatory approach proposed here would
give us authority to oversee BIAS under Title II with forbearance, under Title III in the case of mobile
ISPs, as well as under section 706 of the 1996 Act. These sources of authority could enable us to adopt
regulations that preempt contrary state requirements.
328
We also expect that our proposed regulatory
(Continued from previous page)
Implementing a Nationwide, Broadband, Interoperable Public Safety Network in the 700 MHz Band; Development
of Operational, Technical and Spectrum Requirements for Meeting Federal, State and Local Public Safety
Communications Requirements Through the Year 2010; Declaratory Ruling on Reporting Requirement under
Commission’s Part 1 Anti-Collusion Rule, WT Docket Nos. 07-166, 06-169, 06-150, 03-264, 96-86, PS Docket No.
06-229, CC Docket No. 94-102, Second Report and Order, 22 FCC Rcd at 15289, 15364, paras. 203-204; 47 CFR §
27.16.
324
RIF Order, 33 FCC Rcd at 426-27, para. 194.
325
Mozilla, 940 F.3d at 74. See also ACA Connects v. Bonta, 24 F.4th 1233,1241-48 (9th Cir. 2022). But see N.Y.
State Telecomms. Ass’n v. James, 544 F. Supp. 3d 269, 283 & n.10 (E.D.N.Y. 2021) (granting a preliminary
injunction of enforcement of a New York law restricting the price of BIAS for low income consumers, concluding
among other things that the petitioners were likely to succeed on the merits of their preemption claim, distinguishing
Mozilla on the theory that it only rejected the FCC’s attempted express preemption there but did not foreclose case-
by-case preemption decisions, and distinguishing the district court decision in ACA Connects based on the
understanding that the California law did not restrict BIAS prices), appeal pending, No. 21-1975 (2d Cir. argued
Jan. 12, 2023).
326
Mozilla, 940 F.3d at 75.
327
See supra note 45.
328
See, e.g., Updating the Commission’s Rules for Over-the-Air Reception Devices, WT Docket No. 19-71, Report
and Order, 36 FCC Rcd 537, 549-50, para. 25 (2021) (explaining that “[t]he Commission has used its Section 303
authority to limit State and local regulation of the placement of antennas”); Rates For Interstate Inmate Calling
Services, WC Docket No. 12-375, Third Report and Order, Order On Reconsideration, and Fifth Further Notice of
Proposed Rulemaking, 36 FCC Rcd 9519, 9617, para. 217 (2021) (discussing the Commission’s preemption
authority “where the Commission has jurisdiction under section 201(b) of the Act to regulate rates, charges, and
practices of interstate communications services”); Promoting Technological Solutions To Combat Contraband
Wireless Device Use In Correctional Facilities, GN Docket No. 13-111, Second Report and Order and Second
Further Notice of Proposed Rulemaking, 36 FCC Rcd 11813 (2021) (adopting rules requiring disabling of
contraband wireless phones and “[i]n light of this mandate that wireless providers must act upon, and pursuant to the
(continued….)
Federal Communications Commission FCC-CIRC2310-01
51
approach could make it more straightforward to rely on various express preemption provisions in the Act,
such as the preemption that accompanies forbearance under section 10(e),
329
the preemption that arises
when state requirements hinder provision of services covered under sections 253 or 332(c)(7) of the
Act,
330
the preemption of state requirements contrary to federal universal service policies under section
254(f),
331
and other possible preemption provisions. We expect that Commission decisions finding BIAS
to be interstate for regulatory purposes largely resolve possible arguments premised on the limitation on
FCC authority over state communications services under section 2(b) of the Act that otherwise could arise
here.
332
We also believe that statutory reservations of state authority, such as section 601 of the 1996
Act,
333
are best interpreted narrowly—as courts have done in the past—and would not affect the
Commission’s exercise of authority that Congress actually has provided.
334
We seek comment on these
views and on any additional sources of statutory authority for preemption.
95. We seek comment on how far to go in this proceeding in exercising our preemption
authority to ensure that BIAS principally is governed by a uniform federal framework. Should we adopt a
broad preemption decision like the Commission did in the RIF Order—one that would have a stronger
legal foundation? Or should the Commission proceed more incrementally, such as by only addressing in
this proceeding those state or local legal requirements squarely raised in the record, and otherwise
deferring to future case-by-case adjudications of preemption?
335
96. We also seek comment on how best to define the scope of preemption to ensure that
BIAS principally is governed by a uniform federal framework. For example, should open Internet
(Continued from previous page)
Commission’s well-established authority, we preempt any state liability for wireless provider disabling actions that
comply with our rules”); Implementation of the Telecommunications Act of 1996, et al., CC Docket Nos. 96-115, 96-
149, Second Report and Order and Further Notice of Proposed Rulemaking, 13 FCC Rcd 8061, para. 18 (1999)
(providing guidance that “[s]tate rules that likely would be vulnerable to preemption would include those permitting
greater carrier use of CPNI than section 222 and our implementing regulations announced herein, as well as those
state regulations that sought to impose more limitations on carriers’ use”); see also Louisiana PSC v. FCC, 476 U.S.
355, 369 (1986) (“Pre-emption may result not only from action taken by Congress itself; a federal agency acting
within the scope of its congressionally delegated authority may pre-empt state regulation.”).
329
47 U.S.C. § 160(e).
330
47 U.S.C. §§ 253, 332(c)(7).
331
47 U.S.C. § 254(f).
332
47 U.S.C. § 152(b) (stating in pertinent part that “[e]xcept as provided in sections 223 through 227 of this title,
inclusive, section 276 of this title, and section 332 of this title, and subject to the provisions of section 301 of this
title and subchapter V–A, nothing in this chapter shall be construed to apply or to give the Commission jurisdiction
with respect to (1) charges, classifications, practices, services, facilities, or regulations for or in connection with
intrastate communication service by wire or radio of any carrier, . . .”); see also Pub. Serv. Comm’n of Maryland v.
FCC, 909 F.2d 1510, 1515 (D.C. Cir. 1990) (the Commission can preempt even in the area of matters left to the
states under section 2(b) of the Act “when (1) the matter to be regulated has both interstate and intrastate aspects, (2)
FCC preemption is necessary to protect a valid federal regulatory objective, and (3) state regulation would ‘negate[]
the exercise by the FCC of its own lawful authority’ because regulation of the interstate aspects of the matter cannot
be ‘unbundled’ from regulation of the intrastate aspects” (citations omitted)).
333
Telecommunications Act of 1996, § 601(c)(1), codified at 47 U.S.C. § 157 (“This Act and the amendments made
by this Act shall not be construed to modify, impair, or supersede Federal, State, or local law unless expressly so
provided in such Act or amendments.”).
334
See, e.g., In re: FCC 11-161, 753 F.3d 1015, 1120 (10th Cir. 2014) (explaining that Ҥ 601(c)(1) does not limit
Congress’s actual delegation of authority to the FCC,” and citing Qwest Corp. v. Minnesota Pub. Utilities Comm’n,
684 F.3d 721, 731 (8th Cir. 2012) and Farina, v. Nokia Inc., 625 F.3d 97, 131 (3d Cir. 2010)).
335
See, e.g., 2010 Open Internet Order, 25 FCC Rcd at 17970, para. 121 n.374 (adopting an incremental approach);
2015 Open Internet Order, 30 FCC Rcd at 5804, para. 433 (similar).
Federal Communications Commission FCC-CIRC2310-01
52
conduct rules of the sort proposed below
336
be seen not only as an appropriate nationwide floor providing
those protections to everyone, but also as an appropriate ceiling to reflect the balancing of relevant policy
considerations? The 2015 Open Internet Order stated that “should a state elect to restrict entry into the
broadband market through certification requirements or regulate the rates of BIAS through tariffs or
otherwise, we expect that we would preempt such state regulations as in conflict with our regulations.”
337
Should the Commission affirmatively preempt in those scenarios here rather than leaving those scenarios
for future case-by-case evaluation as it did in 2015? In addition, how should the Commission define what
state or local actions are within the scope of any affirmative preemption it might adopt here? To what
extent should these decisions be informed by traditional preemption frameworks, such as express
preemption,
338
field preemption,
339
or conflict preemption?
340
IV. PROPOSED FORBEARANCE
97. We propose to forbear from applying some Title II provisions to BIAS in the event that
we reclassify the service, and we seek comment on what the parameters of such forbearance should be,
taking into account as a primary matter that we believe we must enable the Commission to fulfill its
responsibility under the Act to protect national security and public safety when executing its other
statutory obligations. In the 2015 Open Internet Order, the Commission accompanied Title II
classification with “substantial” forbearance for BIAS in a way that was designed to “strike the right
balance at this time of minimizing the burdens on ISPs while still adequately protecting the public,
particularly given the objectives of section 706 of the 1996 Act.”
341
We propose to return to largely the
same forbearance that was adopted in the 2015 Open Internet Order, tailored as appropriate in light of
any updated conclusions the Commission reaches in this proceeding regarding the need for particular
rules, requirements, or sources of authority covering BIAS. Notably, we propose to forbear from Title II
provisions insofar as they would support the adoption of ex ante rate regulations for broadband Internet
336
See infra section V.
337
2015 Open Internet Order, 30 FCC Rcd at 5804, para. 433.
338
See, e.g., Oneok, Inc. v. Learjet, Inc., 575 U.S. 373, 376 (2015) (Oneok) (Congress may preempt state law
“through express language in a statute.”).
339
Arizona v. United States, 567 U.S. 384, 401 (2012) (field preemption “foreclose[s] any state regulation in the
area, even if it is parallel to federal standards” or “complementary” to federal regulation). We note, however, that
the Commission has recognized in the past certain roles that states might have with respect to BIAS. See, e.g., RIF
Order, 33 FCC Rcd at 395-97, para. 142 and n.517 (citing state consumer protection laws); id. at 428-29, para. 196
(acknowledging “the states’ traditional role in generally policing such matters as fraud, taxation, and general
commercial dealings”); 2015 Open Internet Order, 30 FCC Rcd at 5803, para. 431 n.1276 (observing that
“[n]otwithstanding the interstate nature of BIAS, states of course have a role with respect to broadband”); 2010
Open Internet Order, 25 FCC Rcd at 17970, para. 121 n.374 (recognizing, “for example, that states play a vital role
in protecting end users from fraud, enforcing fair business practices, and responding to consumer inquiries and
complaints”).
340
See, e.g., California v. FCC, 39 F.3d 919 (9th Cir. 1994) (upholding the Commission’s preemption of state
structural-separation requirements that “would negate the FCC’s goal of allowing [carriers] to develop efficiently a
mass market for enhanced services for small customers” and “defeat the FCC’s more permissive policy of
integration,” reasoning that as a matter of conflict preemption, that any state requirement that conflicts with a validly
enacted federal substantive policy are preempted under the Supremacy Clause);
Minn. Pub. Utils. Comm’n v. FCC, 483
F.3d 570 (8th Cir. 2007) (upholding the Commission’s broad preemption of state efforts to regulate a form of VoIP
service because state regulation would interfere with federal policies, including the FCC’s “market-oriented policy
allowing providers of information services to burgeon and flourish . . . without the need for and possible burden of
rules, regulations and licensing requirements”).
341
2015 Open Internet Order, 30 FCC Rcd at 5804, para. 433; see generally id. at 5616-18, 5804-67, paras. 51-59,
434-542 (discussing the forbearance in the 2015 Open Internet Order).
Federal Communications Commission FCC-CIRC2310-01
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access service.
342
98. However, subsequent developments have highlighted the importance of retaining
statutory authority to enable the Commission to address national security and public safety concerns that
could arise with respect to BIAS. Those considerations provide a leading basis for revisiting the statutory
classification of BIAS, and therefore we propose to depart from the forbearance approach reflected in the
2015 Open Internet Order by declining to forbear from applying section 214 of the Act, and expressly
clarifying that our proposed forbearance would not encompass Title III licensing and authorization
authorities,
343
given that those statutory provisions could provide important additional tools to advance the
Act’s national security and public safety objectives. We seek comment on that proposal and on any issues
related to forbearance with respect to BIAS if classified as a Title II service, including the best
understanding of the current status of the forbearance granted in the 2015 Open Internet Order, the
appropriate analytical approach to evaluating forbearance, and the substantive scope of forbearance that
should be granted. We also seek comment on the impact of our proposed forbearance approach on ISPs,
particularly small ISPs.
A. Forbearance Framework
99. As a threshold matter, we seek comment on the best way to interpret the effect of the RIF
Order on the forbearance previously granted in the 2015 Open Internet Order. The RIF Order stated that,
due to the reclassification decision there, “the forbearance granted in the [2015 Open Internet Order] is
now moot,” and that “carriers are no longer permitted to use the [2015 Open Internet Order] forbearance
framework (i.e., no carrier will be permitted to maintain, or newly elect, the [2015 Open Internet Order]
forbearance framework).”
344
We seek comment on how to interpret those statements in the RIF Order.
100. Next, we seek comment on the appropriate analytical approach to use when evaluating
the statutory forbearance criteria. In the 2015 Open Internet Order, the Commission stated that
“[b]ecause the Commission is not responding to a petition under section 10(c), we conduct our
forbearance analysis under the general reasoned decision making requirements of the Administrative
Procedure Act [(APA)], without the burden of proof requirements that section 10(c) petitioners face.”
345
The Commission explained how its approach to forbearance in the 2015 Open Internet Order satisfied the
statutory forbearance criteria, other relevant statutory objectives such as section 706 of the 1996 Act, and
applicable procedural requirements under the Act and the APA,
346
and the D.C. Circuit rejected
challenges to that forbearance approach in its USTA decision.
347
We propose to follow the same
analytical approach here and seek comment on that proposal. We also seek comment on alternative
analytical approaches or other ways to effectuate the forbearance analysis.
348
342
See 2015 Open Internet Order, 30 FCC Rcd at 5814, paras. 451-52.
343
As discussed infra. at para. 108, we propose to forbear from applying common carrier roaming requirements,
conditioned on compliance with our data roaming rules.
344
RIF Order, 33 FCC Rcd at 416-17, para. 174.
345
2015 Open Internet Order, 30 FCC Rcd at 5806-07, para. 438.
346
See, e.g., 2015 Open Internet Order, 30 FCC Rcd at 5805-5808, 5838-41, 5864-67, paras. 435-39, 493-96, 537-
42.
347
USTA, 825 F.3d at 726-33.
348
For example, Judge Williams’s partial dissent in USTA questioned aspects of the Commission’s forbearance
approach, particularly what he viewed as a disconnect between the granting of forbearance and the nature and scope
of competitive assessments and other economic analysis in the 2015 Open Internet Order as a whole. USTA, 825
F.3d at 773-78 (Williams, S.J., concurring in part and dissenting in part). In addition, in a dissent from the D.C.
Circuit’s denial of requests to rehear the USTA case en banc, Judge Brown expressed nondelegation concerns about
forbearance, premised particularly on the view that the forbearance decision did not adequately address the required
(continued….)
Federal Communications Commission FCC-CIRC2310-01
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101. We also seek comment on the interplay between our approach to forbearance and the
argument in the RIF Order that the scope of forbearance granted in the 2015 Open Internet Order
suggests that classification of BIAS as a Title II service is contrary to the statutory scheme.
349
In
particular, does such an argument fail to account for important aspects of the approach to forbearance in
the 2015 Open Internet Order? For example, we note that in many cases the 2015 Open Internet Order
evaluated forbearance assuming arguendo that particular provisions of the Act or Commission rules apply
to BIAS, rather than “first exhaustively determining provision-by-provision and regulation-by-regulation
whether and how particular provisions and rules apply to this service.”
350
Do objections to Title II
classification premised on the scope of forbearance adequately account for that fact, or do they draw
unduly broad conclusions based on simple counts of rules or statutory provisions subject to the
forbearance decision?
102. Separately, we propose to leave ISPs’ broadband transmission services—as distinguished
from BIAS that relies on that transmission as an input—subject by default to the framework of the
Wireline Broadband Classification Order as the Commission has done previously. The RIF Order
observed that such services “have never been subject to the [2015 Open Internet Order] forbearance
framework,” and stated that “carriers that choose to offer transmission service on a common carriage
basis are, as under the Wireline Broadband Classification Order, subject to the full set of Title II
obligations, to the extent they applied before the” 2015 Open Internet Order.
351
The 2015 Open Internet
Order did, however, allow a provider previously offering broadband transmission on a common carrier
basis “to change to offer Internet access services pursuant to the construct adopted in” that Order subject
to filing with and review by the Wireline Competition Bureau of the provider’s proposal for the steps it
would take to convert to such an approach.
352
We propose to follow the same approach here, and seek
comment on that proposal.
B. Proposed Forbearance
103. We seek comment on the particular statutory provisions and rules that should or should
not be subject to forbearance. In this regard, we propose to use the forbearance granted in the 2015 Open
Internet Order as the starting point for our consideration of the appropriate scope of forbearance.
353
There, although the Commission granted broad forbearance, the Commission did not forbear from a
number of specific protections or authorities:
The open Internet rules and section 706 of the 1996 Act;
354
“[S]ections 201, 202, and 208, along with key enforcement authority under the Act, both as a
basis of authority for adopting open Internet rules as well as for the additional protections
those provisions directly provide”;
355
(Continued from previous page)
statutory criteria. U.S. Telecom Ass’n v. FCC, 855 F.3d 381, 407-408 (D.C. Cir. 2017) (Brown, J., dissenting from
the denial of rehearing en banc).
349
RIF Order, 33 FCC Rcd at 351-52, para. 64; see also U.S. Telecom Ass’n v. FCC, 855 F.3d at 408-409 (D.C. Cir.
2017) (Brown, J., dissenting from the denial of rehearing en banc) (making a similar argument).
350
See, e.g., 2015 Open Internet Order, 30 FCC Rcd at 5867, para. 542 (discussing the general approach).
351
RIF Order, 33 FCC Rcd at 418-19, paras. 177, 179.
352
2015 Open Internet Order, 30 FCC Rcd at 5819, para. 460 n.1378.
353
Id. at 5616-18, 5804-64, paras. 51-59, 434-536.
354
Id. at 5818, para. 457.
355
Id. at 5817-18, para. 456.
Federal Communications Commission FCC-CIRC2310-01
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Section 222 of the Act, “which establishes core customer privacy protections”;
356
Section 224 of the Act and the Commission’s implementing rules, “which grant certain
benefits that will foster network deployment by providing telecommunications carriers with
regulated access to poles, ducts, conduits, and rights-of-way”;
357
Sections 225, 255, and 251(a)(2) of the Act and the Commission’s implementing rules,
“which collectively advance access for persons with disabilities; except that the Commission
forbears from the requirement that providers of broadband Internet access service contribute
to the Telecommunications Relay Service (TRS) Fund at this time”;
358
Section 254 of the Act and “the interrelated requirements of section 214(e), and the
Commission’s implementing regulations to strengthen the Commission’s ability to support
broadband, supporting the Commission’s ongoing efforts to support broadband deployment
and adoption,”;
359
and
Requirements governing the wireless licensing process in section 309(b) and (d)(1) of the Act
and sections 1.931, 1.933, 1.939, 22.1110, and 27.10 of the Commission’s rules.
360
104. We believe that Commission ex ante rate regulation is unnecessary because the tailored
approach we adopt here will enable the Commission to promote broadband deployment and competition,
and because we will be able to rely on sections 201 and 202 to address issues on an ex post basis.
361
While we do not propose to forbear from sections 201 and 202 of the Act, we “do not and cannot envision
adopting new ex ante rate regulation” of BIAS,
362
and we therefore propose to forbear from applying
sections 201 and 202 to BIAS insofar as they would support adoption of ex ante rate regulations for
BIAS. We seek comment on this proposal. With respect to section 254, we propose to forbear in part
from the first sentence in section 254(d) and our associated rules “insofar as they would immediately
require new universal service contributions associated with” BIAS, as the Commission did in 2015, and
seek comment on this proposal.
363
105. In addition to declining to forbear from applying those specifically enumerated
provisions of the Act and Commission rules, the Commission also more generally limited its forbearance
to the scope of its section 10 forbearance authority, and thus did not forbear from applying statutory
provisions or rules that “are not applied to telecommunications carriers or telecommunications
services.”
364
The Commission also did not forbear from applying provisions of the Act or Commission
356
Id. at 5817-18, para. 456; see also id. at 5820-24, paras. 462-67. While initially proceeding under the statutory
privacy protections alone, id. at 5823-24, para. 467, in 2016 the Commission adopted rules implementing section
222 with respect to ISPs’ provision of BIAS. Protecting the Privacy of Customers of Broadband and Other
Telecommunications Services, Report and Order, 31 FCC Rcd 13911 (2016). The 2016 rules were subject to a
resolution of disapproval under the Congressional Review Act in 2017, leaving the statutory protections themselves
in place at that time. Joint Resolution, Pub. L. No. 155-22 (2017); Protecting the Privacy of Customers of
Broadband and Other Telecommunications Services, et al., Order, 32 FCC Rcd 5442, 5442-43, para. 2 and n.6
(2017).
357
2015 Open Internet Order, 30 FCC Rcd at 5817-17, para. 456; see also id. at 5831-33, paras. 478-85.
358
Id. at 5817-18, para. 456; see also id. at 5824-30, paras. 468-77.
359
Id. at 5817-18, para. 456; see also id. at 5834-38, paras. 486-92.
360
Id. at 5863-64, paras. 534-36.
361
Id.
362
Id. at 5814, para. 451.
363
Id. at 5835, para. 488.
364
Id. at 5860-61, para. 529; see also id. at 5861-63, paras. 531-33.
Federal Communications Commission FCC-CIRC2310-01
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rules that already applied to BIAS irrespective of the Title II classification of that service.
365
The
Commission cited illustrative examples falling within one or both of those categories, including
provisions imposing obligations on the Commission, like section 257 of the Act,
366
provisions that simply
reserve state authority,
367
and the CALEA requirements in section 229.
368
In addition, the Commission
did not forbear from provisions that would benefit ISPs.
369
This would include, for example, preemption
provisions such as those in sections 253 and 332(c) of the Act,
370
as well as liability limitation provisions
in sections 223, 230, and 231 of the Act.
371
To the extent that forbearance was considered and rejected in
the 2015 Open Internet Order for particular statutory provisions, we propose to once again decline to
grant forbearance here, and we seek comment on that proposal. As part of that analysis, we seek updated
information and analyses regarding the application of the statutory forbearance criteria regarding these
provisions and rules that were not subject to forbearance in the 2015 Open Internet Order. We also seek
comment on any relevant analyses or conclusions in the RIF Order.
372
106. Other than in the specific areas described above, the 2015 Open Internet Order broadly
granted forbearance from applying provisions of the Act and Commission rules that newly applied by
virtue of the Title II classification of BIAS.
373
We generally propose to again adopt broad forbearance
consistent with that outcome, with the exception of statutory authorities that could enable the
Commission to advance the Act’s goals of national security and public safety. For example, section 1 of
the Act makes clear that the Commission was established, among other reasons, “for the purpose of the
national defense, [and] for the purpose of promoting safety of life and property through the use of wire
and radio communications.”
374
Section 4(n) of the Act directs the Commission to takes steps to promote
the “maximum effectiveness from the use of radio and wire communications in connection with safety of
life and property.”
375
In addition, the D.C. Circuit in Mozilla emphasized the need to consider the
potential benefits of Title II classification of BIAS for the Commission’s authority to protect public
safety.
376
Although public safety considerations were an important element of the Commission’s overall
decision in the 2015 Open Internet Order, preserving the Commission’s public safety authority above and
beyond that granted in sections 201 and 202 of the Act was not as explicit a focus in much of the
365
Id. at 5861, para. 530; see also id. at 5861-63, paras. 531-33.
366
Id. at 5861-63, para. 531. The Act subsequently was amended and the requirements previously in section 257
were, in pertinent part, incorporated in section 13 of the Act, 47 U.S.C. § 163.
367
2015 Open Internet Order, 30 FCC Rcd at 5861-63, para. 531 (citing comments that reference sections 214(e)(2),
224(c), 253, and 261 of the Act).
368
2015 Open Internet Order, 30 FCC Rcd at 5861-63, para. 533.
369
Id. at 5862, para. 532.
370
47 U.S.C. §§ 253, 332(c).
371
2015 Open Internet Order, 30 FCC Rcd at 5862, para. 532.
372
See, e.g., RIF Order, 33 FCC Rcd at 419-23, paras. 181-84 (discussing reliance on the FTC to address privacy);
id. at 423-25, paras. 185-91 (discussing the potential continued availability of statutory protections under the Act to
support the deployment of wireline and wireless infrastructure for commingled services, and under state regulation
of pole attachments); id. at 425-26, paras. 192-93 (discussing the extent to which the Commission would remain
able to provide universal service support for broadband-capable networks and services); id. at 432-33, para. 205
(discussing the protections for persons with disabilities that would continue to apply); id. at 434, para. 206
(discussing the continued application of Title III licensing provisions).
373
See, e.g., 2015 Open Internet Order, 30 FCC Rcd at 5838-60, paras. 493-528.
374
47 U.S.C. § 151.
375
47 U.S.C. § 154(n).
376
Mozilla v. FCC, 940 F.3d 1, 59-63 (D.C. Cir. 2019).
Federal Communications Commission FCC-CIRC2310-01
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Commission’s tailoring of forbearance there. We thus seek comment on what specific provisions should
be excluded from the scope of forbearance here in light of those national security and public safety
interests, as discussed in greater detail above.
377
107. Given the role section 214 of the Act has played in the Commission’s efforts to address
national security and law enforcement concerns related to U.S. telecommunications networks, we
tentatively conclude that we should exclude that provision from any forbearance granted here.
378
How
should the Commission apply its existing procedures for international section 214 authorizations, which
include coordination of applications that have reportable foreign ownership with the relevant Executive
Branch agencies, to BIAS providers?
379
We seek comment on any implementation issues arising from our
tentative conclusion and how we could best address them. For example, would implementation
challenges arise if the Commission immediately applied to BIAS providers its existing procedures for
international section 214 authorizations, which include coordination of applications that have reportable
foreign ownership with the relevant Executive Branch agencies?
380
We note that the 2015 Open Internet
Order recognized that certain implementation issues could arise from the application of section 222 and
the Commission’s implementing rules to BIAS, and sought to mitigate those effects pending a rulemaking
specifically focused on implementing section 222 for BIAS.
381
Should we proceed in a similar manner
with respect to some or all aspects of international section 214 authorizations, whether by adopting
temporary forbearance, temporary grants of blanket international section 214 authority,
382
or in some
other manner? We also seek comment on any implementation issues concerning our domestic section
214 requirements.
108. We also make clear that our proposed forbearance would not encompass Title III
licensing authorities, including sections 301-303, 307-309, 312, and 316 of the Act, which we believe
likewise grant us important authority that can be used to advance national security and public safety with
respect to the services and equipment subject to licensing.
383
We also seek comment on whether we
should exclude from the scope of our forbearance provisions sections 218 and 220 of the Act, which
authorize the Commission to obtain information from common carriers, which could provide important
tools to investigate public safety and security-related issues that arise. We seek comment on those
proposals and on any other provisions of the Act or Commission rules that likewise should be expressly
377
See supra sections III.B.2 and III.B.3.
378
See supra para. Error! Reference source not found..
379
See generally Executive Branch Process Reform Order; Review of International Section 214 Authorizations to
Assess Evolving National Security, Law Enforcement, Foreign Policy, and Trade Policy Risks; Amendment of the
Schedule of Application Fees Set Forth in Sections 1.1102 through 1.1109 of the Commission’s Rules, IB Docket
No. 23-119 and MD Docket No. 23-134, Order and Notice of Proposed Rulemaking, FCC 23-28 (Apr. 25, 2023).
380
See generally Executive Branch Process Reform Order; Review of International Section 214 Authorizations to
Assess Evolving National Security, Law Enforcement, Foreign Policy, and Trade Policy Risks; Amendment of the
Schedule of Application Fees Set Forth in Sections 1.1102 through 1.1109 of the Commission’s Rules, IB Docket
No. 23-119 and MD Docket No. 23-134, Order and Notice of Proposed Rulemaking, FCC 23-28 (Apr. 25, 2023).
381
2015 Open Internet Order, 30 FCC Rcd at 5822-24, paras. 466-67.
382
The Commission previously has granted blanket domestic section 214 entry authority. 47 CFR § 63.01.
383
47 U.S.C. §§ 301-303, 307-309, 312, 316. As the RIF Order explained, the application of those provisions do
not depend on the classification of BIAS. RIF Order, 33 FCC Rcd at 434, para. 206. Consequently, although not all
of those statutory provisions were expressly enumerated as excluded from forbearance in the 2015 Open Internet
Order, they were not subject to forbearance there because they did not newly apply by virtue of the classification of
BIAS as a telecommunications service, or the classification of mobile BIAS as CMRS, and we clarify that they
likewise would not be encompassed by our proposed forbearance here. See 2015 Open Internet Order, 30 FCC Rcd
at 5861, para. 530 (declining to forbear from provisions if they do not newly apply by virtue of the classification
decisions in that Order).
Federal Communications Commission FCC-CIRC2310-01
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excluded from the scope of forbearance based on national security and/or public safety considerations,
including, for example, sections 305, 310, and 332 of the Act.
384
109. The D.C. Circuit’s Mozilla decision also highlighted the potential benefits of Title II
classification of BIAS for the Commission’s authority to encourage deployment through regulation of
pole attachments and to provide universal service support for low income households.
385
In consideration
of those interests, the Commission previously excluded sections 224 and 254 of the Act from the scope of
its forbearance in the 2015 Open Internet Order.
386
We seek comment on whether there are additional or
different ways those interests should be reflected in the tailoring of forbearance here.
110. We believe that the RIF Remand Order was too quick to dismiss concerns regarding
public safety, pole attachments, and low income universal service support as speculative or unproven, and
we seek comment on that view. Do commenters agree that the RIF Remand Order gave insufficient
weight to the potential additional benefits that could be achieved through additional authority retained by
virtue of Title II classification of BIAS?
111. We also seek comment on any additional or different ways that forbearance could be
tailored here. For example, the 2015 Open Internet Order adopted conditional forbearance from common
carrier roaming regulations, subject to mobile ISPs complying with the data roaming requirements.
387
Conditioned in that manner, the Commission was able to find the statutory forbearance criteria
satisfied.
388
We propose to follow the same approach with respect to our roaming rules here, and also
seek comment on whether there are other provisions of the Act or Commission rules where conditional
forbearance would satisfy the statutory forbearance criteria, even if unconditional forbearance would not.
More generally, we also seek comment on alternative frameworks we might draw upon in deciding on
how to tailor forbearance here. For example, in the 2015 Open Internet Order, the Commission elected to
grant broader forbearance despite some calls to limit forbearance just to the scope of relief previously
granted to CMRS providers.
389
We seek renewed comment on that approach, as well as any alternative
options for tailoring forbearance here based on the regulatory experience in other contexts.
112. We also seek comment on whether forbearance should be differently tailored in the
specific context of the Internet traffic exchange portion of BIAS. In the 2015 Open Internet Order, the
Commission’s “definition for broadband Internet access service include[d] the exchange of Internet traffic
by an edge provider or an intermediary with the broadband provider’s network.”
390
Consequently, under
the 2015 Open Internet Order, Internet traffic exchange was subject to the same forbearance as BIAS
more generally.
391
We propose to continue that uniform approach here, but also seek comment on
whether and to what extent the Internet traffic exchange component of BIAS should be subject to
different tailoring of forbearance.
384
47 U.S.C. § 305 (requiring Government radio stations using frequencies assigned by the President to conform to
FCC rules and regulations designed to prevent interference with other radio stations and the rights of others as the
Commission may prescribe); 47 U.S.C. § 310 (establishing limitations on foreign ownership requirement for common
carriers); 47 U.S.C. § 332 (addressing regulatory treatment of mobile services and preemption of state and local
requirements pertaining to wireless siting).
385
Mozilla, 940 F.3d at 1, 65-70.
386
2015 Open Internet Order, 30 FCC Rcd at 5817-18, 5831-33, 5834-38, paras. 456, 478-85, 486-92.
387
Id. at 5857-58, paras. 523-26.
388
Id..
389
See, e.g., id. at 5848, 5864, paras. 510 n.1559, 537.
390
Id. at 5686-87, para. 195.
391
See, e.g., id. at 5686-87, para. 195 and n.485 (discussing the legal authority available for oversight of Internet
traffic exchange, and cross-referencing the 2015 Open Internet Order’s forbearance discussion).
Federal Communications Commission FCC-CIRC2310-01
59
113. Finally, we also seek comment on any relevant new rules or statutory requirements
enacted subsequent to the forbearance analysis in the 2015 Open Internet Order.
V. PROPOSED OPEN INTERNET RULES
114. Today we propose to return to the basic framework the Commission adopted in 2015 to
protect the openness of the Internet. In 2015, consistent with its longstanding policy approach to protect
Internet openness through basic conduct “rules of the road,” the Commission adopted a set of carefully
tailored conduct rules to prevent specific practices harmful to an open Internet—blocking, throttling, and
paid prioritization—as well as strong standard of conduct designed to prevent deployment of new
practices that would harm Internet openness, and enhancements to the existing transparency rule.
392
In the
RIF Order, the Commission broke with this longstanding approach by altogether eliminating the open
Internet conduct rules,
393
which we believe left consumers exposed to behavior that can hinder their
ability to access the open Internet. Below, we propose to reinstate straightforward, clear rules that are
designed to prevent ISPs from engaging in practices harmful to consumers, competition, and public
safety, and that would provide the basis for a uniform, national regulatory approach toward BIAS.
115. We first propose to reinstate the rules adopted in the 2015 Open Internet Order that
prohibit ISPs from blocking, throttling, or engaging in paid or affiliated prioritization arrangements. We
similarly propose to reinstate the general conduct standard adopted in the 2015 Open Internet Order,
which would prohibit practices that cause unreasonable interference or unreasonable disadvantage to
consumers or edge providers. Finally, with regard to transparency, we propose to retain the current
disclosures, and we seek comment on the means of disclosure, the interplay between the transparency rule
and the broadband label requirements, and any additional enhancements or changes we should consider.
The rules we propose today are consistent with numerous other steps the Commission has taken to ensure
that this country has access to affordable, competitive, secure, and reliable broadband.
394
The proposed
rules would establish clear standards for ISPs to maintain Internet openness and would give the
Commission a solid basis on which to take enforcement action against conduct that prevents people from
fully accessing all of the critical services available through the Internet.
A. Need for Rules
116. We believe that the rules we propose today will establish a baseline that the Commission
can use to prevent and address conduct that harms consumers and competition when it occurs. Above, we
express our belief that consumers perceive and use BIAS as an essential service, critical to accessing
healthcare, education, work, commerce, and civic engagement.
