Because every American
should have access
to broadband Internet.

The Internet Innovation Alliance is a broad-based coalition of business and non-profit organizations that aim to ensure every American, regardless of race, income or geography, has access to the critical tool that is broadband Internet. The IIA seeks to promote public policies that support equal opportunity for universal broadband availability and adoption so that everyone, everywhere can seize the benefits of the Internet - from education to health care, employment to community building, civic engagement and beyond.

The Podium

Tuesday, July 14

Regulation and Delayed Investment


A recent Georgetown University Study by Kevin Hassett and Robert Shapiro confirms that the Federal Communications Commission’s (FCC) decision to subject Internet Service Providers (“ISPs) to “Title II” public utility regulation will “have significant adverse effects on future investment in the Internet.”

The study highlights how new regulation can have a “destructive, negative effect” if capital investment is delayed as a result of the need to resolve new market uncertainty. It notes how the history of FCC regulation of Internet companies has been surprisingly uniform and consistent. Whether under a Democratic or Republican Administration, the historical arc of broadband regulation gravitated toward a light-touch deregulatory approach that treated the Internet as an information service rather than a heavily-regulated telephone common carrier service.

Such treatment of broadband as an information service allowed the pace of Internet adoption to rapidly exceed that of the personal computer or dial-up Internet service. Technological advances and competition accelerated broadband uptake by lowering its “average, quality-adjusted price” that further accelerated its uptake. By contrast, studies have detailed how common carrier regulation inhibited competition for consumers and businesses, and discouraged and slowed innovation in telephone service.

Consumers now, however, bear the risks of the FCC’s decision to reverse course and impose new regulations on ISPs that today provide much of the Internet’s infrastructure and content. Such regulation could ultimately result in increased costs and price for Internet service beyond new universal service fees. Moreover, the Georgetown study notes how the regulatory path toward Title II may result in reduced efficiency of key network arrangements that depend on the Internet platform. Reduced efficiency could have the long-term negative effect of devaluing the investments made in those platforms or based on them and thus trigger many in the Internet ecosystem to minimize the costs of regulation rather than maximize efficient operations.

In addition, the study identifies scholarship that quantifies the negative potential impact of telecommunications regulation on broadband investment. For example, the ban on “paid priority” arrangements could affect telemedicine applications and cost the economy $100 million per year by 2019. More generally, Title II regulation of ISPs could reduce their “future wireline investments by between 17.8 percent and 31.7 percent per year, and their future total wireline and wireless investments by between 12.8 percent and 20.8 percent per year.”

The study’s authors also raise helpful international comparisons to better understand the imminent consequences of Title II regulation on broadband investment. Specifically, they note the “large negative effects on investment” if our nation’s regulatory model were moved closer to the heavy-handed regulations that governed Europe’s communications landscape in the first decade of the 21st century.

Finally, the Georgetown study’s most sobering point is how the “negative effects of uncertainty” resulting from the FCC’s sudden policy shift and on-going litigation may actually understate the harm of reduced broadband investment.

In light of this additional evidence and the potential harm to broadband and consumers, the Internet Innovation Alliance again emphasizes its support for a bipartisan legislative solution to promote an Open Internet without overly burdensome Title II Common Carrier Regulations for 21st Century broadband. 

Wednesday, July 08

America’s Place in the Digital World

By Brad

Earlier today, the Media Institute released its “Net Vitality Index In Detail” report, which is a data-heavy companion to its report from April this year called “Net Vitality: Identifying the Top-Tier Global Broadband Internet Ecosystem Leaders.” For those who like to wonk out on broadband stats — which we definitely do — both reports are worth digging into. From the press release accompanying the new report:

Harvard Law School faculty member and Media Institute Global Internet Freedom Advisory Council member Stuart N. Brotman authored both reports. He compiled the detailed data released today for the benefit of scholars, researchers, and policymakers who desire an in-depth look at the metrics used in assessing the broadband Internet ecosystem capabilities of countries around the world. 
Based on five years of research, the Net Vitality Index is the first holistic analysis of the global broadband Internet ecosystem, identifying the United States, South Korea, Japan, United Kingdom, and France as the top-tier leaders. Unlike the one-dimensional rankings that serve as the basis of most broadband comparative studies, Brotman’s composite analysis takes into account 52 indices developed independently to evaluate countries on an apples-to-apples basis. Overarching categories assessed encompass applications and content, devices, networks, and macroeconomic factors.

The new detailed report is a treasure trove of data. Some highlights:

• While Windows 7 still dominates when it comes to personal computer operating systems, both Android and Apple’s iOS rank in the top 5 — which is pretty incredible given both operating systems are less than a decade old.

