In its opposition to the ACTA petition, Netscape challenged the FCC to answer the ACTA questions on the merits by dealing with the long-run competitive issues posed by Internet telephony. Recognizing technological convergence, Netscape urged that the Commission settle the regulatory status of Internet "telecommunications" functionalities by:
This proposal draws on established regulatory doctrine to create a model for Internet regulation consistent with the technological features that make the Internet a unique medium. "Forebearance" is a well-known FCC policy, codified in Section 401 of the 1996 Act, that permits the Commission to refrain from regulation of competitive markets -- Internet services are the epitome of a competitive market -- and has been applied generally to domestic long-distance telephone providers. "Preemption," or overruling, of state regulation is required because the Internet is an inherently interstate and global medium, and "jurisdictional separation" of "intrastate" Internet communications is impossible. "Promotion" of the Internet in international communications bodies, such as the ITU and WTO, is necessary because the restrictive, protectionist policies of many foreign governments makes Internet access unavailable or exorbitantly priced in other countries.
