Press Release
from the Institute for Policy Innovation

FCC Must Allow Private Companies to Manage Their Own Networks

By Erin Humiston on 02/13/2008

FOR IMMEDIATE RELEASE: Wednesday, February 13, 2008
CONTACT: Erin Humiston, (972) 874-5139, or erin@ipi.org

DALLAS, TX: Filing comments with the Federal Communications Commission (FCC) today, the Institute for Policy Innovation (IPI) stated that private network companies must have the freedom to experiment with their own business models and no regulatory prohibition against network management practices should be considered.

This statement came in response to the FCC “Notice of Inquiry” regarding broadband industry practices.

Management is a necessary part of the efficient and effective function of any network, whether that is for electricity, water or broadband. Broadband networks are managed for myriad reasons—faster Internet connections, efficient data delivery, fighting spam, preventing phishing, etc. These management processes greatly benefit consumers and go largely unnoticed—yet a lack of management will noticeably harm consumers.

Furthermore, said IPI, any requirement to disclose specific network techniques is also harmful to the consumer, as it could provide avenues for spammers, creators of viruses, etc. to circumvent network management and cause greater damage.

“Only the very arrogant would believe they could better manage a business than the people who build, pay for, and reap the rewards of the most efficiently and effectively managed systems today,” said Bartlett Cleland, Director of the IPI Center for Technology Freedom.

According to Cleland, private companies’ freedom to experiment with new business models, including how broadband networks are managed, is a win-win situation for the economy.

“If the new business model succeeds, the economy as a whole will benefit. If it does not succeed, the economy still will benefit through observation and learning from the experiment,” said Cleland.

Moreover, Internet bandwidth, like every other commodity, is not infinite and must be subject to the management of markets. The best managers of private property—in this case, the networks—are exclusively the owners of that property, not the government.

“The choice is clear,” concluded Cleland. “The alternatives are government-mandated, regulated, dumbed-down interconnection of ‘pipes,’ or the continuation of the robust innovation, growth and investment that have been the hallmarks of the Internet boom for over a decade.”

The Institute for Policy Innovation is a non-profit public policy organization based in Dallas, TX. IPI experts are available for interview by contacting Erin Humiston at (972) 874-5139 or erin@ipi.org.


###


Share/Save/Bookmark