• Surprisingly, at 56.4%, the United States ranks 13th when it comes to smartphone penetration. The leader? The United Arab Emirates at 73.8% penetration.

• The United States continues to domination when it comes to investment in telecommunications, more than doubling the dollars invested by China over the same time period.

• When it comes to mobile app development, the United States is the leader of the world, with the vast majority of apps dominating the charts globally having been developed by U.S. companies.

Nine of the top 10 digital startups globally are based in the United States.

The Media Institute’s April report “Net Vitality: Identifying the Top-Tier Global Broadband Internet Ecosystem Leaders” is available here. The “Net Vitality Index In Detail” report is available here. Happy reading!

Friday, July 03

The Benefits of Regulation Must Outweigh the Burdens

By Brad

Last week, we held a discussion in Washington DC on how regulators can help — rather than hinder — the broadband economy. The featured speaker at this event was FCC Commissioner Mike O’Rielly, who delivered his vision for how the FCC and other regulatory bodies should fulfill their vital role in the face of the fast-moving technology. An excerpt from Commission O’Rielly’s speech:

As regulators consider proposals that would impact the Internet or the deployment of broadband, thoughtful analysis should be done prior to enactment to consider whether the costs and burdens imposed are greater than the benefits of acting. Given the amazing positives to be gained from an Internet free and open from government intrusion — or at least significant government intervention — there should be a universal requirement for quantifiable data under a cost-benefit analysis regime. It seems universally accepted that there are direct and indirect costs to every burden placed on Internet activities. It should be our duty to show the detailed costs and benefits of every proposal, not hypothetical claims that give short shrift to statutory requirements to do an actual analysis. If a regulator involved in some capacity with the Internet cannot accept this basic premise, maybe they are in the wrong line of work.

Let me also take a moment to provide a few other premises that most people who operate in this space accept: Internet-related taxes depress deployment and adoption; costs of regulations are ultimately passed onto consumers; and the structure of the Internet will produce some type of reaction to undermine any imposed regulation. If these premises are accepted, and they have proven to betrue time and time again, it means that regulators need to be extremely cautious in acting or risk decreasing deployment, or raising prices — and all for naught.

You can read Commissioner O’Rielly’s full remarks — and watch a video of the event, which also featured Stuart N. Brotman of the Brookings Institution, James Reid from TIA, Susan Bitter Smith of the Arizona Corporation Commission, and our own Bruce Mehlman — by clicking here.

Wednesday, July 01

A Look at Internet Access From Pew

By Brad

The stat in the above graphic we put together is just one of many interesting facts you’ll find in Pew’s latest research on America Internet access. Some of the other findings:

Age differences: Older adults have lagged behind younger adults in their adoption, but now a clear majority (58%) of senior citizens uses the internet.

Class differences: Those with college educations are more likely than those who do not have high school diplomas to use the internet. Similarly, those who live in households earning more than $75,000 are more likely to be internet users than those living in households earning less than $30,000. Still, the class-related gaps have shrunk dramatically in 15 years as the most pronounced growth has come among those in lower-income households and those with lower levels of educational attainment.

Racial and ethnic differences: African-Americans and Hispanics have been somewhat less likely than whites or English-speaking Asian-Americans to be internet users, but the gaps have narrowed. Today, 78% of blacks and 81% of Hispanics use the internet, compared with 85% of whites and 97% of English-speaking Asian Americans.

Community differences: Those who live in rural areas are less likely than those in the suburbs and urban areas to use the internet. Still, 78% of rural residents are online.

You can check out all of Pew’s findings at their website.

Thursday, June 25

IIA Video: The Role for Regulators in an Expanding Broadband Economy



Update: You can read Commissioner Michael O’Rielly’s full remarks here.

The Role for Regulators in an Expanding Broadband Economy

Innovation, convergence and rapid technological advances are rapidly reshaping the Internet ecosystem and how Washington’s legislators and regulators approach national broadband policymaking.  Ongoing consideration of new policies will shape the future of an Open Internet for the 21st century.

The Internet Innovation Alliance invites you to join a policy discussion that will address:

• The appropriate role for regulators in an expanding broadband economy;
• The impact of different regulatory approaches toward the Internet and its meaning for the broadband economy;
• Congress’ role going forward in setting clear rules of the road for the Open Internet;    
• The interrelationship between regulation and investment in broadband, and what, if any, impact it will have on potential legislative action going forward.


