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"SHOULD THE ADMINISTRATION SEEK TO
REGULATE BROADBAND PROVIDERS AS
COMMON CARRIERS, OR SHOULD THE
INTERNET BE LEFT TO MARKET FORCES?"

                      By
          Gowthaman Karunanidhi
        School of Information Studies
          Information Management
             Syracuse University
Introduction
What is Net Neutrality?
 It is the concept where the online web content must be treated
  equally
 The Internet speed must be the same over the network

What is throttling?
 It is a practice of slowing down specific types of data. ISPs have
  engaged in throttling that targets file sharing protocol. ISPs say that
  they do this kind of practise to keep their internet speeds fast, but it is
  basically a discriminatory practice that runs contrary to the principle
  of Net Neutrality,
 NN says all data should be treated equally with no preferences
  placed on them by providers
 The concept of Net Neutrality “doesn‟t allow the common broadband
  carriers to discriminate by using their market power” (Lawrence
  Lessig & Robert W. McChesney)
Background Information
    ISPs took their advantage in controlling internet activities (i.e. they tried to
     regulate the internet with their market forces)
    ISPs want to make more money by charging companies like Vonage, or
     websites like Facebook to make bits of information travelling on the internet
     faster for their clients, slower for competitors, or even block the bits travelling
     Example:
       Comcast tried to control internet activity among its customers by slowing down the
        access to BitTorrent (p2p application)
       Madison River Communications blocked ports used for VoIP applications

    Hence, due to these discrimination on the internet, the concept of „Network
     Neutrality‟ came into picture which was enforced by the Federal
     Communication Commission


    47 U.S.C. 202: “It shall be unlawful for any common carrier to make
    any unjust or unreasonable discrimination in charges, practices, or
    services by any means or device, or to subject any person to any
    unreasonable prejudice or disadvantage”
FCC Rules
   Transparency: Fixed and mobile broadband providers must disclose
    the network management practices, performance characteristics, and
    terms and conditions of their broadband services (how effectively the
    law will be)
   No blocking: Fixed broadband providers may not block lawful
    content, applications, services, or non-harmful devices; mobile
    broadband providers may not block lawful websites, or block
    applications that compete with their voice or video telephony
    services
   No unreasonable discrimination: Fixed broadband providers may
    not unreasonably discriminate in transmitting lawful network traffic.
Bills
        H.R. 3458 (Internet Freedom Preservation Act)
   This Net Neutrality Bill was introduced in 2009 to:
       Amend the Communications Act of 1934
       Establish a National Broadband policy
       Safeguard Consumer Rights
       Spur investment and innovation and for related purposes
   The bill was introduced to stop ISPs and their parent corporations
    from treating some web traffic unfairly
   They wanted all web traffic to be treated equally regardless of where
    it comes from or going
   This bill would allow the government to put into certain “regulations”
    which would ensure that all views and opinions on the internet are
    viewed in “equal” amounts
   It also affects the access providers in terms of money where they
    need to comply in accordance with the new policy with the existing
    infrastructure. Currently they are using the tiered service which I will
    be explaining later
   The purpose of the whole bill is to set a new national broadband
    policy of net neutrality that is different from the current law and policy.
   This bill would force the telecom or cable industries to completely
    retrofit their networks/business models to net neutrality.
   Net Neutrality regulation would only stifle future investment in
    broadband networks and limit the ability of creators to protect their
    rights online.
   Also two bills where passed to protest FCC from regulating or ruling
    the internet (H.R. 3924 and S. 1836)
Tiered Pricing
 These types of net neutrality concerns brought in changes in
  available technology and demand have caused ISPs to consider
  providing “tiered service” business models.
 This service basically charges all the users different rates depending
  on their data-transmission needs and bandwidth usage
 Even though it has many disadvantages, this model improves the
  overall quality of service
How it affects an organization or individual?
 With tiered pricing, network operators will provide better service for
  people who pay more and the people who are not able to pay will
  receive a degraded service
 It also affects small startup organizations (websites) that will not
  primarily have funds to pay network operators to make sure that
  users can connect to their sites with high speed
Barack Obama’s Statement on Net Neutrality

   Barack Obama strongly supports the principle of network neutrality to
    preserve the benefits of open competition on the Internet

   This principle will ensure that the new competitors, especially small
    or non-profit organization have the same opportunity to bring on
    innovation on the internet and to reach large audiences




    “Barack Obama supports the basic principle that network providers
    should not be allowed to charge fees to privilege the content or
    applications of some web sites and Internet applications over others”
Stakeholders
 Neutrality generally supported by:
       Consumer organization
       Education and library community
       Content providers
   Net Neutrality generally opposed by:
       Hardware companies
       Telecom/cable industries
       Major institution
References:
 http://www.netcompetition.org/HR_3458_Markey_Eshoo
  _One_Pager.pdf
 http://www.cagw.org/newsroom/gov-waste-
  watch/2009/winter-2009/guest-column-net.html
 http://law.ga.gov/sites/law.ga.gov/files/imported/vgn/ima
  ges/portal/cit_79369762/187291185amicus%20brief.pdf

