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Moving forward under weaker US net neutrality rules


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With the Net Neutrality Common Carrier provisions and other protections being disbanded by the FCC, what can startups (and the attorneys that serve them) do about it?

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Moving forward under weaker US net neutrality rules

  1. 1. Moving Forward Under Weaker US Net Neutrality Rules Kevin Goldsmith Chief Technology Officer
  2. 2. @kevingoldsmith #AvvoNetNeutrality “Net Neutrality” issues aren’t new, but the landscape has evolved.
  3. 3. @kevingoldsmith #AvvoNetNeutrality ISPs / Telcos are looking for new revenue models, and are not just looking to suppress disruptive competition or decrease costs.
  4. 4. @kevingoldsmith #AvvoNetNeutrality Assuming December 14th results in a partial or complete repeal of the common carrier classification on broadband providers what should companies do?
  5. 5. @kevingoldsmith #AvvoNetNeutrality A quick primer on how the internet works
  6. 6. @kevingoldsmith #AvvoNetNeutrality Comcast
  7. 7. @kevingoldsmith #AvvoNetNeutrality Comcast Level3
  8. 8. @kevingoldsmith #AvvoNetNeutrality Comcast Level3
  9. 9. @kevingoldsmith #AvvoNetNeutrality Comcast Level3 Shortest Path
  10. 10. @kevingoldsmith #AvvoNetNeutrality Comcast Level3 Shortest Path
  11. 11. @kevingoldsmith #AvvoNetNeutrality Comcast Level3 Shortest Path
  12. 12. @kevingoldsmith #AvvoNetNeutrality Comcast Level3 Shortest Path
  13. 13. @kevingoldsmith #AvvoNetNeutrality Comcast Level3 Border Gateway Protocol
  14. 14. @kevingoldsmith #AvvoNetNeutrality Comcast Level3 Peering with Multi-Protocol Label Switching
  15. 15. @kevingoldsmith #AvvoNetNeutrality Comcast Direct Peering
  16. 16. @kevingoldsmith #AvvoNetNeutrality Why do bandwidth providers want to end Net Neutrality?
  17. 17. @kevingoldsmith #AvvoNetNeutrality • Increase profitability / reduce costs of existing services • New revenue opportunities • Decrease competition for provider-owned services Bandwidth provider motivations
  18. 18. @kevingoldsmith #AvvoNetNeutrality • “Fast lane” vs “slow lane” • Peering/interconnect agreements • Throttling non-partner sites • “Toll road” vs “free road” • Zero-rating of specific services • Charging users extra for unlimited bandwidth on bundles of sites Tactics (so far)
  19. 19. @kevingoldsmith #AvvoNetNeutrality There will be new models
  20. 20. @kevingoldsmith #AvvoNetNeutrality Options
  21. 21. @kevingoldsmith #AvvoNetNeutrality • Stay under the radar • Hopefully grow fast enough that by the time bandwidth providers notice you, you are too big to throttle (a la Netflix) Cross your fingers
  22. 22. @kevingoldsmith #AvvoNetNeutrality • Add projected bandwidth/peering costs to business plan • Raise more money • Pass costs to users Pony up
  23. 23. @kevingoldsmith #AvvoNetNeutrality • Find other startups • Negotiate as a group for peering / zero rating agreements • Opportunity for attorneys that work with startups to offer as a service to their clients! Band together
  24. 24. @kevingoldsmith #AvvoNetNeutrality • Public Cloud / Content Distribution Networks offer peering / fast lane / ISP bundles as an add-on service offering • Could be subject to spats between hosting providers and bandwidth providers Service providers to the rescue
  25. 25. @kevingoldsmith #AvvoNetNeutrality New Product Strategies
  26. 26. @kevingoldsmith #AvvoNetNeutrality • Video Streaming (especially 4K & VR) • Audio Streaming • Large downloads • Games Avoid bandwidth-dependent user experiences
  27. 27. @kevingoldsmith #AvvoNetNeutrality • VOIP and Video solutions that compete with telco ISPs business may be throttled • Cord-cutting or video streaming products that compete with cable ISPs may be throttled Avoid competing with ISP core businesses
  28. 28. @kevingoldsmith #AvvoNetNeutrality • If your solution will be disruptive to the bandwidth providers or their partners, focus on innovation and look for acquisition opportunities to mediate the costs of providing a good user experience. • The bandwidth providers themselves may be good acquiring entities for this effort. If you must compete, look for acquisition
  29. 29. @kevingoldsmith #AvvoNetNeutrality • Launch your product in the EU first • The EU has reconfirmed its commitment to NN • Grow and scale in that environment and then move to the US when you can use consumer demand or revenue to get good user experience. Build and grow in a NN environment
  30. 30. @kevingoldsmith #AvvoNetNeutrality A tip
  31. 31. @kevingoldsmith #AvvoNetNeutrality • With or without explicit agreements with bandwidth providers, you will need to be vigilant in monitoring user experience in as many locations as possible. • With an agreement in place • Validate that you are getting expected bandwidth • Without an agreement • Look for changes at ISPs that affect the bandwidth your product is getting Monitor for changes in user experience
  32. 32. @kevingoldsmith #AvvoNetNeutrality Questions?
  33. 33. @kevingoldsmith #AvvoNetNeutrality • neutrality-stances-timeline • • broken-a-technical-perspective-on-net-neutrality/ References