Net Neutrality     Chris WittemanNetSquared, San Francisco    October 16, 2012
Net Neutrality -           What Is it?• 3 Rules  – non-discrimination  – non-blocking  –Transparency    in the old days, “...
The Internet                What Is It?•   It’s a lot of things     – physical layer – wires , conduits, routers     – cod...
•     To borrow a phrase:“It’s the wires, stupid”
Net Neutrality –          what’s the problem?• From Verizon’s July 2, 2012 brief appealing the FCC’s  non-discrimination r...
WHY IS THAT A PROBLEM?
200 Million U.S. Internet Users      Not in the Picture
WHY IS THAT A PROBLEM?
What Control of the Wires Gives You           -- the protocol stack•   Content•   Application• PhysicalTransporti.e, WIRES...
According to Richard Whitt            when he was still counsel for MCI• “An entitys control over … the  Physical Layer an...
What’s the Problem?                   Take 2Again from Verizon’s Brief:“Broadband networks are themodern day microphone by...
Translation    (Verizon as Editor, Speaker)• All the Internet traffic Verizon  carries is nothing more than the  speech of...
200 Million U.S. Internet Users      Not in the Picture
What Verizon, AT&T, and   Comcast Really Want:– A “two-sided market”– According to AT&T’s Ed Whitacre:  "Why should they b...
How Ed Whitacre Can Carry Out His Threat – Network ControlMechanisms - (from Manufacturer Whitepapers)Cisco – “Cisco and S...
How Did We Get Here?● 2002 – George W Bush’s FCC decides that cable modem service,  i.e., the onramp to the Internet, is a...
Why the Cable/DSL Modem     Decisions Make No Sense•
What is at stakeThe architecture of the Internet, as itis right now, is perhaps the mostimportant model of free speechsinc...
The Problem, Restated• Inherent Conflict of Interest - Can’t be both  CONDUIT and CONTENT provider (or  have anything to d...
SOLUTIONS?» NOT THAT THESE HAVE ANYTHING TO DO WITH  POLITICAL REALITIES …
The BT/Ofcom solution
Last and Middle Mile:         U.K.(pretty much the same)
Google’s “Range of Tools”• FCC’s neutrality rules• Reclassification• More Detailed Openness  Rules – re, e.g., QoS• More D...
Net Neutrality
Net Neutrality
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Net Neutrality

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Net Neutrality is an often controversial topic, and one that many folks find they don't fully understand. Especially in the California tech arena, it's a topic that comes up a lot. Are you aware of net neutrality and how it could impact your business or organization? What issues should you be looking in to, and how can we, as tech users/builders help those in the legal world understand what we do and how their decisions would impact us?

