The lifting of net neutrality ban in the United States is shifting towards telecom operators

The way of Internet regulation in the United States is undergoing great changes. On the 11th local time, the US government's net neutrality regulations were officially abolished, and the new regulations stipulate that network operators will have the right to decide what content consumers obtain. The change of attitude of the Federal Communications Commission (FCC) of the United States has enabled operators to hold the upper hand in the battle with Internet companies. However, the opposition of Internet enterprises and consumers has not been eliminated, and the struggle between the two parties of the United States around network neutrality is still continuing. Less than half a year has passed since the mid-term elections, and the United States Congress will become a new battlefield.

Victory of Operators

According to CNN, an FCC spokesperson recently confirmed that the new regulations will officially come into effect on the 11th local time as originally planned. Last December, the FCC voted 3 in favor and 2 against to repeal the net neutrality regulations established by the Obama administration. The new regulations allow network operators to block certain websites or slow down access to these websites without prior notice to consumers.

After the disclosure of the news, major network operators in the United States, including Verizon, AT&T and Comcast, have issued statements saying that the FCC move will reinvigorate the Internet service industry. On the other hand, Google, Facebook, Netflix and other Internet companies were disappointed and criticized the FCC's decision, which jeopardized the openness of the Internet and hindered innovation and opportunities in the Internet industry.

Analysts pointed out that the new regulations marked that network operators could finally remove the three shackles of "no flow restriction", "no payment priority" and "no blocking", and thus grasp the "right to live and die" of Internet traffic portals. Opponents are concerned that internet operators will be able to allow or prohibit users from accessing specific websites according to their own wishes, such as competitors or critics' companies, and they will decide what consumers see.

In addition, after the dominance of telecom operators, there may be large-scale vertical mergers and acquisitions. After the new regulations come into effect, the US federal court will make a final ruling on whether AT&T can acquire Time Warner on the 12th local time. AT&T is currently the largest wireless network operator in the United States, while Time Warner is a content producer with many well-known brands such as HBO and CNN. Once the two merge, a huge media empire is about to be born. People are generally concerned that this empire will monopolize people's access to information channels.

In response, operators such as Comcast and Verizon had previously issued statements stating that they would not require users to pay extra to access certain websites, and the profits from the new regulations would be used to improve network infrastructure in remote areas. However, as early as 2015, AT&T was exposed for offering discounts on data traffic to its Direct TV and using user subsidies to support the channel's expenses. Comcast has also been accused of intentionally slowing down Netflix's network traffic and forcing Netflix to make payments.

Disagreements are difficult to reconcile

In the process of competition among various forces, the FCC undoubtedly holds a central position.

Current FCC Chairman Akit Pai is a proponent of abolishing net neutrality regulations. In 2015, the FCC passed a proposal for net neutrality regulations with 3 votes in favor and 2 votes against, including Pai's dissenting vote.

In an interview with the media, Paye repeatedly stressed that the new regulations "will mean better, faster and cheaper Internet access services". He claimed that after visiting 26 states, he heard voices of consumer support for change. Americans believe that there is a lack of broadband options, and they are not worried that operators will organize access to legitimate content

However, according to media reports, 22 states in the United States have filed lawsuits against the FCC's new regulations, including several states such as New Jersey, Washington, and California, which have even pushed for legislation to continue implementing net neutrality principles within their states.

In fact, the FCC's attitude shift is a manifestation of the struggle between the Republican and Democratic parties. During the Obama era, FCC Chairman and Democrat Tom Wheeler was a staunch defender of net neutrality, likening operators to "gatekeepers". In Wheeler's view, if the "gatekeepers" really control the internet, it will not only affect people's fair access to the internet, but also the development of cutting-edge technologies.

The Republican government believes that unregulated enterprises are more innovative and prosperous. The new rules of the FCC will give Internet operators more power, and will also benefit Internet companies.

In May of this year, the US Senate overturned the FCC's decision with 52 votes to 47. But the victory in the Senate is not enough to shake the FCC's decision, and whether net neutrality regulations can be restored still requires action from the House of Representatives and approval from President Trump. Analysts pointed out that this issue will be a hot topic in the mid-term congressional elections in November, and young voters who rely heavily on the Internet will play a key role in the new round of competition.

The principle of net neutrality

For a long time, there has been ongoing controversy in American society over net neutrality. In 2003, Professor Tim Wu of Columbia University proposed the principle of net neutrality. According to this principle, network operators shall treat all data on the Internet equally and shall not treat them differently due to different users, content, websites, applications or device terminals. Under the principle of net neutrality, everyone pays the same price for the same amount of traffic.

In fact, the principle of network neutrality classifies the Internet into the public domain. Under this premise, network operators are regarded as public service providers, just like telephone companies and water companies. In 2015, the Obama administration was based on this premise and regulated network service operators through the 1934 Federal Communications Act's Class II business, allowing the FCC to prohibit operators from favoring any company.

However, supporters of abolishing net neutrality regulations argue that net neutrality ignores the benefits for operators and hinders them from investing more funds to provide better network services. As a result of being classified as a public utility, the network tariff in the United States has been declining, and network operators have not benefited much from the vigorous development of the Internet economy, which has also directly affected the construction of the network infrastructure in the United States.

Statistics show that in the first quarter of last year, the average broadband speed in the United States ranked only tenth globally, while mobile internet speed even ranked 32nd globally. Compared with China, China and the United States have similar land areas, but the number of network base stations in the United States is only 60000, which is only 1/30 of China's. In addition, in the past few years, the stock prices of Verizon and AT&T have not increased significantly. Taking Verizon as an example, the company achieved revenue of $29.4 billion in the first quarter of 2013, but by the first quarter of 2017, Verizon's revenue was still only $29.8 billion. But with the implementation of new regulations, the valuations of both companies have risen, and the impact of the lifting of restrictions is significant.

Beijing Business Daily reporter Tao Feng intern reporter Xiao Yonggang/Wen Li Jiong/Watchmaking