network neutrality

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Comedian Louis CK Takes Internet Seriously

Louis CK, the comedian responsible for the FX show "Louie" and for making people laugh at his brutally candid assessment of how much his young daughter's opinion about anything matters, has bypassed the major studios, channels, and cable distribution systems to sell one of his concerts directly to his fans.

For $5, they can easily download it and can then put it on any medium they choose. Some have put it up on pirate sites so others can use it without paying. But more than enough have paid to make it well worth his while -- as explored by the NY Times media critic, David Carr:

While I was talking with him on the phone Thursday night, he checked his Web site and about 175,000 people had bought his special through PayPal. He expected 200,000 total downloads by the weekend, which meant he would have grossed $1 million. After covering costs of about $250,000 for the live production and the Web site, that’s a $750,000 profit. And he owns the rights, and the long tail of buyers, in perpetuity. The transparency of the enterprise, including its cost in relation to how many people bought in, was the subject of media coverage all last week.

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“O.K., so NBC is this huge company and they have all these studios and these satellites to beam stuff out,” he said, “but on the Web, both NBC.com and LouisCK.com have the same amount of bandwidth. We are equals and there are things you can do with that. This has been a fun little experiment.”

His "fun little experiment" demonstrates the threat posed by the Internet to the old business models of cable companies and content owners like Viacom and Disney. And this is why Comcast's purchase of NBC is worrisome.

Comcast is still fighting for the authority to prioritize some sites over others - it wants to violate the historic principle of network neutrality that prevents a service provider from interfering with what sites a subscriber visits. If Comcast had its way, it would require a taste of the action from Louis CK or could throttle the connections of those users watching his content.

In short, this success story illustrates the threat to the cable business model. Cable has long been the gatekeeper to content - Comcast decides what channels I can choose from. But right now on the Internet, I choose what content I can choose from.

Community networks, which put the public good above maximizing potential profits, are far less likely to interfere in the way that big companies like AT&T have admitted they would like to. It ultimately comes down to whether one views access to the Internet as just another product in the market or as an infrastruture or platform for everything else.

While the FCC should ensure that service providers cannot prioritize some content over similar content (CNN video over Bloomberg video, for instance), communities are smart to establish networks that are locally accountable -- as hundreds of communities already have. Depending on the FCC to police distant corporations is a poor strategy.

Photo used under creative commons, courtesy of Moff on Flickr.

Kill Network Neutrality, Get Slower Networks

If you want to predict the future, it helps to understand the incentives that guide action. Unsurprisingly, if a corporation has the option of being more profitable by investing less, it will do so. This is the smart conclusion of Bill Snyder at InfoWorld:

To understand their logic, consider this thought experiment: Imagine that you own a freeway -- say, Highway 101 through Silicon Valley -- and you had the power to pluck a car from a traffic jam with a helicopter and deposit it on a clear stretch of the road. Naturally, drivers who could afford the service would be happy to sign up.

"That highway is like the Internet, and the individual cars are the packets of data. The ISP is essentially the gatekeeper that controls the flow of cars on the highway. If the ISP is allowed to snatch any car from the back of a very long line and put it in front of everybody else when the driver of the car pays a priority delivery fee, would the ISP have an incentive to keep the road congested or to expand the road capacity?" they wrote.

The answer is pretty obvious: If you can make more money by keeping your network congested, why would you invest money to make it less crowded?

He was riffing on a paper, "The Debate on Net Neutrality: A Policy Perspective" by H Kenneth Cheng, Subhajyoti Bandyopadhyay, and Hong Guo.

I think many of us view this as a "well, duh" paper, but it is good to see a rigorous academic paper verifying our gut instincts.

There is a very real danger to letting a few massive corporations control access to the Internet, which is one major reason we see so many communities building their own networks. They want to ensure everyone has fast, reliable, and affordable access to the Open Internet.

Senate to Vote on Giving Internet Governance to Comcast, AT&T

Update: The Senate voted against turning the Internet over to Comcast, AT&T, and other major carriers. How did your Senators vote?

The US Senate began debating network neutrality yesterday - the historic governing principle of the Internet that ISPs should not be allowed to tell their users where they may or may not go and should not prioritize some connections over others merely because it generates more revenue for the ISP.

As Al Franken has said several times, this is the 1st amendment for the Internet - protecting everyone's speech. It prevents a few massive companies (or even local governments where they offer access to the Internet) from exerting too much influence over what subscribers are able to do on the Internet.

Unfortunately, many Senators are campaigning against this principle, in part because they have been misinformed as to what it means and in part because they are getting a ton of campaign cash from corporations that recognize how much more profitable they would be if they could charge users extra to go to YouTube.

There will be a vote today on a resolution of disapproval for the mild network neutrality rules proposed by the FCC last December (which the FCC Chairman chose to water down in part because he thought it would be less controversial -- FAIL).

We would like to recognize some of those who have stood up to protect the open Internet, starting with Free Press.

The American Sustainable Business Council authored an op-ed:

The truth is that if we want to make sure small businesses can grow with the assistance of broadband, the Internet must remain open. We must, as the FCC says, “ensure the Internet remains an open platform—one characterized by free markets and free speech—that enables consumer choice, end-user control, competition through low barriers to entry and freedom to innovate without permission.”