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Net Neutrality

  1. 1. Net Neutrality Chris WittemanNetSquared, San Francisco October 16, 2012
  2. 2. Net Neutrality - What Is it?• 3 Rules – non-discrimination – non-blocking –Transparency in the old days, “common carriage”
  3. 3. The Internet What Is It?• It’s a lot of things – physical layer – wires , conduits, routers – code layer – content layer •Social, interactive, political discourse• For policy purposes, I’m only interested in the physical layer, because that’s the architecture that shapes the Internet.
  4. 4. • To borrow a phrase:“It’s the wires, stupid”
  5. 5. Net Neutrality – what’s the problem?• From Verizon’s July 2, 2012 brief appealing the FCC’s non-discrimination rules: “The [FCC’s non-discrimination] Order infringes broadband network owners’ constitutional rights [and] violates the First Amendment by stripping them of control over the transmission of speech on their networks.”
  6. 6. WHY IS THAT A PROBLEM?
  7. 7. 200 Million U.S. Internet Users Not in the Picture
  8. 8. WHY IS THAT A PROBLEM?
  9. 9. What Control of the Wires Gives You -- the protocol stack• Content• Application• PhysicalTransporti.e, WIRES, CONDUITS, ROUTERS
  10. 10. According to Richard Whitt when he was still counsel for MCI• “An entitys control over … the Physical Layer and its resulting control over higher layers in the protocol stack” leads to a situation where “he who controls the lower layers also can control the dependent upper layers.”
  11. 11. What’s the Problem? Take 2Again from Verizon’s Brief:“Broadband networks are themodern day microphone by whichtheir owners engage in FirstAmendment speech”
  12. 12. Translation (Verizon as Editor, Speaker)• All the Internet traffic Verizon carries is nothing more than the speech of Verizon, and Verizon therefore should be granted the editorial authority to prioritize, edit, truncate, and dispose of that speech as it sees fit.
  13. 13. 200 Million U.S. Internet Users Not in the Picture
  14. 14. What Verizon, AT&T, and Comcast Really Want:– A “two-sided market”– According to AT&T’s Ed Whitacre: "Why should they be allowed to use my pipes? … Anyone [who] expects to use these pipes for free is nuts!”
  15. 15. How Ed Whitacre Can Carry Out His Threat – Network ControlMechanisms - (from Manufacturer Whitepapers)Cisco – “Cisco and Service Provider IP” –Cisco says the reason to move to Cisco’s “next generation network” is:● “Regaining control of networks and the services that run on them to increase control of the business,” and thereby● “offer new value-added services (far beyond connectivity) for top-line revenue growth” – Cisco sums up by saying:● “To use an analogy, carriers must move from a basic ‘highway’ service structure to a ‘toll-way’ service structure to reap benefits of their broadband investment”Alcatel – “Exploiting IP Networks to Create Sticky Services” –● “… benefits [of Alcatel systems] are lower churn and new sources of revenue” [what Cingular said about ETFs]Operax – “Efficient network resource control – a source of competitive advantage” –● “to maximize revenues for value added services there must be clear perceived difference in the performance between these services and lower quality services running [on the rest of the Internet]. Bottlenecks are the foundation of this differentiation … bottlenecks may be actual resource bottlenecks or managed gates in the network”
  16. 16. How Did We Get Here?● 2002 – George W Bush’s FCC decides that cable modem service, i.e., the onramp to the Internet, is an information service and that there’s no element of it that can be separately considered as “transport,” i.e., telecommunications, i.e., common carrier.● 2005 Supreme Court decision in Brand X –“defers” to FCC, although even Justice Scalia can’t ignore FCC doublespeak – like saying a pizza parlor doesn’t offer delivery because “even though we bring the pizza to your house, we are not actually offering you delivery, because the delivery that we provide … is integral to i[the pizza’s] other capabilities.“● Before the Ink is dry on Brand X decision, the FCC makes the same ruling in 2005 DSL modem case. ○ So FCC eliminated common carriage non-discrimination, and has been trying to come up with some vanilla alternative ever since. Meanwhile, we live in this oddly balkanized world:
  17. 17. Why the Cable/DSL Modem Decisions Make No Sense•
  18. 18. What is at stakeThe architecture of the Internet, as itis right now, is perhaps the mostimportant model of free speechsince the founding. This model hasimplications far beyond e-mail andweb pages. Two hundred yearsafter the framers ratified theConstitution, the Net has taught uswhat the First Amendment means. (Lessig, Code, at 169)
  19. 19. The Problem, Restated• Inherent Conflict of Interest - Can’t be both CONDUIT and CONTENT provider (or have anything to do with CONTENT)• Like Railroads at the End of 20th Century
  20. 20. SOLUTIONS?» NOT THAT THESE HAVE ANYTHING TO DO WITH POLITICAL REALITIES …
  21. 21. The BT/Ofcom solution
  22. 22. Last and Middle Mile: U.K.(pretty much the same)
  23. 23. Google’s “Range of Tools”• FCC’s neutrality rules• Reclassification• More Detailed Openness Rules – re, e.g., QoS• More Detailed Access Rules – UNEs, Dom Carrier Pricing…• [Functional Separation]• Structural Separation – Computer II (separate affiliates)• Ban: No Conduit- Content Cross Ownership

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