Mr. President, I suggest the absence of a quorum. Mr. President, I rise today to oppose the Senate Joint Resolution 6, which was brought under the Congressional Review Act--about which I wish to talk--to disapprove the FCC's open Internet…
Mr. President, I suggest the absence of a quorum.
Mr. President, I rise today to oppose the Senate Joint Resolution 6, which was brought under the Congressional Review Act--about which I wish to talk--to disapprove the FCC's open Internet rules, such as they are.
Americans want the Internet to be free and open to them. They want to go where they want to go, see what they want to see, do what they want to do on the Internet. They don't want to have somebody blocking them or to have gatekeepers. They want it to be a nice, open forum for them. They care about the Internet. Everyone uses it. They want to be able to develop new businesses, and they want to read and watch video. They want to reach out to friends and family and community. And they want to do it online. They want to do all of these things on the Internet-- without having to ask permission from their broadband provider. The FCC has promulgated balanced rules that let Americans do all of these things, and keep the Internet open and keep the Internet free.
Let us be clear from the outset. No matter how S.J. Res. 6 is dressed up in language that suggests it will promote openness and freedom, it will not do that. The resolution is misguided. It will add uncertainty, in fact, into the economy, and it will hinder small businesses dependent upon fair broadband access, where otherwise they might be put in a slower lane. They want to be in a fast lane. They want to be able to compete with other parts of the country. This resolution will, in fact, undermine innovation. It will hamper investment in digital commerce. It will imperil the openness and freedom that has been the hallmark of the Internet from the very start.
The FCC's rules were the product of very hard work, consensus, and compromise. The agency had extensive input from stakeholders from all quarters. They opened up and said send in your comments. In fact, they had written input from more than 100,000 commenters. About 90 percent of those filing supported the adoption of open Internet rules. On top of this, the rules are based on longstanding and widely accepted open Internet principles, which were first articulated during the second Bush administration.
These rules do three basic things. First, they impose a transparency obligation on providers of broadband Internet service. This means that all broadband providers are required to publicly disclose to consumers accurate information regarding the network management practices.
Second, the rules prohibit fixed broadband providers from blocking lawful content, application, services, and devices. This means consumers and innovators will continue to have the right to send and receive lawful Internet traffic, with mobile broadband service providers subjected to a more limited set of prohibitions. I will speak about that in a moment.
Third, the rules aim to ensure that the Internet remains a level playing field by prohibiting fixed broadband providers from unreasonably discriminating in transmitting lawful network traffic-- which they have done.
Finally, the rules are meant to apply with the complementary principle of reasonable network management, which provides broadband providers the flexibility to address congestion or traffic that is harmful to the network. These are principles that I believe everyone can support. I see nothing wrong with them. The word ``reasonable'' somehow doesn't scare me. Maybe it should, but it doesn't.
I ask my colleagues, what is wrong with transparency? Why would we want to promote Internet blocking or discrimination? Why would we want to have some people on the fast lane and some on the slow lane, depending on whether you paid your Internet provider enough money? What is unreasonable about reasonable network management?
I believe that the FCC's effort, along with ongoing oversight and enforcement, will protect consumers, and I believe it will provide companies with the certainty they need to make investments in our growing digital economy.
While many champions of the open Internet would have preferred a stricter decision--and I am one of them; I myself have real reservations about treating wireless broadband differently from wired broadband--I think the FCC's decision was nevertheless a meaningful step forward. In a moment, I will talk about other people who feel the same.
Supporters of the joint resolution fail to acknowledge that the FCC's open Internet rules have received overwhelming support from broadband Internet service providers, consumers, and public groups, labor unions, as well as high-tech companies.
AT&T CEO Randall Stephenson stated earlier this year that while he wanted ``no regulation,'' the FCC's open Internet order ``ended at a place where we have a line of sight and we know and can commit ourselves to investments.''
Time-Warner Cable said at the time of the order's release that the rules adopted ``appear to reflect a workable balance between protecting consumers' interests and preserving incentives for investment and innovation by broadband Internet service providers.''
Numerous analysts from major investment banks have found that the open Internet order removes what they call regulatory overhang and allows telecom and cable companies to focus on investment.
