‘Net effects on communications policy

Canada isn’t the only country in the world struggling to cope with the staggering influence the Internet is having on communications policies. In the U.S. – like in Canada – regulatory policies rooted in monopolies and oligopolies are quickly evolving to become instruments of international trade and domestic expression. And the catalysts driving this change are high-speed computing, digitization and, of course, the Internet. Susan Ness, a commissioner with the Federal Communications Commission (FCC), detailed how the Washington-based regulator is responding to these challenges. Below is an edited excerpt from her June 7 speech in New York City to the International Radio & Television Society Foundation. Twenty years ago all you needed to know about the entire communications sector was six letters: A,B,C,N,S and T. Those letters translated into four firms: AT&T, ABC, CBS, and NBC. Those four firms were telecommunications and broadcasting for all practical purposes. And then convergence arrived Convergence is something people have talked about for a long time, but (it) still seems difficult to pin down. There is convergence of technologies. Telephone networks and cable television networks are beginning to use similar technologies and similar hybrid fiber copper networks. There is convergence of services. Internet delivered over telephone networks or cable TV networks can stream local and distant radio stations that blur the distinctions between telecom and broadcasting.There is convergence of markets. The emerging voice over the Internet is provided by incumbent telephone companies as well as by new entrants. And perhaps most importantly, there is convergence within consumers’ perceptions. They do not care whether they get their TV from a local broadcaster, cable TV company, satellite company, their telephone company, or even over the Internet. It’s becoming all the same – especially for the younger generation. Why do people care? What’s at stake in this new digital world is the quarter of a trillion dollar market that comprises the U.S. content business. This includes radio, television, cable television, motion pictures, recorded music, video and computer games, newspapers, magazines, and non-operating system computer software. It all can be digitized and distributed electronically over multiple channels and platforms. It’s all up for grabs. This world of digital technology and distributed intelligence over the Internet is turning the old regulatory world upside down. Our challenge at the FCC is to foster these new technologies and changes that benefit consumers and users while ensuring a competitive market that works for all Americans. First, we have to examine the underlying public purpose behind our rules to ensure that the goals are still valid. Second, assuming our involvement is essential (or required by statute), we must ensure that any government intervention is the least intrusive possible to accomplish the public policy. Third, we must think creatively and rapidly. By the time we complete a rulemaking, its time may have come and gone. Fourth, we must rely less on government regulation and let the marketplace rule. One suggestion to respond more rapidly, more consistently, and more equitably would be to restructure the agency – from industry lines to functional lines. Separate policy, licensing, and enforcement bureaus would help address convergence issues. That concept is included in chairman (William) Kennard’s Plan for the 21st Century. (http://www.fcc.gov/21st_century/) As markets become more competitive we need to step back from traditional regulation and let the market govern outcomes. At the same time, we must ensure that legacy bottlenecks do not extend to new services. And new entrants must not be burdened by legacy regulation designed for the last century. With a combined half trillion dollars at stake in the content market and the content delivery market, we have to make sure that the "Net effect" of our communications policy is the fullest amount of competition between all these services and service providers.To read the full text of Susan Ness’ speech, visit her web site at: http://www.fcc.gov/commissioners/ness/spmain.htm

‘Net effects on communications policy

Broadcast | June 28, 2000

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