Obama backs net neutrality as he calls for tough 'open Internet' rules - and says online access should be classified as a public utility


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US President Barack Obama has backed a 'free and open Internet' and called for tough rules to protect against putting online services that don't pay extra fees into a 'slow lane.'

Obama endorsed an effort to reclassify the Internet as a public utility to give regulators more authority to enforce 'net neutrality,' which bars ISPs from opening up 'fast lanes' for services that pay fees for better access.

In a statement, Obama said he wants the independent Federal Communications Commission to 'implement the strongest possible rules to protect net neutrality.'

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Obama said he wants the independent Federal Communications Commission to 'implement the strongest possible rules to protect net neutrality.' 

Obama said he wants the independent Federal Communications Commission to 'implement the strongest possible rules to protect net neutrality.' 

Obama's comment comes amid heated debate among online industry sectors as the FCC seeks to draft new rules to replace those struck down this year by a US appeals court, which said the agency lacked authority to regulate Internet service firms as it does telephone carriers.

''Net neutrality' has been built into the fabric of the Internet since its creation -- but it is also a principle that we cannot take for granted,' Obama said in a statement.

'We cannot allow Internet service providers to restrict the best access or to pick winners and losers in the online marketplace for services and ideas.'

Obama said that while the FCC is an independent agency, he wants the regulatory body to maintain key principles of net neutrality.

He said the rules should ensure 'no block' of any legal content, to ensure that an Internet firm does not block one service such as Netflix to promote a rival one.

Another key principle endorsed by Obama would prohibit 'paid prioritization' that would allow one service to get into a faster lane by paying extra. 

'No service should be stuck in a 'slow lane' because it does not pay a fee,' Obama said.

'That kind of gatekeeping would undermine the level playing field essential to the Internet's growth.

WHAT IS NET NEUTRALITY?

Under the plans for priority usage, Netflix and other video providers would pay extra to use fast lanes to get the maximum amount of bandwith to its customers, and maintain and improve streaming quality and reliability.

This is being heavily criticised by net neutrality campaigners.

At the heart of net neutrality is an open internet in which all data being sent from websites to customers is treated the same, regardless of size or destination.

All this traffic is given the same priority along the same lanes and no site is given preferential treatment.

Although it seems like a fair model, in which sites that use the most bandwith pay the most money, campaigners claim it will drastically impact on industry competition.

For example, Netflix has the money to pay for better service, using the fast lanes, while smaller companies don't.

This means smaller companies may have the same range of content, but because they can't stream at the same quality, they are effectively priced out of the market.

To address these claims, the new rules include a 'competition test'.

ISPs would need to decide if a website meets the critieria to be given priority access and that this bar must be set high enough to protect competition. 

'So, as I have before, I am asking for an explicit ban on paid prioritization and any other restriction that has a similar effect.'

Obama said he wants the rules to bar any 'throttling' or slowing of content at the discretion of the service provider.

He also said he wants the same rules to apply to mobile broadband, which was not covered in the earlier regulations.

To accomplish this, Obama said the rules should reclassify consumer broadband service as a public utility -- a move that has been fiercely opposed by the companies that would be affected.

Obama's statement places him squarely in the camp of many consumer activists and online services and against industry sectors involved in Internet delivery.

The FCC is redrafting its rules after the court decision struck down its regulations in a case brought by US broadband giant Verizon.

Verizon and its allies have argued that the FCC lacks authority to interfere with their business, and that Congress never decided these companies were regulated utilities or 'common carriers.' 

Telecom firms reacted angrily to the move.

Scott Belcher, who heads the Telecommunications Industry Association, said the reclassification 'would set the industry back decades, and threaten the private sector investment that is critically needed to ensure that the network can meet surging demand.'

In a Seattle Times column Sunday, National Cable & Telecommunications Association chief Michael Powell said this kind of regulation is 'a rusty sledgehammer that has been sitting in the garage for 20 years.'

Walter McCormick at the US Telecom Association said Obama's proposal would be 'a shift that will redefine the Internet, insert the government deeply into its management and invite other countries to do the same.'

US President Barack Obama speaks during a press conference on November 5, 2014 in Washington, DC. He said the new rules should ensure 'no block' of any legal content, to ensure that an Internet firm does not block one service such as Netflix to promote a rival one.

US President Barack Obama speaks during a press conference on November 5, 2014 in Washington, DC. He said the new rules should ensure 'no block' of any legal content, to ensure that an Internet firm does not block one service such as Netflix to promote a rival one.

However, many in the industry backed the President.

The Internet Association, a lobbying group that represents Web companies such as Google, Facebook, Amazon.com and Netflix, said:

'The Internet Association applauds President Obama's proposal for the adoption of meaningful net neutrality rules that apply to both mobile and fixed broadband. 

'As we have previously said, the FCC must adopt strong, legally sustainable rules that prevent paid prioritization and protect an open Internet for users.' 

Chad Dickerson, chief executive of Etsy Inc, an online marketplace that focuses on handmade and vintage items, said: 'I'm thrilled to see President Obama stand with Etsy and our sellers in calling for strong net neutrality rules under Title II. 

'The president has proved that he truly is a champion of the Internet. I urge (FCC) Chairman Wheeler to follow suit.'

FCC chairman Tom Wheeler welcomed Obama's statement but offered no timetable for the new rules.

'Like the president, I believe that the Internet must remain an open platform for free expression, innovation, and economic growth. We both oppose Internet fast lanes,' Wheeler said in a statement.

But he noted that reclassification poses 'substantive legal questions,' and that the agency needs time 'to ensure that whatever approach is taken, it can withstand any legal challenges it may face.'



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