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Net neutrality

  • 1. "SHOULD THE ADMINISTRATION SEEK TO REGULATE BROADBAND PROVIDERS AS COMMON CARRIERS, OR SHOULD THE INTERNET BE LEFT TO MARKET FORCES?" By Gowthaman Karunanidhi School of Information Studies Information Management Syracuse University
  • 2. Introduction What is Net Neutrality?  It is the concept where the online web content must be treated equally  The Internet speed must be the same over the network What is throttling?  It is a practice of slowing down specific types of data. ISPs have engaged in throttling that targets file sharing protocol. ISPs say that they do this kind of practise to keep their internet speeds fast, but it is basically a discriminatory practice that runs contrary to the principle of Net Neutrality,  NN says all data should be treated equally with no preferences placed on them by providers  The concept of Net Neutrality “doesn‟t allow the common broadband carriers to discriminate by using their market power” (Lawrence Lessig & Robert W. McChesney)
  • 3. Background Information  ISPs took their advantage in controlling internet activities (i.e. they tried to regulate the internet with their market forces)  ISPs want to make more money by charging companies like Vonage, or websites like Facebook to make bits of information travelling on the internet faster for their clients, slower for competitors, or even block the bits travelling Example:  Comcast tried to control internet activity among its customers by slowing down the access to BitTorrent (p2p application)  Madison River Communications blocked ports used for VoIP applications  Hence, due to these discrimination on the internet, the concept of „Network Neutrality‟ came into picture which was enforced by the Federal Communication Commission 47 U.S.C. 202: “It shall be unlawful for any common carrier to make any unjust or unreasonable discrimination in charges, practices, or services by any means or device, or to subject any person to any unreasonable prejudice or disadvantage”
  • 4. FCC Rules  Transparency: Fixed and mobile broadband providers must disclose the network management practices, performance characteristics, and terms and conditions of their broadband services (how effectively the law will be)  No blocking: Fixed broadband providers may not block lawful content, applications, services, or non-harmful devices; mobile broadband providers may not block lawful websites, or block applications that compete with their voice or video telephony services  No unreasonable discrimination: Fixed broadband providers may not unreasonably discriminate in transmitting lawful network traffic.
  • 5. Bills H.R. 3458 (Internet Freedom Preservation Act)  This Net Neutrality Bill was introduced in 2009 to:  Amend the Communications Act of 1934  Establish a National Broadband policy  Safeguard Consumer Rights  Spur investment and innovation and for related purposes  The bill was introduced to stop ISPs and their parent corporations from treating some web traffic unfairly  They wanted all web traffic to be treated equally regardless of where it comes from or going  This bill would allow the government to put into certain “regulations” which would ensure that all views and opinions on the internet are viewed in “equal” amounts  It also affects the access providers in terms of money where they need to comply in accordance with the new policy with the existing infrastructure. Currently they are using the tiered service which I will be explaining later
  • 6. The purpose of the whole bill is to set a new national broadband policy of net neutrality that is different from the current law and policy.  This bill would force the telecom or cable industries to completely retrofit their networks/business models to net neutrality.  Net Neutrality regulation would only stifle future investment in broadband networks and limit the ability of creators to protect their rights online.  Also two bills where passed to protest FCC from regulating or ruling the internet (H.R. 3924 and S. 1836)
  • 7. Tiered Pricing  These types of net neutrality concerns brought in changes in available technology and demand have caused ISPs to consider providing “tiered service” business models.  This service basically charges all the users different rates depending on their data-transmission needs and bandwidth usage  Even though it has many disadvantages, this model improves the overall quality of service How it affects an organization or individual?  With tiered pricing, network operators will provide better service for people who pay more and the people who are not able to pay will receive a degraded service  It also affects small startup organizations (websites) that will not primarily have funds to pay network operators to make sure that users can connect to their sites with high speed
  • 8. Barack Obama’s Statement on Net Neutrality  Barack Obama strongly supports the principle of network neutrality to preserve the benefits of open competition on the Internet  This principle will ensure that the new competitors, especially small or non-profit organization have the same opportunity to bring on innovation on the internet and to reach large audiences “Barack Obama supports the basic principle that network providers should not be allowed to charge fees to privilege the content or applications of some web sites and Internet applications over others”
  • 9. Stakeholders  Neutrality generally supported by:  Consumer organization  Education and library community  Content providers  Net Neutrality generally opposed by:  Hardware companies  Telecom/cable industries  Major institution
  • 10. References:  http://www.netcompetition.org/HR_3458_Markey_Eshoo _One_Pager.pdf  http://www.cagw.org/newsroom/gov-waste- watch/2009/winter-2009/guest-column-net.html  http://law.ga.gov/sites/law.ga.gov/files/imported/vgn/ima ges/portal/cit_79369762/187291185amicus%20brief.pdf

Editor's Notes

  1. In 2005, Madison River (rural local exchange carrier) tried blocking VoIP calls, prompting an FCC investigation of whether the company had violated its Sec. 201(b) duties as a common carrier. The FCC settled with Madison River after the company agreed to pay a fine and not to block VoIP services. Shortly thereafter, othercable companies said that they would not engage in such blocking.