As Federal Communications Commission Chairman William Kennard prepares to leave office, he's warning that the Internet's anything-goes era may be nearing an end.
During his three-year tenure, Kennard has argued forcefully for a laissez-faire policy regarding the Internet. But he says the rapid media convergence now under way spells trouble for that approach.
FCC rules are based on the transmission medium, not the service offered. So, for example, telephone companies offering broadband service operate under one set of rules, while cable companies offering a nearly identical service operate under another. When new services like instant messaging arise, there are no rules yet to apply. The merger of instant-messaging giant America Online (dossier) with Time Warner (TWX) also demands a new direction, according to Kennard.
"I think it's going to force policymakers to think differently," he says. "Sure, hands off the Internet in some respects, but we have to make sure that it's an open infrastructure. I think it's time for us to confront these issues."
Kennard's likely successor, Republican FCC Commissioner Michael Powell, is no fan of regulation but has been issuing similar warnings about convergence. If he takes over, expect a reassessment of the entire regulatory scheme.
