NET NEUTRALITY AND DATA SECURITY--: What Do They Mean for Property Management?
It is safe to say that technology encompasses almost every facet of our professional and personal lives. With these advancements, ir is cital for businesses and property managers to keep up with changes in the technology world. Two issues of special note are net neutrality and data security.NET NEUTRALITY
On June 11, 2018, the Federal Communications Commission (FCC) rolled back the net neutrality protections that were put in place in 2015. This rollback was the result of action taken in December 2017 by the FCC to repeal net neutrality regulations which prohibited broadband providers from blocking or throttling (slowing down) traffic or from offering so-called "fast lanes" to companies willing to pay extra to reach consumers more quickly than competitors.
The issue is not over as it will now move to the courts, where several groups are challenging the FCC's decision. Also, on July 17, Rep. Mike Coffman (R-CO) introduced a bill, The 21st Century Internet Act, which would codify free internet regulations into law and reinstate the basic protections implemented in 2015. Although it will take a while to fully realize the effects of the new rules, this is a first step in a process that could reshape the internet.
WHAT IS NET NEUTRALITY?
Network neutrality is the principle that all internet traffic should be transmitted to consumers with the same quality and at the same speed, regardless of whether an internet service provider (ISP) has a financial interest in promoting one website over another.
In 2015, the FCC changed the way it classified broadband internet in order to preserve net neutrality protections. By reclassifying broadband as a "common carrier"--similar to airlines, telephone and electricity companies that have to serve everyone--the FCC solidified its authority to regulate internet access providers and enforce net neutrality. The FCC's vote in December of 2017 reverts broadband back to its previous status as an "information service," which means providers face fewer obligations under the FCC's regulatory structure and effectively removes the FCC's power to create or enforce net neutrality protections.
WHAT HAS CHANGED?
According to both advocates and opponents, it is unlikely that consumers saw changes immediately. However, with the restrictions gone, ISPs (e.g. Comcast, AT&T, Verizon, Charter Spectrum) can offer a website faster and more reliable delivery of its content in exchange for a fee. A broadband provider can also raise the transmission speed of its own content relative to that of its competitors, and broadband providers now arc free to block sites they find objectionable, which could open them up to political and public pressure.
Those who advocated for repeal argued that higher profits will lead broadband providers to invest more in infrastructure, which could make high-speed internet more widely available in underserved and rural areas. Repeal was supported by companies like AT&T and Verizon, which favor less government regulation.
Backers of net neutrality say the FCC's repeal will damage online companies and consumers. ISPs may charge larger companies fees to send their content over the ISPs' networks and into people's homes. Those companies would then be forced to either accept lower margins or pass the cost on to customers. Facebook and Google spoke out against repeal, saying it would allow broadband providers to manipulate access as a way to play favorites.
Finally, net neutrality proponents warned that the June repeal could give an unfair advantage to big corporations that can afford priority or even exclusive access, while devastating startups and smaller websites that are unable to pay for access and faster speeds.
WHAT DOES IT MEAN FOR PROPERTY MANAGERS?
The short answer is that we do not yet know. However, the business of real estate is increasingly conducted online. Streaming video, virtual tours and voice-over-internet-protocol (VOIP) are just some of the technologies that are commonly used by real estate professionals today. In the future, new technologies will be adopted which will undoubtedly require network access that could be restricted or slowed by an ISP.
According to the NAR website, some real estate professionals, realty website operators, and real estate industry-affiliated content providers believe net neutrality provisions arc necessary to prevent broadband providers from implementing discriminatory practices that could negatively impact real estate professionals' use of the internet to market their listings and services.
Some possible examples include limiting the public's access to certain websites, limiting a firm's access to services of companies in competition with the ISP's, or charging more to have the adequate speed necessary to transmit or display audio or video content such as online property tours, podcasts or phone services.
DATA SECURITY
Another issue of critical importance is data security. Since all internet technologies potentially can be hacked, the safety of properties and buildings should be a priority for all property managers. Building management systems, fire alarms, elevators, heating, air conditioning, access control, sprinkler systems and security systems are all areas which can be vulnerable to outside threats.
Added to this is the fact that property managers keep and maintain confidential business and personal information on systems that can be breached. These breaches may expose fundamental security flaws in the way that companies handle consumers' personal information, compromising individual privacy and putting consumers at an elevated risk of becoming victims of identity theft.
HOW MUCH LEGISLATION IS NEEDED?
All 50 states, the District of Columbia, Guam, Puerto Rico and the Virgin Islands have enacted legislation requiring private or governmental entities to notify individuals if their personal information may have been exposed by a security breach. However, for property managers overseeing properties in multiple states, that could translate into a byzantine headache of navigating what is required in the wake of a data breach.
Congress is exploring potential national standards that could make compliance easier for multistate operators. IREM supports government efforts aimed at sharing information about possible cyber threats, establishing reasonable data security standards, helping avert security breaches, and helping alleviate their aftermath, while opposing legislation that would be overly burdensome to properly owners, managers or their clients.
WHAT PART DOES DATA PRIVACY PLAY?
Closely related to the issue of data security is data privacy. In June, one of the toughest data privacy laws in the United States was passed with the California Consumer Privacy Act of 2018. The legislation, similar to the European Union's General Data Protection Regulation (GDPR), is scheduled to go into effect in 2020. The law gives California residents an array of new rights, among them the right to know what kinds of personal data companies have collected and why it was collected, and the right to have that information deleted. Although technically it applies only to California residents, this legislation is likely to have broader implications; among them, it could initiate similar actions in other states.
By Ted Thurn
Ted Thurn (tthurn@irem.org) is director of government affairs at IREM Headquarters in Chicago.
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| Comment: | NET NEUTRALITY AND DATA SECURITY--: What Do They Mean for Property Management? |
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| Author: | Thurn, Ted |
| Publication: | Journal of Property Management |
| Date: | Sep 1, 2018 |
| Words: | 1137 |
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