395
Because of its importance, we further
believe it is paramount that consumers be able to use their BIAS connections without degradation due to
blocking, throttling, paid prioritization, or other harmful conduct. The rules we propose today are
designed to ensure these protections. Below, we seek comment on particular issues that inspire the need
for these rules, including protecting public safety, reliance on the Commission’s communications sector
expertise to address harmful conduct, ISPs’ incentives and abilities to harm Internet openness, the effects
of harmful conduct on consumer demand and edge innovation, and how the RIF Order’s oversight
framework addresses harmful conduct. We invite commenters to submit economic analyses that weigh
the costs and benefits of the Commission potentially adopting open Internet rules.
1. Promoting Innovation and Free Expression
117. In the 2015 Open Internet Order, the Commission found that Internet openness helps
392
Id. at 5603, para. 4.
393
RIF Order, 33 FCC Rcd 311.
394
See supra notes 1 and 59.
395
See supra section III.A.
Federal Communications Commission FCC-CIRC2310-01
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promote innovation, investment, and free expression, among other goals.
396
Among other things, the
Commission found that the record there “overwhelmingly support[ed] the proposition that the Internet’s
openness is critical to its ability to serve as a platform for speech and civic engagement,” facilitate “the
development of diverse content, applications, and services,” and enable “a virtuous cycle of
innovation.”
397
We continue to place high importance on innovation, investment, and free expression, and
we believe that conduct rules designed to ensure Internet openness will better advance those goals,
consistent with the reasoning in the 2015 Open Internet Order. We seek comment on that view.
118. We are skeptical of the RIF Order’s rejection of free expression as a likely benefit of
Internet conduct rules designed to advance Internet openness. The RIF Order theorized that competition
“will protect values such as free expression, to the extent that consumers value free expression as a
service attribute and are aware of how their ISPs’ actions affect free expression.”
398
We question,
however, whether the RIF Order was correct to place such confidence in the marketplace as sufficient to
advance free expression on the Internet. Do consumers and the public have information about how ISP
actions affect free expression on a sufficiently granular and detailed basis to act on that information?
Separately, the RIF Order acknowledged that “[t]he competitive process and antitrust would not protect
free expression in cases where consumers have decided that they are willing to tolerate some blocking or
throttling in order to obtain other things of value.”
399
We doubt that consumers are likely to act uniformly
as a single, undifferentiated group, particularly where issues like free expression are concerned. We thus
question how well the RIF Order’s analysis accounts for the interests of consumers who place different
values on free expression. More generally, we seek updated information and analysis about the
anticipated effects of Internet conduct rules on free expression.
2. Protecting Public Safety
119. We believe that blocking, throttling, paid prioritization, and other potential conduct have
the potential to impair public safety communications in a variety of circumstances and therefore harm the
public. As discussed above, one of the Commission’s fundamental obligations under the Act is to
advance public safety.
400
The Mozilla court highlighted this charge and recognized the significance of it,
emphasizing that “whenever public safety is involved, lives are at stake.”
401
It went on to note that “[a]ny
blocking or throttling of [safety officials’] Internet communications during a public safety crisis could
have dire, irreversible results.”
402
Similarly, in the 2015 Open Internet Order, the Commission
recognized that paid prioritization and peering disagreements can negatively affect public safety
communications traveling over the same networks.
403
Above, we detail and seek comment on the wide
range of public safety communications and applications that rely on broadband networks and on the
related national security concerns implicating broadband service providers.
404
We now seek comment on
our belief that maintaining the RIF Order’s ex post enforcement framework will provide insufficient
396
2015 Open Internet Order, 30 FCC Rcd at 5625-26, para. 76.
397
Id. at 5627, para. 77.
398
RIF Order, 33 FCC Rcd at 402-403, para. 153.
399
Id. at 402-03, para. 153 n.558.
400
See supra para. Error! Reference source not found.; 47 U.S.C. § 151.
401
Mozilla, 940 F.3d at 59-60, 62.
402
Id. at 61; see also id. at 60 (pointing out that “public safety officials explained at some length how allowing ISPs
to prioritize Internet traffic as they see fit, or to demand payment for top-rate speed, could imperil the ability of first
responders, providers of critical infrastructure, and members of the public to communicate during a crisis”).
403
2015 Open Internet Order, 30 FCC Rcd at 5654-55, 5689-90, paras. 126, 199.
404
See supra section III.B.2.
Federal Communications Commission FCC-CIRC2310-01
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protection against conduct harms, which includes harms to public safety or national security.
405
We
believe that the conduct rules we propose are necessary to prevent and mitigate harms to those public
safety uses that would result from blocking, throttling, and other conduct, and we seek comment on our
tentative conclusion.
406
120. We further believe our proposed conduct rules would have particular benefits for the
safety of individuals with disabilities. Above, we highlighted that these individuals increasingly rely on
Internet-based communications,
407
and that “[t]hese applications often require significant bandwidth,
making their use particularly sensitive to data caps and network management practices.”
408
We believe
the use of broadband to facilitate Internet-based communications by persons with disabilities for public
safety purposes, such as to contact emergency service providers, has a higher likelihood of being
degraded by prioritization of latency-sensitive applications on the same facilities than less data-intensive
uses, such as email, software updates, or cached video. We accordingly believe that our proposed rules
would prevent such degradation and seek comment on this proposed analysis.
121. We seek comment on any other public safety harms or unaddressed concerns that the
proposed rules would help to alleviate. For example, would the proposed rules help to improve public
safety officials’ ability to communicate via alerting systems to help improve emergency preparedness?
Would they help to provide additional necessary bandwidth for IP-based communications to Public Safety
Answering Points via 9-1-1? Would such rules help the authorities responding to such calls to have better
or more complete information about an emergency to ensure a more comprehensive or timely response?
Would such rules help public safety and law enforcement authorities to better communicate with one
another during their responses to emergencies? What public safety issues have arisen since the
Commission’s prior 2015 and 2018 orders that the proposed rules would help to address?
3. ISPs’ Incentive and Ability to Harm Internet Openness
122. In both the 2010 Open Internet Order and 2015 Open Internet Order, the Commission
concluded that open Internet rules were needed because ISPs have the incentive and ability to engage in
practices that pose a threat to Internet openness.
409
In particular, the Commission found that because ISP
networks serve as platforms for Internet ecosystem participants to communicate, ISPs “are in a position to
act as a ‘gatekeeper’ between end users’ access to edge providers’ applications, services, and devices and
reciprocally for edge providers’ access to end users.”
410
The 2015 Open Internet Order highlighted
several economic incentives ISPs have to exploit this gatekeeper role, “such as preferring their own or
affiliated content, demanding fees from edge providers, or placing technical barriers to reaching end
405
See infra section V.A.6. We note that the Mozilla court expressed specific skepticism about the Commission’s
contention in the RIF Order that post-activity enforcement is a suitable method to address harmful conduct in the
public safety context, emphasizing that “even if discriminatory practices might later be addressed on a post-hoc
basis by entities like the Federal Trade Commission, the harm to the public cannot be undone.” Mozilla, 940 F.3d.
at 61 (internal quotation omitted).
406
Our proposed conduct rules may also support consumer use of telehealth service and remote healthcare
monitoring, such as through connected devices, by ensuring consumers can continue to access these services without
the threat of blocking, throttling, or other degradation.
407
See supra section III.B.5.
408
California Public Utilities Commission Comments, WC Docket Nos. 17-108, 17-287, and 11-42, at 10 (Apr. 20,
2020).
409
2010 Open Internet Order, 25 FCC Rcd at 17915, para. 21; 2015 Open Internet Order, 30 FCC Rcd at 5625,
para. 75.
410
2015 Open Internet Order, 30 FCC Rcd at 5629, para. 80.
Federal Communications Commission FCC-CIRC2310-01
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users.”
411
This behavior, the Commission found, “has the potential to cause a variety of other negative
externalities that hurt the open nature of the Internet,” which ISPs do not internalize.
412
The Commission
also concluded that ISPs “have the technical ability to act on incentives to harm the open Internet.”
413
123. The RIF Order offered several reasons for rejecting the prior rationales, including ISPs’
economic incentives and supposed material competitive restraints.
414
We believe these conclusions
presumed that there were other ISPs to which consumers can switch if they were suffering open Internet
harms, and that the switching costs would not deter such switching. In addition, we tentatively agree with
the Mozilla court, which found that, “[t]aken together, the Commission fail[ed] to provide a fully
satisfying analysis of the competitive constraints faced by broadband providers.”
415
The Commission also
claimed that “from the perspective of many edge providers, end users do not single home, but subscribe to
more than one platform (e.g., one fixed and one mobile) capable of granting the end user effective access
to the edge provider’s content (i.e., they multi-home),” and “to the extent multihoming occurs in the use
of an application, there is no terminating monopoly.”
416
However, consumers may lack access to both
fixed and mobile connections,
417
and even when they do have access to both, the Commission did not
show that these connections allow consumers to access all edge provider services unhindered, and
therefore are truly competitive alternatives. Indeed, the Commission has since concluded that “fixed
broadband and mobile wireless broadband are not substitutes in all cases,” finding that each type of
service “enables different situational uses.”
418
We seek comment on this analysis.
124. The RIF Order also found the Commission’s action in the 2015 Open Internet Order was
unjustified because it lacked evidence of harms to Internet openness.
419
Setting aside the several
examples of harmful conduct discussed in the 2015 Open Internet Order and detailed in the record for the
RIF Order, we believe the RIF Order’s conclusion gave inadequate consideration to the effects of the
Commission’s consistent efforts to apply and enforce the open Internet standards since early 2005, which
we believe deterred harmful ISP conduct. Thus, to the extent there is limited evidence of harmful conduct
prior to the 2015 Open Internet Order, we believe that demonstrates the Commission’s consistent efforts
to apply and enforce open Internet standards since 2005 were effective and are needed, not that the 2015
Open Internet Order and the protections it adopted were unjustified. We seek comment on this analysis.
125. We tentatively conclude that ISPs continue to have the incentive and ability to engage in
practices that pose a threat to Internet openness, and seek comment on this tentative conclusion and the
above analysis. We also seek to update the record underlying the conclusions in the 2010 Open Internet
411
Id.; see also id. at 5632-33, para. 82 (explaining how ISPs may seek to gain economic advantages by favoring
their own or affiliated content over other third-party sources).
412
See id. at 5633, para. 83 (describing how ISPs have incentives to engage in practices that will provide short term
gains but will not adequately take into account the effects on the virtuous cycle).
413
See id. 5634, para. 85 (describing the tools ISPs have at their disposal to monitor and regulate the flow of traffic
over their networks).
414
RIF Order, 33 FCC Rcd at 379, 382, paras. 117, 123.
415
Mozilla, 940 F.3d. at 57.
416
RIF Order, 33 FCC Rcd at 391, para. 136.
417
See 2022 Communications Marketplace Report at Fig. II.A.3a, para. 345 (determining that in rural areas,
approximately 75 percent of Americans are covered by both fixed terrestrial 100/20 Mbps services and 5/1 Mbps
mobile 4G LTE and that on Tribal lands, approximately 74 percent of Americans have coverage from both services).
418
Inquiry Concerning Deployment of Advanced Telecommunications Capability to All Americans in a Reasonable
and Timely Fashion, GN Docket No. 20-269, Fourteenth Broadband Deployment Report, 36 FCC Rcd 836, 841,
para. 11 (2021) (Fourteenth Broadband Deployment Report).
419
RIF Order, 33 FCC Rcd at 378, para. 116.
Federal Communications Commission FCC-CIRC2310-01
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Order and 2015 Open Internet Order.
420
How have changes in the marketplace or technology since 2015
affected ISPs’ incentives and ability to engage in such practices? To what extent do ISPs have economic
incentives and mechanisms to block or disadvantage a particular edge provider or class of edge providers?
To what extent do vertically integrated providers have particularized incentives to discriminate—on price,
quality, or other bases—in favor of affiliated products? For instance, we believe that many major ISPs
are affiliated with OTT services or continue to offer competitive vertically integrated OTT services, and
frequently provide consumers with promotional offers that bundle OTT services with BIAS.
421
Do these
affiliate relationships and vertically integrated offerings create additional incentive for ISPs to favor those
services over others? We seek comment on this analysis.
126. We also seek comment on whether ISPs are incentivized to increase revenues by
charging edge providers for access or prioritized access to the ISPs’ end users. Are there justifications for
charging fees to edge providers that were not present in 2015? We seek comment on these and other
economic incentives and abilities that ISPs may have to limit openness.
127. We seek comment on the state of competition in the BIAS market. We note that the
Commission’s 2022 Communications Marketplace Report found that, as of 2021, approximately 36
percent of households lack a competitive option for fixed broadband at speeds of 100/20 Mbps and that
70 percent of households in rural areas lack such an option.
422
While competition in the mobile BIAS
market is somewhat more significant, fixed and mobile services have not proven to be substitutable.
423
To
what extent does the state of competition affect ISPs’ incentives to limit openness? Similarly, to what
extent does the state of competition affect ISPs’ incentives to innovate and invest in their networks? We
seek insight into whether consumers in all areas of the country have adequate choices in the fixed and
mobile broadband service market. Also, to what extent do broadband services with substantially different
technical characteristics serve as competitive substitutes? How, if at all, do commercial practices differ in
places where consumers have only one or two choices, particularly when those choices use different
technologies? Although the Commission previously found that its authority is not predicated on a finding
of market power, and this finding has twice been upheld, is there a reason we should engage in a market
power analysis now with respect to ISPs and, if so, how? We further seek comment on whether there are
other economic theories that we should consider to better understand and assess ISP incentives to engage
in practices that affect the Internet’s openness. We also seek comment on the extent to which the state of
competition in the BIAS market should play a role in our decision as to whether or not to reclassify BIAS
as a Title II service.
424
128. We further seek information on ISP conduct since the RIF Order was adopted. Are there
examples of conduct that has harmed Internet openness? We note that one 2019 study suggested that
420
2010 Open Internet Order, 25 FCC Rcd at 17915, at para. 21; 2015 Open Internet Order, 30 FCC Rcd at 5625,
para. 75.
421
See Peter Hoslin, 5 Streaming Deals You Can Get When You Sign Up for a New Internet Plan,
HighSpeedInternet.com (Apr. 13, 2022), https://www.highspeedinternet.com/resources/best-internet-perks
(highlighting several Internet plan bundles: AT&T with HBO Max, Verizon with Disney+, Hulu, and ESPN+, T-
Mobile with Paramount+, and Xfinity with Peacock Premium). See also infra note 78.
422
See 2022 Communications Marketplace Report at Figs. II.A.28 & II.A.29, paras. 56-58. Preliminary FCC staff
calculations using December 2022 Broadband Deployment Collection data yield similar results.
423
See 2022 Communications Marketplace Report at para. 157 (“Many households continue to subscribe to both
fixed and mobile broadband service, suggesting that these separate services offer benefits that are either
complementary or independent of each other.”) (footnote omitted). See also Fourteenth Broadband Deployment
Report at 841, para. 11 (finding that “fixed broadband and mobile wireless broadband are not substitutes in all
cases” because each type of service “enables different situational uses”).
424
See supra section III.
Federal Communications Commission FCC-CIRC2310-01
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ISPs regularly throttle video content.
425
Aside from specific examples of harm, could other factors have
deterred ISPs from engaging in any behavior that might have violated open Internet principles? For
instance, while the RIF Order was published in the Federal Register in February of 2018, it was not until
the Mozilla case concluded in October of 2019 that it was clear open Internet rules would no longer be in
effect. To what degree might long-term contracts, and the general difficulty of implementing new
business models, also have played a role in making it difficult for ISPs to exploit opportunities the RIF
Order created? Could the threat of regulation have led ISPs to make voluntary commitments to maintain
service consistent with certain conduct rules established in the 2015 Open Internet Order, as they did,
426
and if so, would this threat have dimmed with time? Because broadband connections were so essential
during the pandemic, we believe ISPs have been under increased scrutiny by the Commission, the media,
and the public since March 2020, and therefore have had a strong incentive to follow their voluntary
commitments. Further, following the RIF Order, ISPs have been subject to state laws and executive
orders addressing Internet conduct.
427
How have state regulations addressing ISP conduct affected ISP
conduct nationwide? We also observe that unprecedented consumer demand for BIAS and edge
innovation that occurred during the pandemic also led to unprecedented growth for ISPs. How did this
growth impact providers’ incentives either to comply with open Internet principles or to engage in
behavior that might increase their revenues at the expense of Internet openness? Are smaller ISPs’
incentives to engage in conduct that might harm Internet openness different from those facing larger
ISPs? What are the costs and advantages of waiting to act only after ISPs begin to take actions that might
harm Internet openness? Would such conduct be immediately identifiable? How quickly could ISPs
comply with new rules and what harms would occur in the meantime? Going forward, is there reason to
believe that ISPs will engage in conduct that harms the open Internet, particularly if the Commission
chooses not to adopt open Internet rules?
4. Consumer Demand and Edge Innovation
129. We believe that an important byproduct of an open Internet is the edge innovation and
consumer demand that promotes ISP investment, and seek comment on this position. In the 2015 Open
Internet Order, the Commission recognized that “innovations at the edges of the network enhance
425
See Fangfan Li et al., A Large-Scale Analysis of Deployed Traffic Differentiation Practices, SIGCOMM ’19
(2019); see also Khalida Sarwari, Northeastern University researcher finds that wireless networks are throttling
video streaming 24/7, Northeastern Global News (Aug. 27, 2019),
https://news.northeastern.edu/2019/08/27/northeastern-university-researcher-finds-that-wireless-networks-are-
throttling-video-streaming-24-7.
426
See, e.g., Xfinity Internet Broadband Disclosures, Xfinity, https://www.xfinity.com/policies/internet-broadband-
disclosures [https://perma.cc/Y7L5-KMXD] (last visited Sept. 20, 2023) (pledging that Comcast does not block or
throttle traffic, subject to reasonable network management practices, or engage in paid prioritization arrangements);
Network Practices, AT&T, https://about.att.com/sites/broadband/network [https://perma.cc/S9HK-A6WA] (last
visited Sept. 20, 2023); Verizon Broadband Commitment, Verizon, https://www.verizon.com/about/our-
company/verizon-broadband-commitment [https://perma.cc/K29R-W95Q] (last visited Sept. 20, 2023).
427
See, e.g., SB-822, 2017-2018 Reg. Sess. (Cal. 2018) (adopting open Internet-type requirements); H.B. 2282, 65th
Leg., 2018 Reg. Sess. (Wash. 2018) (similar); H.B. 4155, 79th Leg. Assemb., Reg. Sess. (Or. 2018) (requiring
compliance with certain open Internet-type requirements as a condition of contracting with the state government);
S.289, No. 169, 2018 Sess. (Vt. 2018) (similar); LD 1364, 129th Leg., Reg. Sess. (Me. 2019) (similar); Colorado
S.B. 19-078, 71st Leg., Reg. Sess. (Colo. 2019) (requiring compliance with certain open Internet-type requirements
as a condition of state universal service support); NY Gen. Bus. § 399-zzzzz (N.Y. 2021) (restricting BIAS prices
for low income consumers); Mont. Exec. Order No. 3-2018 (2018), https://spb.mt.gov/_docs/Laws-Rules-
EOs/EOs/EO-03-2018-Net-Freedom.pdf (amended by Mont. Exec. Order No. 6-2018 (2018),
https://spb.mt.gov/_docs/Laws-Rules-EOs/EOs/EO-06-2018-Amended-Net-Freedom.pdf) (requiring compliance
with certain open Internet-type requirements as a condition of contracting with the state government); N.J. Exec.
Order No. 9 (2018), https://nj.gov/infobank/eo/056murphy/pdf/EO-9.pdf (similar); N.Y. Exec. Order No. 175
(2018); R.I. Exec. Order No. 18-02 (2018), https://governor.ri.gov/executive-orders/executive-order-18-02 (similar).
Federal Communications Commission FCC-CIRC2310-01
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consumer demand, leading to expanded investments in broadband infrastructure that, in turn, spark new
innovations at the edge.”
428
The Commission referred to this as the “virtuous cycle,” and it was the
foundation for the action the Commission took in both the 2010 Open Internet Order and 2015 Open
Internet Order.
429
The validity of the virtuous cycle was upheld by both the Verizon court and the USTA
court.
430
The RIF Order, however, discounted the 2015 Open Internet Order’s reliance on the virtuous
cycle, contending there was a two-sided market in which ISPs acted as platforms and benefited from
facilitating interactions between both sides of the market—edge providers and end users—and profits
from inducing both sides of the market to use its platform.
431
130. We tentatively conclude that the RIF Order’s explanation of how two-sided markets
work does not address a central problem open Internet rules are intended to address. When an ISP’s
actions harm content creators and edge providers, the impact is distributed across all ISPs, not just the ISP
undertaking the action. Yet, each ISP only accounts for the impact on its own operations. Consequently,
a profit-making decision from the perspective of the individual ISP creates repercussions across all ISPs
that harm the industry and the economy at large. When an ISP makes the profit-maximizing decisions the
RIF Order describes, it only accounts for the impacts of its decision on its own company. It does not
account for the impact of those actions on ISPs that lie outside its geographic market.
432
These constitute
the bulk of ISPs. Thus, an ISP, for example, that does not face fully effective competition, might expect
to see higher profits if it sets prices for edge providers that recover in expectation a little more than its
long-term costs. However, consistent with the reasoning of the RIF Order, it will not set prices for edge
providers that are so high that the impact on the quality of edge provider service would cause the ISP to
lose more because it would be forced to lower prices to its own consumers. We believe that the difficulty
with the RIF Order analysis is that in setting its profit-maximizing prices, the ISP lowers service quality
for all ISPs, but that harm does not feature in the ISP’s profit-maximizing calculation. While the impact
on content quality of a single ISP setting prices somewhat above the competitive level will be small and
spread out over all ISPs,
433
all similarly situated ISPs face similar incentives. Thus, since ISPs have no
means of coordinating their behavior, and doing so could be illegal, each will behave in this way with
material negative cumulative effects. The result is a breaking of the virtuous cycle described in the 2010
Open Internet Order: not only will ISPs collectively be worse off, but so will the broader economy. We
seek comment on this analysis and other bases for validating or questioning the RIF Order’s analysis.
131. We believe it is necessary to secure the open Internet to preserve the virtuous cycle
wherein market signals on both sides of ISPs’ platforms encourage consumer demand, content creation,
and innovation, with each respectively increasing the other, providing ISPs incentives to invest in their
networks. We further believe that if innovative edge services are subject to blocking, throttling, paid
prioritization, or other conduct by ISPs that harms Internet openness, that conduct will reduce edge
innovation. This will, in turn, reduce the quality and quantity of edge services available to consumers,
and, specifically with blocking and throttling, directly inhibit consumers from accessing the edge services
they desire. The impacts on edge services and consumers will reduce demand for broadband connections
and ultimately suppress the need for ISPs to invest in upgrades to their networks or new deployments to
428
2015 Open Internet Order, 30 FCC Rcd at 5663, para. 142.
429
2010 Open Internet Order, 25 FCC Rcd at 17927, para. 38; 2015 Open Internet Order, 30 FCC Rcd at 5625-26,
paras. 75-76.
430
Verizon, 740 F.3d at 644; USTA, 825 F.3d at 707.
431
RIF Order, 33 FCC Rcd at 380, para. 119.
432
This also applies to rivals. While the ISP considers the reaction of any competitor within its footprint to its
prices, it is not concerned that its actions may lower the profits of its rivals.
433
This could be true even if the impact of above competitive prices was isolated to the pricing ISP, since there is no
reason to think the impact on content of a price that is slightly above competitive rates would result in an equal or
greater offset of profit due to the resulting decline in quality.
Federal Communications Commission FCC-CIRC2310-01
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meet that demand. Stalled ISP network improvements ultimately will undermine new edge innovation
and consumer demand. We seek comment on this proposed analysis.
132. We believe the conduct rules we propose will protect edge innovation and the ability of
consumers to access those new and developing services, thereby promoting both edge and ISP
investment. We seek comment on this view. In particular, what is the role of the Internet’s openness in
facilitating consumer demand and edge innovation that encourages edge and ISP investment? We are
also interested in understanding the role the open Internet may play in the promotion of edge competition
or in the reduction or elimination of barriers to edge entry and investment.
5. The Commission’s Ability to Address Conduct that Undermines an Open
Internet
133. We believe that, as the expert agency on communications, the Commission is best
positioned to safeguard Internet openness. The RIF Order removed the Commission’s authority to
enforce open Internet requirements and left to the FTC the responsibility to address harmful ISP
conduct.
434
The current Chair of the FTC agrees that the Federal Communications Commission “has the
clearest legal authority and expertise to fully oversee internet service providers,” noting specifically that
she supports efforts by the Commission “to reassert that authority and once again put in place the
nondiscrimination rules, privacy protections, and other basic requirements needed to create a healthier
market.”
435
We seek comment on whether the Commission’s longstanding oversight of the
communications industry gives it unique technical, economic, and public interest aptitude in evaluating
ISP conduct. To what extent does the Commission’s enforcement apparatus provide it with sufficient
authority and capabilities to address harmful conduct by ISPs, including by securing administrative relief?
What efficiencies would be achieved as a result of the Commission having authority over BIAS along
with other communications services (e.g., voice and cable) that providers offer to customers as part of
bundled offerings?
6. The RIF Order’s Framework
134. When the Commission repealed the open Internet rules in the RIF Order, it broke from
the Commission’s persistent efforts to preserve an open Internet. The RIF Order did not address the
longstanding bipartisan agreement that the Commission should prohibit ISPs from engaging in blocking,
throttling, and other conduct that undermines an open Internet and—importantly—that it should have the
authority to enforce those restrictions.
436
This was echoed by the Mozilla court, which was “troubled by
the Commission’s failure to grapple with the fact that, for much of the past two decades, ISPs were
subject to some degree of open Internet restrictions.”
437
The Mozilla court explained, that “[w]hile
outside observers may associate ‘light touch’ with a distinct era in regulation and ‘open Internet’ with
another era, the successive Commission majorities have consistently vowed fealty to both.”
438
We believe
434
See RIF Order, 33 FCC Rcd at 393-403, paras. 140-54.
435
Remarks of FTC Chair Lina M. Khan Regarding the 6(b) Study on the Privacy Practices of Six Major Internet
Service Providers, Commission File No. P195402, 2 (Oct. 21, 2021),
https://www.ftc.gov/system/files/documents/public_statements/1597790/20211021_isp_privacy_6b_statement_of_c
hair_khan_final.pdf.
436
See 2015 Open Internet Order, 30 FCC Rcd at 5619-21, 5623, paras. 64-67, 62. See also Maggie Farry, Net
Neutrality Is and Has Always Been a Bipartisan Issue, Open Technology Institute (Dec. 2, 2021),
https://www.newamerica.org/oti/blog/net-neutrality-is-and-has-always-been-a-bipartisan-issue/ (“The FCC’s first
action to enforce net neutrality was in 2005, under a Republican Chairman, Kevin Martin. . . . An avid defender of
net neutrality, Chairman Martin sided with Democratic FCC commissioners in 2008, deciding Comcast’s slowing
down of BitTorrent traffic was unlawful.”).
437
Mozilla, 940 F.3d. at 56.
438
Id. at 65.
Federal Communications Commission FCC-CIRC2310-01
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the RIF Order failed to ensure the most basic protections for the open Internet—prohibitions on blocking
and throttling—let alone other threats to the open Internet identified in the 2015 Open Internet Order.
We seek comment on this analysis.
135. We believe that the 2015 Open Internet Order was consistent with Commission
precedent by applying a light-touch regulatory framework to preserve an open Internet. When the
Verizon court struck down the 2010 Open Internet Order, the Commission sought to implement a solution
to preserve longstanding open Internet standards that supported the unprecedented growth in fixed and
mobile subscribership, edge innovation, and network investment that occurred up to that point. The
Commission determined that classifying BIAS as a Title II service was not only more consistent with a
modern assessment of how the definition of “telecommunications service” applies to current BIAS
offerings, but would also enable it to apply and enforce open Internet rules.
439
Thus, in establishing open
Internet rules using a light-touch application of Title II, we believe the 2015 Open Internet Order ensured
maintenance of the status quo that had existed for more than ten years prior to that Order. As such, we
tentatively conclude that the action we propose today restores the status quo that had existed up until the
Commission adopted the RIF Order, in which clear rules of the road ensure that edge innovation and
investment flourish and consumers can access all lawful content they see fit. We seek comment on our
proposed assessment.
136. Transparency. The Commission’s transparency rule requires ISPs to publicly disclose
the network practices, performance characteristics, and commercial terms of the BIAS they offer,
including disclosure of any blocking, throttling, and affiliated or paid prioritization practices.
440
We
recognize that transparency is a valuable tool to protect the open Internet, but that it is only one element
of a comprehensive framework that prevents consumers from experiencing harms that inhibit their access
to an open Internet. While the transparency requirements currently in place provide consumers and edge
providers the ability to make informed decisions, we believe their effectiveness is limited because they do
not restrict ISPs from engaging in activities that have long enjoyed bipartisan opposition—blocking,
throttling, and discrimination—let alone other conduct that has the potential to cause harm, such as paid
prioritization.
441
We tentatively conclude that these are the types of conduct that require ex ante
intervention to ensure they do not happen in the first instance, and therefore tentatively conclude that the
comprehensive set of conduct rules that we propose today are needed to protect consumers from this
conduct. We seek comment on this tentative conclusion.
137. Consumer Protection and Antitrust Law. We seek comment on whether, in practice,
consumer protection and antitrust laws, provide sufficient protections against blocking, throttling, paid
prioritization, and other conduct that harms the open Internet, as the RIF Order asserted.
442
The Mozilla
court explained that the RIF Order “theorized why antitrust and consumer protection law is preferred to
ex ante regulations but failed to provide any meaningful analysis of whether these laws would, in practice,
prevent blocking and throttling.”
443
The RIF Order also seems to concede that blocking, throttling, and
discrimination may be permitted under its chosen oversight and enforcement framework,
444
and that paid
prioritization may be found to be permissible in many instances.
445
439
See 2015 Open Internet Order, 30 FCC Rcd at 5733-34, 5745, paras. 307-308, 335.
440
See RIF Order, 33 FCC Rcd at 437-45, paras. 215-31.
441
Indeed, the RIF Order requires only that companies disclose their blocking, throttling, and paid or affiliated
prioritization in their transparency disclosures; it does not prohibit companies from engaging in these practices. RIF
Order, 33 FCC Rcd at 450, para. 240.
442
See id. at 393-403, paras. 140-54.
443
Mozilla, 940 F.3d at 59.
444
RIF Order, 33 FCC Rcd at 467, para. 264; id. at 396, para. 142; id. at 397, n.519.
445
Id. at 465, para. 261.
Federal Communications Commission FCC-CIRC2310-01
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138. Notably, a 2021 Supreme Court ruling restricted the FTC’s ability to seek monetary relief
on behalf of consumers, thereby reducing the deterrent effect of the FTC’s actions.
446
Congress has also
created other exceptions to the FTC’s consumer protection authority
447
and assigned consumer protection
responsibilities to other agencies that have expertise in both consumer protection and the relevant
industry.
448
Finally, we also observe that while the FTC has generally proceeded through ex post
enforcement actions and public guidance, reclassification would allow the Commission to proceed by
establishing ex ante, commonly applicable rules. We seek comment on the benefits and burdens of such
an approach.
139. We also seek comment on whether the FTC’s and Department of Justice’s (DOJ) antitrust
enforcement authority is limited in its ability to protect against open Internet harms.
449
The RIF Order
claims that antitrust would be effective because harmful conduct would be evaluated under the “rule of
reason,” which it claims amounts to a “consumer welfare test.”
450
However, the “rule of reason” analysis
includes a subjective determination about whether alleged economic benefits outweigh recognized
consumer harms.
451
Because the analysis focuses on economic factors, does it provide sufficient weight
to important non-economic factors, which courts have recognized are appropriate to consider under the
446
Press Release, FTC Asks Congress to Pass Legislation Reviving the Agency’s Authority to Return Money to
Consumers Harmed by Law Violations and Keep Illegal Conduct from Reoccurring, Federal Trade Commission
(Apr. 27, 2021), https://www.ftc.gov/news-events/news/press-releases/2021/04/ftc-asks-congress-pass-legislation-
reviving-agencys-authority-return-money-consumers-harmed-law (discussing an “April 22 ruling by the U.S.
Supreme Court that eliminated the FTC’s longstanding authority under Section 13(b) of the FTC Act to recover
money for harmed consumers”).
447
15 U.S.C. § 45(a)(2) (“The [FTC] is hereby empowered and directed to prevent persons, partnerships, or
corporations, except banks, savings and loan institutions described in section 57a(f)(3) of this title, Federal credit
unions described in section 57a(f)(4) of this title, common carriers subject to the Acts to regulate commerce, air
carriers and foreign air carriers subject to part A of subtitle VII of title 49, and persons, partnerships, or corporations
insofar as they are subject to the Packers and Stockyards Act, 1921, as amended [7 U.S.C. 181 et seq.], except as
provided in section 406(b) of said Act [7 U.S.C. 227(b)], from using unfair methods of competition in or affecting
commerce and unfair or deceptive acts or practices in or affecting commerce.”).
448
See, e.g., Consumer Product Safety Commission, https://www.cpsc.gov/About-CPSC (last visited Sept. 20, 2023)
(“CPSC works to save lives and keep families safe by reducing the unreasonable risk of injuries and deaths
associated with consumer products . . . by: Issuing and enforcing mandatory standards or banning consumer
products if no feasible standard would adequately protect the public.”); Consumer Financial Protection Bureau,
https://www.consumerfinance.gov/about-us (last visited Sept. 20, 2023) (“The Consumer Financial Protection
Bureau . . . implements and enforces Federal consumer financial law and ensures that markets for consumer
financial products are fair, transparent, and competitive.”); Department of Transportation,
https://www.transportation.gov/about (last updated Mar. 28, 2022) (“To deliver the world’s leading transportation
system, serving the American people and economy through the safe, efficient, sustainable, and equitable movement
of people and goods.”); Food and Drug Administration, https://www.fda.gov/about-fda/what-we-do (last updated
Mar. 28, 2018) (“The Food and Drug Administration is responsible for protecting the public health by ensuring the
safety, efficacy, and security of human and veterinary drugs, biological products, and medical devices; and by
ensuring the safety of our nation’s food supply, cosmetics, and products that emit radiation.”); Environmental
Protection Agency, https://www.epa.gov/aboutepa/our-mission-and-what-we-do (last updated May 23, 2023) (“The
mission of EPA is to protect human health and the environment.”).
449
Both the FTC and DOJ can bring enforcement actions for violation of the Sherman Act. 15 U.S.C. § 1 (barring
contract, combinations, or conspiracies in restraint of trade, making anticompetitive arrangements illegal); 15 U.S.C.
§ 2 (applying if a firm possesses or has a dangerous probably of achieving monopoly power, prohibits exclusionary
conduct, which can include refusals to deal and exclusive dealing, tying arrangements, and vertical restraints).
450
RIF Order, 33 FCC Rcd at 397, para. 143.
