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ACA Calls for Full Forbearance From Title II Net Neutrality Regulations

The FCC shouldn't reclassify small- and medium-sized broadband providers under Communications Act Title II, but if it decides to adopt that approach, it should forbear from applying all common-carrier rules to smaller ISPs, the American Cable Association said in comments…

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posted Tuesday in docket 14-28. “Smaller ISPs do not have the incentive or ability to engage in unreasonable or discriminatory practices, much less anticompetitive acts, which harm consumers and edge providers,” ACA said. The FCC “does not have the legal authority” to reclassify, ACA said, because it can't provide a “reasoned basis for the change.” NCTA and Comcast have made the same argument, and observers expect it to be a key part of any court appeal of Title II net neutrality rules (see [Ref:1412310041]). “The courts have made clear that the Commission may not impose Title II regulation based simply on its notions of good policy,” ACA also argued. An entity is a common carrier under the Communications Act, in part, if it "holds itself out to serve indifferently all potential users,” ACA said. ISPs are not “'holding themselves out’ as common carrier providers of pure transmission service,” ACA said. Under a Title II approach, “immediate and blanket forbearance would mitigate many of the potential and significant harms” of reclassification, ACA said. Without Title II regulations, “smaller ISPs have delivered innovative, high-performance broadband Internet access service at competitive rates to consumers,” ACA said. It said Title II regulations “are demonstrably, if not inherently, unnecessary to protect competition, consumers, or the public interest.” ACA, NCTA and the Wireless Internet Service Providers Association also asked the commission in a letter to Chairman Tom Wheeler on Friday to hold an en banc hearing “to examine the significant economic impact” of net neutrality rules on small broadband providers. The Regulatory Flexibility Act requires the agency as part of rulemaking to examine the regulatory burdens on small businesses of new rules, as well as alternatives available for small businesses to comply, the groups wrote. The FCC is reviewing the letter, an agency spokeswoman said.