Imperiling growth of Internet

Opinion: May 17, 2010 at 12:00a.m.

Kansas City Star: The head of the Federal Communications Commission says proposed new rules for Internet providers are only intended to encourage competition and free-flowing Web traffic.

Whatever the intent, the plan announced by FCC Chairman Julius Genachowski has needlessly injected a worrisome level of economic uncertainty into one of the nation’s most thriving high-tech sectors.

Last month, a federal appeals court ruled that the FCC lacked authority to regulate the Internet. Undeterred, Genachowski said he proposed to simply reclassify broadband Internet as a “telecommunications service” rather than an “information service.”

Such a move would subject broadband to certain Depression-era rules drawn up to regulate copper-wire telephone service.

Genachowski claims he’s taking a middle ground. At least for now, he says his initiative wouldn’t regulate broadband rates, force providers to share lines or regulate content. But it would require that providers like AT&T or Verizon allow data to travel to subscribers without interference.

In practice this could mandate one-size-fits-all pricing for every Internet data packet, regardless of whether it’s text or bandwidth-hogging video. Providers reasonably argue for the freedom to pursue different pricing models on the grounds that would encourage investment in new traffic-managing technology.

Genachowski’s approach is ominous, and not only because it would place Internet providers under “common carrier” rules intended for phone companies. It would hinder development of one of the economy’s most vibrant sectors.