451
See id. at 398, para. 147 (stating that the rule of reason is “an all-encompassing inquiry, paying close attention to
the consumer benefits and downsides of the challenged practice based on the facts at hand”) (quoting Hon. Maureen
K. Ohlhausen, Antitrust Over Net Neutrality, 15 Colo. Tech. L. J. 119, 122 (2016)).
Federal Communications Commission FCC-CIRC2310-01
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public interest standard of the Act?
452
Even if strict application of antitrust law does not reveal a violation
of section 1 or section 2 of the Sherman Act, could there still be market distortions and power
asymmetries, both between ISPs and other market players and between ISPs and consumers, that require
ex ante intervention in the public interest, at least in instances where the Commission may find that
conduct is unjust, unreasonable, or unreasonably discriminatory? For example, would regulatory
intervention be necessary in instances when there is a high likelihood of harm to consumers and the
likelihood or availability of effective remedies for consumers is speculative?
140. Consumer Relief. Even if the RIF Order’s oversight and enforcement framework were to
provide some protection, we seek comment on whether it gives consumers a meaningful opportunity to
secure relief. The RIF Order concluded that its framework “ensures that consumers have means to take
remedial action if an ISP engages in behavior inconsistent with an open Internet.”
453
It appears that
consumers’ primary means for seeking recourse under that framework is to submit complaints to the FTC
with the goal of spurring the agency to direct its resources to investigate and address the alleged harms.
With the antitrust rules, in particular, it appears that to pursue relief, consumers must submit complaints
that describe conduct that inhibits their access to the Internet, attempt to tie that conduct to
anticompetitive behavior that harms other entities, and otherwise rely on the FTC or other entities to bring
suits alleging anticompetitive conduct that also harms the open Internet. We seek comment on whether
consumers can effectively use these mechanisms to obtain relief, and do so in a timely manner, and we
seek comment generally regarding consumers’ experiences obtaining relief following the RIF Order.
141. Aside from the remedies offered by law, we seek comment on the adequacy of other
methods the RIF Order offers that consumers can use to secure relief. First, the RIF Order suggests that
consumers may be able to seek service from another ISP if they are experiencing harmful conduct, but as
discussed above,
454
it is not clear there is adequate local competition in many areas, especially rural areas,
to give consumers a meaningful choice among providers, and we seek comment on this assessment.
455
For instance, 36 percent of households lack a competitive option for broadband at speeds of 100/20 Mbps
and 70 percent of households in rural areas lack such an option.
456
At higher speeds, the level of
competition becomes non-existent in most areas with approximately 96 percent of households lacking a
competitive option for gigabit broadband service.
457
Even when consumers have access to another
provider not engaging in behavior that is inconsistent with an open Internet, to what extent is their choice
between providers often negated because the alternatives charge significantly higher prices or provide
lower performance and quality of service? Second, the RIF Order states that if ISPs engage in conduct
452
See, e.g., FCC v. Pottsville Broad. Co., 309 U.S. 134, 138 (1940) (“[T]he touchstone” of “public interest” in the
Act “is as concrete as the complicated factors for judgment in such a field of delegated authority permit; it serves as
a supple instrument for the exercise of discretion by the expert body which Congress has charged to carry out its
legislative policy”); Huawei Technologies USA, Inc. v. FCC, 2 F.4
th
421, 438-39 (5
th
Cir. 2021) (noting that “the
Supreme Court has interpreted the public interest provisions of the Communications Act expansively” and finding
that “considering national security under the public interest” is appropriate). We recognize that since the
Commission adopted the RIF Order, the FTC rescinded its 2015 policy statement concerning how it addresses unfair
methods of competition and replaced it with a new policy statement, but we believe the FTC’s new approach to
competition oversight is still fundamentally geared toward protecting competition rather than consumers. FTC,
Policy Statement Regarding the Scope of Unfair Methods of Competition Under Section 5 of the Federal Trade
Commission Act (Nov. 10, 2022),
https://www.ftc.gov/system/files/ftc_gov/pdf/P221202Section5PolicyStatement.pdf.
453
RIF Order, 33 FCC Rcd at 313, para. 4.
454
See supra para. 127.
455
See 2022 Communications Marketplace Report at Figs. II.A.28 and II.A.29, paras. 56-58.
456
See id.
457
Id. at Fig. II.A.28, para. 56.
Federal Communications Commission FCC-CIRC2310-01
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that harms the open Internet, public attention from consumer backlash would police their behavior, but it
seems to assume that the harmful conduct by ISPs would be obvious or widespread—rather than
surreptitious or sporadic—such that a sufficient number of consumers would be aware of the conduct and
vocal in their objections to have the necessary force to influence ISP conduct. Third, even if ISP conduct
was sufficiently egregious to result in a consumer backlash, how would that backlash police ISP
behavior? For example, if it were to lead to regulatory action on the part of the Commission, how much
time would pass between the initiation of behavior and the regulatory action taking effect? We seek
comment on the foregoing.
142. Further, to the extent the RIF Order’s oversight and enforcement framework can address
harmful conduct when it occurs, we seek comment on whether the framework will still result in fewer
instances where ISPs will be subject to enforcement action for conduct that is clearly harmful to an open
Internet. If the RIF Order’s framework becomes the settled approach, will consumers suffer a greater
amount of harmful conduct than would exist under the open Internet rules we propose, and receive fewer
remedies when that harm occurs? Even when remedies are achieved, will they provide sufficient redress
to harms resulting from ISPs’ conduct? Does the RIF Order’s regulatory framework adequately serve the
public interest, given how essential broadband is to full participation in today’s society and economy?
143. Edge Provider Protections. We believe the RIF Order’s reliance on antitrust protections
undermines the virtuous cycle by failing to protect the small edge services that comprise an important part
of the Internet. While antitrust protections would apply where, for example, an ISP favored its own edge
provider, or sought to harm a competing edge provider, antitrust protections do not forbid the unjust or
unreasonable exercise of market powers. But it is exactly those practices that could unravel the virtuous
cycle. As part of its justification for reliance on antitrust law, the RIF Order expresses particular concern
about the effect of regulations on small ISPs.
458
But we believe that there are far more edge services that
are small—typically many times smaller than the smallest ISPs—which the RIF Order does not
acknowledge or evaluate. We seek comment on this belief and on the extent to which providers of these
edge services would have any leverage in negotiations with ISPs of any size, let alone large, vertically
integrated ISPs. Should large, or even small, ISPs begin seeking paid prioritization arrangements, for
example, would this disproportionately harm small edge providers, for example, because larger edge
providers could use their own countervailing power to better manage the situation? Would this increase
entry barriers, harming edge provider competition and innovation, for example, by discouraging new
entry against larger established edge providers? In all of these cases, what legal case would a harmed
provider be able to bring under antitrust law and what would the likelihood of success be? The RIF
Order argues that ISPs have incentives to support nascent competition as more edge provider competition
will reduce the countervailing power of large, entrenched ISPs. We seek comment on whether this is
accurate, and in particular whether any efforts or investments by an ISP to help nascent edge providers
would produce diffuse benefits to all ISPs, and thus whether any single ISP would have appropriate
incentives to help develop edge provider competition.
144. Research in innovation economics suggests that edge innovation is heterogeneous.
459
Some types of edge innovation will thrive under general purpose open networks. Such innovations could
have significant positive spillover effects that benefit the broader Internet ecosystem. However, other
types of edge innovation, especially during the early phases of the innovation process, may be facilitated
by quality of service differentiation of the network. This suggests that a forward-looking open Internet
policy will be most supportive of innovation if it protects the openness of the access platforms for
innovations with high spillover effects while at the same time allowing non-discriminatory forms of
network differentiation to support edge innovations that are facilitated by such support. We seek
comment on this proposed analysis.
458
RIF Order, 33 FCC Rcd at 299-300, para. 149.
459
See, e.g., Carlyss Y. Baldwin and Kim B. Clark, Design rules: the power of modularity. MIT Press, 2000.
Federal Communications Commission FCC-CIRC2310-01
71
145. Costs of Oversight Regime. We seek comment generally on the costs to ISPs resulting
from the RIF Order’s chosen oversight regime. The RIF Order claims that its approach would lower
compliance costs for ISPs.
460
We reiterate, however, that because the RIF Order’s preemption directive
was vacated by the D.C. Circuit in Mozilla, ISPs are now subject to a patchwork of state requirements for
BIAS, rather than a uniform, national regulatory framework.
461
We seek comment on the costs of this
patchwork approach.
146. We also seek comment on the costs of the RIF Order’s consumer protection and antitrust
oversight framework. We observe that whether an act is unfair or deceptive under consumer protection
law each depends on its own three-prong subjective test,
462
which can result in unforeseen outcomes, and
the antitrust rule of reason relies on a case-by-case evaluation.
463
In light of these factors, we seek
comment on whether the RIF Order’s removal of bright-line, ex ante rules can result in significant
compliance cost for ISPs. Relatedly, what are the costs to ISPs for having to evaluate the risks of their
planned conduct under this consumer protection and antitrust oversight framework?
B. Conduct Rules
147. We propose to adopt rules to prohibit ISPs from blocking, throttling, or engaging in paid
or affiliated prioritization arrangements, and also seek comment on the adoption of a proposed general
conduct standard for ISPs. The last several years have demonstrated not only broadband’s essential
value, but also the consequences to consumers of its absence or degradation, and we therefore believe it
important to establish clear, bright-line rules. We seek comment on the proposals and analyses herein.
148. The conduct rules we propose track the language of the rules the Commission adopted in
the 2015 Open Internet Order.
464
In 2015, the Commission found that blocking, throttling, and paid
prioritization arrangements were three practices that “in particular demonstrably harm the open
Internet.”
465
The Commission adopted rules to ban these three practices, finding that they are “inherently
unjust and unreasonable, in violation of section 201(b) of the Act, and that these practices threaten the
virtuous cycle of innovation and investment that the Commission intends to protect under its obligation
and authority to take steps to promote broadband deployment under section 706 of the 1996 Act.”
466
Even
while eliminating these protections in 2018, the RIF Order still recognized the harms of blocking and
throttling practices
467
and required disclosure of such practices under its revised transparency rule.
468
Below, we seek comment on how experience since the RIF Order would help inform the scope and
language of prohibitions on blocking, throttling, and paid prioritization arrangements. At the outset,
460
See RIF Order, 33 FCC Rcd at 450, para. 239.
461
See supra para. Error! Reference source not found..
462
See A Brief Overview of the Federal Trade Commission's Investigative, Law Enforcement, and Rulemaking
Authority, Federal Trade Commission, https://www.ftc.gov/about-ftc/mission/enforcement-authority (last visited
Sept. 20, 2023) (explaining that an act or practice is “deceptive” if it (1) involves a material representation,
omission, or practice that (2) is likely to mislead a consumer (3) acting reasonably in the circumstances, and that an
act or practice is “unfair” if it (1) causes or is likely to cause substantial injury to consumers, (2) which is not
reasonably avoidable by consumers themselves, and (3) is not outweighed by countervailing benefits to consumers
or to competition).
463
Ramsi A. Woodcock, The Hidden Rules of A Modest Antitrust, 105 Minn. L. Rev. 2095, 2100 (2021) (“The rule
of reason, in other words, is a license to engage in case-by-case adjudication.”).
464
2015 Open Internet Order, 30 FCC Rcd at 5648, 5651, and 5653, paras. 112, 119, and 125.
465
Id. at 5647, para. 110.
466
Id.
467
See RIF Order, 33 FCC Rcd at 468, para. 265.
468
See id. at 440, para. 220.
Federal Communications Commission FCC-CIRC2310-01
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however, we seek comment at a broader level on whether these three practices are still the key threats to
Internet openness.
149. We do not anticipate that the open Internet rules we propose today will have a harmful
effect on investment. ISP investment was not inhibited from 2005 through 2016, when the Commission
consistently sought to impose and enforce open Internet standards.
469
We also believe that many ISP
investment decisions over the next several years will be significantly influenced by the influx of federal
and state funding allocated to ISPs to support infrastructure deployment and broadband connectivity.
470
In light of these facts, we do not expect that adopting open Internet rules will change ISP investment
decisions. Do commenters agree? Furthermore, we believe that “[w]ithout an open Internet, there would
be less broadband investment and deployment” because of the expected harm to the virtuous cycle.
471
As
the Commission concluded in the 2015 Open Internet Order, “to the extent that our decision might in
some cases reduce providers’ investment incentives, we believe any such effects are far outweighed by
positive effects on innovation and investment in other areas of the ecosystem that our core broadband
policies will promote.”
472
We seek comment on these views.
1. Preventing Blocking of Lawful Content, Applications, Services, and Non-
harmful Devices
150. We propose to adopt a bright-line rule prohibiting ISPs from blocking lawful content,
applications, services, or non-harmful devices. In 2015, the Commission found that ISPs function as
gatekeepers for both their end-user customers who access the Internet, and for various transit providers,
CDNs, and edge providers attempting to reach the broadband provider’s end-user subscribers.
473
The
Commission concluded that ISPs have the economic incentives and technical ability to engage in
practices that pose a threat to Internet openness by harming other network providers, edge providers, and
end users.
474
Reversing course in 2018, the Commission determined, in contrast, that “ISPs have strong
incentives to preserve Internet openness, and these interests typically outweigh any countervailing
incentives an ISP might have.”
475
As discussed above, we tentatively conclude that ISPs continue to have
the incentive and ability to engage in practices that threaten Internet openness,
476
and as such, we believe
rules are needed to protect a consumer’s right to access lawful content, applications, and services, and to
use non-harmful devices. We seek comment on this proposed analysis.
151. As the Commission found in the 2010 Open Internet Order and the 2015 Open Internet
Order, we believe that “the freedom to send and receive lawful content and to use and provide
applications and services without fear of blocking is essential to the Internet’s openness.”
477
To that end,
we propose to adopt the following no-blocking rule applicable to both fixed and mobile providers of
BIAS, which tracks the language of the prohibition adopted by the 2015 Open Internet Order:
469
See 2015 Open Internet Order, 30 FCC Rcd at 5612-13, 5619-25, paras. 38-40, 64-74.
470
See NTIA, BroadbandUSA, Federal Funding, https://broadbandusa.ntia.doc.gov/resources/federal/federal-
funding (last visited Sept. 20, 2023) (providing information on federal funding programs); NTIA, BroadbandUSA,
States, https://broadbandusa.ntia.doc.gov/resources/states (last visited Sept. 20, 2023) (providing information on
broadband funding programs by state).
471
See 2015 Open Internet Order, 30 FCC Rcd at 5606, para. 11; supra section V.A.4.
472
2015 Open Internet Order, 30 FCC Rcd at 5791, para. 410.
473
See id. at 5628, para. 78.
474
See id. at 5628-43, paras. 78-101.
475
RIF Order, 33 FCC Rcd at 378, para. 117; see also id. at 378-93, paras. 116-39.
476
See supra section V.A.3.
477
2015 Open Internet Order, 30 FCC Rcd at 5647-48, para. 111 (quoting 2010 Open Internet Order, 25 FCC Rcd
at 17941-42, para. 62).
Federal Communications Commission FCC-CIRC2310-01
73
A person engaged in the provision of broadband Internet access service, insofar as such
person is so engaged, shall not block lawful content, applications, services, or non-
harmful devices, subject to reasonable network management.
We seek comment on this proposed rule and whether this remains the best formulation of a no-blocking
principle for ISPs. As in 2015, we intend that the phrase “content, applications, and services” refers to all
traffic transmitted to or from end users of a broadband Internet access service, including traffic that may
not fit clearly into any of these categories.
478
Is this language expansive enough to encompass all types of
Internet traffic, or are there additional categories that we should include? We also propose to make clear
that the no-blocking rule would prohibit ISPs from charging edge providers a fee to avoid having the edge
providers’ content, service, or application blocked from reaching the broadband provider’s end-user
customer.
479
As in 2015, we also propose that this prohibition will apply to transmission of lawful content
only and does not prevent or restrict an ISP from refusing to transmit unlawful material.
480
We seek
comment on these proposals. What other consequences of a no-blocking rule should we consider?
152. As far back as the Commission’s Internet Policy Statement in 2005, major providers have
broadly accepted a no-blocking principle.
481
Even after the repeal of the no-blocking rule, many providers
continue to advertise a commitment to open Internet principles on their websites, which include
commitments not to block traffic except in certain circumstances.
482
Rather than reflect a lack of potential
harm to consumers and the open Internet, we believe that these continued commitments to no-blocking
principles emphasize their importance to the Internet as we know it. We believe that codifying this
principle in the Commission’s rules is necessary to protect consumers and Internet openness against any
ISP’s decision in the future to move away from this widely accepted principle. We seek comment on this
analysis. Furthermore, because this principle is so widely accepted, including by ISPs, we anticipate
compliance costs will be minimal. Finally, we seek comment on whether the predictive reasoning
underlying the Commission’s repeal of the no-blocking rule in 2018 proved accurate.
483
We seek specific
comment regarding any instances of an ISP blocking lawful content, applications, services or non-harmful
devices in the years since the Commission repealed the no-blocking rule.
484
We seek comment on the
costs and benefits of a no-blocking rule.
2. Preventing Throttling of Lawful Content, Applications, Services, and Non-
harmful Devices
153. Next, we propose to adopt a rule to prevent ISPs from throttling lawful content,
478
2015 Open Internet Order, 30 FCC Rcd at 5648-49, para. 113.
479
Id. at 5649, para. 113.
480
Id.
481
See 2010 Open Internet Order, 25 FCC Rcd at 17941-42, para. 62; 2015 Open Internet Order, 30 FCC Rcd at
5648, para. 112; Internet Policy Statement, 20 FCC Rcd at 14988, para. 4.
482
See, e.g., Xfinity Internet Broadband Disclosures, Xfinity, https://www.xfinity.com/policies/internet-broadband-
disclosures [https://perma.cc/Y7L5-KMXD] (last visited Sept. 30, 2023); Network Practices, AT&T,
https://about.att.com/sites/broadband/network [https://perma.cc/S9HK-A6WA] (last visited Sept. 20, 2023);
Network Management, Verizon, https://www.verizon.com/about/our-company/network-management
[https://perma.cc/K29R-W95Q] (last visited Sept. 20, 2023).
483
RIF Order, 33 FCC Rcd at 466, para. 263.
484
See, e.g., Citing 'censorship' concerns, Idaho internet provider blocks Facebook, Twitter, WKRC Local 12 (Jan.
13, 2021), https://local12.com/news/nation-world/citing-censorship-concerns-idaho-internet-provider-blocks-
facebook-twitter (reporting that in January 2021, a small ISP in north Idaho began to implement a plan where its
customers would be automatically blocked from accessing Twitter and Facebook because it disagreed with how
those platforms enforced their terms of service, ultimately backtracking and instead blocking those services on an
opt-out, instead of an opt-in, basis).
Federal Communications Commission FCC-CIRC2310-01
74
applications, services, and non-harmful devices. As part of the no-blocking rule that the Commission
adopted in the 2010 Open Internet Order, the Commission prohibited ISPs from “impairing or degrading
particular content, applications, services, or non-harmful devices so as to render them effectively unusable
(subject to reasonable network management),” because such conduct “can have the same effects as
outright blocking.”
485
In 2015, the Commission concluded that a standalone prohibition was required to
prevent ISPs from impairing or degrading lawful Internet traffic.
486
The Commission used the term
“throttling” to refer to conduct that is not outright blocking, but that inhibited the delivery of particular
content, applications, or services, or particular classes of content, applications, or services.
487
154. We propose to adopt the following no-throttling rule applicable to both fixed and mobile
providers of BIAS, which tracks the language of the Commission’s 2015 Open Internet Order, and seek
comment on our proposal:
A person engaged in the provision of broadband Internet access service, insofar as such
person is so engaged, shall not impair or degrade lawful Internet traffic on the basis of
Internet content, application, or service, or use of a non-harmful device, subject to
reasonable network management.
As in 2015, we intend this rule to prohibit conduct that impairs or degrades lawful traffic to a non-harmful
device or class of devices, which includes any conduct by an ISP to impair, degrade, slow down, or render
effectively unusable particular content, services, applications, or devices, that is not reasonable network
management.
488
We also propose to give the same meaning to “content, applications, and services” as we
propose in the context of the no-blocking rule, and we seek comment on this proposal. Have there been
any technological changes or advancements in network management since 2015 that we should reflect in
the proposed rule? As written, does the proposed rule provide clear guidance to ISPs and customers on
what is considered prohibited conduct? As in 2015, we propose that transfers of unlawful content or
unlawful transfers of content would not be protected by the no-throttling rule.
489
Further, as with our
proposed no-blocking rule, we propose to prohibit ISPs from imposing a fee on edge providers to avoid
having the edge providers’ content, service, or application throttled.
490
We seek comment on these
proposals. What other aspects and consequences of a no-throttling rule should we consider?
155. As in 2015, we propose that while a no-throttling rule would address instances in which
an ISP targets particular content, applications, services, or non-harmful devices, it would not address the
practice of slowing down an end user’s connection to the Internet based on a choice clearly made by the
end user.
491
For example, an ISP may offer a data plan in which a subscriber receives a set amount of data
at one speed tier and any remaining data at a lower tier.
492
We seek comment on our proposal to maintain
this distinction. We do not intend to leave such data plans without oversight, however, and therefore
propose to allow the Commission to review the particulars of a certain data plan, as required by sections
201 and 202 of the Act, which prohibit unjust and unreasonable charges and practices, or our proposed
general conduct standard, discussed below.
156. As discussed above, because broadband connections were so essential during the
485
2010 Open Internet Order, 25 FCC Rcd at 17943, para. 66.
486
2015 Open Internet Order, 30 FCC Rcd at 5651, para. 119.
487
See id. at 5651, para. 120.
488
Id. at 5651, para. 119.
489
Id. at 5651-52, para. 120.
490
See id.
491
Id. at 5652, para. 122.
492
Id.
Federal Communications Commission FCC-CIRC2310-01
75
pandemic, we believe ISPs have been under increased scrutiny by the Commission, the media, and the
public since March 2020, and therefore have had a strong incentive to follow their voluntary
commitments to maintain service consistent with certain conduct rules established in the 2015 Open
Internet Order.
493
We believe that this, coupled with unprecedented consumer demand for BIAS during
the pandemic and state regulations addressing ISP conduct, helped to constrain ISPs from engaging in
conduct that could harm Internet openness. These constraints, however, are neither permanent nor
uniform, and we believe that incentives for ISPs to degrade competitors’ content, applications, or devices
remain; as such, we propose that rules are needed to protect consumers’ right to access lawful Internet
traffic of their choice without impairment or degradation. We seek comment on this proposed analysis,
and invite comment on ISPs’ incentives to engage in throttling conduct harmful to Internet openness. As
the Commission recognized in the RIF Order, “[t]he potential consequences of blocking and throttling
lawful content on the Internet ecosystem are well-documented in the record and in Commission
precedent.”
494
Even after the repeal of the no-throttling rule, ISPs continue to advertise on their websites
that they do not throttle traffic except in limited circumstances.
495
As a result, we anticipate that
prohibiting throttling of lawful Internet traffic will impose a minimal compliance burden on ISPs. Do
commenters agree? We seek comment on specific costs or technical concerns that our proposed rule
would impose on ISPs, including small providers. We also seek comment on the reasoning underlying
the Commission’s repeal of the no-throttling rule in 2018.
496
We seek specific comment regarding any
instances of an ISP throttling lawful content, applications, services, or non-harmful devices in the years
since the no-throttling rule was repealed.
3. No Paid or Affiliated Prioritization
157. We next propose to ban arrangements in which an ISP accepts consideration (monetary
or otherwise) from a third party to manage its network in a manner that benefits particular content,
applications, services, or devices. Under this proposal, we would also prohibit arrangements in which a
provider manages its network in a manner that favors the content, applications, services, or devices of an
affiliated
497
entity. In 2015, the Commission adopted a rule banning these type of paid or affiliated
prioritization agreements, finding that such practices “harm consumers, competition, and innovation, as
well as create disincentives to promote broadband deployment.”
498
We tentatively conclude that this
reasoning remains applicable today. We seek comment on this proposal and the underlying analysis.
158. Tracking the language of the Commission’s 2015 Open Internet Order, we propose to
adopt the following definition of “paid prioritization” and rule banning such arrangements:
493
See, e.g., Xfinity Internet Broadband Disclosures, Xfinity, https://www.xfinity.com/policies/internet-broadband-
disclosures [https://perma.cc/Y7L5-KMXD] (last visited Sept. 20, 2023); Network Practices, AT&T,
https://about.att.com/sites/broadband/network [https://perma.cc/S9HK-A6WA] (last visited Sept. 20, 2023); Verizon
Broadband Commitment, Verizon, https://www.verizon.com/about/our-company/verizon-broadband-commitment
[https://perma.cc/K29R-W95Q] (last visited Sept. 20, 2023).
494
RIF Order, 33 FCC Rcd at 468, para. 265.
495
See, e.g., Xfinity Internet Broadband Disclosures, Xfinity, https://www.xfinity.com/policies/internet-broadband-
disclosures [https://perma.cc/Y7L5-KMXD] (last visited Sept. 20, 2023); Network Practices, AT&T,
https://about.att.com/sites/broadband/network [https://perma.cc/S9HK-A6WA] (last visited Sept. 20, 2023);
Network Management, Verizon, https://www.verizon.com/about/our-company/network-management
[https://perma.cc/K29R-W95Q] (last visited Sept. 20, 2023).
496
RIF Order, 33 FCC Rcd at 466, para. 263.
497
The Act defines “affiliate” as “a person that (directly or indirectly) owns or controls, is owned or controlled by,
or is under common ownership or control with, another person. For purposes of this paragraph, the term ‘own’
means to own an equity interest (or the equivalent thereof) of more than 10 percent.” 47 U.S.C. § 153(2).
498
2015 Open Internet Order, 30 FCC Rcd at 5653, para. 125.
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76
A person engaged in the provision of broadband Internet access service, insofar as such
person is so engaged, shall not engage in paid prioritization.
“Paid prioritization” refers to the management of a broadband provider’s network to
directly or indirectly favor some traffic over other traffic, including through use of
techniques such as traffic shaping, prioritization, resource reservation, or other forms of
preferential traffic management, either (a) in exchange for consideration (monetary or
otherwise) from a third party, or (b) to benefit an affiliated entity.
In adopting a ban on paid prioritization in 2015, the Commission sought to prevent the bifurcation of the
Internet into a “fast” lane for those with the means and will to pay and a “slow” lane for everyone else.
499
This development, the Commission reasoned, would introduce artificial barriers to entry, distort the
market, harm competition, harm consumers, discourage innovation, undermine public safety and
universal service, and harm free expression.
500
The Commission was concerned that preferential
treatment arrangements would create a chilling effect, disrupting the Internet’s virtuous cycle of
innovation, consumer demand, and investment, and that the widespread use of paid prioritization practices
would cause damage to Internet openness that would be difficult to reverse and challenging to track.
501
We tentatively conclude that these concerns remain valid today, and we seek comment on this conclusion.
What are some examples of harms or categories of harms that paid prioritization arrangements might
cause to the open Internet and to consumers? Does the language of the proposed rule make clear the
scope of this proposed prohibition? What other aspects or consequences of a ban on paid prioritization
practices should we consider?
159. Previously, the Commission has found it well-established that ISPs have both the
incentive and the ability to engage in paid prioritization.
502
In its Verizon opinion, the D.C. Circuit noted
the powerful incentives ISPs have to accept fees from edge providers in return for excluding their
competitors or for granting prioritized access to end users.
503
Some ISPs continue to advertise that they
do not engage in paid or affiliated prioritization practices.
504
Even with similar promises from ISPs in
2015, the Commission concluded that the potential harm to the open Internet was too significant to rely
on mere promises from ISPs because “the future openness of the Internet should not turn on the decision
of a particular company.”
505
We tentatively conclude that this reasoning remains valid today, and we seek
comment on this tentative conclusion, and any alternatives we should consider.
160. In choosing to repeal the ban on paid prioritization in 2018, the Commission found that
the costs of a ban outweighed the benefits, and that the transparency rule and the enforcement of existing
antitrust and consumer protection laws would sufficiently address many of the concerns regarding the
dangers of paid prioritization arrangements.
506
We seek comment on that assessment from 2018. In
499
See id. at 5653-54, para. 126.
500
Id. at 5654-55, para. 126.
501
Id. at 5655-56, para. 127.
502
Id. at 5655, 5628-43, paras. 127, 78-101.
503
Id. at 5655-56, para. 127 (citing Verizon, 740 F.3d at 645-46) (noting that in oral argument for that case,
Verizon’s counsel stated that “but for [the 2010 Open Internet Order] rules we would be exploring [such]
commercial arrangements”).
504
2015 Open Internet Order, 30 FCC Rcd at 5656, para. 127; see, e.g., Xfinity Internet Broadband Disclosures,
Xfinity, https://www.xfinity.com/policies/internet-broadband-disclosures [https://perma.cc/Y7L5-KMXD] (last
visited Sept. 20, 2022); Network Practices, AT&T, https://about.att.com/sites/broadband/network
[https://perma.cc/S9HK-A6WA] (last visited Sept. 20, 2023).
505
2015 Open Internet Order, 30 FCC Rcd at 5656, para. 127.
506
RIF Order, 33 FCC Rcd at 456-57, para. 253.
Federal Communications Commission FCC-CIRC2310-01
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weighing the costs and benefits, the Commission did not identify specific compliance costs, but rather
identified the costs in the form of forgone benefits.
507
While we do not dispute that some potential
benefits may result from paid prioritization arrangements, we tentatively conclude that the potential harms
to consumers and the open Internet outweigh any speculative benefits.
508
Do commenters agree? Why or
why not? What compliance costs might ISPs incur as a result of such a ban, including small providers?
The Commission also found in 2018 that paid prioritization could be a tool in helping to close the digital
divide by reducing BIAS subscription prices for consumers.
509
Do commenters agree with this
assessment? We tentatively conclude that the Commission’s 2018 finding that existing antitrust and
consumer protection laws, in conjunction with some form of a transparency rule, offer enough protection
against the potential harms caused by paid prioritization arrangements was erroneous. We seek comment
on this tentative conclusion.
161. As part of a rule prohibiting paid prioritization arrangements, we also propose to adopt a
rule concerning waiver of such a ban that establishes a balancing test. Under our waiver rules, the
Commission may waive any rule in whole or in part, “for good cause shown.”
510
A general waiver of the
Commission’s rules is only appropriate if special circumstances warrant a deviation from the general rule
and such a deviation will service the public interest.
511
In 2015, the Commission found that it was
appropriate to adopt specific rules concerning the factors that it will use to examine a waiver request of
the paid prioritization ban.
512
We tentatively conclude that it remains appropriate to accompany a rule
prohibiting paid prioritization arrangements with specific guidance on how the Commission would
evaluate subsequent waiver requests. We seek comment on this conclusion. Tracking the language of the
2015 Open Internet Order, we propose to adopt the following rule, and seek comment on this proposal:
The Commission may waive the ban on paid prioritization only if the petitioner
demonstrates that the practice would provide some significant public interest benefit and
would not harm the open nature of the Internet.
162. Following the framework the Commission established in 2015, we propose to require an
applicant seeking a waiver of our proposed rule to prohibit paid prioritization arrangements to make two
related showings. First, the applicant would need to demonstrate that the practice will have some
significant public interest benefit.
513
The applicant could make such a showing by providing evidence that
the practice furthers competition, innovation, consumer demand, or investment.
514
Second, the applicant
would need to demonstrate that the practice does not harm the nature of the open Internet.
515
This second
showing would include, but is not limited to, providing evidence that the practice: (i) does not materially
degrade or threaten to materially degrade the BIAS of the general public; (ii) does not hinder consumer
choice; (iii) does not impair competition, innovation, consumer demand, or investment; and (iv) does not
impede any forms of expression, types of service, or points of view.
516
We seek comment on the
continued relevance of these four examples. Should the Commission consider other factors when
507
Id. at 456-57, para. 253.
508
See 2015 Open Internet Order, 30 FCC Rcd at 5654-55, para. 126.
509
RIF Order, 33 FCC Rcd at 464, para. 260.
510
47 CFR § 1.3.
511
See WAIT Radio v. FCC, 418 F.2d 1153, 1159 (D.C. Cir. 1969); Northeast Cellular Telephone Co. v. FCC, 897
F.2d 1164, 1166 (D.C. Cir. 1990).
512
2015 Open Internet Order, 30 FCC Rcd at 5658, para. 130.
513
Id. at 5658, para. 131.
514
Id.
515
Id.
516
Id.
Federal Communications Commission FCC-CIRC2310-01
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considering a request to waive our proposed ban on paid prioritization arrangements? Do commenters
agree that this language creates a “high bar” for potential applicants to meet, ensuring that the
Commission would only grant waiver relief in exceptional cases?
517
4. General Conduct Rule
163. We propose to adopt a general conduct standard, which would prohibit practices that
unreasonably interfere with or disadvantage consumers or edge providers. In 2015, the Commission
adopted a standard to prohibit, on a case-by-case basis, practices that unreasonably interfere with or
unreasonably disadvantage the ability of consumers to reach the Internet content, services, and
applications of their choosing or of edge providers to access consumers using the Internet.
518
The
Commission reasoned that while the bright-line rules against blocking, throttling, and paid prioritization
arrangements would act as “critical cornerstone[s] in protecting and promoting the open Internet,” it also
needed a mechanism to respond to “other current or future practices that cause the type of harms our rules
are intended to address.”
519
The general conduct standard was necessary, in other words, to ensure that
ISPs did not find a technical or economic means to evade these bright line bans to wield their gatekeeper
power in a way that would compromise the open Internet.
520
We agree with the Commission’s conclusion
in 2015 that it is “critical that access to a robust, open Internet remains a core feature of the
communications landscape, but also that there remains leeway for experimentation with innovative
offerings.”
521
We believe that this reasoning continues to support the adoption of a general conduct
standard to operate as the catch-all backstop to the three bright-line prohibitions, and we seek comment
on this analysis.
164. We propose to adopt a general conduct standard that tracks the language of the 2015
Open Internet Order, and we seek comment on this proposal:
Any person engaged in the provision of broadband Internet access service, insofar as
such person is so engaged, shall not unreasonably interfere with or unreasonably
disadvantage (i) end users’ ability to select, access, and use broadband Internet access
service or the lawful Internet content, applications, services, or devices of their choice, or
(ii) edge providers’ ability to make lawful content, applications, services, or devices
available to end users. Reasonable network management shall not be considered a
violation of this rule.
In 2015, the Commission found that careful application of this standard would act to not only balance the
benefits of innovation against the harms to end users and edge providers, but also act to protect free
expression.
522
If adopted, we anticipate that this general conduct standard would accomplish these same
goals going forward, and we seek comment on this prediction. Does the proposed language capture the
scope of behaviors that the Commission might need to address? Have there been any technical or market
developments that should affect our approach? Is there an alternative standard we should adopt to
establish a general conduct rule?
165. Consistent with the Commission’s 2015 approach, we propose to enforce this standard
with a framework and in a manner that would provide certainty and flexibility to the industry and
encourage innovation, while best protecting the open Internet. First, we propose to follow a case-by-case
approach that would consider the totality of the circumstances when analyzing whether conduct satisfies
517
Id.
