FCC Report Cites Efforts to Reduce Barriers to Entry; Pai, O'Rielly Partially Dissent
The FCC touted its efforts to reduce barriers to entrepreneurs and small businesses in the communications industry, in a report to Congress listed in Friday's Daily Digest. Communications Act Section 257 requires the FCC to report on such efforts every…
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three years. Among the items the commission cited were its net neutrality order to safeguard Internet "edge" opportunities, "designated entity" rules to facilitate the ability of start-ups to acquire licensed spectrum, unlicensed spectrum and spectrum sharing for innovative uses, and amended joint sales agreement rules and other actions to assist small broadcasters. "We have created unprecedented opportunities for new and diverse media voices to find audiences," said the report. "We have promoted vigorous competition on a playing field that is fair for both large and small firms, and that is consequently attracting record amounts of venture capital at the edge and in networks." Chairman Tom Wheeler's statement said: "Our Open Internet Order protects entrepreneurs and small businesses free and open access to the Internet, enabling innovation without permission. At the same time, we forbear from sections of Title II like rate regulation and unbundling that might reduce network owners’ incentives to continue building out their networks and investing in new technologies like 5G." Commissioners Ajit Pai and Michael O'Rielly partially dissented. Pai agreed some actions had helped small businesses, but others, such as Title II reclassification "disproportionately burdens smaller broadband providers." O'Rielly said, "At best, only a portion of this report can be said to be responsive to the law. Even if the statute were read to suggest a broader application, Congress certainly did not expect that the report would be considered as just another opportunity to proselytize in favor of the current Commission’s partisan agenda." O'Rielly also called it "alarming" that the report is more than two years late, following the last one in 2011, and without explanation. "I cannot support this blatant indifference to Congressional requirements," he wrote. "Overall, this report is flawed and extremely late. I approve its issuance, as required under the law, approve instances where it actually acknowledges and addresses legitimate and applicable market entry barriers for small businesses, and reject the rest."