FOR IMMEDIATE RELEASE News Media contact: January 11, 2000 Michelle Russo (202) 418-2358 FCC CHAIRMAN WILLIAM E. KENNARD’S REMARKS SUPPORTING MARKETPLACE SOLUTIONS FOR THE “OPEN ACCESS” DEBATE Excerpts from Kennard’s June 15, 1999 speech to National Cable Television Association, when the Chairman first announced his policy of regulatory restraint, allowing the nascent broadband market to develop and ensuring investments that will bring advanced services home to Americans via “multiple pipes,” including cable, DSL, terrestrial wireless and satellite. We have to get these pipes built. But how do we do it? We let the marketplace do it. We decided to let the market forces churn while we carefully monitor the situation, and the marketplace has responded. We are not regulating. But we are watching. Link to the full text of this speech: http://www.fcc.gov/Speeches/Kennard/spwek921.html Excerpts from Chairman Kennard’s September 17, 1999 speech to National Association of Telecommunications Officers and Advisors, when Kennard called upon the marketplace to satisfy consumer demand for an open Internet. You need regulation when market-based incentives are not aligned with the needs of consumers. But I believe that there are market incentives that will drive openness in the broadband world. One is the prospect of alternative pipes that I have talked about. The second is the culture of the Internet that has grown up in this country. Consumers love the openness of the network. Those early adopters who are going to migrate from the narrowband world to the broadband world grew up in a culture of openness on the Internet. They are going to insist that they have that same culture of openness in the broadband world. And broadband providers will have to learn to accommodate it and deliver it. Otherwise they are not going to be competitive in a broadband world, particularly one where there are multiple broadband pipes. Link to the full text of this speech: http://www.fcc.gov/Speeches/Kennard/spwek931.html - more Excerpts from Chairman Kennard’s December 16, 1999 speech to California Cable Television Association, when Kennard defined the principles for “open access” and challenged the cable industry to be responsive to consumer demands for an open Internet or face public scrutiny. Everyone seems to agree that openness and choice are what consumers want and will demand. This debate is really about how to get there. There are two choices: we can rely on the market to facilitate openness; or we can try to regulate our way there. For now, I’m putting my faith in the marketplace. It seems to me that if we are to talk about openness, we need to talk about open protocols, open boundaries, and open pricing. By open protocols, I mean that the interface standards that applications developers and equipment designers use are arrived at in an open, transparent process, and then made accessible to everyone – just like the IP protocol. By open boundaries, I mean that interconnection is encouraged, and bottlenecks and content control are eliminated. The borders are porous, not closed or walled-off, and outside programming and services are allowed to enter the network and interact freely with consumers. By open prices, I mean that prices for access to the network are determined by a competitive market, not unilaterally by a rate-setter, whether public or private. And the customer can reach the service provider of their choice without having to pay twice. Today we have less than two million broadband subscribers in America, and the most important thing that we in government can do is to create an environment to get these pipes built. Get them deployed to every business, every home, every school, every library and every hospital in America. Get them deployed fast. Link to the full text of this speech: http://www.fcc.gov/Speeches/Kennard/spwek944.html -FCC- 1 2 News media Information 202 / 418-0500 Fax-On-Demand 202 / 418-2830 TTY 202/418-2555 Internet: http://www.fcc.gov ftp.fcc.gov Federal Communications Commission 445 12th Street, S.W. Washington, D. C. 20554 This is an unofficial announcement of Commission action. Release of the full text of a Commission order constitutes official action. See MCI v. FCC. 515 F 2d 385 (D.C. Circ 1974).