The Federal Trade Commission rightly concluded in its report Broadband Connectivity Competition Policy that the broadband Internet market needs greater competition. About 96 percent of the broadband market is currently controlled by just two entities: the cable or phone company. In many markets, customers only have one type of ISP to choose from.

Washington, D.C.— The Federal Trade Commission rightly concluded in its report Broadband Connectivity Competition Policy [PDF] that the broadband Internet market needs greater competition.

About 96 percent of the broadband market is currently controlled by just two entities: the cable or phone company. In many markets, customers only have one type of ISP to choose from.

The conclusion is significant because many telecoms and lawmakers, in arguing against net neutrality, have said that broadband competition is robust enough to allow for a tiered Internet system, where telecoms prioritize traffic to certain sites. The report makes clear many customers won’t be able to exercise market choice if their ISP decides to give preferential service to iTunes, for instance, even though he or she is a CD Baby customer.

While FMC agrees with the FTC’s assessment of broadband competition, we join with other public interest groups in criticizing the FTC for not fully exploring the deleterious impact of a tiered Internet system. We concur with Public Knowledge’s assessment:

“The report’s cautionary message falls far short in its analysis of the harm that could come to consumers, as well as to those who offer services over the Internet, if the telephone and cable companies seize the opportunity to decide which favored partners have priority services and which do not.  The FTC staff instead dwells on the dubious benefits to telephone and cable companies of being able discriminate in their service offerings.”

The FTC concludes it is difficult to regulate an evolving Internet, but the net is always evolving. In addition, lawmakers didn’t proceed with the same  caution when net neutrality – a founding principle of the Internet – was overturned in the mid ’90s.

A tiered system would be especially problematic for the music community because the open Internet has fueled a music revolution. Small and independent musicians now have the type of access to fans that was once only open to the largest and most well financed artists. Music fans have access to a dizzying array of bands and genres of music not readily available before.

If telecoms have their way, this golden age of music could come to an end. They will replace the Internet’s level playing field with a system that will once again make money the driving force behind exposure. Labels or music download sites that can afford it will have fast service, while everyone else will be relegated to an Internet slow lane.

Music fans and Americans in general have spoken forcefully for the first type of Internet. At this critical juncture, the FMC hopes the FTC will take another look at the true impacts of a tiered Internet. FMC believes the promise of the Internet should be for everyone, not just for some.

About the Future of Music Coalition

Future of Music Coalition is a national non-profit education, research and advocacy organization that identifies, examines, interprets and translates the challenging issues at the intersection of music, law, technology and policy. FMC achieves this through continuous interaction with its primary constituency — musicians — and in collaboration with other creator/citizen groups.