FCC Proposed Rule

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FCCProposed Rule

In2016, the FCC proposed the adoption of a traditional policy that isbased on governing the use of personal information of consumerbroadband ISPs (Chernichaw &amp Apple, 2016). The proposed ruleestablishes certain requirements regarding how broadband ISPs canutilize and share the personal information of customers. The policyis important because it requires telecommunication carriers to guardthe privacy of their clients’ data (Chernichaw &amp Apple, 2016).According to the FCC, the privacy rule is meant to offer clients withmeaningful choice, as well as enhanced control, over the utilizationof their personal data offered to broadband ISPs or created throughthe use of broadband internet services. The purpose of this report isto discuss the scale and scope of the issue that the federal agencyproposes to resolve with the policy.


Thepeople being adversely impacted by the problem being addressed, bythe proposed rule, are broadband internet services users. Themagnitude of the impact to these internet users is significant or ofa great deal because this group may have their financial, reputation,or even medical records damaged.


Thesize of effect obtained by the problem of revealing clients’ datacan range from small to extremely large. This is because, sometimes,the data of client that is shared may not be very confidential toresult in huge losses. However, at times, the information sharedthrough the broadband internet services may have a very substantialimpact depending on the sensitivity of the information. For instance,in case financial data of a user becomes shared, the sharedinformation may have a colossal impact on the individual, as well aspeople who depend on him/her for livelihood. The problem can become anational issue since it is possible to share information that have animpact on a very large segment of the people in a country. Forinstance, in case data about several bank administrators becomeleaked out, it is likely that a large group of bank users and theirfamilies may become affected financially. This can have impacts onthe national economy. In case the problem goes unchecked in thelong-term, it is possible that it can lead to national problems.


Inthe market, businesses can come up together to resolve the issue ofprivacy. However, the problem is that not all firms will stick to thedecision because there will be no monitoring party to ensure thatevery business adopts the solution that is agreed upon. This beingthe case, government intervention is necessary in order to resolvethe issue. This is because the government will be in a position toprovide guidelines, which need to be followed and breaking them willattract penalties that will make firms operating in the market adhereto the solution. Thus, market-based interventions cannot practicallyresolve the issue.


Irecommend that there is a need for the intervention of the governmentin resolving the issue of privacy based on the scale and scope of theproblem. The intervention of the government will be vital since itwill help in the implementation of rule that solve the problem inorder to avoid the enormous impacts that the problem can have at bothindividual and national level. The intervention by government ispreferred since the market cannot practically solve the issue.


Chernichaw,A. &amp Apple, J. (2016). FCCAdopts Privacy Regulations for Broadband Internet Service Providers.Retrieved fromhttps://www.whitecase.com/publications/article/fcc-adopts-privacy-regulations-broadband-internet-service-providers