Telecommunications policy of the United States

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The telecommunications policy of the United States is a framework of law directed by government and the regulatory commissions, most notably the Federal Communications Commission (FCC). Two landmark acts prevail today, the Communications Act of 1934 and the Telecommunications Act of 1996. The latter was intended to revise the first act and specifically to foster competition in the telecommunications industry. [1]

Contents

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Candlestick phone

Aims

In the name of public interest, a large proportion of telecommunications policy is concerned with the economic regulation of interstate and international communication. This includes all communication by radio, telephone, wire, cable and satellite. [2] Telecommunications policy outlines antitrust laws as is common for industries with large barriers to entry. Other features of the policies addressed include common carrier laws which controls access to networks. While the telephone providers are required to be common carriers, there is an ongoing net neutrality debate about the obligations of ISP's. [3]

Telecommunication policy addresses the management of government-owned resources such as the spectrum, which facilitates all wireless communications. There is a naturally limited quantity of usable spectrum that exists, therefore the market demand is immense, especially as use of mobile technology, which uses the electromagnetic spectrum, expands. One of the goals of the FCC is to best utilize this limited resource in such a way will bring about the "highest and best use". [4] License to use spectrum was originally determined by committee, however, since 1993 it has been determined by an auction to assure that the licensee is both qualified and motivated to make best use of this commodity. [5]

The famous American Telephone & Telegraph (AT&T) empire was once based on the concept that they had the duty and honor of serving the public people in return for their monopoly on the telecommunication industry. [7]

Institutional framework in the U.S.

The hallmark event in the history of the US telecommunication industry was the breakup of the Bell System into regional Bell Operating Companies (RBOCs) or "Baby Bells" in the early 1980s.

The challenge since remains preserving competition and no longer allowing monopolies.[ citation needed ]

There are a number of agencies concerned with telecommunication policy:

Broadband deployment policy objectives

The FCC derives its jurisdiction to facilitate the deployment of broadband to Americans in Section 706 in the Telecommunications act of 1996. In this section the code states that the FCC is to “encourage the deployment on a reasonable and timely basis of advanced telecommunications capability to all Americans.” [9] They currently want to advocate the following objectives:

Current challenges

Wire line and wireless telecommunication policy

Currently,[ when? ] the policy being set forth by the FCC has two different levels of regulation. One for fixed line, wire line communications and the other for wireless communications. Their current tenets strictly regulate network neutrality on wire line networks.

However the commission is placing as many mandates on wireless communications. This means that wireless telecommunications providers are not permitted to block any website, but they may block applications and services unless they are direct competitors to the provider's content or services. This difference between the two technologies creates a major loophole in telecommunications policy, as most providers have already begun the shift from wired to wireless network infrastructures. [12]

See also

Related Research Articles

<span class="mw-page-title-main">Federal Communications Commission</span> Independent U.S. government agency

The Federal Communications Commission (FCC) is an independent agency of the United States government that regulates communications by radio, television, wire, satellite, and cable across the United States. The FCC maintains jurisdiction over the areas of broadband access, fair competition, radio frequency use, media responsibility, public safety, and homeland security.

<span class="mw-page-title-main">Communications Act of 1934</span> 1934 U.S. federal law creating the Federal Communications Commission (FCC)

The Communications Act of 1934 is a United States federal law signed by President Franklin D. Roosevelt on June 19, 1934, and codified as Chapter 5 of Title 47 of the United States Code, 47 U.S.C. § 151 et seq. The act replaced the Federal Radio Commission with the Federal Communications Commission (FCC). It also transferred regulation of interstate telephone services from the Interstate Commerce Commission to the FCC.

<span class="mw-page-title-main">Internet service provider</span> Organization that provides access to the Internet

An Internet service provider (ISP) is an organization that provides services for accessing, using, managing, or participating in the Internet. ISPs can be organized in various forms, such as commercial, community-owned, non-profit, or otherwise privately owned.

<span class="mw-page-title-main">National Telecommunications and Information Administration</span> American government agency

The National Telecommunications and Information Administration (NTIA) is an agency of the United States Department of Commerce that serves as the president's principal adviser on telecommunications policies pertaining to the United States' economic and technological advancement and to regulation of the telecommunications industry.

<span class="mw-page-title-main">Radio spectrum pollution</span>

Radio spectrum pollution is the straying of waves in the radio and electromagnetic spectrums outside their allocations that cause problems for some activities. It is of particular concern to radio astronomers.

Municipal broadband is broadband Internet access offered by public entities. Services are often provided either fully or partially by local governments to residents within certain areas or jurisdictions. Common connection technologies include unlicensed wireless, licensed wireless, and fiber-optic cable. Many cities that previously deployed Wi-Fi based solutions, like Comcast and Charter Spectrum, are switching to municipal broadband. Municipal fiber-to-the-home networks are becoming more prominent because of increased demand for modern audio and video applications, which are increasing bandwidth requirements by 40% per year. The purpose of municipal broadband is to provide internet access to those who cannot afford internet from internet service providers and local governments are increasingly investing in said services for their communities.

<span class="mw-page-title-main">Spectrum management</span>

Spectrum management is the process of regulating the use of radio frequencies to promote efficient use and gain a net social benefit. The term radio spectrum typically refers to the full frequency range from 1 Hz to 3000 GHz that may be used for wireless communication. Increasing demand for services such as mobile telephones and many others has required changes in the philosophy of spectrum management. Demand for wireless broadband has soared due to technological innovation, such as 3G and 4G mobile services, and the rapid expansion of wireless internet services.