Google, Facebook, Twitter, eBay, Skype, and other leaders in innovation all urged the FCC to adopt ``commonsense baseline rules . . . critical to ensuring that the Internet remains a key engine of economic growth, innovation, and global competitiveness.''
More than 150 organizations wrote Congress to oppose this joint resolution. I hate reading lists, but I am going to do it anyway: the Communications Workers of America, the AFL-CIO, the NAACP, the U.S. Conference of Catholic Bishops, the American Library Association, the American Association of Independent Music, the Leadership Conference on Civil and Human Rights, the League of United Latin American Citizens, the National Organization for Women, and Technet. There are a lot of folks at Technet who have a lot at stake. I have their letters here.
I ask unanimous consent that these letters be printed in the Record.
Mr. President, to be sure, there are those who disagree with the FCC's open Internet rules, and there is an avenue for these complaints. It is called the judicial system. Some are using it. Two companies have filed lawsuit claiming that the FCC went too far. Several public interest groups have filed lawsuits claiming that the FCC did not go far enough. It is their legal right to go to the courts, and when they choose to do that, they can do so.
So let's think for a minute what a world would look like without a free and open Internet.
In a world without a free and open Internet, consumers and entrepreneurs would have no transparency as to how their broadband providers would manage their network--no ability to make informed decisions about their broadband providers.
In a world without a free and open Internet, there would be nothing to prevent their broadband providers from steering them only their to preferred Web sites and services, therefore limiting their choices as consumers.
For rural Americans, broadband Internet access has the power to erase distances and allows them to have the same access to shopping, educational matters, and employment opportunities as those living in urban areas. That is a time-honored principle around here--but not if the Web site they seek to access is blocked by their broadband providers. Consumers, entrepreneurs, and small businesses need the certainty they can access lawful Web sites of their choice when they want, period.
In a world without a free and open Internet, there would be nothing to stop broadband providers from blocking access to Web sites that offer products that compete with those of its affiliates. That happens, Mr. President.
In a world without a free and open Internet, companies could pay Internet providers to guarantee their Web sites open more quickly than their competitors.
In a world without a free and open Internet, companies could pay Internet providers to make certain their online sales are processed more quickly than their competitors with lower prices.
Well, that is not the American way. This is particularly disturbing in tough times like these.
In a world without a free and open Internet, there would be nothing to prevent Internet service providers from charging users a premium in order to guarantee operation in the ``fast lane.'' If someone is trying to start a small business, struggling to make ends meet and cannot afford to pay the toll, they run the risk of being left in the ``slow lane''--that is not good--with inferior Internet service--that is not right--unable to compete with larger companies. That is very wrong.
What if an innovator or a start-up company has the next big idea? With broadband, the next big idea does not have to come from a suburban garage or from Silicon Valley, it can come from rural America or from anywhere. A free and open Internet is all that is required to give that big idea a global reach.
In a world without a free and open Internet, the ability of the next revolutionary idea to reach others--to make it to the greater marketplace--would be entirely dependent on a handful of entrenched broadband gatekeepers and toll collectors. True.
I am not totally opposed to the Congressional Review Act, but I have to say it is an extraordinarily blunt instrument. It means all of the rules adopted by the FCC must be overturned at once. This would even mean tossing out commonsense provisions about transparency. Do our opponents know this? It would deny the agency the power to protect consumers. Do our opponents know this? What is the sense in all of that? I don't get it.
There is another part: If they just took these rules out--if S. Res. 6 were to pass--they couldn't come back later and just have the FCC put them in. We would have to go through a whole congressional legislative process to reinsert them into the Public Law, which means many of them would never end up there.
I also want to address the argument of supporters of the joint resolution that the FCC's open rules will somehow stifle innovation in the Internet economy. That is just so wrong I don't know what to say.
Over the past 15 years, the open Internet has been the greatest engine for the U.S. economy. It leaves everything in its dust. It has created more than 3 million jobs, as the Senator from Texas indicated. The open Internet rules will help sustain this growth. People want to know what the rules of the road are. They want to know what the world is bringing to them. If they decide they do not like what is coming, they are going to tell you, and they are not going to invest. Very simple.
According to Hamilton Consultants, the open Internet ecosystem has led to the creation of 1.8 million jobs related to applications in e- commerce, as well as 1.2 million jobs related to infrastructure. Moreover, investment and innovation have continued to increase since the adoption of the FCC's open Internet rules--not decrease, as the supporters of this resolution will tell us.