518
Id. at 5659-60, para. 135.
519
Id.
520
See id. at 5609, para. 21.
521
Id. at 5659, para. 136.
522
See id. at 5660, para. 137.
Federal Communications Commission FCC-CIRC2310-01
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the standard.
523
Second, we propose a non-exhaustive list of factors that we would consider to aid in our
analysis.
524
These factors would include: (i) whether a practice allows end-user control and enables
consumer choice;
525
(ii) whether a practice has anti-competitive effects in the market for applications,
services, content, or devices;
526
(iii) whether a practice affects consumers’ ability to select, access, or use
lawful broadband services, applications, or content;
527
(iv) the effect a practice has on innovation,
investment, or broadband deployment;
528
(v) whether a practice threatens free expression;
529
(vi) whether a
practice is application agnostic;
530
and (v) whether a practice conforms to best practices and technical
standards adopted by open, broadly representative, and independent Internet engineering, governance
initiatives, or standards-setting organizations.
531
Do all of these factors remain relevant in today’s Internet
ecosystem? If not, why not? Are there other factors we should consider including in this non-exhaustive
list that would aid with industry compliance or Commission enforcement?
166. We believe that the general conduct standard we propose today, mirroring that adopted in
the 2015 Open Internet Order, provides sufficient guidance to ISPs for purpose of compliance, a
conclusion affirmed by the D.C. Circuit.
532
Nonetheless, in 2018, the Commission repealed the general
conduct standard because it found that it was “vague and ha[d] created regulatory uncertainty in the
marketplace hindering investment and innovation.”
533
We seek comment on whether there are additional
steps we should take to ensure that ISPs understand the types of conduct and practices that might be
prohibited under our proposal. Are there any specific practices that would or would not violate this
proposed rule, and if so, should we provide examples of those practices?
534
For example, are there any
zero rating or sponsored data practices that raise particular concerns under the proposed general conduct
standard? What would the compliance costs be for ISPs, particularly small providers? How would our
proposed general conduct standard affect current and future ISP business practices? What other aspects
523
2015 Open Internet Order, 30 FCC Rcd at 5661, para. 138.
524
Id. at 5661, para. 138.
525
Id. at 5661-62, para. 139 (“End-User Control”).
526
Id. at 5662, para. 140 (“Competitive Effects”).
527
Id. at 5662, para. 141 (“Consumer Protection”).
528
Id. at 5663, para. 142 (“Effect on Innovation, Investment, or Broadband Deployment”).
529
Id. at 5663, para. 143 (“Free Expression”).
530
Id. at 5663-64, para. 144 (“Application Agnostic”).
531
Id. at 5664, para. 145 (“Standard Practices”).
532
In its USTA opinion, the D.C. Circuit found that the general conduct rule adopted in the 2015 Open Internet
Order provided sufficient notice to affected entities of the conduct it prohibited, rejecting an argument that the
standard was unconstitutionally vague. See USTA, 825 F.3d at 734-39. In rejecting this challenge, the D.C. Circuit
concluded that the general conduct standard satisfied due process because of the Commission’s clear articulation of
the standard’s objectives and the detailed discussion of the non-exhaustive list of factors the Commission would use
to guide its analysis. USTA, 825 F.3d at 736-37. The D.C. Circuit recognized that a regulation is not impermissibly
vague simply because it allows some flexibility, and because of the rapid pace of technological development,
requiring too much specificity could risk enabling ISPs to find loopholes to escape regulation. USTA, 825 F.3d at
736-37. The D.C. Circuit also found that the advisory opinion procedure the Commission adopted in 2015 to
accompany the standard “cure[d] it of any potential lingering constitutional deficiency.” USTA, 825 F.3d at 738.
533
RIF Order, 33 FCC Rcd at 452-53, paras. 246-47.
534
Compare, e.g., 2015 Open Internet Order, 30 FCC Rcd at 5666-68, paras. 151-53 (discussing the benefits and
drawbacks of sponsored data and usage allowance practices, and declining to make a blanket finding out these
practices) with RIF Order, 33 FCC Rcd at 455, para. 250 (discussing the rescinding Zero-Rating Report issued by
the Wireless Telecommunications Bureau, and asserting that it did not provide certainty about whether particular
zero-rating programs were legally permissible).
Federal Communications Commission FCC-CIRC2310-01
80
or consequences of imposing a general conduct standard should we consider? We seek comment on
whether the Commission’s prediction in 2018 that eliminating the Internet conduct standard will “benefit
consumers, increase competition, and eliminate regulatory uncertainty that has a ‘corresponding chilling
effect on broadband investment and innovation’”
535
has been borne out. Is it reasonable to attribute any
growth and development in broadband markets and services to elimination of the general conduct rule, or
is such a potential connection too attenuated? The RIF Order also found that “the benefits of the Internet
conduct standard provides approximately zero additional benefits” when compared to the antitrust and
consumer protection enforcement in place through the FTC, while imposing negative benefits in the form
of delayed or never-brought-to-market innovations.
536
We seek comment on whether elimination of the
general conduct rule has resulted in new innovations which would not have been permissible under the
general conduct rule.
167. In the alternative, we seek comment on whether we should instead rely on the “just and
reasonable” standards in sections 201 and 202 of the Act. In 2015, the Commission explained that the
general conduct rule was its interpretation of sections 201 and 202 in the broadband context.
537
We seek
comment on whether it remains necessary to enunciate a specific rule, like the proposed general conduct
standard described above, by interpreting sections 201 and 202 in the context of broadband, or whether it
would be sufficient to rely on sections 201 and 202 alone to address potential harmful practices and
behaviors.
538
Would the latter alternative approach provide sufficient certainty and clarity to ISPs
regarding what practices would violate the Act’s standard? If we choose not to adopt a general conduct
rule, are there other ways for us to aid our enforcement efforts related to sections 201 and 202 in the
broadband context?
C. Transparency Rule
168. Policymakers have consistently recognized the importance of transparency regarding the
terms and service characteristics of broadband offerings, even as certain details of the Commission’s
transparency requirements have changed over time. This includes not only transparency requirements
that have been in place since they originally were adopted in the 2010 Open Internet Order,
539
but also the
broadband label the Commission adopted in 2022, which gives consumers a convenient tool to research
and compare broadband offerings.
540
We propose to build upon the foundation of our existing
transparency rule, informed by our recent experience in adopting broadband label requirements, and we
seek comment on possible modifications or additions to update the transparency rule to ensure that end
users, edge providers, the broader Internet community, and the Commission have the information they
need to assess ISPs’ terms and conditions for BIAS in a timely and effective manner.
535
RIF Order, 33 FCC Rcd at 454, para. 249.
536
Id. at 494, paras. 317-18.
537
2015 Open Internet Order, 30 FCC Rcd at 5660, para. 137.
538
Section 201(b) requires that “[a]ll charges, practices, classifications, and regulations for and in connection with
[interstate or feign communications by wire or radio] service, shall be just and reasonable, and any such charge,
practice, classification, or regulation that is unjust or unreasonable is hereby declared to be unlawful.” 47 U.S.C. §
201(b). Section 202(a) states that it “shall be unlawful for any common carrier to make any unjust or unreasonable
discrimination in charges, practices, classifications, regulations, facilities, or services for or in connection with like
communication service, directly or indirectly, by any means or device, or to make or give any undue or unreasonable
preference or advantage to any particular person, class of persons, or locality, or to subject any particular person,
class of persons, or locality to any undue or unreasonable prejudice or disadvantage.” 47 U.S.C. § 202(a).
539
47 CFR § 8.1(a).
540
See generally Empowering Broadband Consumers Through Transparency, CG Docket No. 22-2, Report and
Order and Further Notice of Proposed Rulemaking, FCC 22-86 (rel. Nov. 17, 2022) (Broadband Label Order or
Broadband Label Further Notice); Broadband Label Reconsideration Order, FCC 23-68.
Federal Communications Commission FCC-CIRC2310-01
81
1. Policy Benefits of Transparency Requirements
169. We anticipate transparency requirements are likely to continue playing a key role in the
broadband marketplace. In the 2010 Open Internet Order, the Commission adopted its original BIAS
transparency rule, explaining that “[e]ffective disclosure of broadband providers’ network management
practices and the performance and commercial terms of their services promotes competition—as well as
innovation, investment, end-user choice, and broadband adoption.”
541
The Commission echoed this
policy judgment in the 2015 Open Internet Order,
542
going on to adopt additional clarifications and
enhancements to the transparency rule—along with a broadband label safe harbor—to “better enable end-
user consumers to make informed choices about broadband services by providing them with timely
information tailored more specifically to their needs,” and to “provide edge providers with the
information necessary to develop new content, applications, services, and devices that promote the
virtuous cycle of investment and innovation.”
543
In discussing transparency in the RIF Order, the
Commission noted that “[d]isclosure supports innovation, investment, and competition by ensuring that
entrepreneurs and other small businesses have the technical information necessary to create and maintain
online content, applications, services, and devices, and to assess the risks and benefits of embarking on
new projects.”
544
In that Order, however, the Commission elected to “return, with minor adjustments, to
the transparency rule adopted in the 2010 Open Internet Order,” under the theory that such an approach
would “provide[] consumers and the Commission with essential information while minimizing the
burdens imposed on ISPs.”
545
We seek comment on how the Commission can ensure that its transparency
rule most effectively advances these longstanding policy goals.
170. In 2021, Congress enacted and the President signed the Infrastructure Act, which, in
relevant part, directs the Commission “to promulgate regulations to require the display of broadband
consumer labels,” using as an initial point of reference the broadband label established in connection with
the enhanced transparency rule adopted in the 2015 Open Internet Order.
546
The Infrastructure Act
recognizes the benefits of a label “to disclose to consumers information regarding broadband internet
access service plans,” further observing that consumers need the ability to “evaluate broadband internet
access service plans” through information that is “available, effective, and sufficient” to meet that need.
In November 2022, the Commission adopted the broadband consumer label rules and sought further
comment in the accompanying Broadband Label Further Notice.
547
These broadband label requirements
promote “consumer access to clear, easy-to-understand, and accurate information about the cost for
broadband services and will empower consumers to choose services that best meet their needs and match
their budgets and ensures that they are not surprised by unexpected charges or service quality that falls
short of their expectations.”
548
We seek comment on the interplay between the broadband label
541
2010 Open Internet Order, 25 FCC Rcd at 17936-37, para. 53.
542
See, e.g., 2015 Open Internet Order, 30 FCC Rcd at 5669, para. 154.
543
Id. at 5672, para. 162.
544
RIF Order, 33 FCC Rcd at 438, para. 216.
545
Id. at 435, para. 210.
546
Infrastructure Investment and Jobs Act, Pub. L. No. 117-58, § 60504(a), 135 Stat. 429 (2021) (Infrastructure
Act); Executive Order No. 14036, Promoting Competition in the American Economy, 86 FR 36987 (July 9, 2021)
(in relevant part, encouraging the Commission to consider “initiating a rulemaking that requires broadband service
providers to display a broadband consumer label, such as that described in the [2016 Public Notice] so as to give
consumers clear, concise, and accurate information regarding provider prices and fees, performance, and network
practices”).
547
Broadband Label Order, FCC 22-86 (adopting broadband consumer label rules as required by the Infrastructure
Act). See also Broadband Label Reconsideration Order, FCC 23-68.
548
Broadband Label Reconsideration Order, FCC 23-68, para. 4.
Federal Communications Commission FCC-CIRC2310-01
82
requirements adopted in the Broadband Label Order, the possible amendments raised in the Broadband
Label Further Notice,
549
and any modifications to the transparency rule that we might adopt here. For
example, to the extent that the content of the required disclosures under the two requirements diverge,
how can we avoid any undue duplication of effort in making each required disclosure, particularly for
small providers? Should the broadband label requirements and the transparency rule as it might be
modified here be legally distinct, or legally interrelated, requirements?
2. Content of Required Disclosures
171. We seek comment on what, if any, additional disclosures should be required under the
transparency rule. As a starting point, we believe that the disclosures required under the current
transparency rule are an appropriate baseline, and we propose to retain them in the transparency rule
going forward. We seek comment on this proposal. As the Commission recently explained when
adopting broadband label requirements, “the transparency rule seeks to enable a deeper dive into details
of broadband Internet service offerings, which could be relevant not only for consumers as a whole, but
also for consumers with particularized interests or needs, as well as a broader range of participants in the
Internet community—notably including the Commission itself.”
550
Are the current requirements of the
transparency rule sufficient to enable that deeper dive into details of broadband Internet service offerings?
172. We seek comment on whether enhancements to the content of disclosures required by the
transparency rule under the 2015 Open Internet Order should be incorporated in a revised transparency
rule here.
551
With respect to required disclosure of commercial terms, the 2015 Open Internet Order
provided additional specifications regarding ISPs’ disclosures about price and related terms and their
relationship with disclosures regarding privacy and redress options.
552
Regarding the disclosure of
performance characteristics, the 2015 Open Internet Order provided additional specifications regarding
the disclosure of network performance
553
and network practices.
554
The RIF Order eliminated those
enhancements under the theory that their burdens to ISPs exceeded their benefits.
555
The Broadband
Label Order, on the other hand, required ISPs to disclose in the broadband labels their typical upload and
download speeds and typical latency metrics associated with their broadband services, noting that speed
in particular “remains the network performance metric of greatest interest to the consumer.”
556
The
Commission similarly found that low delay or latency is important to any application involving users
interacting with each other, a device, or an application.
557
We seek comment on these assessments,
549
See generally Broadband Label Further Notice, FCC 22-86, paras. 131-53 (seeking comment on possible
additions or modifications to the broadband label rules).
550
Broadband Label Order, FCC 22-86, para. 107.
551
See, e.g., 2015 Open Internet Order, 30 FCC Rcd at 5672-77, paras. 162-70 (discussing enhancements to the
content of disclosures required by the transparency rule).
552
2015 Open Internet Order, 30 FCC Rcd at 5672-73, para. 164.
553
Id. at 5673-75, paras. 166-67.
554
Id. at 5676-77, para. 169.
555
RIF Order, 33 FCC Rcd at 437-38, para. 215.
556
Broadband Label Order, FCC 22-86, paras. 37-38 (citing the Eleventh MBA Report in which the Commission
stated that “[s]peed (both download and upload) performance continues to be one of the key metrics reported by the
MBA.” See Eleventh Measuring Broadband America, Fixed Broadband Report, Federal Communications
Commission, Office of Engineering and Technology at 8, 10 (Dec. 31, 2021)).
557
Broadband Label Order, FCC 22-86, para. 41. The Commission declined, however, to require providers to
include information on packet loss in the label, noting that packet loss is less important than upload and download
speeds and latency, and may actually lead to more confusion for most consumers. It also sought additional comment
in the Broadband Label Further Notice about whether there are other service characteristics, beyond speed and
latency, that ISPs should display on the label. See Broadband Label Order, FCC 22-86, para. 46.
Federal Communications Commission FCC-CIRC2310-01
83
including updated evidence regarding the relative costs and benefits of the transparency enhancements
based on experience following the RIF Order. To the extent that the transparency requirements were
intended to provide needed information not only to consumers but also edge providers, the broader
Internet community, and the Commission, how should that affect our assessment of the overall benefits of
the enhanced transparency requirements? Would the enhancements to the transparency rule adopted in
the 2015 Open Internet Order, or other modifications to the current transparency rule, assist the
Commission in monitoring and enforcing compliance with the conduct rules proposed here? Are there
any metrics that are particularly important to some subset of consumers that we should consider including
despite those metrics not being of significant value to the average consumer?
173. In addition, we seek comment on other considerations relevant to possible changes to the
content ISPs may be required to disclose under the transparency rule. For one, we seek comment on
whether a revised transparency rule should incorporate the Commission’s clarifications and guidance
regarding prior versions of the transparency rule. For example, a 2011 Public Notice (2011 Advisory
Guidance) provided “examples of approaches to disclosure that would satisfy the transparency rule,”
558
discussing point-of-sale disclosures, service descriptions, the extent of required disclosures, disclosures
for the benefit of edge providers, and disclosures regarding security measures.
559
A 2014 Public Notice
(2014 Advisory Guidance) summarized the applicability and requirements of the transparency rule and the
potential enforcement consequences if it were violated, and emphasized the importance of consistency
between ISPs’ disclosures under the transparency rule and their advertising claims or other public
statements.
560
And a 2016 Public Notice (2016 Advisory Guidance) provided guidance regarding
acceptable methodologies for disclosure of network performance information and point-of-sale
disclosures consistent with the 2015 Open Internet Order.
561
The RIF Order subsequently eliminated the
enhancements adopted in 2015, and the clarifications in the 2016 Advisory Guidance along with it.
562
The
RIF Order endorsed the clarifications in the 2011 Advisory Guidance,
563
but neither endorsed nor
disclaimed the clarifications in the 2014 Advisory Guidance. We seek comment on whether and to what
extent the Commission should reaffirm, reject, or elaborate on any of that prior guidance in connection
with any modification of the transparency rule here. Are there other areas where additional clarification
or guidance would be beneficial either under the existing transparency rule or a revised transparency rule?
174. We also seek comment on the availability of information that ISPs can or should use to
comply with the content of disclosures required under the current or modified transparency rule. For
example, the RIF Order allowed fixed ISPs participating “in the Measuring Broadband America (MBA)
program [to] disclose their results as a sufficient representation of the actual performance their customers
can expect to experience.”
564
Should we continue that approach here, or make use of the MBA program
558
FCC Enforcement Bureau and Office of General Counsel Issue Advisory Guidance for Compliance with Open
Internet Transparency Rule, Public Notice, 26 FCC Rcd 9411 (EB/OGC 2011) (2011 Advisory Guidance).
559
2011 Advisory Guidance, 26 FCC Rcd at 9413-18.
560
FCC Enforcement Advisory, Open Internet Transparency Rule: Broadband Providers Must Disclose Accurate
Information to Protect Consumers, Public Notice, 29 FCC Rcd 8606, 8606-8607 (EB 2014) (2014 Advisory
Guidance).
561
Guidance on Open Internet Transparency Requirements, Public Notice, 31 FCC Rcd 5330 (CTO/OGC/EB 2016)
(2016 Advisory Guidance).
562
See, e.g., RIF Order, 33 FCC Rcd at 442, para. 225.
563
See, e.g., id. at 440-41, 444-45, paras. 220 n.814, 222 n.818, 229-30.
564
RIF Order, 33 FCC Rcd at 441-42, para. 222 n.818. The Broadband Label Order similarly concluded that fixed
broadband service providers that choose to participate in the MBA program may disclose their results as a sufficient
representation of the actual performance their customers can expect to experience for the relevant speed tier. The
Commission also determined that providers that do not participate may use the methodology from the MBA
program to measure actual performance, or may disclose actual performance based on internal testing, consumer
(continued….)
Federal Communications Commission FCC-CIRC2310-01
84
in some other way? To what extent can or should we allow ISPs to use other specific information sources
or measurement approaches to provide transparency disclosures?
565
Should we clarify that certain sources
of information are permissible to rely on in making the required disclosures? Or should we go further in
particular cases and require the use of certain data sources for reasons of uniformity, reliability, or
otherwise? Should the Commission require ISPs to include additional information in transparency
disclosures regarding their measurement methodologies and practices?
175. Finally, we seek comment on any other considerations relevant to our evaluation of the
appropriate content of required disclosures under the transparency rule. Is there additional content that
we should require? For example, the 2015 Open Internet Order considered, but ultimately did not adopt,
additional disclosure requirements regarding “the source, location, timing, or duration of network
congestion,”
566
packet corruption and jitter,
567
and “disclosures that permit end users to identify
application-specific usage or to distinguish which user or device contributed to which part of the total data
usage.”
568
In light of subsequent experience, should we revisit the decisions not to require such
disclosures? Should the Commission consider requiring more detailed disclosures regarding the
requirements, restrictions, or standards for enforcement of data caps, and if so, how? We also seek
comment on whether different content disclosures should be required for mobile ISPs than for fixed ISPs.
3. Means of Disclosure
176. We seek comment on how best to ensure that the content of the required disclosures is
made available in a timely and effective manner without undue burdens on ISPs, both as a general matter
and in the specific respects discussed below. In the RIF Order, the Commission allowed providers to
make the required disclosures either “on a publicly available, easily accessible website,” or by
“transmit[ting] their disclosures to the Commission,” which would then make them “available on a
publicly available, easily accessible website.”
569
We seek comment on practical experiences with that
approach, and whether that approach should be retained in its current form, modified, or eliminated in
favor of disclosures required specifically on provider websites—as had been the case under prior versions
of the transparency rule. When the Commission recently adopted broadband label rules, it required ISPs
to display labels on their websites, as well as at other points of sale.
570
While it “aim[ed] to give providers
flexibility in how they display labels,” the Commission also sought “to ensure that the labels are
prominently displayed on any device on which the consumer accesses and views the labels, including
mobile devices”
571
and in a uniform format that will best assist consumers in comparing pricing, fees,
performance characteristics, and data allowances across different providers.
572
Are there lessons from the
Commission’s recent experience crafting broadband label requirements that should inform our approach
to the manner of making disclosures under the transparency rule?
(Continued from previous page)
speed test data, or other data regarding network performance, including reliable, relevant data from third-party
sources. Broadband Label Order, FCC 22-86, para. 39.
565
See Broadband Label Further Notice, FCC 22-86, para. 138 (seeking comment on whether there are more
appropriate ways to measure speed and latency other than “typical” for purposes of the label disclosure such as
average or peak speed and latency, and whether it is appropriate to require providers to add another speed metric to
the label in addition to typical speed).
566
2015 Open Internet Order, 30 FCC Rcd at 5675-76, para. 168.
567
Id.
568
Id. at 5677, para. 170.
569
RIF Order, 33 FCC Rcd at 444, para. 229.
570
Broadband Label Order, FCC 22-86, paras. 90-92.
571
Id. at para. 93.
572
Id. at para. 65.
Federal Communications Commission FCC-CIRC2310-01
85
177. We also seek comment on whether any additional requirements are warranted regarding
ISPs’ website disclosures under the transparency rule. For ISPs electing to make the required disclosures
on a “publicly available, easily accessible website,” the RIF Order “reaffirm[ed] the means of disclosure
requirement from the Open Internet Order and the clarification found in the 2011 Advisory Guidance.”
573
Should the approach reflected in the current transparency rule, as informed by the 2010 Open Internet
Order and 2011 Advisory Guidance, be retained or modified? Should we require the disclosures to be in
machine-readable format, akin to the Commission’s recently-adopted approach for broadband consumer
labels?
574
178. We also seek comment on whether disclosures under the transparency rule should be
required in additional locations. For instance, are there places on an ISP’s website besides a point of sale
where disclosures should be made?
575
179. Ensuring that disclosures under the transparency rule are accessible to individuals with
disabilities is a priority.
576
The RIF Order explained that ISPs making website disclosures under the
transparency rule must make them “in a manner accessible by people with disabilities.”
577
Has this
direction been adequate, or are additional requirements warranted to ensure that disclosures under the
transparency rule are accessible to individuals with disabilities? For example, should we encourage or
require that website disclosures under the transparency rule follow guidance developed by the Web
Accessibility Initiative?
578
Most recently, the Commission required ISPs to post broadband label
information on their websites in an accessible format, and strongly encouraged them to use the most
current version of the Web Content Accessibility Guidelines (WCAG).
579
In the Broadband Label
Further Notice, it sought comment on whether to adopt specific criteria, based on the WCAG standard.
580
Are there other industry guidelines that providers should be encouraged or required to follow? To the
extent that we ultimately require transparency disclosures in locations other than websites and in
alternative formats besides websites, is there additional guidance or requirements we should adopt to
ensure accessibility to individuals with disabilities?
180. Further, we seek comment on possible “direct notification” requirements, including the
costs and benefits of such requirements. The 2015 Open Internet Order had imposed such an
obligation,
581
but the RIF Order eliminated that requirement.
582
The Commission also recently declined to
573
RIF Order, 33 FCC Rcd at 444, para. 229.
574
See, e.g., Broadband Label Order, FCC 22-86, paras. 68-77. The OPEN Government Data Act, of 2018, Pub. L.
No. 115-435 (2019) §§ 201-202, Title II of the Foundations for Evidence-Based Policymaking Act, requires
agencies to use a machine-readable format when making data publicly available. See 44 U.S.C. § 3506(b)(6); id. §§
3502(17), (20), (22) (defining “data asset,” “open Government data asset,” and “public data asset”). The term
“machine-readable,” when used with respect to data, means “data in a format that can be easily processed by a
computer without human intervention while ensuring no semantic meaning is lost.” Id. § 3502(18).
575
See Broadband Label Order, FCC 22-86, para. 90 (requiring ISPs to display labels after the consumer enters any
required location information and on the provider’s primary advertising web page that identifies the plans available
to the consumer, which is considered to be the point of sale).
576
See, e.g., RIF Order, 33 FCC Rcd at 444, para. 229; 2015 Open Internet Order, 30 FCC Rcd at 5680-81, paras.
179-80; 2010 Open Internet Order, 25 FCC Rcd at 17940, para. 58 n.186.
577
RIF Order, 33 FCC Rcd at 444, para. 229.
578
See generally WC3 Web Accessibility Initiative, WCAG 2 Overview, https://www.w3.org/WAI/standards-
guidelines/wcag (last updated July 24, 2023).
579
Broadband Label Order, FCC 22-86, paras. 81-82.
580
Broadband Label Further Notice, FCC 22-86, para. 133.
581
2015 Open Internet Order, 30 FCC Rcd at 5677, para. 171.
582
RIF Order, 33 FCC Rcd at 444-45, para. 230.
Federal Communications Commission FCC-CIRC2310-01
86
adopt a direct notification requirement in the context of its broadband label rules, finding that the
broadband labels are specifically intended to inform consumers at the time of purchase.
583
We note,
however, the broader purpose of the transparency rule compared to the broadband labels. We therefore
seek further comment and updated information on the benefits and burdens of such a requirement in the
specific context of the transparency rule, in light of this more recent experience.
181. Finally, we seek comment on any other changes to our transparency rule regarding the
means of disclosure. Are there additional requirements regarding the means of disclosure under the
transparency rule that the Commission should adopt to ensure that information is available in a timely and
effective manner? Conversely, are there existing requirements regarding the means of disclosure that
commenters believe impose burdens that outweigh their benefits, and thus should be eliminated?
4. Implementation and Other Issues
182. We seek comment on any implementation issues associated with potential modifications
to the transparency rule, and whether we should consider additional time for compliance by small
providers.
183. We also seek comment on whether the Commission should adopt new safe harbors for
compliance with the transparency rule. Are there particular data sources or methodologies for complying
with particular elements of the transparency rule, whether in its current form or as proposed to be
modified here, that the Commission should treat as a safe harbor or otherwise presumptively reasonable?
Are there safe harbors the Commission should adopt for compliance with the transparency rule as a
whole, akin to the broadband label safe harbor adopted in the 2015 Open Internet Order?
584
184. Further, we seek comment on whether we should adopt recordkeeping requirements
governing the types of information or records ISPs rely upon to support the content of their disclosures
made under the transparency rule. Would such a requirement be helpful to our enforcement of the
transparency rule by enabling us to evaluate the reasonableness of ISPs’ claims? Would such
requirements help inform our evaluation of the effectiveness of the rule and the need for changes over
time? This requirement could, for example, help to identify and account for particular data sources or
methodologies that prove to be especially reliable or unreliable. In the Broadband Label Order, the
Commission required ISPs to maintain an archive of all labels no longer posted on their websites and at
alternate sales channels, along with evidence sufficient to support the accuracy of the labels’ content.
585
Given that ISPs must have a basis for the claims made in their disclosures under the transparency rule, are
there particular ways of retaining that information that could minimize the burden on ISPs? If we elect to
adopt recordkeeping requirements, what period of time would best balance the benefits to the
Commission from having the information available against the compliance burden for ISPs?
185. In addition, we seek comment on the overall cost effectiveness of modifications we might
adopt to the transparency rule. What are the most cost-effective ways of ensuring that consumers and
edge providers receive the information they need in a timely and effective manner? How can we
minimize implementation and compliance burdens for ISPs, consistent with those goals?
D. Scope of Open Internet Rules
186. Internet Traffic Exchange. We propose to decline to apply any open Internet rules to
583
Broadband Label Order, FCC 22-86, paras. 105-106.
584
2015 Open Internet Order, 30 FCC Rcd at 5679-81, paras. 176-81 (discussing the safe harbor); see also
Consumer and Governmental Affairs, Wireline Competition, and Wireless Telecommunications Bureaus Approve
Open Internet Broadband Consumer Labels, Public Notice, 31 FCC Rcd 3358 (CGB/WCB/WTB 2016) (Broadband
Label Public Notice) (approving consumer labels for use as safe harbors).
585
Broadband Label Order, FCC 22-86, paras. 102-103 (requiring ISPs to maintain the archive for two years and to
provide any archived label to the Commission, upon request, within 30 days).
Federal Communications Commission FCC-CIRC2310-01
87
Internet traffic exchange.
586
We tentatively conclude, consistent with the 2015 Open Internet Order and
as discussed further below, that case-by-case review under sections 201 and 202 is “an appropriate
vehicle for enforcement where disputes are primarily over commercial terms and that involve some very
large corporations, including companies like transit providers and CDNs, that act on behalf of smaller
edge providers.”
587
We believe that the best approach with respect to Internet traffic exchange is to
“watch, learn, and act as required” but to not intervene with prescriptive rules.
588
We seek comment on
our proposed approach.
187. Reasonable Network Management. We also propose that reasonable network
management would not be considered a violation of prohibitions on blocking and throttling, or the general
conduct rule, and seek comment on our proposal.
589
In 2015, the Commission concluded that a reasonable
network management exception to the conduct rules was necessary for ISPs to optimize overall network
performance and maintain a consistent quality experience for consumers while carrying a variety of traffic
over their networks.
590
We tentatively conclude this analysis remains equally applicable today and seek
comment on this tentative conclusion. Is excluding reasonable network management practices still both
necessary and advisable? In the RIF Order, the Commission defined “reasonable network management”
to mean “a practice ‘appropriate and tailored to achieving a legitimate network management purpose,
taking into account the particular network architecture and technology of the broadband Internet access
service,’” returning to the definition the Commission adopted in the 2010 Open Internet Order.
591
In
2015, the Commission had slightly modified that definition, adding that “a network management practice
is a practice that has a primarily technical network management justification, but does not include other
business practices.”
592
We seek comment on how we should define “reasonable network management”
for the purposes of our proposed open Internet rules, and invite commenters to provide examples of how
this term is best interpreted with regard to management of today’s broadband networks. Is it necessary
for the Commission to provide further guidance on the reasonable network management exception to
provide certainty for ISPs? How can we ensure that the reasonable network management exception is not
used to circumvent the proposed rules, while also providing regulatory certainty to ISPs and enabling
them to appropriately manage their networks?
E. Enforcement of Open Internet Rules
188. We seek comment on the best framework for enforcing any potential open Internet rules.
Our aims are to enable effective and timely conflict resolution and to provide clear guidance on allowed
and prohibited practices. We seek comment on what enforcement regime will be most efficient and least
burdensome for customers, edge providers, and ISPs, including small entities.
189. In 2010, the Commission adopted a multipart framework to ensure prompt and effective
enforcement of the open Internet rules and encouraged informal and private resolution of matters.
593
The
first component involved informal complaints filed under section 1.41 of the Commission’s rules. The
Commission noted that this vehicle was “already available” and that “no filing fee is required.”
594
586
2015 Open Internet Order, 30 FCC Rcd at 5687, para. 195.
587
Id. at 5686, para. 193.
588
Id. at 5611, para. 31.
589
Id. at 5700, para. 215.
590
Id.
591
RIF Order, 33 FCC Rcd at 441, para. 220; 2010 Open Internet Order, 25 FCC Rcd at 17952, para. 82.
592
2015 Open Internet Order, 30 FCC Rcd at 5700, para. 215.
593
2010 Open Internet Order, 25 FCC Rcd at 17986, para. 151.
594
Id. at 17986, para. 153.
Federal Communications Commission FCC-CIRC2310-01
88
“Although individual informal complaints will not typically result in written Commission orders,” the
Commission explained that the Enforcement Bureau “will examine trends or patterns in [informal]
complaints to identify potential targets for investigation and enforcement action.”
595
Should informal or
other means fail to resolve a dispute, the Commission adopted new procedures for filing formal
complaints that would “permit anyone—including individual end users and edge providers—to file a
claim alleging that another party has violated a statute or rule, and asking the Commission to rule on the
dispute.”
596
The Commission opted to base the formal complaint rules on the Part 76 cable access
complaint rules, finding that those rules are “more streamlined and thus preferable.”
597
Citing sections
403 and 503(b) of the Act,
598
the Commission further observed that it has the authority to initiate
enforcement actions on its own motion, including the issuance of forfeitures.
599
190. Advisory Opinions and Enforcement Advisories. In 2015, the Commission concluded
that the use of advisory opinions, similar to those issued by DOJ’s Antitrust Division, would be in the
public interest and had the potential to provide clarity, guidance, and predictability concerning the
Commission’s open Internet rules.
600
We seek comment on whether this conclusion remains valid today.
We also seek comment on whether we should adopt the mechanisms delineated in the 2015 Open Internet
Order for the issuance of advisory opinions and enforcement advisories to advance our goal of legal
certainty in the enforcement of any potential open Internet rules.
601
The RIF Order eliminated the
advisory opinion process established in the 2015 Open Internet Order, reasoning that without conduct
rules, advisory opinions were no longer necessary, and concluding that the advisory opinion process did
not diminish regulatory uncertainty, particularly for small providers, but rather added costs, caused
uncertain timelines, and inhibited innovations.
602
We seek comment on the RIF Order’s assessments
regarding the advisory opinion process, which were based on predictive comments in the record because
no ISP had yet requested an advisory opinion through the Commission’s process.
603
In practice, we
believe that advisory opinions have the potential to lower costs for providers by creating certainty up
front, rather than risking potentially costly formal complaint litigation, remediation, or fines after the fact.
Do commenters agree? Are there examples of other federal or state advisory opinion processes from
which the Commission could learn? Are there specific barriers that would prevent smaller ISPs from
engaging with the advisory opinion process, and if so, how could we address them? If commenters
support the adoption of an advisory opinion process, what changes, if any, should we make to the process
the Commission established in the 2015 Open Internet Order?
604
191. When the D.C. Circuit in USTA rejected the challenge to the 2015 Open Internet Order’s
general conduct standard as being unconstitutionally vague, the Court relied in part on the advisory
opinion process the Commission had created in that Order.
605
The D.C. Circuit found that the opportunity
595
Id.
596
Id. at 17987, para. 154.
597
Id. at 17987, para. 155.
598
47 U.S.C. §§ 403 (permitting the Commission to initiate an inquiry concerning any question arising under the
Act), 503(b) (authorizing the Commission to issue citations and impose forfeiture penalties for rules violations).
