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Alan Grayson Finds Odd Common Ground With Telcoms On Net Neutrality Regulations

First Posted: 03/28/11 05:10 PM ET Updated: 05/25/11 06:15 PM ET

Grayson

Rep. Alan Grayson shocked his passionate followers in the progressive online community this week when he aligned himself with the telecom industry and pressured the Federal Communications Commission not to write regulations protecting the principle of net neutrality.

Conservative bloggers immediately embraced Grayson, with Andrew Breitbart's Big Government mockingly offering him a "very warm welcome to the party," while reminding readers that he "is about as rabid a Leftist partisan as there is in Congress." Both Big Government and RedState.com gleefully noted that Grayson employs Matt Stoller, a former prominent blogger and leading net neutrality advocate.

On Monday, Google is expected to announce a deal with Verizon that would end net neutrality and allow telecom companies to slow down particular websites and charge fees similar to cable for access to certain sites on mobile devices. (There is increasingly little difference between mobile and stationary devices.) Verizon, under the agreement being negotiated, could crush blogs, companies or political candidates by slowing down their sites.

"The deal marks the beginning of the end of the Internet as you know it," responded Josh Silver, president of Free Press, an advocate of net neutrality.

So why does Grayson, a progressive champion, oppose allowing the FCC to regulate the Internet and implement net neutrality rules? The Orlando Democrat says that he is in favor of net neutrality and that his alliance with the telecom industry is a coincidental case of "strange bedfellows."

"I say in the letter that I support the policy of net neutrality. I don't know how I could be more explicit than that," he told HuffPost. "There is a question, though, of how to reach that conclusion, and it's a legitimate question. My own feeling is that we should not allow a matter like this to be resolved by regulation, because regulations can be changed very easily. We saw this all the time with the Bush administration. I think it is preferable to have the principle of net neutrality enshrined in statute."

First, a primer on how we got here: In 1996, the Telecommunications Act updated the original 1934 Communications Act, New Deal legislation that prevented monopolies from dominating the means of communication. In 2002, under pressure from the cable and phone industry, the Bush administration's FCC classified broadband as an "information service" rather than as a "telecommunications service." It is, quite plainly, a telecommunications service, but the FCC deemed it otherwise for the sole purpose of avoiding the legislative requirement that neutrality rules be written to protect the Internet from control by major corporations.

By 2005, the phone and cable companies had begun publicly discussing their plans to subvert net neutrality. "Why should [companies] be allowed to use my pipes?" Southwestern Bell CEO Ed Whitacre told BusinessWeek. "The Internet can't be free in that sense ... for a Google or Yahoo! or Vonage or anybody to expect to use these pipes for free is nuts!"

Earlier this year, the Supreme Court ruled that the FCC could not regulate broadband as an "information service." It had already ruled in 2005 that the FCC could classify broadband as a "telecommunications service." So, following the 2010 court ruling, the FCC announced plans to reclassify broadband as what it actually is.

Telecom lobbying went into high gear. The GOP launched an attack arguing that Obama was attempting to take state control of the Internet, as if regulating broadband the way that phone lines are regulated amounted to nationalization.

The telecom lobbying effort soon came to focus around an effort to pressure FCC Chairman Julius Genachowski not to reclassify broadband, but to leave it unregulated until Congress acts. The telecom position has the virtue of making perfect sense on the surface: Congressional action is of course superior to regulatory action, all things being equal.

But all things are very far from equal. Grayson may be the only advocate of net neutrality who thinks that positive action is possible in this Congress or the next. "I don't see any reason to think that won't happen soon," Grayson said of congressional action on net neutrality. "This is obviously a matter with a lot of attention. I don't think [Energy and Commerce Committee Chairman Henry] Waxman or [Communications, Technology and the Internet Subcommittee Chairman Rick] Boucher have ever said they regard this as anything other than a high priority. So I don't see why we need to make this choice. I regard it as a false choice."

The phone and cable lobbies need only find 41 senators, however, to block action. "I think Grayson is mistaken to think that good net neutrality legislation could come out of this Congress. And certainly he's mistaken to think that good net neutrality legislation would come out of the next congress," said Tim Karr of Free Press.

Karr said that he hoped Grayson would note the conservative blogger approval of his move and rethink his position. "Given that Grayson is considered a progressive lion in the House of Representatives, that the people who routinely vilify him are now seeing him as a champion should make him think twice," he said.

