The Open Internet – WHAT’s AT STAKE FOR DIVERSE COMMUNITIES

1. The Open Internet –WHAT’s AT STAKE FOR DIVERSE COMMUNITIES Minority Media and Telecommunications Council (MMTC) August 2014

2. How does the Internet Work? • The Internet is a “network of networks” – a collection of thousands of networks across the world that physically connect with each other. • These networks connect and move data to bring content to consumers – YOU AND I! • Starting commercially in 1996, the Internet now provides access to 99% of American households.

3. WHAT BEGAN THE INTERNET REVOLUTION? The 1996 Telecommunications Act aimed to do the following: • “To promote competition and reduce regulation…” • and • “To preserve the… competitive free market… Internet… unfettered by Federal or State regulation.” Under two previous, bi-partisan Federal Communications Commission (FCC) Chairs, the Internet has been allowed to grow and ground the framework for the Internet revolution we’re currently experiencing.

4. TODAY’s High Speed Internet – Use and Choices • 99% of U.S. households have access to 2 or more fixed broadband providers. • 91% of the U.S. population enjoys a competitive choice of at least 3 wireless broadband providers and 82% at least 4 providers. • 85% of U.S. households have access to networks capable of speeds of 100 Mbps.

5. High Speed Internet – Jobs and Economic Activity • The app economy now employs more than 750,000 Americans—up from zero in 2007. • Diverse communities account for 945,000 jobs within the wired and other telecom services sectors. • $1.2 Trillion invested in Internet infrastructure since 1996. Low-income communities are now starting to be built out!

6. PEOPLE OF COLOR are rapidly adopting Broadband • Asian Americans have adopted smartphones at a higher rate than the total U.S. population. • As of 2012, 67% of Asian Americans used a smartphone as their primary mobile handset. • As of 2011, 81% of Asian Americans had broadband service in their homes. Nearly 75% of African American and 68% of Hispanic cell phone owners use their devices to access the Internet. • From April 2012 – May 2013, the number of African Americans using their phone to access the Internet increased ten percentage points, while the number of Hispanics increased five percentage points.

7. The Open Internet IS A Civil Rights & EQUITY Issue • Communities of color unequivocally support an open Internet and the rights of consumers to the protections of an open Internet. Having access to the Internet is part of our First Amendment right. • In a society plagued by inequality, broadband adoption, access, and informed use are the keys to economic empowerment and social inclusion for every citizen and community. Source: apafilm.org

8. WHY IS The Open Internet A Civil Rights & EQUITY Issue? The Internet was built on the premise of openness, meaning consumers can use any device or application to access any legal content of their choosing. Communities of color are becoming dependent on the Internet to their individual and community benefit. We no longer live “in line,” but “online” when it comes to education, health care, financial services and government. EQUITY lives at the center of this debate. The disagreement before the Commission is over how to achieve this goal.

9. NOT EVERYONE IS ONLINE! • “Communities of color respectfully request a policy agenda that enables first class digital citizenship" Recent data for people who do not use the Internet or email • By Ethnicity • 15% Black, non-Hispanic • 24% Hispanic (English- and Spanish-speaking) • 14% White, non-Hispanic • By Age, Education and Income • 17% people 50- 64 years of age • 44% people 65 years or older • 41% No High School diploma • 24% $30,000/year or Less • By Location • 20% Rural areas

10. FCC’s Open Internet Order • The Federal Communications Commission (FCC) issued a Notice of Proposed Rulemaking (NPRM) to determine how best to keep the Internet open and neutral. • Net neutrality is also referred to as the “Open Internet” is a school of thought regarding the regulation of broadband operators.   It is premised on three consumer-centric principles…

11. FCC’s Open Internet Order What is Net Neutrality? • Broadband operators must transparent about their network management practices and share information about how these practices impact consumers.  This is referred to as the transparency principle. • Broadband operators must allow consumers access to lawful websites of their choosing.  This is referred to as the non-blocking principle. Broadband operators must treat traffic from all websites and content providers equally.  Consumers should not experience the slowing down of traffic from one website in favor of another website's traffic.  This is referred to as the non-discrimination principle.