599
2010 Open Internet Order, 25 FCC Rcd at 17988, para. 160.
600
Id. at 5706, para. 229.
601
Id. at 5706-5710, paras. 229-39.
602
RIF Order, 33 FCC Rcd at 490, para. 303.
603
Id.
604
See 2015 Open Internet Order, 30 FCC Rcd at 5706-5707, paras. 229-39.
605
See USTA, 825 F.3d at 738-39 (finding that the advisory opinion procedure the Commission adopted in 2015 to
accompany the standard “cure[d] it of any potential lingering constitutional deficiency”).
Federal Communications Commission FCC-CIRC2310-01
89
for parties to obtain prospective guidance through the advisory opinion process “provide[d] regulated
entities with relief from [remaining] uncertainty.”
606
In light of the D.C. Circuit’s reasoning in USTA, we
seek comment on whether an advisory opinion process is necessary if we adopt a general conduct
standard. Or would a detailed explanation of the factors the Commission would use when analyzing
potential violations of the standard be sufficient under the D.C. Circuit’s reasoning to provide fair
warning to regulated entities of what the standard requires?
F. Investigations and Complaints
192. We next seek comment on whether it would be beneficial to re-establish a formal
complaint process for complaints arising under our open Internet rules, as the Commission did in 2015.
In 2015, the Commission preserved the three avenues for enforcement of its open Internet rules that the
Commission had created in the 2010 Open Internet Order:
607
(i) parties could file informal complaints
under section 1.41 of the Commission’s existing rules;
608
(ii) parties could file formal complaints under a
new process that the Commission had created for this purpose;
609
or (iii) the Commission could initiate
enforcement actions on its own motion.
610
While the informal complaint process under section 1.41 of the
Commission’s rules would remain available to parties with respect to any concerns arising out of any
open Internet rules that may be ultimately adopted,
611
we seek comment on whether we should also adopt
a formal complaint process. Is there value in providing parties with both of these options? Is our formal
complaint process established pursuant to section 208 of the Act sufficient for this purpose, or is it
necessary to establish a standalone formal complaint process?
612
The Commission eliminated the open
Internet-specific formal complaint process in 2018.
613
If we were to adopt a formal complaint process,
should we implement one that returns to the rules the Commission adopted in the 2010 Open Internet
Order
614
and preserved in the 2015 Open Internet Order?
615
If not, what alternatives do commenters
recommend? The section 208 formal complaint rules were modified in 2018 and consolidated with the
Commission’s pole attachment rules.
616
Should we use these existing rules for open Internet disputes?
We also seek comment on whether the Commission’s informal complaint mechanism would be sufficient
to resolve disputes under our proposed open Internet rules.
G. Legal Authority
193. We seek comment on our authority to adopt open Internet rules, including both the
proposed conduct rules and any revised transparency rules. With respect to our proposed conduct rules,
we propose to rely on the same sources of authority that the Commission relied upon when it adopted
606
Id. at 738 (internal citations omitted).
607
2015 Open Internet Order, 30 FCC Rcd at 5710, para. 242.
608
See 2010 Open Internet Order, 25 FCC Rcd at 17986-87, para. 153.
609
See id. at 17987-89, paras. 154-59.
610
See id. at 17989, para. 160.
611
47 CFR § 1.41. The informal complaint process requires no filing fee, encompasses anonymous requests, and
aids the Commission in identifying potential targets for investigation.
612
See 47 U.S.C. § 208; 47 CFR §§ 1.720-1.736; 2010 Open Internet Order, 25 FCC Rcd at 17987-89, paras. 154-
59; 2015 Open Internet Order, 30 FCC Rcd at 5713, para. 252.
613
See RIF Order, 33 FCC Rcd at 490, para. 302.
614
2010 Open Internet Order, 25 FCC Rcd at 17986-89, paras. 151-60.
615
See 2010 Open Internet Order, 25 FCC Rcd at 17987-89, paras. 154-59; 2015 Open Internet Order, 30 FCC Rcd
at 5704-5705, 5710-14, and 5715-18, paras. 226, 242-53, and 257-65.
616
See Amendment of Procedural Rules Governing Formal Complaint Proceedings Delegated to the Enforcement
Bureau, 33 FCC Rcd 7178 (2018).
Federal Communications Commission FCC-CIRC2310-01
90
rules in the 2015 Open Internet Order.
617
As discussed below, we propose to return to our prior
interpretation, upheld by the D.C. Circuit, that sections 706(a) and (b) of the 1996 Act are grants of
regulatory authority and rely on that as a basis for our open Internet rules. We also propose to rely on our
authority under Title II of the Act with forbearance where appropriate under section 10 of the Act, insofar
as we reclassify BIAS as a Title II service. And we propose to once again rely on our broad spectrum
management authority under Title III of the Act as additional authority specifically in the case of mobile
providers. With respect to the proposed modifications to the transparency rule, we propose to rely on
those same sources of authority along with section 257 (and associated authority now in section 13) of the
Act, consistent with the reasoning of the 2010 Open Internet Order and the RIF Order. We seek
comment on those proposals, and any additional sources of authority for our proposed open Internet rules,
both as a general matter and in the specific respects discussed below. We also seek comment on how
policy goals enumerated in the Act or other federal statutes should inform our exercise of regulatory
authority here.
1. Section 706 of the 1996 Act
194. We seek comment on returning to an interpretation of section 706 of the 1996 Act as
granting the Commission regulatory authority and, in turn, relying on that authority as a basis for open
Internet rules.
618
In particular, although the RIF Order departed from the Commission’s prior
interpretation of section 706 and instead concluded that the provision was merely hortatory,
619
we propose
to return to the Commission’s prior view and interpret sections 706(a) and (b) of the 1996 Act as grants of
regulatory authority. We propose to do so in light of the considerations that persuaded the Commission to
adopt such interpretations in the past, and that persuaded courts to affirm those interpretations.
620
Consistent with that prior approach, we propose to rely on section 706(a) as part of our authority for open
Internet rules. We also propose to rely on section 706(b), in the event that the Commission were to
conclude under section 706(a) that advanced telecommunications capability is not being deployed to all
Americans in a reasonable and timely fashion. We seek comment on those proposals generally.
195. First, we seek comment on the grounds for returning to the prior judicially affirmed
interpretations of sections 706(a) and (b) of the 1996 Act as granting the Commission regulatory
authority. The RIF Order principally grounded its rationale for changing the interpretation of section 706
on its view that section 706 was better interpreted as hortatory, rather than as a grant of regulatory
authority.
621
To the extent that we instead believe that interpreting sections 706(a) and (b) as grants of
regulatory authority represent the better reading of the statute, we believe that likewise should provide a
basis for us to change our interpretation. We seek comment on this view. In addition, we seek comment
on any other arguments bearing on whether and to what extent we should return to the prior interpretation
of sections 706(a) and (b) as grants of regulatory authority.
617
See, e.g., 2015 Open Internet Order, 30 FCC Rcd at 5720-31, paras. 273-98.
618
Telecommunications Act of 1996, Pub. L. No. 104-104, § 706 (1996), codified at 47 U.S.C. § 1302.
619
RIF Order, 33 FCC Rcd at 470-80, paras. 268-83.
620
See, e.g., 2015 Open Internet Order, 30 FCC Rcd at 5720-24, 5731, paras. 274-82, 298 (explaining that sections
706(a) and (b) each represent a grant of regulatory authority to the Commission and that the Commission can adopt
and enforce implementing rules, and rejecting arguments to the contrary); 2010 Open Internet Order, 25 FCC Rcd at
17968-72, paras. 117-23 (explaining that sections 706(a) and (b) each represent a grant of regulatory authority to the
Commission, and rejecting arguments to the contrary); Verizon, 740 F.3d at 635-42 (affirming as reasonable the
Commission’s interpretation that sections 706(a) and (b) are grants of regulatory authority); In re FCC 11-161, 753
F.3d 1015, 1049-54 (10th Cir. 2014) (while failing to recognize that the Commission had interpreted section 706(a)
as a grant of regulatory authority in the 2010 Open Internet Order, affirming the Commission’s reliance on section
706(b) as a grant of regulatory authority); USTA, 825 F.3d at 733-34 (affirming as reasonable the Commission’s
interpretation that sections 706(a) and (b) are grants of regulatory authority).
621
RIF Order, 33 FCC Rcd at 470, 472-73, 479-80, paras. 268, 271, 282.
Federal Communications Commission FCC-CIRC2310-01
91
196. Second, we seek comment on specific rationales for interpreting sections 706(a) and (b)
of the 1996 Act as grants of regulatory authority. In the 2010 Open Internet Order, the Commission
explained why sections 706(a) and (b) each represent a grant of regulatory authority to the Commission
after considering the statutory text, regulatory and judicial precedent, and legislative history, and rejecting
objections to that interpretation.
622
In addition, in the 2015 Open Internet Order, the Commission built on
the foundation of its explanations in the 2010 Open Internet Order, rejecting various objections to the
interpretation of sections 706(a) and (b) as grants of regulatory authority and elaborating on the
Commission’s authority to adopt rules implementing that provision, and to enforce those rules.
623
We
seek comment on that reasoning and conclusions regarding the interpretation and implementation of
section 706, and on the extent to which we should rely on that today. We also seek comment on whether
and to what extent we also should draw upon the reasoning of court decisions affirming the
Commission’s interpretation of section 706 of the 1996 Act as granting regulatory authority—in
particular, the D.C. Circuit’s 2014 decision in Verizon and its 2016 decision in USTA, as well as the Tenth
Circuit’s 2014 decision in In re FCC 11-161.
624
197. Third, to the extent that we interpret sections 706(a) and (b) of the 1996 Act as grants of
regulatory authority, we propose to use that authority to adopt open Internet rules here. The Commission
previously concluded in the 2015 Open Internet Order and 2010 Open Internet Order that open Internet
rules were a reasonable way to implement Commission authority under sections 706(a) and (b),
625
and the
nexus between open Internet rules and the directives in sections 706(a) and (b) was affirmed by the D.C.
Circuit in Verizon.
626
For those same reasons, we believe the open Internet rules we seek comment on
here would be a reasonable exercise of section 706(a) authority. We likewise believe that, in the event
that the Commission concludes that advanced telecommunications capability is not being deployed to all
Americans in a reasonable and timely fashion under section 706(b), the open Internet rules we seek
comment on here would be a reasonable exercise of authority under that provision as well.
198. Finally, we seek comment on any other issues bearing on our interpretation and
implementation of section 706 of the 1996 Act here, including possible objections to the interpretation of
sections 706(a) and (b) as grants of regulatory authority. For example, when the D.C. Circuit concluded
that the RIF Order permissibly reinterpreted section 706 as hortatory, rather than as a grant of regulatory
authority, the court focused on the recognized ambiguity of the statutory language and the Commission’s
justification “that Section 706 lacks details ‘identify[ing] the providers or entities whose conduct could be
regulated,’ whereas other provisions of the Act that unambiguously grant regulatory authority do specify
such details.”
627
We seek comment on that rationale. How is section 706 of the 1996 Act distinct in this
regard from other provisions understood as grants of authority in the Telecommunications Act of 1996,
the Communications Act of 1934, or other federal statutes? The RIF Order itself recognized that, in
relying on section 257 of the Act as authority for the transparency rule, it was interpreting that provision
622
See 2010 Open Internet Order, 25 FCC Rcd at 17968-72, paras. 117-23.
623
See 2015 Open Internet Order, 30 FCC Rcd at 5720-24, 5731, paras. 274-82, 298 (discussing, for example,
arguments in the 2010 Open Internet Order and subsequent court cases affirming the view that section 706 of the
1996 Act is a grant of regulatory authority, describing the Commission’s authority to adopt rules implementing
section 706 and to enforce those rules based on the Act and implicit in section 706 of the 1996 Act, and further
elaborating on limitations on the Commission’s exercise of authority under section 706 of the 1996 Act that render it
appropriately bounded, and citing, among other things, Verizon v. FCC, 740 F.3d 623, 637-43 (D.C. Cir. 2014) and
In re FCC 11-161, 753 F.3d 1015, 1053 (10th Cir. 2014)).
624
Verizon, 740 F.3d at 635-42; USTA, 825 F.3d at 734; In re FCC 11-161, 753 F.3d at 1049-54.
625
See, e.g., 2015 Open Internet Order, 30 FCC Rcd at 5721, 5723-24, paras. 275, 281-82; 2010 Open Internet
Order, 25 FCC Rcd at 17968, 17971-72, paras. 117, 122, 123.
626
Verizon, 740 F.3d at 642-49.
627
Mozilla, 940 F.3d at 46 (quoting RIF Order, 33 FCC Rcd at 472-73, para. 271).
Federal Communications Commission FCC-CIRC2310-01
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as a grant of authority notwithstanding its lack of any identified universe of entities from which
information could be obtained, explaining that “other aspects of section 257 persuade us that our
interpretation of that provision as a grant of authority.
628
To what extent do other aspects of section 706
bear on the reasonableness of interpreting sections 706(a) and (b) as grants of authority?
199. We also seek comment on other theories discussed in the RIF Order as a basis for why
section 706 of the 1996 Act not just permissibly could, but affirmatively should, be interpreted as merely
hortatory, rather than a grant of regulatory authority to the Commission. For example, the RIF Order
contended that interpreting sections 706(a) and (b) as grants of regulatory authority would allow the
Commission “to impose duties or adopt regulations equivalent to those directly addressed by the
provisions of the Communications Act focused on promoting competition and/or deployment that go
beyond the entities, contexts, and circumstances that bounded the Communications Act provisions.”
629
The RIF Order also argued that if sections 706(a) and (b) were interpreted as grants of regulatory
authority that would enable the Internet and information services to be heavily regulated in a manner
inconsistent with policy goals reflected in the Act.
630
We seek comment on those theories. The RIF
Order acknowledged that the Commission’s prior interpretation of section 706 was, by its own terms,
constrained to be consistent with the Act, but claimed that such constraints did not adequately address the
Order’s statutory concerns.
631
In the view of the RIF Order, seemingly the only outcomes of interpreting
section 706 as granting regulatory authority would be extreme results where those constraints had little
meaning and left the Commission with essentially unbounded authority or were such severe limitations as
to render section 706 of little possible use.
632
We tentatively conclude that this view is unfounded and
invite more robust analysis of these issues in the record here, along with any related arguments.
200. The RIF Order also cited concerns about the Commission’s ability to enforce rules
implementing section 706 of the 1996 Act as further grounds for interpreting it as merely hortatory.
633
The Order did not reject the theory that section 706 could be read to include implicit enforcement
authority, but contended that such implicit authority “might enable actions like declaratory rulings or
cease-and-desist orders, but would not appear to encompass authority to impose penalties given the
absence of statutory language clearly granting that authority.”
634
We seek comment on this understanding
of the scope of potential enforcement authority that could be implicit in section 706. Even assuming
arguendo that scope of enforcement authority were accurate, why should we conclude that the resulting
scope of our enforcement authority is so insignificant as to counsel against interpreting sections 706(a)
and (b) as grants of regulatory authority? Further, the RIF Order rejected the view that the use of section
4(i) of the Act to adopt rules implementing section 706 of the 1996 Act would be sufficient to bring those
rules within the purview of the Commission’s enforcement authority under section 503 of the Act. The
RIF Order reasoned that enforcement authority under section 503 is limited to rules based on substantive
regulatory authority under the Act itself, rather than the rulemaking authority in section 4(i).
635
We seek
comment on the merits of this interpretation.
2. Title II of the Act With Forbearance
201. As in the 2015 Open Internet Order, we propose again to rely on sections 201, 202, and
628
RIF Order, 33 FCC Rcd at 472-73, para. 271 n.1000.
629
Id. at 473, para. 272.
630
Id. at 473-74, paras. 273-74.
631
Id. at 475-76, paras. 276-77.
632
See id.
633
Id. at 477-79, paras. 279-80.
634
Id. at 477-78, para. 279.
635
Id. at 477-79, paras. 279-80.
Federal Communications Commission FCC-CIRC2310-01
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208 of the Act, along with the related enforcement authorities of sections 206, 207, 209, 216, and 217, as
additional legal authority for the proposed open Internet rules.
636
And consistent with the 2010 Open
Internet Order and the RIF Order,
637
and as affirmed by the D.C. Circuit in Mozilla,
638
we propose also to
rely on section 257 of the Act (now in conjunction with section 13 of the Act)
639
as additional legal
authority for the transparency rule, as we propose to modify it here. We seek comment on these
proposals.
202. We also seek comment on any additional sources of authority under Title II of the Act
that could serve as authority for open Internet rules. For example, the RIF Order cataloged arguments
about other possible sources of Title II authority for open Internet rules in sections 251(a), 256, and 275
of the Act identified in the record there. The Commission at the time ultimately declined to rely on those
sources of authority due to perceived shortcomings in the record regarding the justification for their use,
640
and also took the view that they would not, even in the aggregate, provide authority for the Commission
to adopt open Internet rules addressing the full array of ISPs.
641
We seek comment on those possible
sources of authority, including both more-developed explanations for how and when they could serve as
regulatory authority for open Internet rules and whether there would be grounds for exercising that
authority under the regulatory approach we propose here.
3. Title III of the Act For Mobile Providers
203. As in the 2015 Open Internet Order, we propose to rely on our broad legal authority
under Title III of the Act
642
to protect the public interest through spectrum licensing and regulations—
including sections 303 and 316 of the Act—as additional legal authority for the proposed open Internet
rules in the case of mobile BIAS.
643
The RIF Order conceded the viability of Title III authority in this
regard, but declined to exercise that authority because it would be limited to rules for mobile ISPs, rather
than providing authority for rules governing all ISPs.
644
We do not believe that concern of the RIF Order
is likely to arise under our proposed regulatory approach here, and we seek comment on that
understanding. We recognize that the D.C. Circuit’s Mozilla decision includes a brief statement as part of
its review of the RIF Order’s preemption decision stating that BIAS is not “radio transmission,” so Title
III does not apply.
645
But the RIF Order did not attempt to apply (or justify applying) Title III, and the
Mozilla decision did not develop any reasoning in support of that assertion. Particularly given that
backdrop, we do not believe the court’s statement should be read to call into question the Commission’s
636
See, e.g., 2015 Open Internet Order, 30 FCC Rcd at 5724-25, 5726-28, paras. 283-84, 289-92.
637
2010 Open Internet Order, 25 FCC Rcd at 17980-81, para. 136 n.444; RIF Order, 33 FCC Rcd at 445-47, paras.
232-34.
638
Mozilla, 940 F.3d at 47-49.
639
RAY BAUM’S Act of 2018 eliminated section 257(c) of the Act, and instead included language in new section
13 of the Act, 47 U.S.C. § 163, requiring similar review under that provision. See, e.g., Mozilla, 940 F.3d at 47
(noting that while section 257(c) was removed from the Communications Act before the 2018 Order became
effective, it was not altered in any material respect for purposes of the Commission’s authority in this regard, and
that Congress emphasized that “[n]othing in this title or the amendments made by this title shall be construed to
expand or contract the authority of the Commission”).
640
See, e.g., RIF Order, 33 FCC Rcd at 445-46, paras. 284-85.
641
See, e.g., id. at 446-47, paras. 286-88.
642
See, e.g., CellCo P’ship v. FCC, 700 F.3d 534, 541-49 (D.C. Cir. 2012) (affirming the Commission’s data
roaming rules as an exercise of the Commission’s spectrum management authority under Section 316 and 303(r)).
643
See, e.g., 2015 Open Internet Order, 30 FCC Rcd at 5725, paras. 285-87.
644
See, e.g., RIF Order, 33 FCC Rcd at 485, para. 292.
645
Mozilla, 940 F.3d at 76.
Federal Communications Commission FCC-CIRC2310-01
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prior recognition that mobile BIAS falls within the scope of Title III. We seek comment on these views
and on any additional provisions in Title III of the Act that could serve as authority for open Internet rules
in the case of mobile BIAS or otherwise.
4. Other Possible Sources of Legal Authority
204. We seek comment on any other possible sources of legal authority for open Internet rules.
For example, the 2010 Open Internet Order relied on additional sources of authority apart from section
706 of the 1996 Act and Titles II and III of the Act—in particular, sources under Title VI of the Act.
646
The RIF Order expressly declined to rely on those sources of authority given what that Order identified
as limitations regarding the justification for the use of those authorities, as well as the RIF Order’s view
that they would not, even in the aggregate, provide authority for the Commission to adopt open Internet
rules addressing the full array of ISPs.
647
We seek more developed comment on that possible Title VI
authority and on any other possible sources of authority under the Act.
205. In addition, we seek comment on additional sources of authority outside the Act. For
example, the recent bipartisan Infrastructure Act built upon the foundation of the transparency rule and
broadband label requirements from the 2015 Open Internet Order to require the Commission to adopt
new broadband label rules.
648
Does that law provide additional authority for rules here, particularly as it
relates to possible modifications of the transparency rule?
206. We also seek comment on whether the Commission should rely on ancillary authority in
conjunction with other primary sources of legal authority in adopting open Internet rules in any respects.
To the extent that commenters advocate such an approach, they should explain how the prerequisites for
ancillary authority would be met,
649
particularly by explaining why the action would help effectuate
regulatory authority granted to the Commission under other statutory provisions.
H. Other Laws and Considerations
207. The 2015 Open Internet Order discussed the relationship between the open Internet rules
adopted there and ISPs’ rights or obligations with respect to other laws, safety and security
considerations, or the ability of ISPs to make reasonable efforts to address transfers of unlawful content
and unlawful transfers of content.
650
We propose continuing that approach in the case of the rules upon
which we seek comment here, and seek comment on that proposal, along with specific language for open
Internet rules intended to achieve the objectives discussed below, and any additional ways in which we
should account for similar interests in the codified rules.
208. Consistent with the 2015 Open Internet Order, we propose that the open Internet rules
upon which we seek comment here would not expand or contract ISPs’ rights or obligations with respect
to other laws or preclude them from responding to safety and security considerations—including the
needs of emergency communications and law enforcement, public safety, and national security
authorities.
651
The 2015 Open Internet Order specifically highlighted examples of other laws imposing
646
2010 Open Internet Order, 25 FCC Rcd at 17974-78, paras. 127-32. For example, the 2010 Open Internet Order
invoked several provisions of Title VI of the Act. See, e.g., id. at 17974-78, paras. 127, 129-32 (citing 47
U.S.C. §§ 536, 548)
647
See, e.g., RIF Order, 33 FCC Rcd at 484, paras. 290-91.
648
Infrastructure Act, § 60504(a).
649
To exercise ancillary authority “two conditions [must be] satisfied: (1) the Commission’s general jurisdictional
grant under Title I [of the Communications Act] covers the regulated subject and (2) the regulations are reasonably
ancillary to the Commission's effective performance of its statutorily mandated responsibilities.” Am. Library Ass'n
v. FCC, 406 F.3d 689, 691-92 (D.C. Cir. 2005).
650
2015 Open Internet Order, 30 FCC Rcd at 5731-33, paras. 299-305.
651
Id. at 5731-32, paras. 300-303.
Federal Communications Commission FCC-CIRC2310-01
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requirements in these respects, such as the Communications Assistance for Law Enforcement Act, the
Foreign Intelligence Surveillance Act, and the Electronic Communications Privacy Act, and we again
seek comment as to those specific laws along with any others that should inform our analysis.
652
We
propose to adopt the same rule language in this regard as was adopted in the 2015 Open Internet Order:
Nothing in this part supersedes any obligation or authorization a provider of broadband Internet
access service may have to address the needs of emergency communications or law enforcement,
public safety, or national security authorities, consistent with or as permitted by applicable law,
or limits the provider’s ability to do so.
653
We seek comment on this approach and on alternative approaches to protecting these interests, including
whether the rule should capture other possible emergency communications and safety and security
scenarios. For example, the 2015 Open Internet Order elected not to expand the application of its rule in
this regard to public utilities and other critical infrastructure operators, reasoning that those interests
otherwise were protected under the approach it adopted.
654
Is that same approach appropriate here, or
should we address safety and security interests related to public utilities and other critical infrastructure
operators in some other way in any rules we may adopt here? Should our rules go further to affirmatively
require ISPs to take certain steps to address the needs of emergency communications or law enforcement,
public safety, or national security authorities? For example, should the rules go further in addressing the
categories of concerns raised before the Commission on remand of the RIF Order, such as the needs of
public safety personnel; concerns about particular harms to public safety that could result from blocking,
throttling, or paid prioritization; concerns about public safety needs for individuals with disabilities; or
concerns related to critical infrastructure?
655
209. Also consistent with the 2015 Open Internet Order, we propose that the open Internet
rules upon which we seek comment here would protect only lawful content, and would not be intended to
inhibit efforts by ISPs to address unlawful transfers of content or transfers of unlawful content.
656
We
propose to adopt the same rule language in this regard as was adopted in the 2015 Open Internet Order:
Nothing in this part prohibits reasonable efforts by a provider of broadband Internet access
service to address copyright infringement or other unlawful activity.
657
We seek comment on that approach and on alternative approaches to protecting these interests, including
whether the rule should capture other possible scenarios where ISPs might seek to address unlawful
transfers of content or transfers of unlawful content.
210. We also seek comment on whether there are other categories of otherwise-applicable
laws or legal requirements that should be addressed through comparable rules as those we propose to
address emergency communications and safety and security scenarios and efforts by ISPs to address
unlawful transfers of content or transfers of unlawful content. For example, the RIF Remand Order noted
comments expressing concern about the possible interplay between ISPs’ practices and laws protecting
individuals with disabilities.
658
Given that the regulatory approach proposed here differs significantly
from the one at issue in the RIF Remand Order, would such concerns still be relevant here? If so, would
652
Id. at 5732, para. 302 (citing 47 U.S.C. § 1002(a), 50 U.S.C. §§ 1802(a)(4), 1804, 1805(c)(2), and 18 U.S.C. §§
2518, 2705).
653
Id. at 5731-32, para. 300.
654
Id. at 5732, para. 303.
655
RIF Remand Order, 35 FCC Rcd at 12366-68, paras. 46-65.
656
2015 Open Internet Order, 30 FCC Rcd at 5732-33, paras. 304-305.
657
Id. at 5732-33, para. 304.
658
See, e.g., RIF Remand Order, 35 FCC Rcd at 12364-66, paras. 61-63.
Federal Communications Commission FCC-CIRC2310-01
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it be appropriate to address them through a rule specifically focused on those categories of laws? Are
there additional otherwise-existing legal requirements imposed on ISPs that we should expressly
accommodate in any rules we adopt?
VI. CONSTITUTIONAL CONSIDERATIONS
211. Consistent with the constitutional considerations the Commission has evaluated in
connection with its regulatory approach to BIAS in the past, we seek comment on First Amendment
speech issues and Fifth Amendment takings issues. In addition, we also seek comment on any other
constitutional considerations that should inform our evaluation of the issues raised in this proceeding.
A. First Amendment
212. We seek comment on any First Amendment implications of the issues raised in this
proceeding, both as a general matter and in the specific respects discussed below. Consistent with prior
Commission analyses, we believe our open Internet conduct rule proposals and proposed modifications to
the transparency rule are permissible exercises of authority under the First Amendment.
1. Free Speech Rights
213. We anticipate that our proposals would withstand any review under the First Amendment
for the same reasons explained by the Commission in the 2015 Open Internet Order.
659
In particular, as
explained in that Order,
660
and ultimately affirmed by the D.C. Circuit in USTA,
661
under traditional First
Amendment doctrine there are no First Amendment concerns raised by the conduct regulation of common
carriers. We think the same reasoning is likely to apply here, and seek comment on that view.
214. Even if a court departed from the traditional common carrier First Amendment precedent,
we believe that our proposed conduct rules are likely to satisfy First Amendment scrutiny for the same
reasons further identified in the 2015 Open Internet Order.
662
Consistent with the explanation there, we
believe the conduct rules are likely to be seen as content-neutral and thus subject to intermediate First
Amendment scrutiny in this scenario.
663
We also find it likely that the proposed rules readily could
survive that level of scrutiny—advancing an important or substantial government interest unrelated to
limiting speech without burdening more speech than necessary—based on the same governmental
interests and nexus to the conduct rules identified by the Commission in the 2015 Open Internet Order.
664
We seek comment on that view and on any additional evidence and arguments bearing on the potential
application of the First Amendment in the case of the conduct rules proposed here.
215. Because the 2015 Open Internet Order was limited to offers of “mass-market” broadband
access to “all or substantially all Internet endpoints,” it would not have applied to offerings that were
clearly as advertised as providing only “filtered” Internet access catering to a particular audience or as
providing access only to curated content. We propose to adopt the same approach here and we seek
comment on this proposal. We also seek comment on whether or to what extent ISPs engage in content
moderation, curation, or otherwise limit or exercise control over what third-party content their users are
able to access on the Internet.
665
We are aware that some social media platforms and other edge providers
659
2015 Open Internet Order, 30 FCC Rcd at 5868-73, paras. 544-58.
660
Id. at 5868-71, 5873, paras. 544-52, 558.
661
USTA, 825 F.3d at 740-44.
662
2015 Open Internet Order, 30 FCC Rcd at 5872-73, paras. 553-58.
663
Id. at 5872, paras. 553-54.
664
Id. at 5872, paras. 554-56.
665
Cf. 2015 Open Internet Order, 30 FCC Rcd at 5869-70, para. 549 (finding little evidence that such ISPs exercise
meaningful control over the content which their users access on the Internet).
Federal Communications Commission FCC-CIRC2310-01
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purport to engage in various forms of content moderation or editorial control over content they host or
transmit, and typically announce that they engage in such practices in their terms of service of user
agreements; is there any record of ISPs announcing and engaging in comparable activity?
216. We also seek comment on the competing First Amendment views expressed by judges in
separate opinions accompanying the D.C. Circuit’s denial of requests to rehear the USTA case en banc.
On one hand, then-Judge Kavanaugh’s dissent expressed First Amendment concerns with the 2015 Open
Internet Order on the theory that “the First Amendment bars the Government from restricting the editorial
discretion of Internet service providers, absent a showing that an Internet service provider possesses
market power in a relevant geographic market”—a showing that the Commission had not made there.
666
On the other hand, Judges Srinivasan and Tatel, concurring in the denial of rehearing en banc, responded
to the dissent by arguing that “no Supreme Court decision supports the counterintuitive notion that the
First Amendment entitles an ISP to engage in the kind of conduct barred by the net neutrality rule—i.e.,
to hold itself out to potential customers as offering them an unfiltered pathway to any web content of their
own choosing, but then, once they have subscribed, to turn around and limit their access to certain web
content based on the ISP’s own commercial preferences.”
667
We seek comment on those views.
217. Referencing statements in the First Amendment analysis in Judges Srinivasan’s and
Tatel’s concurrence, the RIF Order contended that the 2015 Open Internet Order “allows ISPs to offer
curated services, which would allow ISPs to escape the reach of the [2015 Open Internet Order] and to
filter content on viewpoint grounds.”
668
We seek comment on the accuracy of that characterization and
how it should inform our analysis and approach here.
2. Compelled Disclosure
218. We also believe that the proposed modifications to the transparency rule are likely to
satisfy the First Amendment for the same reasons relied on by the Commission in its justification of the
transparency rules at issue in the 2015 Open Internet Order and the RIF Order.
669
As a threshold matter,
as explained in the RIF Order, we believe the speech addressed by our transparency rule is likely to be
limited to commercial speech.
670
We seek comment on that view.
219. We also believe that our transparency rule, as we propose to modify it here, is likely to be
understood by a court as limited to compelling the disclosure of factual, noncontroversial information
under circumstances that fall within the Zauderer First Amendment framework, consistent with the
Commission’s analysis in the 2015 Open Internet Order.
671
Also consistent with the analysis in the 2015
Open Internet Order, we believe our proposed modifications to the transparency rule are likely to be a
666
U.S. Telecom Ass’n v. FCC, 855 F.3d at 476 (Kavanaugh, J., dissenting from denial of rehearing en banc); see
also id. at 426-35 (Kavanaugh, J., dissenting from denial of rehearing en banc) (setting forth the details of his
analysis).
667
U.S. Telecom Ass’n v. FCC, 855 F.3d at 382 (Srinivasan, J., joined by Tatel, J., concurring in denial of rehearing
en banc); see also id. at 388-93 (Srinivasan, J., joined by Tatel, J., concurring in denial of rehearing en banc) (setting
forth the details of their analysis).
668
RIF Order, 33 FCC Rcd at 470, para. 266 (citing U.S. Telecom Ass’n v. FCC, 855 F.3d at 389 (Srinivasan, J.,
joined by Tatel, J., concurring in denial of rehearing en banc)).
669
2015 Open Internet Order, 30 FCC Rcd at 5873-75, paras. 559-63; RIF Order, 33 FCC Rcd at 448-50, paras.
235-38.
670
RIF Order, 33 FCC Rcd at 448, para. 235 n.854.
671
2015 Open Internet Order, 30 FCC Rcd at 5874, para. 561 (discussing, among other cases, Zauderer v. Office of
Disciplinary Counsel of Supreme Court of Ohio, 471 U.S. 626, 651 (1985)). Under Zauderer’s rational basis test,
mandatory factual disclosures will be sustained “as long as disclosure requirements are reasonably related to the
State’s interest.” Zauderer, 471 U.S. at 651; see also, e.g., Am. Meat Inst. v. U.S. Dep’t. of Agric., 760 F.3d 18, 22
(D.C. Cir. 2014) (en banc).
Federal Communications Commission FCC-CIRC2310-01
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reasonable way of advancing government interests in preventing consumer deception, among other things,
and thus would satisfy the Zauderer standard.
672
We believe that the disclosures required by our proposed
transparency rule are the sort of “purely factual and uncontroversial information about the terms under
which . . . services will be available” to which Zauderer applies.
673
We seek comment on the continued
applicability of that analysis from the 2015 Open Internet Order.
220. Alternatively, to the extent that a court evaluated the transparency rule with the
modifications proposed here under the Central Hudson framework, which applies generally to
commercial speech, we believe it also likely would satisfy First Amendment scrutiny under that standard
for the same reasons given in that regard in the RIF Order.
674
We believe our proposed modified
transparency rule is likely to directly advance substantial government interests and be no more extensive
than necessary, for reasons such as those identified in the RIF Order.
675
We seek comment on these views
and any other First Amendment considerations.
B. Fifth Amendment Takings
221. Consistent with the conclusions in the 2015 Open Internet Order, we do not believe the
proposals in this Notice—either the proposed classification decisions or the proposed rules—are likely to
result in per se takings because we do not anticipate that they would grant third parties a right to physical
occupation of the ISPs’ property.
676
And as the 2015 Open Internet Order recognized, where private
parties voluntarily open their networks to end users and edge providers, reasonable regulation of the use
of their property poses no takings issue.
677
We seek comment on the continued applicability of those
analyses here and any other considerations relevant to possible per se takings arguments.
222. Also consistent with the conclusions in the 2015 Open Internet Order, we do not believe
the proposals in this Notice—either the proposed classification decisions or the proposed rules—are likely
to result in regulatory takings.
