Resolution on Network Neutrality Exposed

The Resolution on Network Neutrality was adopted by ALEC's Telecommunications and Information Task Force at the Spring Task Force Summit, April 28, 2007 and approved by ALEC's Board of Directors in May, 2007.

CMD's Bill Summary

This ALEC-proposed bill mandates that the provision of some public services be opened to bidding by private contractors, and that the contract be awarded on a “lowest cost” basis. While competition competition can be beneficial, competition without standards is not. “Lowest cost” requirements for procurement contracts tend to lower labor compensation among providers. They are also associated with even worse performance on health and safety, environmental, and reporting requirements than public agencies. 
This bill is an early and, for that reason only, important effort to privatize provision of some public service, through competitive contracting for provision of some service, and “lowest cost” or “least cost” instructions on awards to bidding contractors

ALEC Bill Text

WHEREAS, it is the mission of the American Legislative Exchange Council (ALEC) to advance the Jeffersonian principles of free markets, limited government, federalism and individual liberty, and

WHEREAS, ALEC recognizes the unprecedented advances a free and open Internet has fostered across all aspects of end user customers’ lives, and

WHEREAS, the exponential growth of the Internet has flourished as a result of both the government’s ‘hand’s off’ approach, ever increasing competition, as well as fierce consumer interest, and

WHEREAS, regulation of the Internet may interfere with future investment and innovations benefiting the health and well-being of its end user customers, and

WHEREAS, Internet users should be given a choice when it comes to selecting a broadband connection that will meet their current and future needs for speed, reliability, quality of service, and capabilities not yet envisioned, and

WHEREAS, broadband connections, services, and applications should continue to become more affordable and accessible to all consumers, and

WHEREAS, companies that invest in broadband and broadband-related applications should be afforded the flexibility to explore fair and competitive business models and pricing plans for their products and services, and

WHEREAS, mandated net neutrality regulations would impede future capital investments in the U.S.’ broadband infrastructure, which already lags behind its European and Asian counterparts, and

WHEREAS, according to a 2006 International Telecommunications Union (ITU) study of 2004 data, the U.S. ranked 16th in broadband penetration and could decline further as proposed net neutrality regulations places more of the cost burden onto the end user, exacerbating an already disturbing trend of a ‘digital divide’ within our country.

THEREFORE, LET IT BE RESOLVED, that the American Legislative Exchange Council calls upon states and the Congress of the United States of America to refrain from legislation that would regulate the Internet and to maintain today’s approach that allows the competitive marketplace to drive broadband and broadband-related applications development and deployment free from governmental regulation.

BE IT FURTHER RESOLVED that ALEC endorse the following principles, that consumers should:

(1) receive meaningful information regarding their broadband service plans;

(2) have access to their choice of legal Internet content subject to the limits on bandwidth and quality of service of their service plan;

(3) run applications of their choice, subject to the needs of law enforcement and the limits on bandwidth and quality of service of their service plans, as long as they do not harm the provider’s network or interfere with other consumers’ use of the broadband service; and

(4) be permitted to attach any devices they choose to their broadband connection at the consumer’s premise, so long as they operate within the limits on bandwidth and quality of service of their service plans and do not harm the provider’s network , interfere with other consumers’ use of the broadband service, or enable theft of services.