HuffPost asked Grayson if he'd support FCC action that would ultimately be substituted by congressional action once Congress got its act together. "I think both is not a viable legal concept. You either have regulations or you have statutes. You literally are not permitted to have a regulation on the same subject as a statute. The statute occupies the field," he said, following up in an e-mail to clarify that regulations are intended to "implement and supplement" statutes.

But net neutrality advocates cite the 1996 telecom law and the 2005 Supreme Court decision to insist that the FCC already has the statute it needs to write regulations. "The history of policymaking in regard to this isn't in issue. Court decisions time and against have maintained that the FCC is in it full right to classify its authority over broadband Internet connections. There is no legal argument to be made against that unless you want to reverse Supreme Court findings. So I really don't know where any of that is coming from," said Karr.

He and Marvin Ammori, a law professor at the University of Nebraska and a former consultant for Free Press, both dismiss Grayson's argument that regulations aren't useful because a GOP administration could reverse them.

"What he's implying is that Republicans actually do what they want to do and implement the policies they want and Democrats don't," said Ammori. "It sounds like they're unwilling to change regulations because they're worried Republicans will change them back... It just highlights that Republicans are willing to change the law and Democrats aren't."

Grayson, advocates of net neutrality note, prides himself on being a "Congressman with guts" and shouldn't shy from a fight with the telecoms. "If I were Alan Grayson or someone else, I would want the net neutrality rule in place at the FCC so that when the Republicans are in power they'd have to affirmatively change the rule and there could be a political fight and argument once the time comes," said Ammori.

Ammori and Karr pushed back hardest at Grayson's claim that the telecom industry supports net neutrality. Both, in fact, laughed out loud at hearing it. "What we hear from them is that they're in favor of net neutrality, as well. It's actually hard to find someone who isn't in favor of it. To the extent that we get any information from them, they never say they're against net neutrality," Grayson said. "I have no idea why they feel the way they do, but politics makes strange bedfellows. I know why I want it. I don't know why they want it."

Ammori said that any lip service the telecoms give to net neutrality is belied by their actions, included the reported deal being negotiated between Google and Verizon. "If they supported net neutrality, we'd have it by now," he said. "They've spent hundreds of millions fighting against net neutrality... This is part of their pitch: 'We don't plan on blocking anything on the Internet. We just want the right to do so'... He's essentially crediting their PR claims."

Trusting the telecom industry would be a dramatic mistake, Sen. Al Franken (D-Minn.) argued in a keynote speech before the Netroots Nation conference in July, calling net neutrality "the First Amendment issue of our time." Electing progressive Democrats requires an open Internet so that supporters can trade information and make donations online, going around the corporate dominated media and party structure. Grayson, in fact, has been one of the biggest beneficiaries of online politics, raising millions from a national web following. Without net neutrality rules, broadband carriers could slow down Grayson's donation page and squeeze the life from his political campaign.

"If we don't protect net neutrality now, how long do you think it will take before Comcast/NBC/Universal, or Verizon/CBS/Viacom, or AT&T/ABC/DirectTV, or BP/Halliburton/Wal-Mart/Fox/Domino's Pizza starts favoring its content over everyone else's?" said Franken. "How long do you think it will take before the Fox News website loads five times faster than Daily Kos? "If the Internet -- the tool that allowed this community to come together and become a potent political force -- is under the control of corporate elites, then the netroots can't exist. The progressive movement can't exist. Democracy as we know it can't exist."

Yet Grayson is not the only Democrat, by far, to have signed the FCC letter. "Why have so many Democrats taken the telecom postion?" wondered Ammori. "It has more to do with just the way D.C. is broken and the way elections are funded and the way the D.C. game is played than it does even with net neutrality or any other issue."

UPDATE:

Google is denying that it made a deal with Verizon to create pay tiers on the Web. A Google spokesperson said in an email to Computerworld, among other sites:

The NYT is quite simply wrong. We have not had any conversations with Verizon about paying for carriage of Google or YouTube traffic. We remain as committed as we always have been to an open Internet.

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Rep. Alan Grayson shocked his passionate followers in the progressive online community this week when he aligned himself with the telecom industry and pressured the Federal Communications Commission n...
Rep. Alan Grayson shocked his passionate followers in the progressive online community this week when he aligned himself with the telecom industry and pressured the Federal Communications Commission n...
 