678
Outside of per se takings cases, courts analyze putative government
takings through “essentially ad hoc, factual inquiries” into a variety of unweighted factors such as the
“economic impact of the regulation,” the degree of interference with “investment-backed expectations,”
and “the character of the government action.”
679
The 2015 Open Internet Order weighed these factors
and concluded that the actions taken there did not constitute regulatory takings, and we believe the same
is likely to be true of our proposals here.
680
We seek comment on these views.
VII. PROCEDURAL MATTERS
223. Ex Parte Rules. This proceeding shall be treated as a “permit-but-disclose” proceeding in
accordance with the Commission’s ex parte rules.
681
Persons making ex parte presentations must file a
copy of any written presentation or a memorandum summarizing any oral presentation within two
672
2015 Open Internet Order, 30 FCC Rcd at 5874-75, paras. 562-63.
673
See Nat’l Inst. of Family & Life Advocs. v. Becerra, 138 S. Ct. 2361, 2372 (2018) (quoting Zauderer, 471 U.S. at
651).
674
See, e.g., RIF Order, 33 FCC Rcd at 448, para. 235.
675
RIF Order, 33 FCC Rcd at 448-50, paras. 235-38.
676
2015 Open Internet Order, 30 FCC Rcd at 5875-77, paras. 564-68.
677
Id. at 5877-78, para. 569.
678
Id. at 5878-79, paras. 570-73.
679
Id. at 5878, para. 570 (quoting Penn Cent. Transp. Co. v. City of N.Y., 438 U.S. 104, 124 (1978) (internal
quotation marks omitted).
680
2015 Open Internet Order, 30 FCC Rcd at 5878-79, paras. 570-73.
681
47 CFR § 1.1200(a).
Federal Communications Commission FCC-CIRC2310-01
99
business days after the presentation (unless a different deadline applicable to the Sunshine period applies).
Persons making oral ex parte presentations are reminded that memoranda summarizing the presentation
must (1) list all persons attending or otherwise participating in the meeting at which the ex parte
presentation was made, and (2) summarize all data presented and arguments made during the
presentation. If the presentation consisted in whole or in part of the presentation of data or arguments
already reflected in the presenter’s written comments, memoranda, or other filings in the proceeding, the
presenter may provide citations to such data or arguments in his or her prior comments, memoranda, or
other filings (specifying the relevant page and/or paragraph numbers where such data or arguments can be
found) in lieu of summarizing them in the memorandum. Documents shown or given to Commission
staff during ex parte meetings are deemed to be written ex parte presentations and must be filed
consistent with Rule 1.1206(b).
682
Participants in this proceeding should familiarize themselves with the
Commission’s ex parte rules.
224. Comment Filing Procedures. Pursuant to sections 1.415 and 1.419 of the Commission’s
rules,
683
interested parties may file comments and reply comments on or before the dates indicated on the
first page of this document. Comments may be filed using the Commission’s Electronic Comment Filing
System (ECFS) or by paper. All filings must be addressed to the Commission’s Secretary, Office of the
Secretary, Federal Communications Commission.
Electronic Filers: Comments may be filed electronically by accessing ECFS at
https://www.fcc.gov/ecfs.
Paper Filers: Parties who choose to file by paper must file an original and one copy of each
filing. Paper filings can be sent by commercial overnight courier, or by first-class or overnight
U.S. Postal Service mail.
Effective March 19, 2020, and until further notice, the Commission no longer accepts any hand or
messenger delivered filings.
684
Commercial overnight mail (other than U.S. Postal Service Express Mail and Priority Mail) must
be sent to 9050 Junction Drive, Annapolis Junction, MD 20701.
U.S. Postal Service first-class, Express, and Priority Mail must be addressed to 45 L Street NE,
Washington, D.C. 20554.
225. People with Disabilities. To request materials in accessible formats for people with
disabilities (braille, large print, electronic files, audio format), send an e-mail to [email protected] or call
the Consumer and Governmental Affairs Bureau at 202-418-0530.
226. Regulatory Flexibility Act. The Regulatory Flexibility Act of 1980, as amended
(RFA),
685
requires that an agency prepare a regulatory flexibility analysis for notice and comment
rulemakings, unless the agency certifies that “the rule will not, if promulgated, have a significant
economic impact on a substantial number of small entities.”
686
Accordingly, the Commission has
prepared an Initial Regulatory Flexibility Analysis (IRFA) concerning the possible impact of the rule and
policy changes contained in this Notice of Proposed Rulemaking. The IRFA is set forth in Appendix B.
682
47 CFR § 1.1206(b).
683
47 CFR §§ 1.415, 1.419.
684
See FCC Announces Closure of FCC Headquarters Open Window and Change in Hand-Delivery Policy, DA 20-
304, Public Notice, 35 FCC Rcd 2788 (2020), https://www.fcc.gov/document/fcc-closes-headquarters-open-
window-and-changes-hand-delivery-policy.
685
See 5 U.S.C. § 603. The RFA, 5 U.S.C. §§ 601–612, was amended by the Small Business Regulatory
Enforcement Fairness Act of 1996 (SBREFA), Pub. L. No. 104-121, Title II, 110 Stat. 857 (1996).
686
Id.
Federal Communications Commission FCC-CIRC2310-01
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227. Paperwork Reduction Act. This document contains proposed new or modified
information collection requirements. The Commission, as part of its continuing effort to reduce
paperwork burdens, invites the general public and the Office of Management and Budget to comment on
the information collection requirements contained in this document, as required by the Paperwork
Reduction Act of 1995, Public Law 104-13. In addition, pursuant to the Small Business Paperwork Relief
Act of 2002, Public Law 107-198,
687
we seek specific comment on how we might further reduce the
information collection burden for small business concerns with fewer than 25 employees.
228. Further Information. For additional information on this proceeding, contact the Wireline
Competition Bureau at [email protected].
VIII. ORDERING CLAUSES
229. Accordingly, IT IS ORDERED, pursuant to the authority contained in sections 1, 2, 4(i)-
(j), 13, 201, 202, 208, 257, 303, and 316 of the Communications Act of 1934, as amended, and section
706 of the Telecommunications Act of 1996, as amended, 47 U.S.C §§ 151, 152, 154(i)-(j), 163, 201,
202, 208, 257, 303, 316, and 1302, that this Notice of Proposed Rulemaking IS ADOPTED.
230. IT IS FURTHER ORDERED that, pursuant to applicable procedures set forth in sections
1.415 and 1.419 of the Commission’s Rules, 47 CFR §§ 1.415, 1.419, interested parties may file
comments on the Notice of Proposed Rulemaking on or before December 14, 2023, and reply comments
on or before January 17, 2024.
231. IT IS FURTHER ORDERED that the Commission’s Consumer and Governmental
Affairs Bureau, Reference Information Center SHALL SEND a copy of this Notice of Proposed
Rulemaking, including the Initial Regulatory Flexibility Analysis, to the Chief Counsel for Advocacy of
the Small Business Administration.
FEDERAL COMMUNICATIONS COMMISSION
Marlene H. Dortch
Secretary
687
See 44 U.S.C. § 3506(c)(4).
Federal Communications Commission FCC-CIRC2310-01
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APPENDIX A
Proposed Rules
The Federal Communications Commission proposes to amend 47 CFR parts 8 and 20 as follows:
1. Amend the heading of part 8 to read as follows:
PART 8 – SECURING AND SAFEGUARDING THE OPEN INTERNET
2. Amend the authority citation for part 8 to read as follows:
AUTHORITY: 47 U.S.C. §§ 151, 152, 154, 163, 201, 202, 208, 257, 303, 316, 1302.
3. Add new section 8.2 as follows:
§ 8.2 Conduct-Based Rules.
(a) Definitions. For purposes of this subsection:
(1) Broadband Internet access service means a mass-market retail service by wire or radio that
provides the capability to transmit data to and receive data from all or substantially all
internet endpoints, including any capabilities that are incidental to and enable the operation of
the communications service, but excluding dial-up internet access service. This term also
encompasses any service that the Commission finds to be providing a functional equivalent of
the service described in the previous sentence or that is used to evade the protections set forth
in this part.
(2) Edge provider means any individual or entity that provides any content, application, or
service over the Internet, and any individual or entity that provides a device used for
accessing any content, application, or service over the Internet.
(3) End user means any individual or entity that uses a broadband Internet access service.
(4) Reasonable network management means a network management practice that is appropriate
and tailored to achieving a legitimate network management purpose, taking into account the
particular network architecture and technology of the broadband internet access service.
(b) No blocking. A person engaged in the provision of broadband Internet access service, insofar as
such person is so engaged, shall not block lawful content, applications, services, or non-harmful
devices, subject to reasonable network management.
(c) No throttling. A person engaged in the provision of broadband Internet access service, insofar as
such person is so engaged, shall not impair or degrade lawful Internet traffic on the basis of
Internet content, application, or service, or use of a non-harmful device, subject to reasonable
network management.
(d) No paid prioritization. A person engaged in the provision of broadband Internet access service,
insofar as such person is so engaged, shall not engage in paid prioritization. “Paid prioritization”
refers to the management of a broadband providers network to directly or indirectly favor some
traffic over other traffic, including through use of techniques such as traffic shaping,
prioritization, resource reservation, or other forms of preferential traffic management, either (1) in
exchange for consideration (monetary or otherwise) from a third party, or (2) to benefit an
Federal Communications Commission FCC-CIRC2310-01
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affiliated entity. The Commission may waive the ban on paid prioritization only if the petitioner
demonstrates that the practice would provide some significant public interest benefit and would
not harm the open nature of the Internet.
(e) General conduct standard. Any person engaged in the provision of broadband Internet access
service, insofar as such person is so engaged, shall not unreasonably interfere with or
unreasonably disadvantage (1) end users’ ability to select, access, and use broadband Internet
access service or the lawful Internet content, applications, services, or devices of their choice, or
(2) edge providers’ ability to make lawful content, applications, services, or devices available to
end users. Reasonable network management shall not be considered a violation of this rule.
(f) Nothing in this part supersedes any obligation or authorization a provider of broadband Internet
access service may have to address the needs of emergency communications or law enforcement,
public safety, or national security authorities, consistent with or as permitted by applicable law, or
limits the providers ability to do so.
(g) Nothing in this part prohibits reasonable efforts by a provider of broadband Internet access
service to address copyright infringement or other unlawful activity.
PART 20 – COMMERCIAL MOBILE SERVICES
4. Revise section 20.3 to read as follows:
§ 20.3 Definitions.
* * * * *
Commercial mobile radio service. * * *
* * * * *
(b) The functional equivalent of such a mobile service described in paragraph (a) of this section, including
a mobile broadband Internet access service as defined in Section 8.2.
* * * * *
Public Switched Network. The network that includes any common carrier switched network, whether by
wire or radio, including local exchange carriers, interexchange carriers, and mobile service providers, that
uses the North American Numbering Plan, or public IP addresses, in connection with the provision of
switched services.
* * * * *
Federal Communications Commission FCC-CIRC2310-01
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APPENDIX B
Initial Regulatory Flexibility Analysis
1. As required by the Regulatory Flexibility Act of 1980, as amended (RFA),
1
the
Commission has prepared this Initial Regulatory Flexibility Analysis (IRFA) of the possible significant
economic impact on a substantial number of small entities from the policies and rules proposed in this
Notice of Proposed Rulemaking (Notice). The Commission requests written public comment on this
IRFA. Comments must be identified as responses to the IRFA and must be filed by the deadlines for
comments on the Notice provided on the first page of the Notice. The Commission will send a copy of
the Notice, including this IRFA, to the Chief Counsel for Advocacy of the Small Business Administration
(SBA).
2
In addition, the Notice and IRFA (or summaries thereof) will be published in the Federal
Register.
3
A. Need for and Objectives of the Proposed Rules
2. Today we propose to reestablish the Federal Communications Commission’s authority
over broadband Internet access service by classifying it as a telecommunications service under Title II of
the Communications Act. We further propose to reclassify mobile BIAS as a commercial mobile service.
While Internet access has long been important to daily life, the COVID-19 pandemic and the rapid shift of
work, education, and health care online demonstrated how essential broadband Internet connections are
for consumers’ participation in our society and economy. Congress responded by investing tens of
billions of dollars into building out broadband Internet networks and making access more affordable and
equitable, culminating in the generational investment of $65 billion in the Infrastructure Investment and
Jobs Act.
3. But even as our society has reconfigured itself to do so much online, our institutions have
fallen behind. There is currently no expert agency ensuring that the Internet is fast, open, and fair. Since
the birth of the modern Internet in the 1990s, the Federal Communications Commission had played that
role, but the Commission abdicated that responsibility in 2018, just as the Internet was becoming more
vital than ever. Restoring Title II authority will allow the Commission to safeguard and secure the open
Internet in three significant ways. First, this authority will allow the Commission to protect consumers,
including by issuing straightforward, clear rules to prevent Internet service providers from engaging in
practices harmful to consumers, competition, and public safety, and by establishing a uniform, national
regulatory approach rather than disparate requirements that vary state-by-state. Second, reclassification
will strengthen the Commission’s ability to secure communications networks and critical infrastructure
against national security threats. Third, the reclassification will enable the Commission to protect public
safety during natural disasters and other emergencies. Our proposals to safeguard and secure the open
Internet build on several other actions the Commission has taken since the onset of the COVID-19
pandemic to ensure that the public has access to broadband. We believe that the actions we propose today
are critical to protecting the nation’s security and the public’s safety and to ensuring that consumers and
competition can flourish in the modern Internet economy
B. Legal Basis
4. The legal basis for any action that may be taken pursuant to the Notice is contained in
sections 1, 2, 4(i)-(j), 13, 201, 202, 208, 257, 303, and 316, of the Communications Act of 1934, as
amended, and section 706 of the Telecommunications Act of 1996, as amended, 47 U.S.C. §§ 151, 152,
154(i)-(j), 163, 201, 202, 208, 257, 303, 316, and 1302.
1
See 5 U.S.C. § 603. The RFA, see 5 U.S.C. §§ 601-12, has been amended by the Small Business Regulatory
Enforcement Fairness Act of 1996 (SBREFA), Pub. L. No. 104-121, Title II, 110 Stat. 857 (1996).
2
See 5 U.S.C. § 603(a).
3
Id.
Federal Communications Commission FCC-CIRC2310-01
104
C. Description and Estimate of the Number of Small Entities to Which the Rules
Would Apply
5. The RFA directs agencies to provide a description of, and where feasible, an estimate of
the number of small entities that may be affected by the proposed rules, if adopted.
4
The RFA generally
defines the term “small entity” as having the same meaning as the terms “small business,” “small
organization,” and “small governmental jurisdiction.”
5
In addition, the term “small business” has the
same meaning as the term “small-business concern” under the Small Business Act.
6
A small-business
concern” is one which: (1) is independently owned and operated; (2) is not dominant in its field of
operation; and (3) satisfies any additional criteria established by the SBA.
7
1. Total Small Entities
6. Our actions, over time, may affect small entities that are not easily categorized at present.
We therefore describe, at the outset, three broad groups of small entities that could be directly affected
herein.
8
First, while there are industry specific size standards for small businesses that are used in the
regulatory flexibility analysis, according to data from the Small Business Administration’s (SBA) Office
of Advocacy, in general a small business is an independent business having fewer than 500 employees.
9
These types of small businesses represent 99.9 percent of all businesses in the United States, which
translates to 33.2 million businesses.
10
7. Next, the type of small entity described as a “small organization” is generally “any not-
for-profit enterprise which is independently owned and operated and is not dominant in its field.”
11
The
Internal Revenue Service (IRS) uses a revenue benchmark of $50,000 or less to delineate its annual
electronic filing requirements for small exempt organizations.
12
Nationwide, for tax year 2020, there
were approximately 447,689 small exempt organizations in the U.S. reporting revenues of $50,000 or less
according to the registration and tax data for exempt organizations available from the IRS.
13
4
See 5 U.S.C. § 603(b)(3).
5
See 5 U.S.C. § 601(6).
6
See 5 U.S.C. § 601(3) (incorporating by reference the definition of “small-business concern” in the Small Business
Act, 15 U.S.C. § 632). Pursuant to 5 U.S.C. § 601(3), the statutory definition of a small business applies “unless an
agency, after consultation with the Office of Advocacy of the Small Business Administration and after opportunity
for public comment, establishes one or more definitions of such term which are appropriate to the activities of the
agency and publishes such definition(s) in the Federal Register.”
7
See 15 U.S.C. § 632.
8
See 5 U.S.C. § 601(3)-(6).
9
See SBA, Office of Advocacy, “What’s New With Small Business?,” https://advocacy.sba.gov/wp-
content/uploads/2023/03/Whats-New-Infographic-March-2023-508c.pdf. (Mar. 2023)
10
Id.
11
See 5 U.S.C. § 601(4).
12
The IRS benchmark is similar to the population of less than 50,000 benchmark in 5 U.S.C § 601(5) that is used to
define a small governmental jurisdiction. Therefore, the IRS benchmark has been used to estimate the number of
small organizations in this small entity description. See Annual Electronic Filing Requirement for Small Exempt
Organizations – Form 990-N (e-Postcard), “Who must file,https://www.irs.gov/charities-non-profits/annual-
electronic-filing-requirement-for-small-exempt-organizations-form-990-n-e-postcard. We note that the IRS data
does not provide information on whether a small exempt organization is independently owned and operated or
dominant in its field.
13
See Exempt Organizations Business Master File Extract (EO BMF), “CSV Files by Region,”
https://www.irs.gov/charities-non-profits/exempt-organizations-business-master-file-extract-eo-bmf. The IRS
Exempt Organization Business Master File (EO BMF) Extract provides information on all registered tax-
(continued….)
Federal Communications Commission FCC-CIRC2310-01
105
8. Finally, the small entity described as a “small governmental jurisdiction” is defined
generally as “governments of cities, counties, towns, townships, villages, school districts, or special
districts, with a population of less than fifty thousand.”
14
U.S. Census Bureau data from the 2017 Census
of Governments
15
indicate there were 90,075 local governmental jurisdictions consisting of general
purpose governments and special purpose governments in the United States.
16
Of this number, there were
36,931 general purpose governments (county,
17
municipal, and town or township
18
) with populations of
less than 50,000 and 12,040 special purpose governments—independent school districts
19
with enrollment
populations of less than 50,000.
20
Accordingly, based on the 2017 U.S. Census of Governments data, we
estimate that at least 48,971 entities fall into the category of “small governmental jurisdictions.”
21
2. Wired Broadband Internet Access Service Providers
22
9. Providers of wired broadband Internet access service include various types of providers
except dial-up Internet access providers. Wireline service that terminates at an end user location or
(Continued from previous page)
exempt/non-profit organizations. The data utilized for purposes of this description was extracted from the IRS EO
BMF data for businesses for the tax year 2020 with revenue less than or equal to $50,000 for Region 1-Northeast
Area (58,577), Region 2-Mid-Atlantic and Great Lakes Areas (175,272), and Region 3-Gulf Coast and Pacific Coast
Areas (213,840) that includes the continental U.S., Alaska, and Hawaii. This data does not include information for
Puerto Rico.
14
See 5 U.S.C. § 601(5).
15
See 13 U.S.C. § 161. The Census of Governments survey is conducted every five (5) years compiling data for
years ending with “2” and “7”. See also Census of Governments, https://www.census.gov/programs-
surveys/cog/about.html.
16
See U.S. Census Bureau, 2017 Census of Governments – Organization Table 2. Local Governments by Type and
State: 2017 [CG1700ORG02], https://www.census.gov/data/tables/2017/econ/gus/2017-governments.html. Local
governmental jurisdictions are made up of general purpose governments (county, municipal and town or township)
and special purpose governments (special districts and independent school districts). See also tbl.2. CG1700ORG02
Table Notes_Local Governments by Type and State_2017.
17
See id. at tbl.5. County Governments by Population-Size Group and State: 2017 [CG1700ORG05],
https://www.census.gov/data/tables/2017/econ/gus/2017-governments.html. There were 2,105 county governments
with populations less than 50,000. This category does not include subcounty (municipal and township)
governments.
18
See id. at tbl.6. Subcounty General-Purpose Governments by Population-Size Group and State: 2017
[CG1700ORG06], https://www.census.gov/data/tables/2017/econ/gus/2017-governments.html. There were 18,729
municipal and 16,097 town and township governments with populations less than 50,000.
19
See id. at tbl.10. Elementary and Secondary School Systems by Enrollment-Size Group and State: 2017
[CG1700ORG10], https://www.census.gov/data/tables/2017/econ/gus/2017-governments.html. There were 12,040
independent school districts with enrollment populations less than 50,000. See also tbl.4. Special-Purpose Local
Governments by State Census Years 1942 to 2017 [CG1700ORG04], CG1700ORG04 Table Notes_Special Purpose
Local Governments by State_Census Years 1942 to 2017.
20
While the special purpose governments category also includes local special district governments, the 2017 Census
of Governments data does not provide data aggregated based on population size for the special purpose governments
category. Therefore, only data from independent school districts is included in the special purpose governments
category.
21
This total is derived from the sum of the number of general purpose governments (county, municipal and town or
township) with populations of less than 50,000 (36,931) and the number of special purpose governments -
independent school districts with enrollment populations of less than 50,000 (12,040), from the 2017 Census of
Governments - Organizations tbls. 5, 6 & 10.
22
Formerly included in the scope of the Internet Service Providers (Broadband), Wired Telecommunications
Carriers and All Other Telecommunications small entity industry descriptions.
Federal Communications Commission FCC-CIRC2310-01
106
mobile device and enables the end user to receive information from and/or send information to the
Internet at information transfer rates exceeding 200 kilobits per second (kbps) in at least one direction is
classified as a broadband connection under the Commission’s rules.
23
Wired broadband Internet services
fall in the Wired Telecommunications Carriers industry.
24
The SBA small business size standard for this
industry classifies firms having 1,500 or fewer employees as small.
25
U.S. Census Bureau data for 2017
show that there were 3,054 firms that operated in this industry for the entire year.
26
Of this number, 2,964
firms operated with fewer than 250 employees.
27
10. Additionally, according to Commission data on Internet access services as of June 30,
2019, nationwide there were approximately 2,747 providers of connections over 200 kbps in at least one
direction using various wireline technologies.
28
The Commission does not collect data on the number of
employees for providers of these services, therefore, at this time we are not able to estimate the number of
providers that would qualify as small under the SBA’s small business size standard. However, in light of
the general data on fixed technology service providers in the Commission’s 2022 Communications
Marketplace Report,
29
we believe that the majority of wireline Internet access service providers can be
considered small entities.
3. Wireline Providers
11. Wired Telecommunications Carriers. The U.S. Census Bureau defines this industry as
establishments primarily engaged in operating and/or providing access to transmission facilities and
infrastructure that they own and/or lease for the transmission of voice, data, text, sound, and video using
wired communications networks.
30
Transmission facilities may be based on a single technology or a
combination of technologies. Establishments in this industry use the wired telecommunications network
facilities that they operate to provide a variety of services, such as wired telephony services, including
VoIP services, wired (cable) audio and video programming distribution, and wired broadband Internet
services.
31
By exception, establishments providing satellite television distribution services using facilities
23
See 47 CFR § 1.7001(a)(1).
24
See U.S. Census Bureau, 2017 NAICS Definition, “517311 Wired Telecommunications Carriers,”
https://www.census.gov/naics/?input=517311&year=2017&details=517311.
25
See 13 CFR § 121.201, NAICS Code 517311 (as of 10/1/22, NAICS Code 517111).
26
See U.S. Census Bureau, 2017 Economic Census of the United States, Selected Sectors: Employment Size of Firms
for the U.S.: 2017, Table ID: EC1700SIZEEMPFIRM, NAICS Code 517311,
https://data.census.gov/cedsci/table?y=2017&n=517311&tid=ECNSIZE2017.EC1700SIZEEMPFIRM&hidePrevie
w=false.
27
Id. The available U.S. Census Bureau data does not provide a more precise estimate of the number of firms that
meet the SBA size standard.
28
See Federal Communications Commission, Internet Access Services: Status as of June 30, 2019 at 27, Fig. 30
(IAS Status 2019), Industry Analysis Division, Office of Economics & Analytics (March 2022). The report can be
accessed at https://www.fcc.gov/economics-analytics/industry-analysis-division/iad-data-statistical-reports. The
technologies used by providers include aDSL, sDSL, Other Wireline, Cable Modem and FTTP). Other wireline
includes: all copper-wire based technologies other than xDSL (such as Ethernet over copper, T-1/DS-1 and T3/DS-
1) as well as power line technologies which are included in this category to maintain the confidentiality of the
providers.
29
See Communications Marketplace Report, GN Docket No. 22-203, 2022 WL 18110553 at 10, paras. 26-27, Figs.
II.A.5-7. (2022) (2022 Communications Marketplace Report).
30
See U.S. Census Bureau, 2017 NAICS Definition, “517311 Wired Telecommunications Carriers,”
https://www.census.gov/naics/?input=517311&year=2017&details=517311.
31
Id.
Federal Communications Commission FCC-CIRC2310-01
107
and infrastructure that they operate are included in this industry.
32
Wired Telecommunications Carriers
are also referred to as wireline carriers or fixed local service providers.
33
12. The SBA small business size standard for Wired Telecommunications Carriers classifies
firms having 1,500 or fewer employees as small.
34
U.S. Census Bureau data for 2017 show that there
were 3,054 firms that operated in this industry for the entire year.
35
Of this number, 2,964 firms operated
with fewer than 250 employees.
36
Additionally, based on Commission data in the 2022 Universal Service
Monitoring Report, as of December 31, 2021, there were 4,590 providers that reported they were engaged
in the provision of fixed local services.
37
Of these providers, the Commission estimates that 4,146
providers have 1,500 or fewer employees.
38
Consequently, using the SBA’s small business size standard,
most of these providers can be considered small entities.
13. Incumbent Local Exchange Carriers (Incumbent LECs). Neither the Commission nor the
SBA have developed a small business size standard specifically for incumbent local exchange carriers.
Wired Telecommunications Carriers
39
is the closest industry with an SBA small business size standard.
40
The SBA small business size standard for Wired Telecommunications Carriers classifies firms having
1,500 or fewer employees as small.
41
U.S. Census Bureau data for 2017 show that there were 3,054 firms
in this industry that operated for the entire year.
42
Of this number, 2,964 firms operated with fewer than
250 employees.
43
Additionally, based on Commission data in the 2022 Universal Service Monitoring
Report, as of December 31, 2021, there were 1,212 providers that reported they were incumbent local
exchange service providers.
44
Of these providers, the Commission estimates that 916 providers have
32
Id.
33
Fixed Local Service Providers include the following types of providers: Incumbent Local Exchange Carriers
(ILECs), Competitive Access Providers (CAPs) and Competitive Local Exchange Carriers (CLECs), Cable/Coax
CLECs, Interconnected VOIP Providers, Non-Interconnected VOIP Providers, Shared-Tenant Service Providers,
Audio Bridge Service Providers, and Other Local Service Providers. Local Resellers fall into another U.S. Census
Bureau industry group and therefore data for these providers is not included in this industry.
34
See 13 CFR § 121.201, NAICS Code 517311 (as of 10/1/22, NAICS Code 517111).
35
See U.S. Census Bureau, 2017 Economic Census of the United States, Selected Sectors: Employment Size of Firms
for the U.S.: 2017, Table ID: EC1700SIZEEMPFIRM, NAICS Code 517311,
https://data.census.gov/cedsci/table?y=2017&n=517311&tid=ECNSIZE2017.EC1700SIZEEMPFIRM&hidePrevie
w=false.
36
Id. The available U.S. Census Bureau data does not provide a more precise estimate of the number of firms that
meet the SBA size standard.
37
Federal-State Joint Board on Universal Service, Universal Service Monitoring Report at 26, Table 1.12 (2022),
https://docs.fcc.gov/public/attachments/DOC-391070A1.pdf. https://docs.fcc.gov/public/attachments/DOC-
379181A1.pdf
38
Id.
39
See U.S. Census Bureau, 2017 NAICS Definition, “517311 Wired Telecommunications Carriers,”
https://www.census.gov/naics/?input=517311&year=2017&details=517311.
40
See 13 CFR § 121.201, NAICS Code 517311 (as of 10/1/22, NAICS Code 517111).
41
Id.
42
See U.S. Census Bureau, 2017 Economic Census of the United States, Selected Sectors: Employment Size of Firms
for the U.S.: 2017, Table ID: EC1700SIZEEMPFIRM, NAICS Code 517311,
https://data.census.gov/cedsci/table?y=2017&n=517311&tid=ECNSIZE2017.EC1700SIZEEMPFIRM&hidePrevie
w=false.
43
Id. The available U.S. Census Bureau data does not provide a more precise estimate of the number of firms that
meet the SBA size standard.
Federal Communications Commission FCC-CIRC2310-01
108
1,500 or fewer employees.
45
Consequently, using the SBA’s small business size standard, the
Commission estimates that the majority of incumbent local exchange carriers can be considered small
entities.
14. Competitive Local Exchange Carriers (Competitive LECs). Neither the Commission nor
the SBA has developed a size standard for small businesses specifically applicable to local exchange
services. Providers of these services include several types of competitive local exchange service
providers.
46
Wired Telecommunications Carriers
47
is the closest industry with a SBA small business size
standard. The SBA small business size standard for Wired Telecommunications Carriers classifies firms
having 1,500 or fewer employees as small.
48
U.S. Census Bureau data for 2017 show that there were
3,054 firms that operated in this industry for the entire year.
49
Of this number, 2,964 firms operated with
fewer than 250 employees.
50
Additionally, based on Commission data in the 2022 Universal Service
Monitoring Report, as of December 31, 2021, there were 3,378 providers that reported they were
competitive local exchange service providers.
51
Of these providers, the Commission estimates that 3,230
providers have 1,500 or fewer employees.
52
Consequently, using the SBA’s small business size standard,
most of these providers can be considered small entities.
15. Interexchange Carriers (IXCs). Neither the Commission nor the SBA have developed a
small business size standard specifically for Interexchange Carriers. Wired Telecommunications
Carriers
53
is the closest industry with a SBA small business size standard.
54
The SBA small business size
standard for Wired Telecommunications Carriers classifies firms having 1,500 or fewer employees as
small.
55
U.S. Census Bureau data for 2017 show that there were 3,054 firms that operated in this industry
for the entire year.
56
Of this number, 2,964 firms operated with fewer than 250 employees.
57
(Continued from previous page)
44
Federal-State Joint Board on Universal Service, Universal Service Monitoring Report at 26, Table 1.12 (2022),
https://docs.fcc.gov/public/attachments/DOC-391070A1.pdf.
45
Id.
46
Competitive Local Exchange Service Providers include the following types of providers: Competitive Access
Providers (CAPs) and Competitive Local Exchange Carriers (CLECs), Cable/Coax CLECs, Interconnected VOIP
Providers, Non-Interconnected VOIP Providers, Shared-Tenant Service Providers, Audio Bridge Service Providers,
Local Resellers, and Other Local Service Providers.
47
See U.S. Census Bureau, 2017 NAICS Definition, “517311 Wired Telecommunications Carriers,”
https://www.census.gov/naics/?input=517311&year=2017&details=517311.
48
See 13 CFR § 121.201, NAICS Code 517311 (as of 10/1/22, NAICS Code 517111).
49
See U.S. Census Bureau, 2017 Economic Census of the United States, Selected Sectors: Employment Size of Firms
for the U.S.: 2017, Table ID: EC1700SIZEEMPFIRM, NAICS Code 517311,
https://data.census.gov/cedsci/table?y=2017&n=517311&tid=ECNSIZE2017.EC1700SIZEEMPFIRM&hidePrevie
w=false.
50
Id. The available U.S. Census Bureau data does not provide a more precise estimate of the number of firms that
meet the SBA size standard.
51
Federal-State Joint Board on Universal Service, Universal Service Monitoring Report at 26, Table 1.12 (2022),
https://docs.fcc.gov/public/attachments/DOC-391070A1.pdf.
52
Id.
53
See U.S. Census Bureau, 2017 NAICS Definition, “517311 Wired Telecommunications Carriers,”
https://www.census.gov/naics/?input=517311&year=2017&details=517311.
54
See 13 CFR § 121.201, NAICS Code 517311 (as of 10/1/22, NAICS Code 517111).
55
Id.
Federal Communications Commission FCC-CIRC2310-01
109
Additionally, based on Commission data in the 2022 Universal Service Monitoring Report, as of
December 31, 2021, there were 127 providers that reported they were engaged in the provision of
interexchange services. Of these providers, the Commission estimates that 109 providers have 1,500 or
fewer employees.
58
Consequently, using the SBA’s small business size standard, the Commission
estimates that the majority of providers in this industry can be considered small entities.
16. Operator Service Providers (OSPs). Neither the Commission nor the SBA has developed
a small business size standard specifically for operator service providers. The closest applicable industry
with a SBA small business size standard is Wired Telecommunications Carriers.
59
The SBA small
business size standard classifies a business as small if it has 1,500 or fewer employees.
60
U.S. Census
Bureau data for 2017 show that there were 3,054 firms in this industry that operated for the entire year.
61
Of this number, 2,964 firms operated with fewer than 250 employees.
62
Additionally, based on
Commission data in the 2022 Universal Service Monitoring Report, as of December 31, 2021, there were
20 providers that reported they were engaged in the provision of operator services.
63
Of these providers,
the Commission estimates that all 20 providers have 1,500 or fewer employees.
64
Consequently, using
the SBA’s small business size standard, all of these providers can be considered small entities.
17. Other Toll Carriers. Neither the Commission nor the SBA has developed a definition for
small businesses specifically applicable to Other Toll Carriers. This category includes toll carriers that do
not fall within the categories of interexchange carriers, operator service providers, prepaid calling card
providers, satellite service carriers, or toll resellers. Wired Telecommunications Carriers
65
is the closest
industry with a SBA small business size standard.
66
The SBA small business size standard for Wired
Telecommunications Carriers classifies firms having 1,500 or fewer employees as small.
67
U.S. Census
(Continued from previous page)
56
See U.S. Census Bureau, 2017 Economic Census of the United States, Selected Sectors: Employment Size of Firms
for the U.S.: 2017, Table ID: EC1700SIZEEMPFIRM, NAICS Code 517311,
https://data.census.gov/cedsci/table?y=2017&n=517311&tid=ECNSIZE2017.EC1700SIZEEMPFIRM&hidePrevie
w=false.
57
Id. The available U.S. Census Bureau data does not provide a more precise estimate of the number of firms that
meet the SBA size standard.
58
Federal-State Joint Board on Universal Service, Universal Service Monitoring Report at 26, Table 1.12 (2022),
https://docs.fcc.gov/public/attachments/DOC-391070A1.pdf.
59
See U.S. Census Bureau, 2017 NAICS Definition, “517311 Wired Telecommunications Carriers,”
https://www.census.gov/naics/?input=517311&year=2017&details=517311.
60
See 13 CFR § 121.201, NAICS Code 517311 (as of 10/1/22, NAICS Code 517111).
