{"id":1027,"date":"2010-06-22T12:53:41","date_gmt":"2010-06-22T10:53:41","guid":{"rendered":"http:\/\/www.ofcourseimright.com\/?p=1027"},"modified":"2010-06-22T12:53:41","modified_gmt":"2010-06-22T10:53:41","slug":"net-neutrality-deal-near-betwen-fcc-and-telcos","status":"publish","type":"post","link":"https:\/\/ofcourseimright.com\/?p=1027","title":{"rendered":"Net Neutrality Deal near betwen FCC and Telcos?"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"alignleft size-full wp-image-1028\" title=\"Fedeal Communications Commission\" src=\"http:\/\/www.ofcourseimright.com\/blog\/wp-content\/uploads\/2010\/06\/fcc.gif\" alt=\"\" width=\"165\" height=\"56\" \/>Today&#8217;s Wall Street Journal <a href=\"http:\/\/online.wsj.com\/article\/SB10001424052748704256304575321273903045994.html?mod=WSJ_hps_LEFTWhatsNews\">reports<\/a> that mega-telcos <a href=\"http:\/\/www.verizon.net\">Verizon<\/a> and <a href=\"http:\/\/www.att.com\">AT&amp;T<\/a> are in discussions with senior staff of the <a href=\"http:\/\/www.fcc.gov\">Federal Communications Commission<\/a> (FCC) over a compromise for enabling legislation for the FCC to regulate access to the Internet.\u00a0 This is no small deal.\u00a0 Chairman Julius Genachowski has made very clear for quite some time that he thought there was a need to provide for some form of <em>net neutrality<\/em> to protect customers against service providers, and to insure openness.\u00a0 Another thing is perfectly clear to everyone: the rules of the 1980s and 1990s certainly are antiquated.<\/p>\n<p>However, one problem with <em>net neutrality<\/em> is that it can mean different things to different people.\u00a0 To some it might mean protection from service providers charging for services that they themselves do not provide.\u00a0 To others it might mean an inability for service providers to manage what they deem as excessive use of a shared resource (their network) by some consumers, as their cost models are all structured on the notion of over-subscription.\u00a0 That is\u2013 if everyone tried to use a vast amount of bandwidth at once, we would all get very little, and not those megabits\/second in the advertisement.<\/p>\n<p>Here are a few facts to think about when you hear the term <em>net neutrality<\/em>:<\/p>\n<ul>\n<li>The tools service providers might use to give themselves some sort of market advantage are the very same ones they may need to use to protect consumers against denial-of-service attacks: it is in the average consumer&#8217;s best interest that bandwidth from rogue BoTs be limited.\u00a0 Differentiating between protection against BoTs and protectionism may prove difficult to regulators.<\/li>\n<li>Bandwidth on the Internet is not the same as a phone call.\u00a0 If you&#8217;ve ever been in a disaster situation, such as an earthquake or a hurricane, you&#8217;ll remember that there may have been times when you picked up the phone and got no dialtone.\u00a0 That is not how the Internet works.\u00a0 Most applications make use of <a href=\"http:\/\/en.wikipedia.org\/wiki\/Transmission_Control_Protocol\">Transmission Control Protocol <\/a>(TCP), which is designed to share whatever bandwidth there is.\u00a0 While voice and video require a minimum to function properly, even modern day tools like <a href=\"http:\/\/www.skype.com\">Skype<\/a> &amp; iChat AV can step down their use of bandwidth when they see quality degrading.<\/li>\n<li>Most of us weren&#8217;t born yesterday, and it&#8217;s plainly obvious that there are very few telcos in the United States.\u00a0 The government has, since the passing of the <a href=\"http:\/\/en.wikipedia.org\/wiki\/Sherman_Act\">Sherman Act<\/a> in 1890, taken the position, with good reason in my opinion, that monopolies are bad, and that high levels of concentration are not good for consumers, either.\u00a0 Prosecution through that act as a means of redress, however, is a last resort, because&#8230;<\/li>\n<li>Such prosecutions take years if not decades, are often at the whim of administrations, and often do not succeed. Three examples of arguably failed prosecutions include <a href=\"http:\/\/www.ibm.com\">IBM<\/a>, AT&amp;T, and <a href=\"http:\/\/www.microsoft.com\">Microsoft<\/a>.\u00a0 In the case of IBM, the U.S. dismissed the case when Ronald Reagan became president.\u00a0 AT&amp;T is arguably a failed attempt, because we are very close to right back where we started.\u00a0 In the case of Microsoft, European regulators have provided far more oversight than our own Justice Department, perhaps in part due to the non-European nature of the company, but also due to a lack willingness to go further by the Bush administration.\u00a0 Hence it is better to nip a problem in the bud.\u00a0 This is one reason for the FCC to have a role.<\/li>\n<li>At stake is not whether or not consumers will see a choice of service providers, but whether content providers and etailers, sites like <a href=\"http:\/\/www.mlb.com\">mlb.com <\/a>and <a href=\"http:\/\/www.amazon.com\">Amazon<\/a> will have a choice.\u00a0 Otherwise, we get to a two-sided market, where those who own the so-called eyeball networks also own the other end, providing an enormous price control lever.<\/li>\n<li>Properly considered, network neutrality as a concept protects against the idea that you have to go to a service provider to implement new applications features in the network.\u00a0 This is the core strength of the Internt, but it&#8217;s not clear that regulation is needed.\u00a0 For one thing, I would hope that providers understand that new features and applications are in their best interests, since they get to sell more bandwidth, and perhaps even offer a few such features to their, <em>and other,<strong> <\/strong><\/em>customers.<\/li>\n<\/ul>\n<p>That&#8217;s what all the fuss is about.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Today&#8217;s Wall Street Journal reports that mega-telcos Verizon and AT&amp;T are in discussions with senior staff of the Federal Communications Commission (FCC) over a compromise for enabling legislation for the FCC to regulate access to the Internet.\u00a0 This is no small deal.\u00a0 Chairman Julius Genachowski has made very clear for quite some time that he &hellip; <a href=\"https:\/\/ofcourseimright.com\/?p=1027\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Net Neutrality Deal near betwen FCC and Telcos?&#8221;<\/span><\/a><\/p>\n","protected":false},"author":172,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[50,17,87],"tags":[335,497,349,350],"class_list":["post-1027","post","type-post","status-publish","format-standard","hentry","category-complexity","category-economics","category-internet","tag-competition","tag-economics","tag-fcc","tag-net-neutrality"],"_links":{"self":[{"href":"https:\/\/ofcourseimright.com\/index.php?rest_route=\/wp\/v2\/posts\/1027","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ofcourseimright.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ofcourseimright.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ofcourseimright.com\/index.php?rest_route=\/wp\/v2\/users\/172"}],"replies":[{"embeddable":true,"href":"https:\/\/ofcourseimright.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1027"}],"version-history":[{"count":4,"href":"https:\/\/ofcourseimright.com\/index.php?rest_route=\/wp\/v2\/posts\/1027\/revisions"}],"predecessor-version":[{"id":1032,"href":"https:\/\/ofcourseimright.com\/index.php?rest_route=\/wp\/v2\/posts\/1027\/revisions\/1032"}],"wp:attachment":[{"href":"https:\/\/ofcourseimright.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1027"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ofcourseimright.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1027"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ofcourseimright.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1027"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}