This document is also available in PDF format. A one page summary of recommendations is also available.

Thank you. The plain language of the American Recovery and Reinvestment Act requires those who receive grant monies from NTIA to use them for networks that are non-discriminatory and which interconnect with other networks. With this language, Congress expressed a clear preference for open networks, which have been the driving force behind the kind of innovation, job creation and economic empowerment that is the core purpose of the stimulus bill.

Public Knowledge believes that in exchange for such an extraordinary government benefit, grant recipients must not degrade, prioritize or discriminate against any lawful content, application or service transmitted over the recipients' Internet access service, subject to a rule of reasonable network management. Anything less would give taxpayers an inadequate return on their investment. Nondiscrimination was a core requirement for communications networks for 70 years -- indeed, it was the first thing Congress put into the Communications Act of 1934.

The FCC's four principles are insufficient to ensure non-discriminatory networks, because they do not address cases where a network provider prioritizes or favors certain content, applications and services over others. Thus, we urge the NTIA to ensure that there is an explicit prohibition against discrimination, and to pre-approve any network management scheme to ensure that it is non-discriminatory.

The interconnection requirement is equally important. NTIA should craft a requirement that is consistent with Section 251(c) of the Communications Act. This would require a grant recipient to provide interconnection at any technically feasible point within the requesting provider's network that is at least equal in quality to that provided to any party, on non-discriminatory rates, terms and conditions. A grant recipient would also be required to provide unbundled access or permit line sharing for competitors. For wireless carriers, interconnection should include roaming negotiated at commercially reasonable rates.

The ARRA commands the Rural Utilities Service to give priority to applicants that will deliver consumers a choice of more than one service provider. We see no reason why NTIA should not do the same. Thus, we ask that NTIA prioritize projects that build shared infrastructure.

In closing, I want to address the main argument that large network providers make against nondiscrimination and interconnection requirements -- that they somehow will deter providers from investing in their networks. But the evidence is to the contrary. For the 70 years that the law required non-discrimination, network providers invested -- some would say overinvested -- in their networks. Today, large network providers claim that their networks are open, yet they continue to invest -- for example, AT&T recently announced that in 2009 it will invest $17-18 billion in its broadband infrastructure. Clearwire, a smaller wireless network provider which has a business model based on openness, is investing between $1.5 and 1.9 billion in 2009. As important, non-discriminatory networks encourage investment for the content, applications and services at the edge of the network. Without this investment at the edge, the Internet would not be the critical national infrastructure that it is today. Thank you.