61
See U.S. Census Bureau, 2017 Economic Census of the United States, Selected Sectors: Employment Size of Firms
for the U.S.: 2017, Table ID: EC1700SIZEEMPFIRM, NAICS Code 517311,
https://data.census.gov/cedsci/table?y=2017&n=517311&tid=ECNSIZE2017.EC1700SIZEEMPFIRM&hidePrevie
w=false.
62
Id. The available U.S. Census Bureau data does not provide a more precise estimate of the number of firms that
meet the SBA size standard.
63
Federal-State Joint Board on Universal Service, Universal Service Monitoring Report at 26, Table 1.12 (2022),
https://docs.fcc.gov/public/attachments/DOC-391070A1.pdf. https://docs.fcc.gov/public/attachments/DOC-
379181A1.pdf
64
Id.
65
See U.S. Census Bureau, 2017 NAICS Definition, “517311 Wired Telecommunications Carriers,”
https://www.census.gov/naics/?input=517311&year=2017&details=517311.
66
See 13 CFR § 121.201, NAICS Code 517311 (as of 10/1/22, NAICS Code 517111).
67
Id.
Federal Communications Commission FCC-CIRC2310-01
110
Bureau data for 2017 show that there were 3,054 firms in this industry that operated for the entire year.
68
Of this number, 2,964 firms operated with fewer than 250 employees.
69
Additionally, based on
Commission data in the 2022 Universal Service Monitoring Report, as of December 31, 2021, there were
90 providers that reported they were engaged in the provision of other toll services.
70
Of these providers,
the Commission estimates that 87 providers have 1,500 or fewer employees.
71
Consequently, using the
SBA’s small business size standard, most of these providers can be considered small entities.
4. Wireless Providers – Fixed and Mobile
18. The broadband Internet access service provider category covered by this Notice may
cover multiple wireless firms and categories of regulated wireless services. Thus, to the extent the
wireless services listed below are used by wireless firms for broadband Internet access services, the
proposed actions may have an impact on those small businesses as set forth above and further below. In
addition, for those services subject to auctions, we note that, as a general matter, the number of winning
bidders that claim to qualify as small businesses at the close of an auction does not necessarily represent
the number of small businesses currently in service. Also, the Commission does not generally track
subsequent business size unless, in the context of assignments and transfers or reportable eligibility
events, unjust enrichment issues are implicated.
19. Wireless Telecommunications Carriers (except Satellite). This industry comprises
establishments engaged in operating and maintaining switching and transmission facilities to provide
communications via the airwaves.
72
Establishments in this industry have spectrum licenses and provide
services using that spectrum, such as cellular services, paging services, wireless Internet access, and
wireless video services.
73
The SBA size standard for this industry classifies a business as small if it has
1,500 or fewer employees.
74
U.S. Census Bureau data for 2017 show that there were 2,893 firms in this
industry that operated for the entire year.
75
Of that number, 2,837 firms employed fewer than 250
employees.
76
Additionally, based on Commission data in the 2022 Universal Service Monitoring Report,
as of December 31, 2021, there were 594 providers that reported they were engaged in the provision of
68
See U.S. Census Bureau, 2017 Economic Census of the United States, Selected Sectors: Employment Size of Firms
for the U.S.: 2017, Table ID: EC1700SIZEEMPFIRM, NAICS Code 517311,
https://data.census.gov/cedsci/table?y=2017&n=517311&tid=ECNSIZE2017.EC1700SIZEEMPFIRM&hidePrevie
w=false.
69
Id. The available U.S. Census Bureau data does not provide a more precise estimate of the number of firms that
meet the SBA size standard.
70
Federal-State Joint Board on Universal Service, Universal Service Monitoring Report at 26, Table 1.12 (2022),
https://docs.fcc.gov/public/attachments/DOC-391070A1.pdf. https://docs.fcc.gov/public/attachments/DOC-
379181A1.pdf
71
Id.
72
See U.S. Census Bureau, 2017 NAICS Definition, “517312 Wireless Telecommunications Carriers (except
Satellite),” https://www.census.gov/naics/?input=517312&year=2017&details=517312.
73
Id.
74
See 13 CFR § 121.201, NAICS Code 517312 (as of 10/1/22, NAICS Code 517112).
75
See U.S. Census Bureau, 2017 Economic Census of the United States, Employment Size of Firms for the U.S.:
2017, Table ID: EC1700SIZEEMPFIRM, NAICS Code 517312,
https://data.census.gov/cedsci/table?y=2017&n=517312&tid=ECNSIZE2017.EC1700SIZEEMPFIRM&hidePrevie
w=false.
76
Id. The available U.S. Census Bureau data does not provide a more precise estimate of the number of firms that
meet the SBA size standard.
Federal Communications Commission FCC-CIRC2310-01
111
wireless services.
77
Of these providers, the Commission estimates that 511 providers have 1,500 or fewer
employees.
78
Consequently, using the SBA’s small business size standard, most of these providers can be
considered small entities.
20. Wireless Communications Services. Wireless Communications Services (WCS) can be
used for a variety of fixed, mobile, radiolocation, and digital audio broadcasting satellite services.
Wireless spectrum is made available and licensed for the provision of wireless communications services
in several frequency bands subject to Part 27 of the Commission’s rules.
79
Wireless Telecommunications
Carriers (except Satellite)
80
is the closest industry with an SBA small business size standard applicable to
these services. The SBA small business size standard for this industry classifies a business as small if it
has 1,500 or fewer employees.
81
U.S. Census Bureau data for 2017 show that there were 2,893 firms that
operated in this industry for the entire year.
82
Of this number, 2,837 firms employed fewer than 250
employees.
83
Thus under the SBA size standard, the Commission estimates that a majority of licensees in
this industry can be considered small.
21. The Commission’s small business size standards with respect to WCS involve eligibility
for bidding credits and installment payments in the auction of licenses for the various frequency bands
included in WCS. When bidding credits are adopted for the auction of licenses in WCS frequency bands,
such credits may be available to several types of small businesses based average gross revenues (small,
very small and entrepreneur) pursuant to the competitive bidding rules adopted in conjunction with the
requirements for the auction and/or as identified in the designated entities section in Part 27 of the
Commission’s rules for the specific WCS frequency bands.
84
22. In frequency bands where licenses were subject to auction, the Commission notes that as
a general matter, the number of winning bidders that qualify as small businesses at the close of an auction
does not necessarily represent the number of small businesses currently in service. Further, the
Commission does not generally track subsequent business size unless, in the context of assignments or
transfers, unjust enrichment issues are implicated. Additionally, since the Commission does not collect
data on the number of employees for licensees providing these services, at this time we are not able to
estimate the number of licensees with active licenses that would qualify as small under the SBA’s small
business size standard.
23. Wireless Resellers. Neither the Commission nor the SBA have developed a small
business size standard specifically for Wireless Resellers. The closest industry with a SBA small
77
Federal-State Joint Board on Universal Service, Universal Service Monitoring Report at 26, Table 1.12 (2022),
https://docs.fcc.gov/public/attachments/DOC-391070A1.pdf.
78
Id.
79
See 47 CFR §§ 27.1 – 27.1607.
80
See U.S. Census Bureau, 2017 NAICS Definition, “517312 Wireless Telecommunications Carriers (except
Satellite),” https://www.census.gov/naics/?input=517312&year=2017&details=517312.
81
See 13 CFR § 121.201, NAICS Code 517312 (as of 10/1/22, NAICS Code 517112).
82
See U.S. Census Bureau, 2017 Economic Census of the United States, Employment Size of Firms for the U.S.:
2017, Table ID: EC1700SIZEEMPFIRM, NAICS Code 517312,
https://data.census.gov/cedsci/table?y=2017&n=517312&tid=ECNSIZE2017.EC1700SIZEEMPFIRM&hidePrevie
w=false.
83
Id. The available U.S. Census Bureau data does not provide a more precise estimate of the number of firms that
meet the SBA size standard.
84
See 47 CFR §§ 27.201 – 27.1601. The Designated entities sections in Subparts D – Q each contain the small
business size standards adopted for the auction of the frequency band covered by that subpart.
Federal Communications Commission FCC-CIRC2310-01
112
business size standard is Telecommunications Resellers.
85
The Telecommunications Resellers industry
comprises establishments engaged in purchasing access and network capacity from owners and operators
of telecommunications networks and reselling wired and wireless telecommunications services (except
satellite) to businesses and households.
86
Establishments in this industry resell telecommunications and
they do not operate transmission facilities and infrastructure.
87
Mobile virtual network operators
(MVNOs) are included in this industry.
88
Under the SBA size standard for this industry, a business is
small if it has 1,500 or fewer employees.
89
U.S. Census Bureau data for 2017 show that 1,386 firms in
this industry provided resale services during that year.
90
Of that number, 1,375 firms operated with fewer
than 250 employees.
91
Thus, for this industry under the SBA small business size standard, the majority of
providers can be considered small entities.
24. 1670–1675 MHz Services. These wireless communications services can be used for fixed
and mobile uses, except aeronautical mobile.
92
Wireless Telecommunications Carriers (except Satellite)
93
is the closest industry with an SBA small business size standard applicable to these services. The SBA
size standard for this industry classifies a business as small if it has 1,500 or fewer employees.
94
U.S.
Census Bureau data for 2017 show that there were 2,893 firms that operated in this industry for the entire
year.
95
Of this number, 2,837 firms employed fewer than 250 employees.
96
Thus under the SBA size
standard, the Commission estimates that a majority of licensees in this industry can be considered small.
25. According to Commission data as of November 2021, there were three active licenses in
this service.
97
The Commission’s small business size standards with respect to 1670–1675 MHz Services
involve eligibility for bidding credits and installment payments in the auction of licenses for these
85
See U.S. Census Bureau, 2017 NAICS Definition, “517911 Telecommunications Resellers,
https://www.census.gov/naics/?input=517911&year=2017&details=517911.
86
Id.
87
Id.
88
Id.
89
See 13 CFR § 121.201, NAICS Code 517911 (as of 10/1/22, NAICS Code 517121).
90
See U.S. Census Bureau, 2017 Economic Census of the United States, Selected Sectors: Employment Size of Firms
for the U.S.: 2017, Table ID: EC1700SIZEEMPFIRM, NAICS Code 517911,
https://data.census.gov/cedsci/table?y=2017&n=517911&tid=ECNSIZE2017.EC1700SIZEEMPFIRM&hidePrevie
w=false.
91
Id. The available U.S. Census Bureau data does not provide a more precise estimate of the number of firms that
meet the SBA size standard.
92
See 47 CFR § 27.902.
93
See U.S. Census Bureau, 2017 NAICS Definition, “517312 Wireless Telecommunications Carriers (except
Satellite),” https://www.census.gov/naics/?input=517312&year=2017&details=517312.
94
See 13 CFR § 121.201, NAICS Code 517312 (as of 10/1/22, NAICS Code 517112).
95
See U.S. Census Bureau, 2017 Economic Census of the United States, Employment Size of Firms for the U.S.:
2017, Table ID: EC1700SIZEEMPFIRM, NAICS Code 517312,
https://data.census.gov/cedsci/table?y=2017&n=517312&tid=ECNSIZE2017.EC1700SIZEEMPFIRM&hidePrevie
w=false.
96
Id. The available U.S. Census Bureau data does not provide a more precise estimate of the number of firms that
meet the SBA size standard.
97
Based on a FCC Universal Licensing System search on November 8, 2021,
https://wireless2.fcc.gov/UlsApp/UlsSearch/searchAdvanced.jsp. Search parameters: Service Group = All, “Match
only the following radio service(s)”, Radio Service = BC; Authorization Type = All; Status = Active. We note that
the number of active licenses does not equate to the number of licensees. A licensee can have one or more licenses.
Federal Communications Commission FCC-CIRC2310-01
113
services. For licenses in the 1670-1675 MHz service band, a “small business” is defined as an entity that,
together with its affiliates and controlling interests, has average gross revenues not exceeding $40 million
for the preceding three years, and a “very small business” is defined as an entity that, together with its
affiliates and controlling interests, has had average annual gross revenues not exceeding $15 million for
the preceding three years.
98
The 1670-1675 MHz service band auction’s winning bidder did not claim
small business status.
99
26. In frequency bands where licenses were subject to auction, the Commission notes that as
a general matter, the number of winning bidders that qualify as small businesses at the close of an auction
does not necessarily represent the number of small businesses currently in service. Further, the
Commission does not generally track subsequent business size unless, in the context of assignments or
transfers, unjust enrichment issues are implicated. Additionally, since the Commission does not collect
data on the number of employees for licensees providing these services, at this time we are not able to
estimate the number of licensees with active licenses that would qualify as small under the SBA’s small
business size standard.
27. Wireless Telephony. Wireless telephony includes cellular, personal communications
services, and specialized mobile radio telephony carriers. The closest applicable industry with an SBA
small business size standard is Wireless Telecommunications Carriers (except Satellite).
100
The size
standard for this industry under SBA rules is that a business is small if it has 1,500 or fewer employees.
101
For this industry, U.S. Census Bureau data for 2017 show that there were 2,893 firms that operated for the
entire year.
102
Of this number, 2,837 firms employed fewer than 250 employees.
103
Additionally, based
on Commission data in the 2022 Universal Service Monitoring Report, as of December 31, 2021, there
were 331 providers that reported they were engaged in the provision of cellular, personal communications
services, and specialized mobile radio services.
104
Of these providers, the Commission estimates that 255
providers have 1,500 or fewer employees.
105
Consequently, using the SBA’s small business size
standard, most of these providers can be considered small entities.
28. Broadband Personal Communications Service. The broadband personal communications
services (PCS) spectrum encompasses services in the 1850-1910 and 1930-1990 MHz bands.
106
The
closest industry with a SBA small business size standard applicable to these services is Wireless
Telecommunications Carriers (except Satellite).
107
The SBA small business size standard for this industry
98
See 47 CFR § 27.906(a).
99
See 1670–1675 MHz Band Auction Closes; Winning Bidder Announced; FCC Form 600s Due May 12,2003,
Public Notice, DA-03-1472, Report No. AUC-03-46-H (Auction No.46) (May 2, 2003).
100
See U.S. Census Bureau, 2017 NAICS Definition, “517312 Wireless Telecommunications Carriers (except
Satellite),https://www.census.gov/naics/?input=517312&year=2017&details=517312.
101
See 13 CFR § 121.201, NAICS Code 517312 (as of 10/1/22, NAICS Code 517112).
102
See U.S. Census Bureau, 2017 Economic Census of the United States, Employment Size of Firms for the U.S.:
2017, Table ID: EC1700SIZEEMPFIRM, NAICS Code 517312,
https://data.census.gov/cedsci/table?y=2017&n=517312&tid=ECNSIZE2017.EC1700SIZEEMPFIRM&hidePrevie
w=false.
103
Id. The available U.S. Census Bureau data does not provide a more precise estimate of the number of firms that
meet the SBA size standard.
104
Federal-State Joint Board on Universal Service, Universal Service Monitoring Report at 26, Table 1.12 (2022),
https://docs.fcc.gov/public/attachments/DOC-391070A1.pdf.
105
Id.
106
See 47 CFR § 24.200.
107
See U.S. Census Bureau, 2017 NAICS Definition, “517312 Wireless Telecommunications Carriers (except
Satellite),” https://www.census.gov/naics/?input=517312&year=2017&details=517312.
Federal Communications Commission FCC-CIRC2310-01
114
classifies a business as small if it has 1,500 or fewer employees.
108
U.S. Census Bureau data for 2017
show that there were 2,893 firms that operated in this industry for the entire year.
109
Of this number,
2,837 firms employed fewer than 250 employees.
110
Thus under the SBA size standard, the Commission
estimates that a majority of licensees in this industry can be considered small.
29. Based on Commission data as of November 2021, there were approximately 5,060 active
licenses in the Broadband PCS service.
111
The Commission’s small business size standards with respect
to Broadband PCS involve eligibility for bidding credits and installment payments in the auction of
licenses for these services. In auctions for these licenses, the Commission defined “small business” as an
entity that, together with its affiliates and controlling interests, has average gross revenues not exceeding
$40 million for the preceding three years, and a “very small business” as an entity that, together with its
affiliates and controlling interests, has had average annual gross revenues not exceeding $15 million for
the preceding three years.
112
Winning bidders claiming small business credits won Broadband PCS
licenses in C, D, E, and F Blocks.
113
30. In frequency bands where licenses were subject to auction, the Commission notes that as
a general matter, the number of winning bidders that qualify as small businesses at the close of an auction
does not necessarily represent the number of small businesses currently in service. Further, the
Commission does not generally track subsequent business size unless, in the context of assignments or
transfers, unjust enrichment issues are implicated. Additionally, since the Commission does not collect
data on the number of employees for licensees providing these, at this time we are not able to estimate the
number of licensees with active licenses that would qualify as small under the SBA’s small business size
standard.
31. Specialized Mobile Radio Licenses. Special Mobile Radio (SMR) licenses allow
licensees to provide land mobile communications services (other than radiolocation services) in the 800
MHz and 900 MHz spectrum bands on a commercial basis including but not limited to services used for
voice and data communications, paging, and facsimile services, to individuals, Federal Government
entities, and other entities licensed under Part 90 of the Commission’s rules. Wireless
Telecommunications Carriers (except Satellite)
114
is the closest industry with a SBA small business size
standard applicable to these services. The SBA size standard for this industry classifies a business as
small if it has 1,500 or fewer employees.
115
For this industry, U.S. Census Bureau data for 2017 show
108
See 13 CFR § 121.201, NAICS Code 517312 (as of 10/1/22, NAICS Code 517112).
109
See U.S. Census Bureau, 2017 Economic Census of the United States, Employment Size of Firms for the U.S.:
2017, Table ID: EC1700SIZEEMPFIRM, NAICS Code 517312,
https://data.census.gov/cedsci/table?y=2017&n=517312&tid=ECNSIZE2017.EC1700SIZEEMPFIRM&hidePrevie
w=false.
110
Id. The available U.S. Census Bureau data does not provide a more precise estimate of the number of firms that
meet the SBA size standard.
111
Based on a FCC Universal Licensing System search on November 16, 2021,
https://wireless2.fcc.gov/UlsApp/UlsSearch/searchAdvanced.jsp. Search parameters: Service Group = All, “Match
only the following radio service(s)”, Radio Service = CW; Authorization Type = All; Status = Active. We note that
the number of active licenses does not equate to the number of licensees. A licensee can have one or more licenses.
112
See 47 CFR § 24.720(b).
113
See Federal Communications Commission, Office of Economics and Analytics, Auctions, Auctions 4, 5, 10, 11,
22, 35, 58, 71 and 78, https://www.fcc.gov/auctions.
114
See U.S. Census Bureau, 2017 NAICS Definition, “517312 Wireless Telecommunications Carriers (except
Satellite),” https://www.census.gov/naics/?input=517312&year=2017&details=517312.
115
See 13 CFR § 121.201, NAICS Code 517312 (as of 10/1/22, NAICS Code 517112).
Federal Communications Commission FCC-CIRC2310-01
115
that there were 2,893 firms in this industry that operated for the entire year.
116
Of this number, 2,837
firms employed fewer than 250 employees.
117
Additionally, based on Commission data in the 2022
Universal Service Monitoring Report, as of December 31, 2021, there were 95 providers that reported
they were of SMR (dispatch) providers.
118
Of this number, the Commission estimates that all 95
providers have 1,500 or fewer employees.
119
Consequently, using the SBA’s small business size
standard, these 119 SMR licensees can be considered small entities.
120
32. Based on Commission data as of December 2021, there were 3,924 active SMR
licenses.
121
However, since the Commission does not collect data on the number of employees for
licensees providing SMR services, at this time we are not able to estimate the number of licensees with
active licenses that would qualify as small under the SBA’s small business size standard. Nevertheless,
for purposes of this analysis the Commission estimates that the majority of SMR licensees can be
considered small entities using the SBA’s small business size standard.
33. Lower 700 MHz Band Licenses. The lower 700 MHz band encompasses spectrum in the
698-746 MHz frequency bands. Permissible operations in these bands include flexible fixed, mobile, and
broadcast uses, including mobile and other digital new broadcast operation; fixed and mobile wireless
commercial services (including FDD- and TDD-based services); as well as fixed and mobile wireless uses
for private, internal radio needs, two-way interactive, cellular, and mobile television broadcasting
services.
122
Wireless Telecommunications Carriers (except Satellite)
123
is the closest industry with a SBA
small business size standard applicable to licenses providing services in these bands. The SBA small
business size standard for this industry classifies a business as small if it has 1,500 or fewer employees.
124
U.S. Census Bureau data for 2017 show that there were 2,893 firms that operated in this industry for the
entire year.
125
Of this number, 2,837 firms employed fewer than 250 employees.
126
Thus under the SBA
116
See U.S. Census Bureau, 2017 Economic Census of the United States, Employment Size of Firms for the U.S.:
2017, Table ID: EC1700SIZEEMPFIRM, NAICS Code 517312,
https://data.census.gov/cedsci/table?y=2017&n=517312&tid=ECNSIZE2017.EC1700SIZEEMPFIRM&hidePrevie
w=false.
117
Id. The available U.S. Census Bureau data does not provide a more precise estimate of the number of firms that
meet the SBA size standard.
118
Federal-State Joint Board on Universal Service, Universal Service Monitoring Report at 26, Table 1.12 (2022),
https://docs.fcc.gov/public/attachments/DOC-391070A1.pdf. https://docs.fcc.gov/public/attachments/DOC-
379181A1.pdf
119
Id.
120
We note that there were also SMR providers reporting in the “Cellular/PCS/SMR” classification, therefore there
are maybe additional SMR providers that have not been accounted for in the SMR (dispatch) classification.
121
Based on a FCC Universal Licensing System search on December 15, 2021,
https://wireless2.fcc.gov/UlsApp/UlsSearch/searchAdvanced.jsp. Search parameters: Service Group = All, “Match
radio services within this group”, Radio Service = SMR; Authorization Type = All; Status = Active. We note that
the number of active licenses does not equate to the number of licensees. A licensee can have one or more licenses.
122
See Federal Communications Commission, Economics and Analytics, Auctions, Auctions 44, 49, 60: Lower 700
MHz Band, Fact Sheet, Permissible Operations, https://www.fcc.gov/auction/44/factsheet,
https://www.fcc.gov/auction/49/factsheet, https://www.fcc.gov/auction/60/factsheet.
123
See U.S. Census Bureau, 2017 NAICS Definition, “517312 Wireless Telecommunications Carriers (except
Satellite),” https://www.census.gov/naics/?input=517312&year=2017&details=517312.
124
See 13 CFR § 121.201, NAICS Code 517312 (as of 10/1/22, NAICS Code 517112).
125
See U.S. Census Bureau, 2017 Economic Census of the United States, Employment Size of Firms for the U.S.:
2017, Table ID: EC1700SIZEEMPFIRM, NAICS Code 517312,
https://data.census.gov/cedsci/table?y=2017&n=517312&tid=ECNSIZE2017.EC1700SIZEEMPFIRM&hidePrevie
w=false.
Federal Communications Commission FCC-CIRC2310-01
116
size standard, the Commission estimates that a majority of licensees in this industry can be considered
small.
34. According to Commission data as of December 2021, there were approximately 2,824
active Lower 700 MHz Band licenses.
127
The Commission’s small business size standards with respect to
Lower 700 MHz Band licensees involve eligibility for bidding credits and installment payments in the
auction of licenses. For auctions of Lower 700 MHz Band licenses the Commission adopted criteria for
three groups of small businesses. A very small business was defined as an entity that, together with its
affiliates and controlling interests, has average annual gross revenues not exceeding $15 million for the
preceding three years, a small business was defined as an entity that, together with its affiliates and
controlling interests, has average gross revenues not exceeding $40 million for the preceding three years,
and an entrepreneur was defined as an entity that, together with its affiliates and controlling interests, has
average gross revenues not exceeding $3 million for the preceding three years.
128
In auctions for Lower
700 MHz Band licenses seventy-two winning bidders claiming a small business classification won 329
licenses,
129
twenty-six winning bidders claiming a small business classification won 214 licenses,
130
and
three winning bidders claiming a small business classification won all five auctioned licenses.
131
35. In frequency bands where licenses were subject to auction, the Commission notes that as
a general matter, the number of winning bidders that qualify as small businesses at the close of an auction
does not necessarily represent the number of small businesses currently in service. Further, the
Commission does not generally track subsequent business size unless, in the context of assignments or
transfers, unjust enrichment issues are implicated. Additionally, since the Commission does not collect
data on the number of employees for licensees providing these services, at this time we are not able to
estimate the number of licensees with active licenses that would qualify as small under the SBA’s small
business size standard.
36. Upper 700 MHz Band Licenses. The upper 700 MHz band encompasses spectrum in the
746-806 MHz bands. Upper 700 MHz D Block licenses are nationwide licenses associated with the 758-
763 MHz and 788-793 MHz bands.
132
Permissible operations in these bands include flexible fixed,
mobile, and broadcast uses, including mobile and other digital new broadcast operation; fixed and mobile
wireless commercial services (including FDD- and TDD-based services); as well as fixed and mobile
wireless uses for private, internal radio needs, two-way interactive, cellular, and mobile television
(Continued from previous page)
126
Id. The available U.S. Census Bureau data does not provide a more precise estimate of the number of firms that
meet the SBA size standard.
127
Based on a FCC Universal Licensing System search on December 14, 2021,
https://wireless2.fcc.gov/UlsApp/UlsSearch/searchAdvanced.jsp. Search parameters: Service Group = All, “Match
only the following radio service(s)”, Radio Service = WY, WZ; Authorization Type = All; Status = Active. We note
that the number of active licenses does not equate to the number of licensees. A licensee can have one or more
licenses.
128
See 47 CFR § 27.702(a)(1)-(3).
129
See Federal Communications Commission, Economics and Analytics, Auctions, Auction 44: Lower 700 MHz
Guard Bands, Summary, Closing Charts, Licenses by Bidder,
https://www.fcc.gov/sites/default/files/wireless/auctions/44/charts/44cls2.pdf.
130
See Federal Communications Commission, Economics and Analytics, Auctions, Auction 49: Lower 700 MHz
Guard Bands, Summary, Closing Charts, Licenses by Bidder,
https://www.fcc.gov/sites/default/files/wireless/auctions/49/charts/49cls2.pdf.
131
See Federal Communications Commission, Economics and Analytics, Auctions, Auction 60: Lower 700 MHz
Guard Bands, Summary, Closing Charts, Licenses by Bidder,
https://www.fcc.gov/sites/default/files/wireless/auctions/60/charts/60cls2.pdf.
132
See 47 CFR § 27.4.
Federal Communications Commission FCC-CIRC2310-01
117
broadcasting services.
133
Wireless Telecommunications Carriers (except Satellite)
134
is the closest industry
with a SBA small business size standard applicable to licenses providing services in these bands. The
SBA small business size standard for this industry classifies a business as small if it has 1,500 or fewer
employees.
135
U.S. Census Bureau data for 2017 show that there were 2,893 firms that operated in this
industry for the entire year.
136
Of that number, 2,837 firms employed fewer than 250 employees.
137
Thus,
under the SBA size standard, the Commission estimates that a majority of licensees in this industry can be
considered small.
37. According to Commission data as of December 2021, there were approximately 152
active Upper 700 MHz Band licenses.
138
The Commission’s small business size standards with respect to
Upper 700 MHz Band licensees involve eligibility for bidding credits and installment payments in the
auction of licenses. For the auction of these licenses, the Commission defined a “small business” as an
entity that, together with its affiliates and controlling principals, has average gross revenues not exceeding
$40 million for the preceding three years, and a “very small business” an entity that, together with its
affiliates and controlling principals, has average gross revenues that are not more than $15 million for the
preceding three years.
139
Pursuant to these definitions, three winning bidders claiming very small
business status won five of the twelve available licenses.
140
38. In frequency bands where licenses were subject to auction, the Commission notes that as
a general matter, the number of winning bidders that qualify as small businesses at the close of an auction
does not necessarily represent the number of small businesses currently in service. Further, the
Commission does not generally track subsequent business size unless, in the context of assignments or
transfers, unjust enrichment issues are implicated. Additionally, since the Commission does not collect
data on the number of employees for licensees providing these services, at this time we are not able to
estimate the number of licensees with active licenses that would qualify as small under the SBA’s small
business size standard.
39. 700 MHz Guard Band Licensees. The 700 MHz Guard Band encompasses spectrum in
746-747/776-777 MHz and 762-764/792-794 MHz frequency bands. Wireless Telecommunications
133
See Federal Communications Commission, Economics and Analytics, Auctions, Auction 73: 700 MHz Band,
Fact Sheet, Permissible Operations, https://www.fcc.gov/auction/73/factsheet. We note that in Auction 73, Upper
700 MHz Band C and D Blocks as well as Lower 700 MHz Band A, B, and E Blocks were auctioned.
134
See U.S. Census Bureau, 2017 NAICS Definition, “517312 Wireless Telecommunications Carriers (except
Satellite),” https://www.census.gov/naics/?input=517312&year=2017&details=517312.
135
See 13 CFR § 121.201, NAICS Code 517312 (as of 10/1/22, NAICS Code 517112).
136
See U.S. Census Bureau, 2017 Economic Census of the United States, Employment Size of Firms for the U.S.:
2017, Table ID: EC1700SIZEEMPFIRM, NAICS Code 517312,
https://data.census.gov/cedsci/table?y=2017&n=517312&tid=ECNSIZE2017.EC1700SIZEEMPFIRM&hidePrevie
w=false.
137
Id. The available U.S. Census Bureau data does not provide a more precise estimate of the number of firms that
meet the SBA size standard.
138
Based on a FCC Universal Licensing System search on December 14, 2021,
https://wireless2.fcc.gov/UlsApp/UlsSearch/searchAdvanced.jsp. Search parameters: Service Group = All, “Match
only the following radio service(s)”, Radio Service = WP, WU; Authorization Type = All; Status = Active. We note
that the number of active licenses does not equate to the number of licensees. A licensee can have one or more
licenses.
139
See 47 CFR § 27.502(a).
140
See Auction of 700 MHz Band Licenses Closes; Winning Bidders Announced for Auction 73, Public Notice, DA-
08-595, Attachment A, Report No. AUC-08-73-I (Auction 73) (March 20, 2008). The results for Upper 700 MHz
Band C Block can be found on pp. 62-63.
Federal Communications Commission FCC-CIRC2310-01
118
Carriers (except Satellite)
141
is the closest industry with a SBA small business size standard applicable to
licenses providing services in these bands. The SBA small business size standard for this industry
classifies a business as small if it has 1,500 or fewer employees.
142
U.S. Census Bureau data for 2017
show that there were 2,893 firms that operated in this industry for the entire year.
143
Of this number,
2,837 firms employed fewer than 250 employees.
144
Thus under the SBA size standard, the Commission
estimates that a majority of licensees in this industry can be considered small.
40. According to Commission data as of December 2021, there were approximately 224
active 700 MHz Guard Band licenses.
145
The Commission’s small business size standards with respect to
700 MHz Guard Band licensees involve eligibility for bidding credits and installment payments in the
auction of licenses. For the auction of these licenses, the Commission defined a “small business” as an
entity that, together with its affiliates and controlling principals, has average gross revenues not exceeding
$40 million for the preceding three years, and a “very small business” an entity that, together with its
affiliates and controlling principals, has average gross revenues that are not more than $15 million for the
preceding three years.
146
Pursuant to these definitions, five winning bidders claiming one of the small
business status classifications won 26 licenses, and one winning bidder claiming small business won two
licenses.
147
None of the winning bidders claiming a small business status classification in these 700 MHz
Guard Band license auctions had an active license as of December 2021.
148
41. In frequency bands where licenses were subject to auction, the Commission notes that as
a general matter, the number of winning bidders that qualify as small businesses at the close of an auction
does not necessarily represent the number of small businesses currently in service. Further, the
Commission does not generally track subsequent business size unless, in the context of assignments or
transfers, unjust enrichment issues are implicated. Additionally, since the Commission does not collect
data on the number of employees for licensees providing these services, at this time we are not able to
estimate the number of licensees with active licenses that would qualify as small under the SBA’s small
business size standard.
141
See U.S. Census Bureau, 2017 NAICS Definition, “517312 Wireless Telecommunications Carriers (except
Satellite),” https://www.census.gov/naics/?input=517312&year=2017&details=517312.
142
See 13 CFR § 121.201, NAICS Code 517312 (as of 10/1/22, NAICS Code 517112).
143
See U.S. Census Bureau, 2017 Economic Census of the United States, Employment Size of Firms for the U.S.:
2017, Table ID: EC1700SIZEEMPFIRM, NAICS Code 517312,
https://data.census.gov/cedsci/table?y=2017&n=517312&tid=ECNSIZE2017.EC1700SIZEEMPFIRM&hidePrevie
w=false.
144
Id. The available U.S. Census Bureau data does not provide a more precise estimate of the number of firms that
meet the SBA size standard.
145
Based on a FCC Universal Licensing System search on December 14, 2021,
https://wireless2.fcc.gov/UlsApp/UlsSearch/searchAdvanced.jsp. Search parameters: Service Group = All, “Match
only the following radio service(s)”, Radio Service = WX; Authorization Type = All; Status = Active. We note that
the number of active licenses does not equate to the number of licensees. A licensee can have one or more licenses.
146
See 47 CFR § 27.502(a).
147
See Federal Communications Commission, Economics and Analytics, Auctions, Auction 33: Upper 700 MHz
Guard Bands, Summary, Closing Charts, Licenses by Bidder,
https://www.fcc.gov/sites/default/files/wireless/auctions/33/charts/33cls2.pdf, Auction 38: Upper 700 MHz Guard
Bands, Summary, Closing Charts, Licenses by Bidder,
https://www.fcc.gov/sites/default/files/wireless/auctions/38/charts/38cls2.pdf.
148
Based on a FCC Universal Licensing System search on December 14, 2021,
https://wireless2.fcc.gov/UlsApp/UlsSearch/searchAdvanced.jsp. Search parameters: Service Group = All, “Match
only the following radio service(s)”, Radio Service = WX; Authorization Type = All; Status = Active. We note that
the number of active licenses does not equate to the number of licensees. A licensee can have one or more licenses.
Federal Communications Commission FCC-CIRC2310-01
119
42. Air-Ground Radiotelephone Service. Air-Ground Radiotelephone Service is a wireless
service in which licensees are authorized to offer and provide radio telecommunications service for hire to
subscribers in aircraft.
149
A licensee may provide any type of air-ground service (i.e., voice telephony,
broadband Internet, data, etc.) to aircraft of any type, and serve any or all aviation markets (commercial,
government, and general). A licensee must provide service to aircraft and may not provide ancillary land
mobile or fixed services in the 800 MHz air-ground spectrum.
150
43. The closest industry with an SBA small business size standard applicable to these
services is Wireless Telecommunications Carriers (except Satellite).
151
The SBA small business size
standard for this industry classifies a business as small if it has 1,500 or fewer employees.
