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May 16, 2005
Brand X Transcript and Thoughts on Common Carriage
Posted by Ernest Miller
Prof. Susan Crawford recommends the oral argument transcript for the "Brand X" case regarding classification of cable modem service by the FCC, which wanted to exempt cable modems from the common carrier obligations telephony DSL providers had to meet (Brand X Argument). As she notes, it is a bit of a slog, but amusing at times if you like that sort of thing. Read the 55-page (double-spaced) transcript here: Brand X v. National Cable and Telecommunication Association - Oral Argument [PDF].
Crawford provides her vision for a solution to the problem raised by Brand X, which stems from the poorly drafted Telecommunications Act of 1996. Whatever the Supreme Court does (and I'm betting they uphold the ruling against the FCC's rules), real reform is going to take congressional action. Crawford's brief comments:
So now that we know that everyone in the chain is potentially a common carrier, the thing to do is to take a Netcom-like approach to this issue. Rather than make everyone liable for the traditional regulatory burdens of common-carrier-dom, let's dismantle the whole edifice. As in Netcom, let's say that direct, physical access to the consumer/business (in the Netcom context, direct infringement) is the thing we'll regulate. We'll turn it into a public utility. And we'll leave everything above that alone. We did this with energy -- we can do it with online access. Sure, there will be a few takings cases -- but that will be entertaining (and lucrative) for everyone.
This is a potential solution, but I'm not sure it would be the best one. I think that we can craft common carriage regulations based on particular layers of the
protocol stack and network design. Common carriage would apply to layers 1-3 of the
OSI Model, layer 4 would be potentially common carriage, and layers 5-7 would not be common carriage (at least for the purposes of general telecommunication regulation).
Can the transportation mechanisms be public utilities? Sure, but not necessarily so. There are many ways for bits to travel. Some might be public utilities (community WiFi), while others would not (satellite broadband). That doesn't mean that common carrier regulations should not apply to both. Cities have government-funded transportation (buses) as well as private transportation (taxis), both of which can be common carriers.
Me, I'm a big fan of common carriage and separating transport and content.
Comments (2)
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1. Eric Artman on May 17, 2005 09:45 AM writes...
I think you're missing the traditional scope of the term "public utility". Public utilities are often, indeed usually, privately owned companies. Originally these were the providers of most utility services (the "old" ATT, Commonwealth Edison, Consolidated Edison, Southern California Edison, Pacific Gas & Electric, etc., etc.) In most cases, these companies have now created "holding companies" which are not public utilities, but still provide their public utility services through (somewhat) regulated public utility subsidiaries.
Under most all regulatory structures, "common carriers" are still "public utilities", regardless of their government or non-government ownership status. (Transportation is a notable exception--transportation regulation has been largely federalized and state treatment of trucks and busses as "public utilities" is withering, if not dead.)
Anyway, Professor Crawford's suggestion (with which I don't necessarily agree) wouldn't change the ownership of these common carriers--they'd still be private. The "takings" issue she refers to relates to the profit limitations that public utility regulation sometimes imposes--like downzoning or rent control, these additional restrictions on commercial activity can sometimes be considered a "taking".
Permalink to Comment2. Ernest Miller on May 17, 2005 09:52 AM writes...
Public utility isn't synonymous with common carrier and has substantial differences. I prefer the common carrier model.
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