Michael O’Rielly
Commissioner, Federal Communications Commission

Followed by a panel discussion including

Stuart N. Brotman
Nonresident Senior Fellow, Center for Technology Innovation
The Brookings Institution

Randolph J. May
President, Free State Foundation

James Reid
Senior Vice President of Government Affairs,
Telecommunications Industry Association (TIA)

Susan Bitter Smith
Chairman, Arizona Corporation Commission

Bruce Mehlman (Moderator)
Co-Chairman, Internet Innovation Alliance

Thursday, June 11

IIA Letter to FCC Regarding Lifeline

By Jamal Simmons

Earlier today, IIA sent a letter to FCC Chairman Tom Wheeler expressing our support for the Commission’s upcoming rulemaking proceeding soon to be initiated to advance Lifeline reform. From that letter, signed by IIA Chairmen Rick Boucher, Bruce Mehlman, Larry Irving, and Jamal Simmons:

“In the U.S., consumers with economic means have nearly ubiquitous access to broadband, yet almost two-thirds of our nation’s low-income community continues to seek that similar opportunity.  Without broadband availability, low-income families face an uphill battle in obtaining the American dream.

In bringing Lifeline into the 21st century, broadband should be included as an integral, more affordable offering of the program, and consumers should be empowered by providing the subsidy directly to eligible people instead of companies. Moreover, to enhance administrative efficiency, we urge the FCC to shift program eligibility verification away from companies that are not accountable to the American people, and instead allow states to verify eligibility for Lifeline at the same time they determine consumer eligibility for other federal low-income programs. Such ‘coordinated enrollment’ would benefit consumers by streamlining the eligibility process and ultimately enable subsidy recipients to receive a ‘Lifeline Benefit Card’ where consumers could apply the funds to the provider of their choosing. These reforms would make program participation for all service providers more attractive, thereby broadening consumer choice and stimulating competition for the low-income consumer purchasing power.

IIA applauds the Commission for quickly moving forward to initiate a new proceeding aimed to advance Lifeline reform this year. The time for reform is now, the need is great, and the goal is achievable.“

You can read the full letter here. Additionally, you can download our white paper on reforming the Lifeline program that we published last November.

Tuesday, June 02

Digging Into the State of the Internet

By Brad

Last week, venture capitalist Mary Meeker released her annual Internet Trends Report at Re/Code’s Code Conference. The presentation totaled a whopping 197 slides, so you might want to carve out some time before watching.

Thankfully, Joshua Brustein of Bloomberg has put together a good write-up of the presentation, which included a number of slides breaking down some key insights. Some of those slides that we’ve found particularly interesting are below.

Friday, May 29

eWeek on “Permanently Securing Net Neutrality”

By Brad

Originally published by eWeek. Reposted here with permission.

IIA Proposes Net Neutrality Legislation to Solve FCC Title II Dilemma

by Wayne Rash

At first, Rick Boucher’s idea seemed too good to be true. The former Democratic Congressman from Virginia was proposing an idea so radical that I had to check my notes to make sure I hadn’t been daydreaming.

The concept was a bipartisan bill that would give both Democrats and Republicans something each party wants and little or nothing they don’t.

Boucher, honorary chairman of the Internet Innovation Alliance, offered draft legislation that would give the Democrats guaranteed, long term, net neutrality and Republicans something they really want, which is to return Internet access to being an information service rather than a telecommunications service, as it is under Title II. Perhaps more important, the bill that Boucher proposes doesn’t attempt to do anything else.

Boucher’s reasoning is based on a recent change of heart in Republican circles regarding net neutrality. Lately, it seems the party is OK with the concept as long as they eliminate the real problem they see with Title II, which is the reclassification. “What is so different today is that the Republicans have offered to the Democrats that range of network neutrality protection,” Boucher said.

“The Republicans have said that they’re willing to put strong protections for net neutrality in place and continue to have protection for information services,” Boucher explained. He said that for their part, the Democrats have told him that they’re willing to work with the Republicans as long as any legislation doesn’t become loaded down with provisions they can’t support.

“That way there’s only two moving parts,” Boucher said. The problem so far is that nobody on the Democratic side of the aisle has moved forward with discussions on how to draft legislation that would get bipartisan support. Now, with the move by the FCC to reclassify Internet access under Title II, Boucher thinks there may be an opening.

In a May 21 press conference held the day before our interview, Boucher and legal scholar Kathleen Sullivan, who is the former Dean of the Stanford Law School, pointed out how recent events could well result in all sides losing what they want. Sullivan pointed out that current legal challenges to the Title II reclassification could, and in fact are likely to, put the entire move by the FCC on hold.