152
U.S. Census
Bureau data for 2017 show that there were 2,893 firms that operated in this industry for the entire year.
153
Of this number, 2,837 firms employed fewer than 250 employees.
154
Thus under the SBA size standard,
the Commission estimates that a majority of licensees in this industry can be considered small.
44. Based on Commission data as of December 2021, there were approximately four
licensees with 110 active licenses in the Air-Ground Radiotelephone Service.
155
The Commission’s small
business size standards with respect to Air-Ground Radiotelephone Service involve eligibility for bidding
credits and installment payments in the auction of licenses. For purposes of auctions, the Commission
defined “small business” as an entity that, together with its affiliates and controlling interests, has average
gross revenues not exceeding $40 million for the preceding three years, and a “very small business” as an
entity that, together with its affiliates and controlling interests, has had average annual gross revenues not
exceeding $15 million for the preceding three years.
156
In the auction of Air-Ground Radiotelephone
Service licenses in the 800 MHz band, neither of the two winning bidders claimed small business
status.
157
45. In frequency bands where licenses were subject to auction, the Commission notes that as
a general matter, the number of winning bidders that qualify as small businesses at the close of an auction
does not necessarily represent the number of small businesses currently in service. Further, the
Commission does not generally track subsequent business size unless, in the context of assignments or
149
47 CFR § 22.99.
150
See Federal Communications Commission, Economics and Analytics, Auctions, Auction 65: 800 MHz Air-
Ground Radiotelephone Service, Fact Sheet, Permissible Operations, https://www.fcc.gov/auction/65/factsheet.
151
See U.S. Census Bureau, 2017 NAICS Definition, “517312 Wireless Telecommunications Carriers (except
Satellite),” https://www.census.gov/naics/?input=517312&year=2017&details=517312.
152
See 13 CFR § 121.201, NAICS Code 517312 (as of 10/1/22, NAICS Code 517112).
153
See U.S. Census Bureau, 2017 Economic Census of the United States, Employment Size of Firms for the U.S.:
2017, Table ID: EC1700SIZEEMPFIRM, NAICS Code 517312,
https://data.census.gov/cedsci/table?y=2017&n=517312&tid=ECNSIZE2017.EC1700SIZEEMPFIRM&hidePrevie
w=false.
154
Id. The available U.S. Census Bureau data does not provide a more precise estimate of the number of firms that
meet the SBA size standard.
155
Based on a FCC Universal Licensing System search on December 20, 2021,
https://wireless2.fcc.gov/UlsApp/UlsSearch/searchAdvanced.jsp. Search parameters: Service Group = All, “Match
only the following radio service(s)”, Radio Service = CG, CJ; Authorization Type = All; Status = Active. We note
that the number of active licenses does not equate to the number of licensees. A licensee can have one or more
licenses.
156
See 47 CFR § 22.223(b).
157
See Federal Communications Commission, Economics and Analytics, Auctions, Auction 65: 800 MHz Air-
Ground Radiotelephone Service, Summary, Closing Charts, Licenses by Bidder,
https://www.fcc.gov/sites/default/files/wireless/auctions/65/charts/65cls2.pdf.
Federal Communications Commission FCC-CIRC2310-01
120
transfers, unjust enrichment issues are implicated. Additionally, the Commission does not collect data on
the number of employees for licensees providing these services therefore, at this time we are not able to
estimate the number of licensees with active licenses that would qualify as small under the SBA’s small
business size standard.
46. Advanced Wireless Services (AWS) - (1710–1755 MHz and 2110–2155 MHz bands
(AWS-1); 1915–1920 MHz, 1995–2000 MHz, 2020–2025 MHz and 2175–2180 MHz bands (AWS-2);
2155–2175 MHz band (AWS-3); 2000-2020 MHz and 2180-2200 MHz (AWS-4)). Spectrum is made
available and licensed in these bands for the provision of various wireless communications services.
158
Wireless Telecommunications Carriers (except Satellite)
159
is the closest industry with a SBA small
business size standard applicable to these services. The SBA small business size standard for this
industry classifies a business as small if it has 1,500 or fewer employees.
160
U.S. Census Bureau data for
2017 show that there were 2,893 firms that operated in this industry for the entire year.
161
Of this number,
2,837 firms employed fewer than 250 employees.
162
Thus, under the SBA size standard, the Commission
estimates that a majority of licensees in this industry can be considered small.
47. According to Commission data as December 2021, there were approximately 4,472
active AWS licenses.
163
The Commission’s small business size standards with respect to AWS involve
eligibility for bidding credits and installment payments in the auction of licenses for these services. For
the auction of AWS licenses, the Commission defined a “small business” as an entity with average annual
gross revenues for the preceding three years not exceeding $40 million, and a “very small business” as an
entity with average annual gross revenues for the preceding three years not exceeding $15 million.
164
Pursuant to these definitions, 57 winning bidders claiming status as small or very small businesses won
215 of 1,087 licenses.
165
In the most recent auction of AWS licenses 15 of 37 bidders qualifying for
status as small or very small businesses won licenses.
166
48. In frequency bands where licenses were subject to auction, the Commission notes that as
a general matter, the number of winning bidders that qualify as small businesses at the close of an auction
does not necessarily represent the number of small businesses currently in service. Further, the
158
See 47 CFR § 27.1(b).
159
See U.S. Census Bureau, 2017 NAICS Definition, “517312 Wireless Telecommunications Carriers (except
Satellite),” https://www.census.gov/naics/?input=517312&year=2017&details=517312.
160
See 13 CFR § 121.201, NAICS Code 517312 (as of 10/1/22, NAICS Code 517112).
161
See U.S. Census Bureau, 2017 Economic Census of the United States, Employment Size of Firms for the U.S.:
2017, Table ID: EC1700SIZEEMPFIRM, NAICS Code 517312,
https://data.census.gov/cedsci/table?y=2017&n=517312&tid=ECNSIZE2017.EC1700SIZEEMPFIRM&hidePrevie
w=false.
162
Id. The available U.S. Census Bureau data does not provide a more precise estimate of the number of firms that
meet the SBA size standard.
163
Based on a FCC Universal Licensing System search on December 10, 2021,
https://wireless2.fcc.gov/UlsApp/UlsSearch/searchAdvanced.jsp. Search parameters: Service Group = All, “Match
only the following radio service(s)”, Radio Service = AD, AH, AT, AW; Authorization Type = All; Status = Active.
We note that the number of active licenses does not equate to the number of licensees. A licensee can have one or
more licenses.
164
See 47 CFR §§ 27.1002, 27.1102, 27.1104, 27.1106.
165
See Federal Communications Commission, Economics and Analytics, Auctions, Auction 66: Advanced Wireless
Services (AWS-1), Summary, Spreadsheets,
https://www.fcc.gov/sites/default/files/wireless/auctions/66/charts/66cls2.pdf.
166
See Auction of Advanced Wireless Services (AWS-3) Licenses Closes; Winning Bidders Announced for Auction
97, Public Notice, DA-15-131, Attachments A-B, (Auction No. 97) (January 30, 2015).
Federal Communications Commission FCC-CIRC2310-01
121
Commission does not generally track subsequent business size unless, in the context of assignments or
transfers, unjust enrichment issues are implicated. Additionally, since the Commission does not collect
data on the number of employees for licensees providing these services, at this time we are not able to
estimate the number of licensees with active licenses that would qualify as small under the SBA’s small
business size standard.
49. 3650–3700 MHz band. Wireless broadband service licensing in the 3650-3700 MHz
band provides for nationwide, non-exclusive licensing of terrestrial operations, utilizing contention-based
technologies, in the 3650 MHz band (i.e., 3650–3700 MHz).
167
Licensees are permitted to provide
services on a non-common carrier and/or on a common carrier basis.
168
Wireless broadband services in
the 3650-3700 MHz band fall in the Wireless Telecommunications Carriers (except Satellite)
169
industry
with an SBA small business size standard that classifies a business as small if it has 1,500 or fewer
employees.
170
U.S. Census Bureau data for 2017 show that there were 2,893 firms that operated in this
industry for the entire year.
171
Of this number, 2,837 firms employed fewer than 250 employees.
172
Thus
under the SBA size standard, the Commission estimates that a majority of licensees in this industry can be
considered small.
50. The Commission has not developed a small business size standard applicable to
3650–3700 MHz band licensees. Based on the licenses that have been granted, however, we estimate that
the majority of licensees in this service are small Internet Access Service Providers (ISPs). As of
November 2021, Commission data shows that there were 902 active licenses in the 3650–3700 MHz
band.
173
However, since the Commission does not collect data on the number of employees for licensees
providing these services, at this time we are not able to estimate the number of licensees with active
licenses that would qualify as small under the SBA’s small business size standard.
51. Fixed Microwave Services. Fixed microwave services include common carrier,
174
private-operational fixed,
175
and broadcast auxiliary radio services.
176
They also include the Upper
167
See 47 CFR §§ 90.1305, 90.1307.
168
See id. § 90.1309.
169
See U.S. Census Bureau, 2017 NAICS Definition, “517312 Wireless Telecommunications Carriers (except
Satellite),” https://www.census.gov/naics/?input=517312&year=2017&details=517312.
170
See 13 CFR § 121.201, NAICS Code 517312 (as of 10/1/22, NAICS Code 517112).
171
See U.S. Census Bureau, 2017 Economic Census of the United States, Employment Size of Firms for the U.S.:
2017, Table ID: EC1700SIZEEMPFIRM, NAICS Code 517312,
https://data.census.gov/cedsci/table?y=2017&n=517312&tid=ECNSIZE2017.EC1700SIZEEMPFIRM&hidePrevie
w=false.
172
Id. The available U.S. Census Bureau data does not provide a more precise estimate of the number of firms that
meet the SBA size standard.
173
Based on a FCC Universal Licensing System search on November 19, 2021,
https://wireless2.fcc.gov/UlsApp/UlsSearch/searchAdvanced.jsp. Search parameters: Service Group = All, “Match
only the following radio service(s)”, Radio Service = NN; Authorization Type =All; Status = Active. We note that
the number of active licenses does not equate to the number of licensees. A licensee can have one or more licenses.
174
See 47 CFR Part 101, Subparts C and I.
175
See id. Subparts C and H.
176
Auxiliary Microwave Service is governed by Part 74 of Title 47 of the Commission’s Rules. See 47 CFR Part
74. Available to licensees of broadcast stations and to broadcast and cable network entities, broadcast auxiliary
microwave stations are used for relaying broadcast television signals from the studio to the transmitter, or between
two points such as a main studio and an auxiliary studio. The service also includes mobile TV pickups, which relay
signals from a remote location back to the studio.
Federal Communications Commission FCC-CIRC2310-01
122
Microwave Flexible Use Service (UMFUS),
177
Millimeter Wave Service (70/80/90 GHz),
178
Local
Multipoint Distribution Service (LMDS),
179
the Digital Electronic Message Service (DEMS),
180
24 GHz
Service,
181
Multiple Address Systems (MAS),
182
and Multichannel Video Distribution and Data Service
(MVDDS),
183
where in some bands licensees can choose between common carrier and non-common
carrier status.
184
Wireless Telecommunications Carriers (except Satellite)
185
is the closest industry with a
SBA small business size standard applicable to these services. The SBA small size standard for this
industry classifies a business as small if it has 1,500 or fewer employees.
186
U.S. Census Bureau data for
2017 show that there were 2,893 firms that operated in this industry for the entire year.
187
Of this number,
2,837 firms employed fewer than 250 employees.
188
Thus under the SBA size standard, the Commission
estimates that a majority of fixed microwave service licensees can be considered small.
52. The Commission’s small business size standards with respect to fixed microwave
services involve eligibility for bidding credits and installment payments in the auction of licenses for the
various frequency bands included in fixed microwave services. When bidding credits are adopted for the
auction of licenses in fixed microwave services frequency bands, such credits may be available to several
types of small businesses based average gross revenues (small, very small and entrepreneur) pursuant to
the competitive bidding rules adopted in conjunction with the requirements for the auction and/or as
identified in Part 101 of the Commission’s rules for the specific fixed microwave services frequency
bands.
189
53. In frequency bands where licenses were subject to auction, the Commission notes that as
a general matter, the number of winning bidders that qualify as small businesses at the close of an auction
does not necessarily represent the number of small businesses currently in service. Further, the
Commission does not generally track subsequent business size unless, in the context of assignments or
transfers, unjust enrichment issues are implicated. Additionally, since the Commission does not collect
data on the number of employees for licensees providing these services, at this time we are not able to
estimate the number of licensees with active licenses that would qualify as small under the SBA’s small
business size standard.
177
See 47 CFR Part 30.
178
See 47 CFR Part 101, Subpart Q.
179
See id. Subpart L.
180
See id. Subpart G.
181
See id.
182
See id. Subpart O.
183
See id. Subpart P.
184
See 47 CFR §§ 101.533, 101.1017.
185
See U.S. Census Bureau, 2017 NAICS Definition, “517312 Wireless Telecommunications Carriers (except
Satellite),” https://www.census.gov/naics/?input=517312&year=2017&details=517312.
186
See 13 CFR § 121.201, NAICS Code 517312 (as of 10/1/22, NAICS Code 517112).
187
See U.S. Census Bureau, 2017 Economic Census of the United States, Employment Size of Firms for the U.S.:
2017, Table ID: EC1700SIZEEMPFIRM, NAICS Code 517312,
https://data.census.gov/cedsci/table?y=2017&n=517312&tid=ECNSIZE2017.EC1700SIZEEMPFIRM&hidePrevie
w=false.
188
Id. The available U.S. Census Bureau data does not provide a more precise estimate of the number of firms that
meet the SBA size standard.
189
See 47 CFR §§ 101.538(a)(1)-(3), 101.1112(b)-(d), 101.1319(a)(1)-(2), and 101.1429(a)(1)-(3).
Federal Communications Commission FCC-CIRC2310-01
123
54. Broadband Radio Service and Educational Broadband Service. Broadband Radio
Service systems, previously referred to as Multipoint Distribution Service (MDS) and Multichannel
Multipoint Distribution Service (MMDS) systems, and “wireless cable,”
190
transmit video programming
to subscribers and provide two-way high speed data operations using the microwave frequencies of the
Broadband Radio Service (BRS) and Educational Broadband Service (EBS) (previously referred to as the
Instructional Television Fixed Service (ITFS)).
191
Wireless cable operators that use spectrum in the BRS
often supplemented with leased channels from the EBS, provide a competitive alternative to wired cable
and other multichannel video programming distributors. Wireless cable programming to subscribers
resembles cable television, but instead of coaxial cable, wireless cable uses microwave channels.
192
55. In light of the use of wireless frequencies by BRS and EBS services, the closest industry
with a SBA small business size standard applicable to these services is Wireless Telecommunications
Carriers (except Satellite).
193
The SBA small business size standard for this industry classifies a business
as small if it has 1,500 or fewer employees.
194
U.S. Census Bureau data for 2017 show that there were
2,893 firms that operated in this industry for the entire year.
195
Of this number, 2,837 firms employed
fewer than 250 employees.
196
Thus under the SBA size standard, the Commission estimates that a
majority of licensees in this industry can be considered small.
56. According to Commission data as December 2021, there were approximately 5,869
active BRS and EBS licenses.
197
The Commission’s small business size standards with respect to BRS
involves eligibility for bidding credits and installment payments in the auction of licenses for these
services. For the auction of BRS licenses, the Commission adopted criteria for three groups of small
businesses. A very small business is an entity that, together with its affiliates and controlling interests,
has average annual gross revenues exceed $3 million and did not exceed $15 million for the preceding
three years, a small business is an entity that, together with its affiliates and controlling interests, has
190
The use of the term "wireless cable" does not imply that it constitutes cable television for statutory or regulatory
purposes.
191
See 47 CFR § 27.4; see also Amendment of Parts 21 and 74 of the Commission’s Rules with Regard to Filing
Procedures in the Multipoint Distribution Service and in the Instructional Television Fixed Service and
Implementation of Section 309(j) of the Communications Act—Competitive Bidding, Report and Order, 10 FCC Rcd
9589, 9593, para. 7 (1995).
192
Generally, a wireless cable system may be described as a microwave station transmitting on a combination of
BRS and EBS channels to numerous receivers with antennas, such as single-family residences, apartment
complexes, hotels, educational institutions, business entities and governmental offices. The range of the transmission
depends upon the transmitter power, the type of receiving antenna and the existence of a line-of-sight path between
the transmitter or signal booster and the receiving antenna.
193
See U.S. Census Bureau, 2017 NAICS Definition, “517312 Wireless Telecommunications Carriers (except
Satellite),” https://www.census.gov/naics/?input=517312&year=2017&details=517312.
194
See 13 CFR § 121.201, NAICS Code 517312 (as of 10/1/22, NAICS Code 517112).
195
See U.S. Census Bureau, 2017 Economic Census of the United States, Employment Size of Firms for the U.S.:
2017, Table ID: EC1700SIZEEMPFIRM, NAICS Code 517312,
https://data.census.gov/cedsci/table?y=2017&n=517312&tid=ECNSIZE2017.EC1700SIZEEMPFIRM&hidePrevie
w=false.
196
Id. The available U.S. Census Bureau data does not provide a more precise estimate of the number of firms that
meet the SBA size standard.
197
Based on a FCC Universal Licensing System search on December 10, 2021,
https://wireless2.fcc.gov/UlsApp/UlsSearch/searchAdvanced.jsp. Search parameters: Service Group = All, “Match
only the following radio service(s)”, Radio Service =BR, ED; Authorization Type = All; Status = Active. We note
that the number of active licenses does not equate to the number of licensees. A licensee can have one or more
licenses.
Federal Communications Commission FCC-CIRC2310-01
124
average gross revenues exceed $15 million and did not exceed $40 million for the preceding three years,
and an entrepreneur is an entity that, together with its affiliates and controlling interests, has average gross
revenues not exceeding $3 million for the preceding three years.
198
Of the ten winning bidders for BRS
licenses, two bidders claiming the small business status won 4 licenses, one bidder claiming the very
small business status won three licenses and two bidders claiming entrepreneur status won six licenses.
199
One of the winning bidders claiming a small business status classification in the BRS license auction has
an active licenses as of December 2021.
200
57. The Commission’s small business size standards for EBS define a small business as an
entity that, together with its affiliates, its controlling interests and the affiliates of its controlling interests,
has average gross revenues that are not more than $55 million for the preceding five (5) years, and a very
small business is an entity that, together with its affiliates, its controlling interests and the affiliates of its
controlling interests, has average gross revenues that are not more than $20 million for the preceding five
(5) years.
201
In frequency bands where licenses were subject to auction, the Commission notes that as a
general matter, the number of winning bidders that qualify as small businesses at the close of an auction
does not necessarily represent the number of small businesses currently in service. Further, the
Commission does not generally track subsequent business size unless, in the context of assignments or
transfers, unjust enrichment issues are implicated. Additionally, since the Commission does not collect
data on the number of employees for licensees providing these services, at this time we are not able to
estimate the number of licensees with active licenses that would qualify as small under the SBA’s small
business size standard.
5. Satellite Service Providers
58. Satellite Telecommunications. This industry comprises firms “primarily engaged in
providing telecommunications services to other establishments in the telecommunications and
broadcasting industries by forwarding and receiving communications signals via a system of satellites or
reselling satellite telecommunications.”
202
Satellite telecommunications service providers include satellite
and earth station operators. The SBA small business size standard for this industry classifies a business
with $38.5 million or less in annual receipts as small.
203
U.S. Census Bureau data for 2017 show that 275
firms in this industry operated for the entire year.
204
Of this number, 242 firms had revenue of less than
$25 million.
205
Additionally, based on Commission data in the 2022 Universal Service Monitoring
198
See 47 CFR § 27.1218(a).
199
See Federal Communications Commission, Economics and Analytics, Auctions, Auction 86: Broadband Radio
Service, Summary, Reports, All Bidders,
https://www.fcc.gov/sites/default/files/wireless/auctions/86/charts/86bidder.xls.
200
Based on a FCC Universal Licensing System search on December 10, 2021,
https://wireless2.fcc.gov/UlsApp/UlsSearch/searchAdvanced.jsp. Search parameters: Service Group = All, “Match
only the following radio service(s)”, Radio Service =BR; Authorization Type = All; Status = Active. We note that
the number of active licenses does not equate to the number of licensees. A licensee can have one or more licenses.
201
See 47 CFR § 27.1219(a).
202
See U.S. Census Bureau, 2017 NAICS Definition, “517410 Satellite Telecommunications,”
https://www.census.gov/naics/?input=517410&year=2017&details=517410.
203
See 13 CFR § 121.201, NAICS Code 517410.
204
See U.S. Census Bureau, 2017 Economic Census of the United States, Selected Sectors: Sales, Value of
Shipments, or Revenue Size of Firms for the U.S.: 2017, Table ID: EC1700SIZEREVFIRM, NAICS Code 517410,
https://data.census.gov/cedsci/table?y=2017&n=517410&tid=ECNSIZE2017.EC1700SIZEREVFIRM&hidePrevie
w=false.
205
Id. The available U.S. Census Bureau data does not provide a more precise estimate of the number of firms that
meet the SBA size standard. We also note that according to the U.S. Census Bureau glossary, the terms receipts and
revenues are used interchangeably, see https://www.census.gov/glossary/#term_ReceiptsRevenueServices.
Federal Communications Commission FCC-CIRC2310-01
125
Report, as of December 31, 2021, there were 65 providers that reported they were engaged in the
provision of satellite telecommunications services.
206
Of these providers, the Commission estimates that
approximately 42 providers have 1,500 or fewer employees.
207
Consequently, using the SBA’s small
business size standard, a little more than half of these providers can be considered small entities.
59. All Other Telecommunications. This industry is comprised of establishments primarily
engaged in providing specialized telecommunications services, such as satellite tracking, communications
telemetry, and radar station operation.
208
This industry also includes establishments primarily engaged in
providing satellite terminal stations and associated facilities connected with one or more terrestrial
systems and capable of transmitting telecommunications to, and receiving telecommunications from,
satellite systems.
209
Providers of Internet services (e.g. dial-up ISPs) or Voice over Internet Protocol
(VoIP) services, via client-supplied telecommunications connections are also included in this industry.
210
The SBA small business size standard for this industry classifies firms with annual receipts of $35 million
or less as small.
211
U.S. Census Bureau data for 2017 show that there were 1,079 firms in this industry
that operated for the entire year.
212
Of those firms, 1,039 had revenue of less than $25 million.
213
Based
on this data, the Commission estimates that the majority of “All Other Telecommunications” firms can be
considered small.
6. Cable Service Providers
60. Cable and Other Subscription Programming. The U.S. Census Bureau defines this
industry as establishments primarily engaged in operating studios and facilities for the broadcasting of
programs on a subscription or fee basis.
214
The broadcast programming is typically narrowcast in nature
(e.g., limited format, such as news, sports, education, or youth-oriented). These establishments produce
programming in their own facilities or acquire programming from external sources.
215
The programming
material is usually delivered to a third party, such as cable systems or direct-to-home satellite systems, for
transmission to viewers.
216
The SBA small business size standard for this industry classifies firms with
annual receipts less than $41.5 million as small.
217
Based on U.S. Census Bureau data for 2017, 378 firms
206
Federal-State Joint Board on Universal Service, Universal Service Monitoring Report at 26, Table 1.12 (2022),
https://docs.fcc.gov/public/attachments/DOC-391070A1.pdf.
207
Id.
208
See U.S. Census Bureau, 2017 NAICS Definition, “517919 All Other Telecommunications,
https://www.census.gov/naics/?input=517919&year=2017&details=517919.
209
Id.
210
Id.
211
See 13 CFR § 121.201, NAICS Code 517919 (as of 10/1/22, NAICS Code 517810).
212
See U.S. Census Bureau, 2017 Economic Census of the United States, Selected Sectors: Sales, Value of
Shipments, or Revenue Size of Firms for the U.S.: 2017, Table ID: EC1700SIZEREVFIRM, NAICS Code 517919,
https://data.census.gov/cedsci/table?y=2017&n=517919&tid=ECNSIZE2017.EC1700SIZEREVFIRM&hidePrevie
w=false.
213
Id. The available U.S. Census Bureau data does not provide a more precise estimate of the number of firms that
meet the SBA size standard. We also note that according to the U.S. Census Bureau glossary, the terms receipts and
revenues are used interchangeably, see https://www.census.gov/glossary/#term_ReceiptsRevenueServices.
214
See U.S. Census Bureau, 2017 NAICS Definition, “515210 Cable and Other Subscription Programming,”
https://www.census.gov/naics/?input=515210&year=2017&details=515210.
215
Id.
216
Id.
217
See 13 CFR § 121.201, NAICS Code 515210 (as of 10/1/22, NAICS Code 516210).
Federal Communications Commission FCC-CIRC2310-01
126
operated in this industry during that year.
218
Of that number, 149 firms operated with revenue of less than
$25 million a year and 44 firms operated with revenue of $25 million or more.
219
Based on this data, the
Commission estimates that a majority of firms in this industry are small.
61. Cable Companies and Systems (Rate Regulation). The Commission has developed its
own small business size standard for the purpose of cable rate regulation. Under the Commission’s rules,
a “small cable company” is one serving 400,000 or fewer subscribers nationwide.
220
Based on industry
data, there are about 420 cable companies in the U.S.
221
Of these, only seven have more than 400,000
subscribers.
222
In addition, under the Commission’s rules, a “small system” is a cable system serving
15,000 or fewer subscribers.
223
Based on industry data, there are about 4,139 cable systems (headends) in
the U.S.
224
Of these, about 639 have more than 15,000 subscribers.
225
Accordingly, the Commission
estimates that the majority of cable companies and cable systems are small.
62. Cable System Operators (Telecom Act Standard). The Communications Act of 1934, as
amended, contains a size standard for a “small cable operator,” which is “a cable operator that, directly or
through an affiliate, serves in the aggregate fewer than one percent of all subscribers in the United States
and is not affiliated with any entity or entities whose gross annual revenues in the aggregate exceed
$250,000,000.”
226
For purposes of the Telecom Act Standard, the Commission determined that a cable
system operator that serves fewer than 677,000 subscribers, either directly or through affiliates, will meet
the definition of a small cable operator based on the cable subscriber count established in a 2001 Public
Notice.
227
Based on industry data, only six cable system operators have more than 677,000 subscribers.
228
218
See U.S. Census Bureau, 2017 Economic Census of the United States, Selected Sectors: Sales, Value of
Shipments, or Revenue Size of Firms for the U.S.: 2017, Table ID: EC1700SIZEREVFIRM, NAICS Code 515210,
https://data.census.gov/cedsci/table?y=2017&n=515210&tid=ECNSIZE2017.EC1700SIZEREVFIRM&hidePrevie
w=false. The US Census Bureau withheld publication of the number of firms that operated for the entire year to
avoid disclosing data for individual companies (see Cell Notes for this category).
219
Id. The available U.S. Census Bureau data does not provide a more precise estimate of the number of firms that
meet the SBA size standard. We note that the U.S. Census Bureau withheld publication of the number of firms that
operated with sales/value of shipments/revenue in all categories of revenue less than $500,000 to avoid disclosing
data for individual companies (see Cell Notes for the sales/value of shipments/revenue in these categories).
Therefore, the number of firms with revenue that meet the SBA size standard would be higher than noted herein.
We also note that according to the U.S. Census Bureau glossary, the terms receipts and revenues are used
interchangeably, see https://www.census.gov/glossary/#term_ReceiptsRevenueServices.
220
47 CFR § 76.901(d).
221
S&P Global Market Intelligence, S&P Capital IQ Pro, U.S. MediaCensus, Operator Subscribers by Geography
(last visited May 26, 2022).
222
S&P Global Market Intelligence, S&P Capital IQ Pro, Top Cable MSOs 12/21Q (last visited May 26, 2022); S&P
Global Market Intelligence, Multichannel Video Subscriptions, Top 10 (April 2022).
223
47 CFR § 76.901(c).
224
S&P Global Market Intelligence, S&P Capital IQ Pro, U.S. MediaCensus, Operator Subscribers by Geography
(last visited May 26, 2022).
225
S&P Global Market Intelligence, S&P Capital IQ Pro, Top Cable MSOs 12/21Q (last visited May 26, 2022).
226
47 U.S.C. § 543(m)(2).
227
FCC Announces New Subscriber Count for the Definition of Small Cable Operator, Public Notice, 16 FCC Rcd
2225 (CSB 2001) (2001 Subscriber Count PN). In this Public Notice, the Commission determined that there were
approximately 67.7 million cable subscribers in the United States at that time using the most reliable source publicly
available. Id. We recognize that the number of cable subscribers changed since then and that the Commission has
recently estimated the number of cable subscribers to traditional and telco cable operators to be approximately 49.8
million. See Communications Marketplace Report, GN Docket No. 22-203, 2022 WL 18110553 at 80, para. 218,
Fig. II.E.1. (2022) (2022 Communications Marketplace Report). However, because the Commission has not issued
(continued….)
Federal Communications Commission FCC-CIRC2310-01
127
Accordingly, the Commission estimates that the majority of cable system operators are small under this
size standard. We note however, that the Commission neither requests nor collects information on
whether cable system operators are affiliated with entities whose gross annual revenues exceed $250
million.
229
Therefore, we are unable at this time to estimate with greater precision the number of cable
system operators that would qualify as small cable operators under the definition in the Communications
Act.
7. Other Telecommunications
63. Electric Power Generators, Transmitters, and Distributors. The U.S. Census Bureau
defines the utilities sector industry as comprised of “establishments, primarily engaged in generating,
transmitting, and/or distributing electric power.
230
Establishments in this industry group may perform one
or more of the following activities: (1) operate generation facilities that produce electric energy; (2)
operate transmission systems that convey the electricity from the generation facility to the distribution
system; and (3) operate distribution systems that convey electric power received from the generation
facility or the transmission system to the final consumer.”
231
This industry group is categorized based on
fuel source and includes Hydroelectric Power Generation, Fossil Fuel Electric Power Generation, Nuclear
Electric Power Generation, Solar Electric Power Generation, Wind Electric Power Generation,
Geothermal Electric Power Generation, Biomass Electric Power Generation, Other Electric Power
Generation, Electric Bulk Power Transmission and Control and Electric Power Distribution.
232
64. The SBA has established a small business size standard for each of these groups based on
the number of employees which ranges from having fewer than 250 employees to having fewer than
1,000 employees.
233
U.S. Census Bureau data for 2017 indicate that for the Electric Power Generation,
Transmission and Distribution industry there were 1,693 firms that operated in this industry for the entire
year.
234
Of this number, 1,552 firms had less than 250 employees.
235
Based on this data and the
associated SBA size standards, the majority of firms in this industry can be considered small entities.
(Continued from previous page)
a public notice subsequent to the 2001 Subscriber Count PN, the Commission still relies on the subscriber count
threshold established by the 2001 Subscriber Count PN for purposes of this rule. See 47 CFR § 76.901(e)(1).
228
S&P Global Market Intelligence, S&P Capital IQ Pro, Top Cable MSOs 12/21Q (last visited May 26, 2022); S&P
Global Market Intelligence, Multichannel Video Subscriptions, Top 10 (April 2022).
229
The Commission does receive such information on a case-by-case basis if a cable operator appeals a local
franchise authority’s finding that the operator does not qualify as a small cable operator pursuant to § 76.901(e) of
the Commission’s rules. See 47 CFR § 76.910(b).
230
See U.S. Census Bureau, 2017 NAICS Definition, “Sector 22- Utilities, 2211 Electric Power Generation,
Transmission and Distribution,” https://www.census.gov/naics/?input=2211&year=2017&details=2211.
231
See id.
232
Id.
233
See 13 CFR § 121.201, NAICS Codes 221111, 221112, 221113, 221114, 221115, 221116, 221117, 221118,
221121, 221122.
234
See U.S. Census Bureau, 2017 Economic Census of the United States, Selected Sectors: Employment Size of
Firms for the U.S.: 2017, Table ID: EC1700SIZEEMPFIRM, NAICS Code 2211,
https://data.census.gov/cedsci/table?y=2017&n=2211&tid=ECNSIZE2017.EC1700SIZEEMPFIRM&hidePreview=f
alse.
235
Id. The available U.S. Census Bureau data does not provide a more precise estimate of the number of firms that
meet the SBA size standard.
Federal Communications Commission FCC-CIRC2310-01
128
D. Description of Projected Reporting, Recordkeeping, and Other Compliance
Requirements for Small Entities
65. As indicated above, the Notice proposes to return BIAS to its classification as a
telecommunications service under Title II of the Act, and further proposes to reclassify mobile BIAS as a
commercial mobile service. The Notice also proposes to reinstate straightforward, clear rules of the road
that are designed to prevent ISPs from engaging in practices harmful to consumers, competition, and
public safety, and that would provide the basis for a uniform, national regulatory approach toward BIAS.
Specifically, the Notice proposes to adopt rules to prohibit ISPs from blocking, throttling, or engaging in
paid or affiliated prioritization arrangements. The Notice also proposes to reinstate the general conduct
standard adopted in the 2015 Open Internet Order, which would prohibit practices that cause
unreasonable interference or unreasonable disadvantage to consumers or edge providers. Finally, with
regard to transparency, the Notice proposes to retain the current disclosures, and seeks comment on the
means of disclosure, the interplay between the transparency rule and the broadband label requirements,
and any additional enhancements or changes the Commission should consider.
E. Steps Taken to Minimize the Significant Economic Impact on Small Entities,
and Significant Alternatives Considered
66. The RFA requires an agency to describe any significant alternatives that it has considered
in reaching its proposed approach, which may include (among others) the following four alternatives:
(1) the establishment of differing compliance or reporting requirements or timetables that take into
account the resources available to small entities; (2) the clarification, consolidation, or simplification of
compliance or reporting requirements under the rule for small entities; (3) the use of performance, rather
than design, standards; and (4) an exemption from coverage of the rule, or any part thereof, for small
entities.
236
The Commission expects to consider all of these factors when we have received substantive
comment from the public and potentially affected entities.
67. The Commission also expects to consider the economic impact on small entities, as
identified in comments filed in response to the Notice and this IRFA, in reaching its final conclusions and
taking action in this proceeding. We seek comment here on the effect the various proposals described in
the Notice, and summarized above, will have on small entities, and on what effect alternative rules would
have on those entities. How can the Commission achieve its goal of safeguarding the open Internet while
also imposing minimal burdens on small entities? What specific steps could the Commission take in this
regard? As discussed in the Notice, the proposed approach would provide the basis for a uniform,
national regulatory approach rather than disparate requirements that vary state-by-state, which could help
streamline and minimize regulatory requirements for small entities. The Notice also proposes broad
forbearance from statutory requirements and Commission regulations for broadband Internet access
service providers, and we note that the proposed forbearance could substantially lessen the economic
impact of the proposed actions on small entities. The Notice specifically seeks comment on the impact of
reclassification on small businesses and entities, including small ISPs.
F. Federal Rules that May Duplicate, Overlap, or Conflict with the Proposed Rules
68. None.
236
5 U.S.C. § 603(c).