The Universal Service Fund (USF) is a system of telecommunications subsidies and fees managed by the United States Federal Communications Commission (FCC) intended to promote universal access to telecommunications services in the United States. The FCC established the fund in 1997 in compliance with the Telecommunications Act of 1996. The FCC is a government agency that implements and enforces telecommunications regulations across the U.S. and its territories. The Universal Service Fund's budget ranges from $5–8 billion per year depending on the needs of the telecommunications providers. These needs include the cost to maintain the hardware needed for their services and the services themselves. The total 2019 proposed budget for the USF was $8.4 billion. The budget is revised quarterly allowing the service providers to accurately estimate their costs. As of 2019, roughly 60% of the USF budget was put towards “high-cost” areas, 19% went to libraries and schools, 13% was for low income areas, and 8% was for rural health care. In 2019 the rate for the USF budget was 24.4% of a telecom company's interstate and international end-user revenues.

Bandwidth allocation is the process of assigning radio frequencies to different applications. The radio spectrum is a finite resource, which means there is great need for an effective allocation process. In the United States, the Federal Communications Commission or FCC has the responsibility of allocating discrete portions of the spectrum, or bands, to various industries. The FCC did this recently, when it shifted the location of television broadcasting on the spectrum in order to open up more space for mobile data. Different bands of spectrum are able to transmit more data than others, and some bands of the spectrum transmit a clearer signal than others. Bands that are particularly fast or that have long range are of critical importance for companies that intend to operate a business involving wireless communications.

In the United States, net neutrality, the principle that Internet service providers (ISPs) treat all data on the Internet the same, and not discriminate, has been an issue of contention between network users and access providers since the 1990s. With net neutrality, ISPs may not intentionally block, slow down, or charge money for specific online content. Without net neutrality, ISPs may prioritize certain types of traffic, meter others, or potentially block traffic from specific services, while charging consumers for various tiers of service.

<span class="mw-page-title-main">Internet in the United States</span> Overview of the Internet in the United States of America

The Internet in the United States grew out of the ARPANET, a network sponsored by the Advanced Research Projects Agency of the U.S. Department of Defense during the 1960s. The Internet in the United States in turn provided the foundation for the worldwide Internet of today.

Connecting America: The National Broadband Plan is a Federal Communications Commission (FCC) plan to improve Internet access in the United States. The FCC was directed to create the plan by the American Recovery and Reinvestment Act of 2009, and unveiled its plan on March 16, 2010.

Tiered service structures allow users to select from a small set of tiers at progressively increasing price points to receive the product or products best suited to their needs. Such systems are frequently seen in the telecommunications field, specifically when it comes to wireless service, digital and cable television options, and broadband internet access.

The Federal Communications Commission Open Internet Order of 2010 is a set of regulations that move towards the establishment of the internet neutrality concept. Some opponents of net neutrality believe such internet regulation would inhibit innovation by preventing providers from capitalizing on their broadband investments and reinvesting that money into higher quality services for consumers. Supporters of net neutrality argue that the presence of content restrictions by network providers represents a threat to individual expression and the rights of the First Amendment. Open Internet strikes a balance between these two camps by creating a compromised set of regulations that treats all internet traffic in "roughly the same way". In Verizon v. FCC, the Court of Appeals for the D.C. Circuit vacated portions of the order that the court determined could only be applied to common carriers.

Policies promoting wireless broadband are policies, rules, and regulations supporting the "National Wireless Initiative", a plan to bring wireless broadband Internet access to 98% of Americans.

Network convergence refers to the provision of telephone, video and data communication services within a single network. In other words, one company provides services for all forms of communication. Network convergence is primarily driven by development of technology and demand. Users are able to access a wider range of services, choose among more service providers. On the other hand, convergence allows service providers to adopt new business models, offer innovative services, and enter new markets.

The Spectrum Policy Task Force was established in June 2002 to assist the Federal Communications Commission in identifying and evaluating changes in spectrum policy that will increase the public benefits derived from the use of the radio spectrum.

Communications law refers to the regulation of electronic communications by wire or radio. It encompasses regulations governing broadcasting, telephone and telecommunications service, cable television, satellite communications, wireless telecommunications, and the Internet.

<i>Verizon Communications Inc. v. FCC</i> (2014)

Verizon Communications Inc. v. Federal Communications Commission, 740 F.3d 623, was a case at the U.S. Court of Appeals for the D.C. Circuit vacating portions of the FCC Open Internet Order of 2010, which the court determined could only be applied to common carriers and not to Internet service providers. The case was initiated by Verizon, which would have been subjected to the proposed FCC rules, though they had not yet gone into effect. The case has been regarded as an important precedent on whether the FCC can regulate network neutrality.

<i>United States Telecom Association v. FCC</i> (2016)

United States Telecom Association v. FCC, 825 F. 3d 674, was a case at the U.S. Court of Appeals for the D.C. Circuit upholding an action by the Federal Communications Commission (FCC) the previous year in which broadband Internet was reclassified as a "telecommunications service" under the Communications Act of 1934, after which Internet service providers (ISPs) were required to follow common carrier regulations.

References

  1. "Telecommunications Act of 1996". 20 June 2013.
  2. "What We do". 22 November 2010.
  3. Stelter, Brian (21 December 2010). "F.C.C. Is Set to Regulate Net Access". The New York Times.
  4. "What We do". 22 November 2010.
  5. "Auctions | FCC.gov". www.fcc.gov. Archived from the original on 2011-05-18.
  6. "Auctions Releases".
  7. smad356.com
  8. "Radio Spectrum Allocation". 2 March 2011.
  9. "Getting Connected to Broadband". 22 May 2018.
  10. "Getting Connected to Broadband". 22 May 2018.
  11. "So long, broadband duopoly? Cable's high-speed triumph". 3 January 2011.
  12. Stelter, Brian (21 December 2010). "F.C.C. Is Set to Regulate Net Access". The New York Times.