The document discusses proposals for a "third way" approach to internet regulation that avoids both heavy-handed regulation and a completely laissez-faire approach. It proposes establishing principles of network neutrality and transparency along with managed services, and addressing issues around definitions of discrimination, engineering freedom, and business model innovation. The document also examines debates around spectrum allocation and proposals for new frameworks to govern these issues going forward.

1. May 11, 2010
Third Way Internet Regulation
Richard Bennett
Research Fellow
Information Technology and Innovation Foundation
rbennett@itif.org

2. FCC’s Third Way
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3. Impact
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4. Impact
OK, maybe not so much.
But still…it’s not good.
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5. Why is a Third Way Needed?
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6. Obama’s Campaign Promise
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7. The Net Roots Connection
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8. Net Roots’ Sole Issue
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9. FCC’s Motivation
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10. ITIF’s Third Way
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11. The Act
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12. Titles
 Title I – General Provisions
 Title II – Common Carriers
 Title III – Provisions Relating to Radio
 Title IV – Procedural and Administrative Provisions
 Title V – Penal Provisions – Forfeitures
 Title VI – Cable Communications
 Title VII – Miscellaneous Provisions
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13. Where does the Internet Go?
 Title I – General Provisions
 Title II – Common Carriers
 Title III – Provisions Relating to Radio
 Title IV – Procedural and Administrative Provisions
 Title V – Penal Provisions – Forfeitures
 Title VI – Cable Communications
 Title VII – Miscellaneous Provisions
 Title [New] – Internet Services
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14. One Way to Get There
 FCC Suggests Framework
 Discussion Ensues
 Congress Amends Communications Act
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15. Another Way to Get There
 FCC cherry-picks the Act
 Court battle ensues
 FCC loses court battle
 FCC Suggests Framework
 Discussion Ensues
 Congress Amends Communications Act
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16. Separable Transmission Component
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17. Separable Transmission Component
 Point-to-Point
 Wire?
 Frame?
 Hop-to-Hop Packet?
 Network-to-Network
 Transit?
 Peering?
 End-to-End
 Application?
 Cache?
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18. What is this “Framework” Thing?
 Basic Principles of Internet Regulation
 Starts with Powell’s Four Freedoms
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19. Powell’s Four Freedoms
 Freedom to Access Content
 Freedom to Use Applications
 Freedom to Attach Personal Devices
 Freedom to Obtain Service Plan Information
 Fourth Freedom amended by FCC in Open Internet NPRM:
 Subject to reasonable network management, a provider of
broadband Internet access service may not deprive any of its
users of the user’s entitlement to competition among network
providers, application providers, service providers, and content
providers.
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20. Network Policy Issues
 Net Neutrality Consensus
 Four Freedoms + Transparency
 Managed Services
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21. Network Policy Issues
 Net Neutrality Consensus
 Four Freedoms + Transparency
 Managed Services
 Net Neutrality Controversy
 What do we mean by “Discrimination?”
 Good discrimination vs. Bad discrimination
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22. Network Policy Issues
 Net Neutrality Consensus
 Four Freedoms + Transparency
 Managed Services
 Net Neutrality Controversy
 What do we mean by “Discrimination?”
 Good discrimination vs. Bad discrimination
 Two New Freedoms
 Engineering Freedom
 Business Model Freedom
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23. Network Policy Issues
 Net Neutrality Consensus
 Four Freedoms + Transparency
 Managed Services
 Net Neutrality Controversy
 What do we mean by “Discrimination?”
 Good discrimination vs. Bad discrimination
 Two New Freedoms
 Engineering Freedom
 Business Model Freedom
 Technical Advisory Groups
 Specific Boundaries
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24. Spectrum Controversies
 Licensed vs. License-exempt
 410 MHz Licensed
 650 MHz License-exempt
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25. Spectrum Controversies
 Licensed vs. License-exempt
 410 MHz Licensed
 650 MHz License-exempt
 License-Exempt is good for Small-scale Networks
 Large networks must guarantee Service Quality
 Hundreds of Millions of Small Networks
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26. Spectrum Controversies
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27. Spectrum Controversies
 Licensed vs. License-exempt
 410 MHz Licensed
 650 MHz License-exempt
 License-Exempt is good for Small-scale Networks
 Large networks must guarantee Service Quality.
 Hundreds of Millions of Small Networks
 Need for 800 MHz of Licensed Bandwidth
 Best Frequencies 1000 – 3000 MHz
 DTV vs. Mobile Internet
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28. Edge-Managed Spectrum
Dead Air Packet
Packet
Time
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29. Edge-Managed Spectrum
Dead Air Packet
Packet
Time
Packet Packet
Dead Air
Time
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30. Spectrum Controversies
 Big Historical Mistake:
 TV Should be Wired.
 Telephony Should be Wireless.
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31. New Freedoms
 Mobile Internet Experience the Fruit of Innovation
 Policy has to create the space for fundamental advances.
 Innovation at the Bottom Enables Innovation at the Top.
 We’re Not Done Yet.
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32. New Freedoms
 Mobile Internet Experience the Fruit of Innovation
 Policy has to create the space for fundamental advances.
 Innovation at the Bottom Enables Innovation at the Top.
 We’re Not Done Yet.
 Engineering Freedom is Not a License to Steal
 Reasonable Oversight, not Strangling Regulation
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33. New Freedoms
 Mobile Internet Experience the Fruit of Innovation
 Policy has to create the space for fundamental advances.
 Innovation at the Bottom Enables Innovation at the Top.
 We’re Not Done Yet.
 Engineering Freedom is Not a License to Steal
 Reasonable Oversight, not Strangling Regulation
 Business Model Innovation is Essential
 Internet Economy Clouded with Secret Deals
 Peering and Transit Agreements are Trade Secret.
 Fundamental Algorithms of Internet Economy are Trade Secret.
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34. Hot Potato Routing Dictates Internet Economics

35. Technical Freedoms
 Why No Attention so Far?
 Four Freedoms Take Innovation for Granted.
 Innovation is like Air: We only Notice it when it’s Gone.
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36. Thank you.
Please read:
Going Mobile: Technology and Policy Issues in the
Mobile Internet
http://www.itif.org/files/100302_GoingMobile.pdf
Contact me at:
rbennett@itif.org
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