Electronic Retailers Warn on Net Neutrality in Response to FTC Report
U.S. Dropping Far Behind in Technological Advances and Competitive Rates for Broadband Services
Arlington, VA, July 02, 2007 --(PR.com)-- The Electronic Retailing Association (ERA), the leading industry association representing direct response marketing companies and major retailers that use electronic media to sell goods and services to consumers, responded to the FTC Report issued Wednesday on the Network Neutrality issue.
On Wednesday, the FTC released its detailed report on “Broadband Connectivity Competition Policy.” This report urged federal policymakers to “proceed with caution” as they consider the laws and regulations that will shape the future of the Internet. The report leans toward anti-Net Neutrality, claiming there is no urgent need for a government mandate requiring that all Web users and Websites be guaranteed equal broadband service at a fair price.
Barbara Tulipane, ERA president & CEO issued the following statement, “While the ERA greatly appreciates the efforts of the Federal Trade Commission (FTC) and Chairman Majoras in addressing the elaborate and multifaceted issue of Net Neutrality, there are still many potential problems that haven’t been addressed.”
“The larger broadband service providers have the ability and have stated a willingness to discriminate by speeding access to sites where providers may have a relationship and potentially deny access to other sites.” Further, the level of broadband connectivity is woefully inadequate in the U.S. with millions of consumers lacking access. Tulipane continued, “The fact that current download speeds in the U.S. are a fraction of what they are in the rest of the world and that American consumers and businesses pay the highest rates doesn’t suggest that the broadband marketplace is healthy or competitive. Under these conditions, without a Net Neutrality policy in place, the future Internet will look a lot more like cable than the open network we enjoy today. We would ask that the FTC keep an eye on this distressing matter.”
As FTC Commissioner Jon Leibowitz, noted: “There is a real reason to fear that, without additional protections, some broadband companies may have strong financial incentives to restrict access to content and applications.”
Like Leibowitz, the ERA warns that there are many anti-competitive characteristics of the broadband market that have the potential to threaten consumer protections by controlling received content. With anti-competitive policies of the phone and cable companies’ duopoly dominating 96% of the industry, the U.S. broadband market continues to fall behind the rest of the world.
“While the ERA agrees with the report’s conclusion that more competition is needed in the broadband marketplace, the Association urges the FTC to adopt a more progressive strategy on the issue of Net Neutrality until a truly competitive marketplace emerges,” Tulipane continued.
The ERA, an e-commerce association with over 400 members actively engaged in the Net Neutrality issue, has consistently advocated Net Neutrality and hopes to see more competition evolve in the broadband industry.
For more information on the Electronic Retailing Association, please visit ERA's website at www.retailing.org.
About The Electronic Retailing Association
Representing a more than $300 billion market, the Electronic Retailing Association (www.retailing.org) is the only trade association in the U.S. and internationally representing major companies in the multi-channel electronic retail industry, which includes long- and short-form commercials, live shopping channels, the Internet and radio. ERA counts industry leaders like Guthy-Renker, HSN, QVC, ShopNBC, Match.com, and eBay among its member companies.
Media Contact:
Lauren Meley
Enten & Associates, Inc.
PR Coordinator
301-913-0010
lauren@enten.com
ERA Contact:
Bill McClellan
Electronic Retailing Association
Vice President, Government Affairs
703-908-1032
bmcclellan@retailing.org
###
On Wednesday, the FTC released its detailed report on “Broadband Connectivity Competition Policy.” This report urged federal policymakers to “proceed with caution” as they consider the laws and regulations that will shape the future of the Internet. The report leans toward anti-Net Neutrality, claiming there is no urgent need for a government mandate requiring that all Web users and Websites be guaranteed equal broadband service at a fair price.
Barbara Tulipane, ERA president & CEO issued the following statement, “While the ERA greatly appreciates the efforts of the Federal Trade Commission (FTC) and Chairman Majoras in addressing the elaborate and multifaceted issue of Net Neutrality, there are still many potential problems that haven’t been addressed.”
“The larger broadband service providers have the ability and have stated a willingness to discriminate by speeding access to sites where providers may have a relationship and potentially deny access to other sites.” Further, the level of broadband connectivity is woefully inadequate in the U.S. with millions of consumers lacking access. Tulipane continued, “The fact that current download speeds in the U.S. are a fraction of what they are in the rest of the world and that American consumers and businesses pay the highest rates doesn’t suggest that the broadband marketplace is healthy or competitive. Under these conditions, without a Net Neutrality policy in place, the future Internet will look a lot more like cable than the open network we enjoy today. We would ask that the FTC keep an eye on this distressing matter.”
As FTC Commissioner Jon Leibowitz, noted: “There is a real reason to fear that, without additional protections, some broadband companies may have strong financial incentives to restrict access to content and applications.”
Like Leibowitz, the ERA warns that there are many anti-competitive characteristics of the broadband market that have the potential to threaten consumer protections by controlling received content. With anti-competitive policies of the phone and cable companies’ duopoly dominating 96% of the industry, the U.S. broadband market continues to fall behind the rest of the world.
“While the ERA agrees with the report’s conclusion that more competition is needed in the broadband marketplace, the Association urges the FTC to adopt a more progressive strategy on the issue of Net Neutrality until a truly competitive marketplace emerges,” Tulipane continued.
The ERA, an e-commerce association with over 400 members actively engaged in the Net Neutrality issue, has consistently advocated Net Neutrality and hopes to see more competition evolve in the broadband industry.
For more information on the Electronic Retailing Association, please visit ERA's website at www.retailing.org.
About The Electronic Retailing Association
Representing a more than $300 billion market, the Electronic Retailing Association (www.retailing.org) is the only trade association in the U.S. and internationally representing major companies in the multi-channel electronic retail industry, which includes long- and short-form commercials, live shopping channels, the Internet and radio. ERA counts industry leaders like Guthy-Renker, HSN, QVC, ShopNBC, Match.com, and eBay among its member companies.
Media Contact:
Lauren Meley
Enten & Associates, Inc.
PR Coordinator
301-913-0010
lauren@enten.com
ERA Contact:
Bill McClellan
Electronic Retailing Association
Vice President, Government Affairs
703-908-1032
bmcclellan@retailing.org
###
Contact
Enten & Associates
Lauren Meley
301-913-0010
Lauren Meley
301-913-0010
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