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August 04, 2008 WirelessWeek.com
FCC Scolds Comcast, Implies Wider Impact
By Evan Koblentz
The FCC, in a potentially historic decision for Americans' communication rights, said Friday that broadband service provider Comcast, by interrupting and slowing access to the BitTorrent file-sharing system, unduly interfered with and should be punished for secretly impacting which Internet applications work through its cable modems.

Blocking and slowing network traffic based on content has been a controversial matter for several years, angering consumers and sparking adamant denials from Comcast and other wired broadband providers. As users and the media found mounting evidence proving that blocking existed, Comcast gradually was forced to admit its actions.

"Comcast Corporation's management of its broadband Internet networks contravenes federal policies that protect the vibrant and open nature of the Internet," the FCC said in a statement Friday afternoon. "Specifically, the commission found that Comcast had deployed equipment throughout its network to monitor the content of its customers' Internet connections and selectively block specific types of connections known as peer-to-peer connections."

The FCC detailed how Comcast lied to media, used the blanket issue of network management as an excuse when it got caught and did not disclose the content blocking to customers, all because of what the FCC called anticompetitive motives -- if customers could easily access videos for free using BitTorrent, then Comcast might find it difficult to charge for a video service of its own.

The complaints against Comcast started with customers and escalated to pro-consumer advocacy groups such as Free Press and Public Knowledge.

Because of the findings, the FCC said Comcast has 30 days to disclose the details of its network practices, explain how it will change those practices by the end of this year and disclose the details to customers. "To the extent that Comcast fails to comply with the steps set forth in the Order, interim injunctive relief automatically will take effect requiring Comcast to suspend its discriminatory network management practices and the matter will be set for hearing," the FCC added.

FCC Chairman Kevin Martin along with Commissioners Michael Copps and Jonathan Adelstein supported the conclusion. Commissioners Deborah Tate and Robert McDowell dissented, writing that Comcast and other companies already publicly stated their intentions to better handle peer-to-peer applications.

Beyond affecting just Comcast, the FCC's unusually direct announcement sends a strong and clear message to service providers of all types, whether it's wired broadband, voice over IP, wireless, or any others. "That was as brutal a thing as I've ever seen. It generally puts carriers on notice -- carriers of any sort -- that the commission will take complaints seriously," Public Knowledge spokesman Art Brodsky said.

For example, wireless carrier AT&T recently said it does not allow peer-to-peer applications on its network and will end the contract of any user caught running doing it. That's because cellular networks are designed for short bursts of traffic, not for continuous loads, AT&T said.

But AT&T also said its own policy is not currently being enforced, "So you have to wonder much of a problem it really is," Brodsky noted. "It doesn't matter what the corporate policy is, it's what the FCC policy is… I think that'd be a question ripe for discussion at some point."

Industry analyst Roger Entner, of Nielsen IAG, has a different perspective. Regarding the network architecture issues, "What the carriers are saying here is actually the truth. Those who compare it too closely with a wired network are the ones who don't understand," he said. In theory, wireless carriers could allow peer-to-peer applications only when a given cell has plenty of bandwidth available, but that is still unlikely, he added. He said wireless carriers should not worry too much about the Comcast decision as long as they follow AT&T's lead and openly discuss their policies.