12. FCC Open Internet Order Major Proposals IN MAY 2014 ORDER • Considers “Paid Prioritization” (“Fast Lanes”) Among Internet Service Providers (ISPs). • Prohibits Slowing or Blocking of Internet Traffic. • Encourages an “Internet of Transparency” • Opened Four-Month Comment Period on whether to subject the Internet to Title II regulation and whether to enforce net neutrality regulations or use section 706 of the Telecommunications Act.

13. Threats to the Internet – Utility, Telephone-Era Regulations The specific focus of debate in our communities is Proposal #4 - Opened Four-Month Comment Period on whether to subject the Internet to Title II regulation and whether to enforce net neutrality regulations or use section 706 of the Telecommunications Act. • WHAT ARE THE THREATS? • Title II of the Communications Act addresses communications services and it was first written in 1934. • Title II applies to monopoly-era traditional telephone service and imposes regulations on modern day competitive services. • Title II reclassification regulates the Internet as a public utility, similar to roads, bridges, water and electric grid.

14. ADDITIONAL CAUTIONS WITH TITLE II • Increases prices for consumers/businesses through rate rebalancing and the imposition of increased access charges and taxes on an already burdened universal service program. • Ultimately limits full digital participation, especially for consumers on fixed or lower incomes. • Creates requirements of rate regulation, FCC approvals, and places limits on content partnerships. • Increases the cost of heavier users that congest the Internet with video streaming and other bandwidth-intensive uses. • New and late Internet adopters (individuals and businesses) have different online needs and would find themselves subsidizing heavier online users.

15. wHAT WAS SAID IN THE FILING OF 42 NATIONAL MINORITY ORGANIZATIONS • Forty-Two respected national civil rights, social service, and professional organizations representing millions of Americans signed MMTC’s filing to the FCC. Many of these organizations have a long history of advocating for broadband adoption. YOU WERE ONE OF THEM! Key Points: • Any regulatory framework that does not emphasize broadband adoption, competitionand innovation would be detrimental to communities of color. • A common carrier (reclassifying broadband under Title II) approach to broadband regulation would slow down broadband adoption and potentially stifle the Internet’s growth and innovation. • Communities of color that are NOT built out now may potentially never be built out due to the lack of investment, consequently impacting jobs! • The Internet is still in its “infancy” stage – WE HAVE NOT SCRATCHED THE SURFACE ON THE POSSIBILITIES!

16. What Other CIVIL RIGHTS ORGANIZATIONS Are Saying ALONG THE SAME LINES • Asian Americans Advancing Justice (AAJC): “The Commission should explicitly consider and protect against the negative impact of paid prioritization on minority communities.” • National Urban League: “As for the invitation to comment on the potential utilization of Title II, after careful thought and analysis, we do not believe that Title II is an appropriate or necessary vehicle to be utilized at this time.” • NAACP/Communications Workers Of America: “The Court affirmed the Commission’s legal authority to ground its Open Internet rules in Section 706 of the Telecommunications Act, and suggested that no blocking and anti-discrimination rules based on a ‘commercially reasonable’ standard would be legally sound.”

17. THE FIRST KEY TAKEAwAY • Internet Access and Adoption is a Leading Civil Rights Issue. It opens Economic Opportunities and Freedom of Expression for Diverse Communities.

18. THE SECOND KEY TAKEAWAY • Developing an equitable system for Internet access with no-blocking, discrimination and high transparency is critical at this time – this is overwhelmingly supported by all civil rights and national minority-serving organizations. We also do not support paid prioritization.

19. THE THIRD KEY TAKEAWAY • WE NEED A REFOCUSED FCC Prioritythat focuses on promoting adoption and digital literacy by people of color, seniors, and low income families stranded without broadband access.

20. THE FOURTH KEY TAKEAWAY • Title II is not the ultimate answer to addressing online equity issues. It is aregulatory burden designed for telephone use that has nothing to do with today’s Internet Age. Our communities have too much at stake to accept Title II in its entirety as a regulatory framework.

21. THE FIFTH KEY TAKEAWAY The Commission should establish an accessible, affordable, and expedited procedure for the resolution of complaints. We recommend such a procedure be modeled after Title VII of the 1964 Civil Rights Act to complement the Commission’s proposed expansion of transparency and its Ombudsperson proposal.

22. What are your questions?