Whod You Say Killed The Internet

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Whod You Say Killed The Internet

  1. 1. Who'd You Say Killed the Internet? Networks and Transparency Daniel Brenner Senior Vice President National Cable & Telecommunications Ass’n Feb. 19, 2008
  2. 2. Overview <ul><li>Cable creates residential broadband, vast array of home services, without rules but with Internet’s expectations, broadly defined </li></ul><ul><li>Forces telcos to catch up with DSL </li></ul><ul><li>Machine-to-machine applications intensifies issue of bandwidth hogs </li></ul><ul><li>Lack of regulatory bucket: “information services” is a blank page for deciding regulation </li></ul>
  3. 3. History of Net Neutrality Debate Part one – Multiple ISPs? <ul><li>Dial-up vs. Cable Modem Service </li></ul><ul><li>Multiple ISPs vs. integrated function </li></ul><ul><li>Vestige of regulatory disparity between cable and DSL, eventually resolved by FCC’s Brand X case and follow-on treatment of DSL </li></ul>
  4. 4. History of Net Neutrality Debate Part two – Blocking <ul><li>Madison River – blocking by small ILEC to prevent over-the-top VOIP provider </li></ul><ul><li>Led to consensus of no blocking based on content of download </li></ul>
  5. 5. History of Net Neutrality Debate Part 2.5—Service Differentiation <ul><li>What can broadband service provider (BSP) vary? </li></ul><ul><ul><li>Different speeds for end user based on price? </li></ul></ul><ul><ul><li>Different speeds for content providers based on price? </li></ul></ul><ul><ul><ul><li>E.g., can law school pay for streamed commencements ceremonies on managed, protected basis? </li></ul></ul></ul>
  6. 6. History of Net Neutrality Debate Part 2.5 - The Diaynu Debate <ul><li>Can BSP offer enhanced download if available to all? </li></ul><ul><li>Can a BSP offer enhanced downloads to a selected number or exclusively to one provider in a market? </li></ul><ul><ul><li>E.g., Amazon pays for exclusive faster speeds than BarnesandNoble can get </li></ul></ul><ul><li>Can a BSP offer enhanced downloads to itself only (exclusivity)? To itself at all? </li></ul><ul><li>Does it matter how the BSP entered the world, e.g., as a carrier or as a cable operator? </li></ul>
  7. 7. History of Net Neutrality Debate Part Three – Network Management <ul><li>Network Management </li></ul><ul><ul><ul><li>-not all that new: as networks grow, they need to be managed. </li></ul></ul></ul><ul><ul><ul><li>-triggered by P2P – earliest efforts on university networks </li></ul></ul></ul><ul><ul><ul><li>Alternatives to management </li></ul></ul></ul><ul><ul><ul><li>continue to build capacity to always have room for peak times </li></ul></ul></ul><ul><ul><ul><li>-- may work when all users roughly use the same capacity and roughly pay the same </li></ul></ul></ul><ul><ul><ul><li>-- generally the rule of incumbent phone companies </li></ul></ul></ul><ul><ul><ul><li>-- not the case with P2P: “80/20” rule applies </li></ul></ul></ul><ul><ul><ul><li>enough competition so that sufficient choices exist if someone doesn’t like one provider’s rules </li></ul></ul></ul>
  8. 8. Net Neutrality Debate Now Part Three <ul><ul><ul><li>Special rules where network provider has incentive and ability to use “network management” to disadvantage a competitor in a field that competes with a parallel line of business </li></ul></ul></ul><ul><ul><ul><ul><li>Curious case of Free Press complaint about Comcast slowing download of the Bible </li></ul></ul></ul></ul><ul><ul><ul><li>And what should be the policies regarding those who use the cable/telco platform to compete? </li></ul></ul></ul><ul><ul><ul><ul><li>Is there a difference between Vonage’s use of broadband, which is small (even though it competes) and video distributors who use bandwidth intensive applications or torrent technology? </li></ul></ul></ul></ul>
  9. 9. Tiered Pricing ≠ Network Management <ul><li>Management addresses congestion on the network </li></ul><ul><li>Tiered-pricing customer may be harmed if on at the same time as the network is congested; may be unaffected if usage shifts to less congestion. </li></ul><ul><li>Likewise small bit user is affected if on at congested time. </li></ul><ul><li>So one doesn’t really solve the other </li></ul>
  10. 10. What Approach Should Government Take? <ul><li>Markey-Pickering bill: establishes principle of regulation but may not specify particular practices as disallowed </li></ul><ul><li>FCC’s Non-Enforceable Policy Statement </li></ul><ul><ul><li>Allows for Network management but says no to blocking </li></ul></ul><ul><li>FCC’s Policy of “Vigilant Restraint”: Madison River after Brand X </li></ul><ul><li>FTC’s Policy:Emphasize Disclosure </li></ul><ul><ul><li>But disclosure of management practices to end users? Or also to any one trying to reach end user? (Vuze) </li></ul></ul><ul><ul><ul><li>And how to prevent circumvention if you disclose to content providers what you’re managing? </li></ul></ul></ul>
  11. 11. Need More Trials – What’s a Real Problem, What’s Not <ul><li>Consensus around “no blocking” – or not? The Odd Case of upstart BSPs </li></ul><ul><li>Consensus around allowing boosts and higher speeds purchased by end user </li></ul><ul><li>Less consensus around content providers contributing to network’s costs or having right to pay (e.g., HDNet) </li></ul>

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