1. FISPA W EBINAR M ARCH 18, 2015 T HE S KY I S NOT F ALLING : FCC D ECISION A PPLYING T ITLE II TO B ROADBAND I NTERNET Kristopher E. Twomey Law Office of Kristopher E. Twomey, P.C.

2. How did we get here? Just seeking firmer ground to enforce them aka Regulatory Hail Mary Title II & Section 706 2005- Broadband is an “Information Service”- Tough Luck for DSL ISPs 2010- Open Internet Order- Section 706 2012- Verizon Appeal at DC Circuit-No blocking & anti-discrimination rules SAME 2010 RULES

3. What Is In This Thing? 13 pages of rules, 300 pages of legal justification for them 60 pages of Commissioners whining

4. Same Three Principles From 2010 No Blocking No Throttling No Paid Prioritization A person engaged in the provision of broadband Internet access service, insofar as such person is so engaged, shall not block lawful content, applications, services, or non-harmful devices, subject to reasonable network management. A person engaged in the provision of broadband Internet access service, insofar as such person is so engaged, shall not impair or degrade lawful Internet traffic on the basis of Internet content, application, or service, or use of a non-harmful device, subject to reasonable network management. A person engaged in the provision of broadband Internet access service, insofar as such person is so engaged, shall not engage in paid prioritization. “Paid prioritization” refers to the management of a broadband provider’s network to directly or indirectly favor some traffic over other traffic, including through use of techniques such as traffic shaping, prioritization, resource reservation, or other forms of preferential traffic management, either (a) in exchange for consideration (monetary or otherwise) from a third party, or (b) to benefit an affiliated entity.

5. Enhanced Transparency Rule Promotional Rates and All Fees/Surcharges Data Caps and Allowances Network Performance- Speed, Latency, and Now Including Packet Loss Network Management Practices Affecting Performance Consumer- Focused Safe Harbor Format to be provided Wait! Small Carrier Exemption For Network Performance, for now anyway

6. Back to the Open Internet Compliance Statement A person engaged in the provision of broadband Internet access service shall publicly disclose accurate information regarding the network management practices, performance, and commercial terms of its broadband Internet access services sufficient for consumers to make informed choices regarding use of such services and for content, application, service, and device providers to develop, market, and maintain Internet offerings. Consumers Can File Informal Complaints at FCC for Failure to Comply Must Post to Website Set-up “Legal” link and post OICS, AUP, TOS, and Privacy Policy

7. What Is “Reasonable Network Management” Management Practice Technical Network Justification Tailored to Achieve Legitimate Purpose Block P2P Block Port 25 Fairly Allocate Bandwidth Prevent Spam No Better Way to Do It? A network management practice is a practice that has a primarily technical network management justification, but does not include other business practices. A network management practice is reasonable if it is primarily used for and tailored to achieving a legitimate network management purpose, taking into account the particular network architecture and technology of the broadband Internet access service.

8. Which Title II Sections Applied Sections 201, 202, and 208 Common Carrier Section 201- Just and reasonable charges and practices Section 202- Non-discrimination Section 208- Formal Complaints Sections 222, 225/255/251(a)(2) Consumer Friendly Section 222- Protecting Consumer Privacy (think CPNI) Section 225/251/255(a)(2)- Ensuring Disabilities Access Section 224- Pole Attachment for broadband only (Still Only for CLECs) Section 254 USF Universal Service Fund requirements do apply Not yet anyway…

9. Regulation of Interconnection Netflix Can Now Ask the FCC to Review Deals Commercial Arrangements - Transit Admission they don’t understand the market But, they want to ensure consumer access “Watch, learn, and act as Required” Principles not applicable to Transit Deals Open Internet Rules Do Not Apply

10. Exemptions VoIP Nest Heart Monitors Non-broadband Internet Access Data Services Narrowly tailored to achieve a legitimate purpose Case by Case Reasonable Network Management Doesn’t apply to VPNs, CDNs, DNS, caching, hosting/data storage, Internet backbone Coffee shop wifi BIAS Definition

11. FCC Enforcement of Order Investigations by Enforcement Bureau Requested by Consumers, ISPs, Non-profits Open Internet Ombudsperson Formal and Informal Complaints Slamming as an example Enforcement Advisories and Advisory Opinions Evolving Regulation May seek outside opinions from industry-standard setting bodies

12. What the Order Doesn’t Do Regulate rates (§205) Require tariffs (§203) Require tedious reports (§211, 213, 215, 218-220) Apply FCC fees to broadband Require §214 licenses Consumers pay more? Allow state and local taxes Local loop/fiber unbundling (under §251(c), 252, 256) Mandate settlement –free peering and traffic exchange Require FCC permission to discontinue services or approve transfers of control (§214) Increase pole attachment rates Apply slamming provisions (§258)

13. Q UESTIONS ? K RIS T WOMEY KRIS @ LOKT. NET 202 681-1850