 
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HUFFPOST SUPER USER
Saidas
07:44 PM on 08/20/2010
As I have communicated to you before Mr. Grayson, NN is a big...a really big deal and must be handled correctly. Might I suggest sir, that you and Senator Franken draft and champion a Franken-Grayson amendment? The two of you together would make a lot of noise and we are here to listen. If we still have a country in 2016, I'm feeling the love for you two! You two have to work it out which one goes to the very top.
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HUFFPOST SUPER USER
Vincent Gormley
Artist, activist, volunteer, compassion lives
08:13 PM on 08/17/2010
I tend to agree with Rep. Grayson simply because the FCC is easily politicized with each incoming administration. So there should be a statute that would require an act of Congress in order to change it in the future. Something that would require an even more difficult process so another 'Bush' type could not come along and simply abrogate it. I think it should be tied to the 1st Amendment.
10:30 PM on 08/12/2010
Alan Grayson .............Alan Grayson ...................Alan Grayson

I look at the above name and realized some circus is missing a clown.
09:30 PM on 08/08/2010
"I don't know how I can possibly be clearer about this. I want to see net neutrality in a statute, because that provides more protection than a regulation would. I think it's bizarre that anyone would misconstrue that position as opposition to net neutrality. I'm in favor of net neutrality. The telecoms are against it. I can't understand how that means that I am "siding" with them." --Alan Grayson
avg american
It's about jobs, jobs, jobs...
10:50 PM on 08/08/2010
Well Mr. Grayson, how about strengthening the FCC to enforce net neutrality and drafting legislation for permanent net neutrality.
Respectfully, actions speak louder than words, sir.
This user has chosen to opt out of the Badges program
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07:19 PM on 08/15/2010
Sorry for my ignorance, but is he putting forth a statute?

And what exactly is a statute?
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HUFFPOST SUPER USER
SovereignJohn
01:00 PM on 08/07/2010
Rep. Alan Grayson is acting like a ringer. Net Neutrality is too important to leave to the good will of Corporations especially since their history shows them exploiting rather than sharing.
09:33 PM on 08/08/2010
I don't know how I can possibly be clearer about this. I want to see net neutrality in a statute, because that provides more protection than a regulation would. I think it's bizarre that anyone would misconstrue that position as opposition to net neutrality. I'm in favor of net neutrality. The telecoms are against it. I can't understand how that means that I am "siding" with them." --Alan Grayson
10:37 AM on 08/13/2010
Yes, we all read that too. However there were some good counterpoints to that statement which you seem not to have read.
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HUFFPOST PUNDIT
Carolab
Just another hostage of the poopy heads
05:34 AM on 08/07/2010
What about wireless?
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HUFFPOST SUPER USER
mbbythesea
05:13 AM on 08/07/2010
Alan Grayson is a great guy, a truth-teller. He has impressive credentials and an amazing personal story of a self-made man. He prosecuted war profiteers to make his fortune. If this guy says he is holding out for stronger regulations to preserve net neutrality, I believe him, and I can't say that about many other politicians.
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MorpheusXNYC
Artist, web designer, writer, rationalist
08:37 PM on 08/07/2010
Grayson is my favorite congressman after Anthony Weiner (my district congressman) and is a personal hero of mine. A fellow New Yorker and a fellow graduate of the Bronx H.S. of Science like me, and the man put himself through Harvard working as a night watchman. You can beat that story.

His credentials as a leading progressive are unimpeachable, which is what makes this position all the more heartbreaking.

He needs to rethink this one. I know his heart is in the right place, but the math of this doesn't work the way he's hoping it will. The conservative and big business will use every opening, every weakness, every opportunity to ram their agenda through.

We need to make progress and then improve on that, just like Social Security, Medicaid, etc. Once the camel's nose is in the tent...
09:34 PM on 08/08/2010
I don't know how I can possibly be clearer about this. I want to see net neutrality in a statute, because that provides more protection than a regulation would. I think it's bizarre that anyone would misconstrue that position as opposition to net neutrality. I'm in favor of net neutrality. The telecoms are against it. I can't understand how that means that I am "siding" with them." --Alan Grayson
10:03 PM on 08/07/2010
Alan Grayson is awesome. I love the guy and think he has a great personal story and bio, BUT while he may have made some or even a bunch of money from his Qui Tam lawsuits (I don't know, I never heard how that all worked out but I knew they were being stoned-walled and buried in paper work) he made his first fortune with the telecom company IDT which he founded.

