UPDATE 5-Key U.S. lawmaker backs FCC on eve of Web rule
* Boucher says open Net rule is move in right direction
* Boucher says mulling steps if rule challenged in court
* Says sees a comprehensive wireless modernization bill
* Carriers loudly criticize proposals expected Thursday
* Verizon Wireless, Google working together (Adds Google-Verizon joint policy blog statement)
WASHINGTON/CHICAGO, Oct 21 (Reuters) - A key U.S. lawmakerthrew his support behind the Federal CommunicationsCommission's open Internet proposal, despite renewed protestsfrom telecom companies including Verizon (VZ.N) on Wednesday.
The endorsement from Rick Boucher, chairman of a key Housecommittee, came on the eve of an FCC meeting on so-called netneutrality rules, which aim to keep the Web open and lessen thepower of phone companies to decide the content that theircustomers can see.
Commenting on a policy fight that analysts expect to end incourt, Boucher said he would consider legislative action if thetelecoms industry challenged the proposal.
"The FCC is moving in exactly the right direction," saidBoucher, a Virginia Democrat who is chairman of the House ofRepresentatives' Energy and Commerce Subcommittee onCommunications, Technology and the Internet.
Advocates of net neutrality such as Google (GOOG.O), Amazon(AMZN.O) and public interest groups, say service providers suchas AT&T (T.N), Verizon and Comcast (CMCSA.O) must be barredfrom blocking or slowing content based on how much revenue itcould generate for them.
But the service providers say the increasing volume ofbandwidth-hogging services, such as video, requires verycareful management of both landline and wireless networks.
In a significant move late Wednesday, Verizon Wirelesssoftened its opposition by issuing a joint policy blogstatement with Google. They said they believe it is essentialthat the Internet remains an unrestricted and open platform.
The FCC's existing broadband principles "make clear thatusers are in charge of all aspects of their Internet experience-- from access to apps and content," their joint statementsaid. "So we think it makes sense for the commission toestablish that these existing principles are enforceable, andimplement them on a case-by-case basis."
The Supercomm telecom industry trade show in Chicago onWednesday was abuzz with complaints about the proposal toforbid operators from discriminating against any legal contentthat third-parties want to deliver over their networks.
Verizon Communications Inc Chief Executive Ivan Seidenbergsaid the debate around the proposal is extremely troubling" andcould halt progress in U.S. broadband development.
"If we can't earn a return on the investment we make inbroadband, our progress will be delayed," Seidenberg said inhis Supercomm keynote. [ID:nN21464902]
At an FCC meeting on Thursday, a slate of three Democratsand two Republicans will decide whether to formally propose thenet neutrality rules, which FCC Chairman Julius Genachowskifirst unveiled last month.
But If the FCC's proposal is as tough as it appears to thecarriers, also known as Bell operators, Stifel Nicolaus analystChris King said it will most likely end up in court.
"Any ruling that moves the needle away from the Bells wouldfairly certainly wind up in the court fairly quickly," Kingsaid.
Boucher has been meeting with broadband providers, techcompanies and public interest groups since March and hopes theycan reach an agreement "in the not too distant future."
"Hopefully there will not be challenges," Boucher said. "Ifthere are, hopefully those rules will be upheld, but that leadsto other possibilities as well."
Boucher spoke with reporters after an event thathighlighted the successful deployment of high-speed Internet toa rural community in his district using airwaves vacated bybroadcasters that are now using digital signals.
His comments come amid a flurry of lobbying from opponentsof the proposals, which are not likely to result in a finalrule until the spring, after a public discussion.
Qwest Communications International Inc's (Q.N) senior vicepresident for public policy & government relations, SteveDavis, said at Supercomm that carriers are worried netneutrality rules will hurt investments in telecommunicationsand end up raising prices for consumers.
The phone companies, for the most part, have said theysupport rules to protect the openness of the Internet but theyare concerned about regulations that would strip away any oftheir power to manage bandwith-hogging applications that coulddisrupt network performance.
Earlier this year, House Energy and Committee ChairmanHenry Waxman threw his support behind a net neutrality billthat was introduced by Democrats Ed Markey of Massachusetts andAnna Eshoo of California. There is no companion bill in theSenate, but North Dakota Democrat Byron Dorgan said earlierthis year that he is considering introducing a similar bill.
"It is my hope we will be in a position to legislate at theappropriate time with regard to network neutrality," Bouchersaid.
He also said a comprehensive wireless modernization bill isnecessary given all the developments in the wireless sector.
"At the proper time, probably next year, I'll look forwardto taking that up," he added.
Source: Reuters
