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What the Latest in Net Neutrality Means for Rural Providers

Matt Markgraf, WKMS

Net neutrality is back in the headlines after FCC Chairman Tom Wheeler announced his plans to present a 300-page document at a meeting later this month, which would reclassify 'broadband.' Under the current Telecommunications Act, there are multiple areas: telephone, broadcast, information. If the proposal passes, broadband would be reclassified from an information service to a telecom service. Michael Ramage, Associate Director for the Center for Telecommunications Systems Management at Murray State University, discusses the latest news, explains regulating web access as a public utility and what this might mean for consumers and communications companies on Sounds Good.

Michael Ramage says he believes the proposal will pass, but that whether it makes rural service accessible is somewhere in the middle of the debate (proponents believe it will, opponents say it wont). The net neutrality debate started out as a topic worthy of discovery, but now it's a political hotbed, he says, "Instead of actually looking at the technical aspects, we can't get past the politics of it to look at how we can help the rural areas." The Universal Service Fund would likely help rural areas, says Ramage. It's already started and will be accelerated through the plan. There is some concern, however, that regulation will be a greater burden on rural providers.

To answer whether making the internet a public utility would be good for big companies because they can stay where they are, Ramage uses an example from the telephone industry. For telephones, there are incumbent local exchange carriers (ILEC) AT&T is the ILECT for Murray, West Kentucky Rural Telephone is the ILEC for the areas they serve. When exchanges were created, companies were given monopolies over certain areas minus competitive local exchange carriers. For example, e-Tel of Murray, with Murray Electric System, is an example of a competitive carrier (CLEC). Ramage says if we start the broadband change today, since there are several providers in the area, the competition will dictate a different world than when telephones became regulated. Whether this is good or bad depends on which rules get implemented and which are overturned.

It will take some time before rules will be accepted and embraced. Though the plan will be voted on in February, the effective date will be later. Ramage predicts lawsuits will follow the decision and that it will ultimately be a Supreme Court decision. Since the proposal was announced, Democrat and Republican chairs on the FCC have staked their ground. Congress gives the FCC the authority to do what they do. In theory, Congress would come out with a new act outlining how the commission can regulate. This is an issue that's failed to gain any significant traction for over a decade and Ramage doesn't think anything will pass anytime soon. He predicts that since Republicans control both the Senate and the House, something may pass Congress but then get vetoed by President Obama.

Last session, the House Commerce Committee explored whether or not they should rewrite the telecom act. The consensus was that something should be done, but there was no consensus on what should be done. Different members of the committee are tackling different issues that would be included in the rewrite: network neutrality, TV ownership, radio ownership, spectrum allocation, etc. There are numerous aspects that would go into a new act, but net neutrality is the one getting the most attention.

Matt Markgraf joined the WKMS team as a student in January 2007. He's served in a variety of roles over the years: as News Director March 2016-September 2019 and previously as the New Media & Promotions Coordinator beginning in 2011. Prior to that, he was a graduate and undergraduate assistant. He is currently the host of the international music show Imported on Sunday nights at 10 p.m.
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