While he may have sold all of his shares and vested interests in the company its seems a strange omission from a story about Alan Grayson and a bill involving his former industry which made him a wealthy man. I'm NOT saying there's anything rotten or unbecoming here but it is at the very least suspicious and its a very odd thing to leave out of a story like this.

Did you know that Alan Grayson is the largest shareholder of a company that owns and operates a bunch of Kentucky Fried Chicken franchises in Indonesia?
01:55 PM on 08/09/2010
He still owns shares in IDT and has a Trustee position on the GSA Telecom.
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NevadaLib
pwning cons since 2007
04:54 AM on 08/07/2010
Another issue is the near monopoly that exists with telecom companies. Mark my words: the internet is effed without laws to protect it.
04:41 AM on 08/07/2010
We will all be so disappointed if we allow this country to be totally controlled by a few telcom giants that can easily be bought and sold by other government hedge funds, very easily. We will give forien control of our information up to forien governments without so much as a small fight. This will go down in history as the biggest failure in our lives , above and beyond the failed stupid endless terror wars of Bush,and thats pretty hard to do. Telcoms do not have American interests in mind they are mindless directed companies fighting for short term profits by greedy individual company heads - They will fail miserably at protecting the security of this country and would give us up with a simple small bonus and a pat on the head.
02:35 AM on 08/07/2010
This column is garbage and has caused a lot of needless consternation on the left. Grayson never said the telcos are in favor of net neutrality. He said they *claim* to support net neutrality. That's totally different. Grayson said today that he's worked extensively with the FCC and they are hopelessly corrupt. The FCC "negotiations" are going nowhere and in fact have just been dissolved. Grayson is absolutely right. Somehow Congress needs to summon the political will to pass legislation protecting net neutrality. This is too important to our country.
10:06 PM on 08/06/2010
Tomato-tomahto.
Regulation-statute/law.
Grayson is theoretically right and practically wrong!
And he's ignoring the fact that the statute is already there in the 1996 Telecommunications Act.
Our government has a knack for defining things for convenience to circumvent the law.
An example is the different ways the Dept. of Labor and the IRS define a medical resident.
The Dept. of Labor defines a medical resident as a student, so they are exempted from the protections of labor laws, such as limitations on number of hours of work required in a week.
The IRS defines a medical resident so the income is regarded as taxable employment income rather than a tax exempt student stipend.
Not fair, but it has been the way the law has perpetrated this Catch-22 for decades.
06:47 PM on 08/06/2010
Oh Alan we hardly knew you. Et tu Alan
07:04 PM on 08/06/2010
Did you read the whole article or just the headline? Allen is in favor of Net Neutrality. He just wants it enshrined in law, not some FCC regulation that will be changed with the passing of each new administration.
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MorpheusXNYC
Artist, web designer, writer, rationalist
08:39 PM on 08/07/2010
Pump your brakes, Rock. Grayson hasn't crossed over to the Dark Side. lol...

But he does need to rethink this one...
06:33 PM on 08/06/2010
HP needs to stop taking headline advice from FOXNews. Instead of real reporting, it's turning into sensationalism and celeb gossip. Remember when this was a news site????
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HUFFPOST SUPER USER
WeCanDoMore
Enjoying a fact based reality.
06:16 PM on 08/06/2010
Alan Grayson defends we the people against the mega funded corpos, who own both SCOTUS and the repub party, as well as that Sen from Nebraska. Without Alan and folks like him, we will all become serfs to the insurance, banking and health industries. Some folks can see the truth, and others are just to warped to see, probably due to growing up in a home where truth was foreign.

Go Alan! He has my dollars, and more coming.
10:09 PM on 08/06/2010
Well, he usually does that, but on this issue he seems to be siding with the mega funded corporations to make it possible for them to control performance of and access to the internet.
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HUFFPOST SUPER USER
WeCanDoMore
Enjoying a fact based reality.
12:31 PM on 08/07/2010
I believe this promoted viewpoint to be a spin originally put forth by those that want to hurt him and repeated by others. We'll see.
04:41 PM on 08/06/2010
Anybody who thought you can beat the corporations when you live in a plutocracy is delusional. Maybe not today, maybe not tomorrow, but eventually they will win. Freedoms just another word for nothing left to lose.
HUFFPOST SUPER USER
coliwabl
06:01 PM on 08/06/2010
Absolutely correct. Patience is a virtue in this case! The corps never do get this.