FCC Chairman Wheeler to deliver keynote address in Barcelona

For those having paywall issues:

When telecom and tech leaders convene in Barcelona for Mobile World Congress this coming week, one topic will rise above the rest: regulation.

Around the world, governments have different approaches to rule-making around the issue of net neutrality—the idea that all traffic be treated equally—a critical issue for mobile-device makers, telecom network providers and content distributors.

The Federal Communications Commission on Thursday voted that broadband providers should be regulated as public utilities, an attempt to prevent commercial interests from interfering with traffic and a major shift after decades of laissez-faire policy. The question is how will the new aggressive U.S. policy affect the rest of the world.

FCC Chairman Tom Wheeler will give a live keynote address at the annual conference on Tuesday night. It will be his first public appearance at an industry gathering after last week’s landmark vote.

In the U.S., the new rules were greeted with a mixed response. Netflix Inc. said it was a victory, while cable-industry groups said the decision would stifle innovation. Mr. Wheeler has already tried to play down concerns, saying the regulations protect innovation and wouldn’t cut the revenue of broadband providers.

At Mobile World Congress, Mr. Wheeler’s comments will be closely followed by global counterparts from other countries who are looking to develop their own set of rules. And the stronger Internet regulation in the U.S. may spare other policy makers—particularly those in Europe—from U.S. criticism.

“Europe wants to use increased regulation as an excuse to regulate,” said Rajeev Chand, a managing director at boutique investment bank Rutberg & Co. “The top-line message is that Obama is regulating.”

Luigi Gambardella, former chairman of the European Telecommunications Network Operators’ Association, said Europe has long admired the rapid development of broadband in the U.S. and largely attributed its growth to light regulation. Mr. Gambardella said the FCC’s move sets a risky precedent for the rest of the world but may allow others to catch up.

The region has traditionally had very few clear rules on net neutrality—a concept that first evolved in the U.S. For the last decade, regulators in Europe have focused instead on creating more competition in the broadband and wireless markets, a move that has succeeded in lowering prices below U.S. rates.

Under pressure from Germany and France—both of which have big national carriers—the European Commission is now readying an entirely new digital proposal, which may include taxes and regulations on firms like Google and Facebook, rather than a strict interpretation of net neutrality.

Google, which has been the target of antitrust pressure in Europe, is concerned that changes in the U.S. rules will increase its vulnerability to overseas authorities. In a February filing with the FCC, Google raised concerns about how the agency describes the relationships of content companies that connect to broadband providers, fearing that it could embolden overseas service providers to seek to collect fees for handling traffic from content companies.

In emerging markets, the issue of net neutrality is complex. Connecting people to the Internet is a priority, but a costly one. Companies like Facebook have waded into providing free data for people in developing markets, such as where people are more price sensitive. That practice can invoke net-neutrality concerns because smaller app developers don’t have the same free access to those customers.

As those services become more popular, free or not, it can cause tension. Oreedoo, which is building a mobile network in Myanmar, has expressed frustration with companies like Facebook and Google for only benefiting from telecom networks and not helping to build them.

The developing thinking about net neutrality is on display in India, where much of the country isn’t connected to the Internet. To try to narrow the gap, Facebook’s Internet.org app became available in February in some areas, providing free access to a group of sites.

Meanwhile, Indian carrier Bharti Airtel Ltd. faced a backlash in December when it decided to start charging customers for phone calls made using free messaging services like Skype and Viber. The carrier quickly reversed course amid concerns about net neutrality.

“Emerging markets do look up to the Western regulators and how things are being done,” said telecom consultant Chetan Sharma. “It will be hard for emerging markets to go the other way.”

/r/technology Thread Link - sj.com