House Small Business Committee Presses Wheeler on Net Neutrality, Broadband Policies

House Small Business Committee ranking member Nydia Velazquez, D-N.Y., pressed Wheeler on net neutrality and the question of Title II reclassification. Title II is “very much a topic of conversation and on the table and something we asked for comment on in the proceeding,” Wheeler said.

Rep. Tom Rice, R-S.C., said he’s “concerned” about Title II and asked Wheeler about whether discrimination and blocking has happened. Wheeler tallied off a list of various instances. “Yes, there are indications of these kinds of problems having happened in the market,” Wheeler said, saying an open Internet is necessary for small businesses. “You will stifle” the Internet and innovation if the agency embraces Title II, Rice warned, suggesting the problems “could be dealt with through other laws.” Wheeler disagreed that antitrust law is sufficient in addressing broader open Internet concerns.

Rep. Janice Hahn, D-Calif., brought up the Los Angeles Dodgers and the recent TV blackout debate. Wheeler has opened an “investigation” into Time Warner Cable as a result, he said, noting he has talked to all the relevant CEOs involved in the dispute. “I want to know more about what’s going on here,” Wheeler said. “The reality here is a lot of money was put on the table to support an entity that’s doing all right itself economically and consumers ended up suffering. That’s not right, and I want to know more.”

In his testimony, Wheeler emphasized the importance of small business. Small-business life means “living on the edge,” he said. “Today our economy is all about nonphysical products.” He framed FCC goals as “direct” and focused on ensuring “21st-century connectivity,” including subsidization when needed. He emphasized the principles of what he has been calling “the network compact.”

"What we want to do here today is ensure that the FCC gets the job done right when developing their regulatory policies,” House Small Business Committee Chairman Sam Graves, R-Mo., said in his opening statement. “This means ensuring an open and free Internet that will allow for the free flow of information and services, facilitating the build out of high speed Internet to rural and underserved areas, and providing the needed spectrum to industry players both small and large to ensure that our tech companies continue to innovate and create jobs.”

Velazquez focused on broadband in her opening statement. “More small businesses are embracing broadband than ever before,” she said, citing the need for “adequate support for broadband deployment” to close the gaps that still exist. Velazquez asked how small businesses can smoothly transition through any technology changes. The agency is looking at trials that will be a “taste test” to see, Wheeler replied. “I think it’s a ’try before you buy’ kind of situation.” He cited a wish for open proceedings and a desire to work with the Small Business Administration. Velazquez asked if the FCC has embraced flexibility required for small businesses, and Wheeler affirmed it has.

Rep. Ron Barber, D-Ariz., said there’s a “desperate need” for more broadband access, wired and wireless, in his district. He asked for a broader description of how the FCC is looking to expand broadband access over the next five years and how it’s engaging the private sector. Wheeler said several major factors are worth considering, such as whether broadband speed is fast enough or whether satellite should be used to cover gaps. “It has to happen,” Wheeler said of addressing the need. “Ten Mbps should be the minimum,” Rep. Chris Collins, R-N.Y., said, wondering why the FCC is continuing to deal with special access at the lower level of 1.5 Mbps. The FCC is finally in the midst of collecting special access data, Wheeler said in response to another question. “I don’t want any more delays on this,” Wheeler said: “We've waited on special access long enough.”

Wheeler cited a range of actions the FCC has taken to further broadband connectivity, such as through the Connect America Fund and the agency’s E-rate order earlier this year. “While an important step, there are still far too many rural and Tribal schools and libraries that do not have sufficient broadband connectivity to the building and we are actively working on tackling this issue through the next steps of E-rate modernization and implementation of the next phase of the Connect America Fund,” Wheeler said in his written testimony (http://1.usa.gov/1o3AHGY). He described FCC efforts to enhance wireless connectivity and its August NPRM on competitive bidding rules, and its actions in the media sphere, limiting broadcaster sharing agreements.

Wheeler also mentioned the net neutrality comments and the first discussions the FCC has hosted on the topic. “As this process moves forward, we will continue to enforce our Open Internet Transparency rule, which was upheld in court and is an important tool to help small businesses make informed choices about the Internet access services they buy,” Wheeler said. “It is my goal to get final rules back on the books as quickly as possible to give consumers, businesses and innovators the Open Internet protections they currently lack.”