But Boucher pointed out the looming danger that could come about in two years, a Republican win in the White House and a new, Republican-chaired FCC. He said that such an event could effectively undo everything the Democrats want, but also might undo everything the Republicans want, too.

Either way, it could tie up Internet regulation for years and, in the process, hurt innovation through years of uncertainty.

But there’s another potential stumbling block in this otherwise simple idea: that is, will the President sign such legislation? Boucher thinks he will, if only because the White House has been pushing the Title II reclassification is as a way to get net neutrality in place.

Unfortunately, as many people (including me) have mentioned, the FCC’s action doesn’t guarantee anything. A future FCC or a future White House can undo it in a heartbeat. This is why Boucher thinks bipartisan legislation is really the only good way to assure that net neutrality stands the test of time. Once it’s written into law, even the FCC can’t change it.

Of course the FCC doesn’t want to try, just as it has tried to rewrite the Communications Act to say what it wants. Sullivan pointed this out in her statement at the press conference as did Boucher, who is one of the authors of the current Communications Act.

“The Communications Act distinguishes between telecommunication services and information services,” Sullivan said in her presentation. “The Supreme Court has properly defined cable internet use as an information service. The FCC has reversed course and acted outside of the statute. Congress has not authorized this.”

By crafting and passing bipartisan legislation, both sides of the aisle in Congress can avoid outcomes they don’t want, Boucher said. “Democrats can protect net neutrality and Republicans can achieve a top policy priority which is to treat broadband as an information service.”

Boucher said he hopes that the House and Senate Commerce Committees can get the ball rolling. He pointed out that these committees tend to stay away from partisan politics and perhaps because of that continue to function in what is otherwise a politically gridlocked Congress.

Unfortunately, just because a bill makes a lot of sense, fixes a problem that many people believe badly needs fixing and is supported by both parties doesn’t mean it’ll ever see the light of day as a piece of proposed legislation.

The sad fact remains that despite general agreement on the need for a return to the way that the Internet was regulated before the Title II reclassification (meaning lightly if at all) and the agreement by nearly everyone from the Supreme Court on down that the Internet is an information service, getting legislation through Congress is problematic under even the best circumstances.

One can hope that Rick Boucher and the IIA can get this bill past dead center, but hope is about all that’s left.

Thursday, May 21

Permanently Securing Net Neutrality — Teleconference


Earlier today, our Honorary Chairman Rick Boucher and constitutional law expert Kathleen M. Sullivan participated in a teleconference to discuss the political and legal infirmities of the FCC’s recent net neutrality decision. The teleconference coincided with the release of IIA’s informational doc, “Permanently Securing Net Neutrality,” along with our timeline of light-touch regulation that has given consumers a vibrant Internet.

During the teleconference, Sullivan and Boucher discussed the political and legal fragilities of the FCC’s recent decision to impose public utility-style net neutrality rules on the broadband ecosystem, as well as the broader implications of Title II reclassification. Specifically:

How the FCC’s decision to reclassify broadband Internet access service as a “telecommunications service” subject to Title II common carrier regulation is contrary to nearly 50 years of FCC and Supreme Court precedent;

How the FCC failed to legally and factually justify its decision to abruptly reverse course; and

How the FCC now faces the real threat that its monopoly-era approach will be overturned either by a court or through the election of a Republican President that would alter the Commission’s leadership in 2017.

Our thanks to Kathleen M. Sullivan for participating in the teleconference. A recording of the discussion is embeded below:

Friday, May 15

Simmons Urges Congressional Action

By Brad

At CNBC, our Co-Chairman Jamal Simmons has an op-ed explaining how the Federal Communications Commission’s new open Internet rules could be swept away with the next presidential election, and how Congress should make permanent in law prohibitions against slowing, throttling and creating Internet fast lanes without imposing public utility-style regulation on broadband. An excerpt:

All those who care about preserving an open Internet that maintains the flexibility to innovate and develop new products and services without entrepreneurs having to seek government permission should support a new law. A new law won’t be perfect and will require both sides to make compromises, but it is a far better path to certainty and avoids legal and political wrangling that could tie advancement up for years, slowing down innovation and economic growth in the meantime.

Voters should ask Congress to pass an open Internet law before all attention turns to the presidential campaign. Otherwise, the next president will hold in her — or his — hands the future of the open Internet. Protecting such an important resource from the whims of shifting presidential political winds is among the most important things voters can do to keep the economy growing.

You can check out Simmons’ full op-ed over at CNBC.

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