The facts show that investment in broadband networks increased in the first half of 2011. In fact, investment in networks that support broadband was more than 10 percent higher in the first half of 2011 than in the first half of 2010. More of that investment in Internet companies surged in 2011, and this is after they had sort of adjusted or taken into account what they saw coming in the way of the rules. There was $2.3 billion worth of investment going into 275 companies in the second quarter, and all of them were this Internet type. That is the most investment in Internet companies in a decade.
Plus, shortly after the framework was adopted, America's leading wireless providers announced they were accelerating their deployment of their advanced fourth generation, or 4G networks. It seems the open Internet rules are giving broadband providers and entrepreneurs and investors the certainty they need to invest and to create jobs.
Certainty is the key. They are not going to invest in what they do not know. We see that in so many other areas. They do not know what is going to happen, so they do not invest. People have all this cash, but they do not have certainty. Here they have certainty, they understand that certainty, they understand what is coming, they like it, and they are investing like never before.
The FCC's open Internet rules also protect small businesses. An estimated 20,000 small businesses operate on the Internet. More than 600,000 Americans have part- or full-time businesses on eBay alone. I was not aware of that. The FCC's open Internet rules mean small entrepreneurs will not have to seek permission from broadband providers to reach new markets and consumers with innovative products and services.
This is a very important point. It means small businesses can be located anywhere in this country, including rural America, and through open broadband have the opportunity for their ideas and products and services to have a global reach. That is the point of all of this.
As we all know, small businesses were responsible for nearly 65 percent of new jobs over the past 15 years. Far from preventing investment, the FCC's open Internet rules will foster small businesses because they trust it. They see it, they see what Moody's is saying about it, they see what the Wall Street investment bankers are saying about it, they see it is encouraging investment, and they like and trust that. So they take risks they might not otherwise take because they trust.
It is not the faceless Federal bureaucrat. It is something that is down on paper and they understand it. They have probably seen it and probably commented on it. Maybe some of them didn't like it as much as they should have; maybe some thought it should have been stronger or some thought it should have been weaker, but such is life in America. So, anyway, I think what they conclude is that what is going on is supporting what they are doing.
Finally, I want to note when it comes to education and privacy and intellectual property, global Internet governance, or network security, the government has long provided--and necessarily so--reasonable rules of the road to make possible consumer protection, fair trade, and open markets. The FCC's open Internet rules are no different. They take, as has been quoted by many, a light-touch approach--I like that phrase-- and keep the playing field fair. They keep the Internet open and free for consumers, for businesses, and for everyone in this country who wants access to broadband Internet.
So that is why I support the FCC open Internet rules, and I encourage my colleagues to vote against the joint resolution.
Mr. President, I would like to respond to some things, but I understand we only have 42 minutes remaining.
And both Senator Cantwell and Senator Mark Udall want to speak. I don't want to take their time, so at this point I suggest the absence of a quorum.
Mr. President, how much time remains on this side?
I would yield it to the distinguished Senator from Washington.
Mr. President, I thank the distinguished Senator for her remarks and actually fully agree with them in that mobile is kind of left alone, and it should not be because it is everything that is happening in the future. But it is a step, and it was a wonderful speech.
It occurs to me that I do not think we have anybody left to speak on this side. I am not sure about Senator Hutchison, but it may be a good time to yield back our time.
Mr. President, before I yield all time back on our side, I have listened to the entirety of this debate. It seems to me it has been fairly clear that on one side the government regulates and messes things up, and on the other side things are going swimmingly.
I can't help but pay attention to all those people out at TechNet, the AT&T people, Moody's, Hamilton's, and all these people who take a very dour view of government intervention and a very sensitive view as to whether that intervention is in any way going to stop investment. The answer is usually it does. That is why I feel very happy that this was referred to by a number of major players in this field as a very ``light touch'' of regulation, which gave them a sense of where they were going to be, how far down they could look toward their future and therefore allow them to invest the money they wanted to invest.
That is not to say they would not have done it anyway. But there is nothing like encouraging capital investment in something as important as the Internet. I think the net neutrality legislation does that very well. I hope when we vote on it tomorrow, it will not pass.
Having said that, I yield back all time.
I suggest the absence of a quorum.