Senator Kerry made an impassioned plea for not turning the Internet over to Comcast and AT&T:

So they're trying to say to the American people that they want to liberate the Internet when, in fact, what they want to do is imprison the Internet within the hands of the most powerful communications entities today to act as the gatekeepers who will control the ability of the Internet to do the very kind of development that brought us here.

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But the reason we have a Google today, the reason we've had this incredible development of Internet retail business, of all of these web sites, of Facebook and so many more is because of the open architecture of access to that Internet. Which, I would remind everybody in America, was created by government money in government research.

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Everything that goes over the Internet today goes either through your telephone at home or television or whatever, through cable, out of your house or the airwaves. But if we're not having an open architecture on the Internet, then the people who control those access points can start discriminating about who gets access at what speed. And if you control who gets access at what speed and begin to charge more for that, you begin to have a profound impact on the ability of any business to develop and a profound impact on the access that consumers have come to anticipate with respect to the Internet.

Minnesota's own Senator Al Franken gave a great speech in addition to publishing an article about the importance of net neutrality:

This isn't a radical concept - it's what each and every one of us experiences every time we use the Internet. Right now, an e-mail from a friend arrives in your inbox just as quickly and reliably as an advertisement from Amazon.com. Consumers can go online and make a reservation at a small fishing lodge in Ely, Minnesota just as quickly as they can at the Hilton.

But many Republicans want to change that so that the large corporations they represent can increase their profit margins at the expense of small businesses and consumers.

To illustrate why net neutrality is so critical to innovation on the web, I like to tell the story of a small online startup that launched in 2005 above a pizzeria in San Francisco. It had a product that now seems simple: it allowed people to upload videos so others could stream them. It was called YouTube - you may have heard of it.

At the time, Google had a similar product - Google Video - but it wasn't as easy to use, so consumers took their business to YouTube. The site took off and, less than two years after it launched, YouTube was purchased by Google for $1.6 billion. Not a bad payday.

But it wouldn't have been possible without net neutrality. If Google had been able to pay Comcast and other large Internet service providers to prioritize its data - and make YouTube's videos load more slowly - YouTube wouldn't have stood a chance. Google's inferior product would have won.

And some have made the connection between Network Neutrality and Occupy Wall Street:

At Occupy Chicago, communications volunteers count more than 33,000 Facebook "likes," 20,000 Twitter followers, and several thousand website hits every day.

So, some are asking, what would happen if the corporate entities that are the targets of protests were able to limit Internet traffic? That was tried at one point by the Egyptian government during the Arab Spring protests, and Betty Yu with the Center for Media Justice says it's a legitimate concern.

The NY Times editorialized on it:

The resolution would render void the modest rules adopted by the F.C.C. in December 2010. Stripped of authority, the commission would have a very difficult time protecting the Internet from those who clamp down on content for ideological reasons or profit. Repealing the rules would free service providers like phone and cable companies to block or slow down their competitors’ content — be it movies, songs or messages — when it is flowing through their broadband pipes.

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The Republican approach goes back to 2002, when the F.C.C., under the Bush administration, made the bizarre decision that broadband Internet communications were not, in fact, telecommunication services under the law. Last year, the F.C.C. had the opportunity to redefine broadband as a telecommunications service, which would allow greater regulatory oversight. Regrettably, it chose not to, and instead passed a limited set of rules that did not ban the practice of paying to move content faster and largely exempted wireless broadband services.

Black Voices for Internet Freedom Kicks off Next Friday

If I were near Washington, DC, next week, I would be stopping by the New America Foundation for the kickoff of "Black Voices for Internet Freedom" with a panel discussion.

Black and Latino communities are coming together to keep the Internet open and free from discrimination. Because communities of color rely on the Internet and are increasingly embracing wireless technology, we are organizing to protect our online communication rights. These rights are currently at risk: FCC Net Neutrality rules provide few protections for wireless users — and a pending congressional resolution would overturn these rules and hand control of the Internet to corporations. What’s more, the Department of Justice has acknowledged that AT&T’s proposed merger with T-Mobile is a serious threat to wireless competition and would raise prices for consumers.

RSVP here to attend.

Comcast: Internet Access is Temporarily a Civil Right

You can now read this post at Huffington Post also.

As a condition of its massive merger with NBC, the federal government is requiring Comcast to make affordable Internet connections available to 2.5 million low-income households for the next two years.

In promoting the program, Comcast's Executive VP David Cohen, has made some unexpected admissions:

“Access to the internet is akin to a civil rights issue for the 21st century,” said David Cohen, Comcast’s executive vice president. “It’s that access that enables people in poorer areas to equalize access to a quality education, quality health care and vocational opportunities.”

It was only after the federal government mandated a low-cost option for disadvantaged households that Comcast realized everyone could benefit from access to the Internet. Sadly for Comcast, it has done a poor job of reaching those disadvantaged communities, by its own admission:

"Quite frankly, people in lower-income communities, mostly people of color, have such limited access to broadband than people in wealthier communities."

This is why so many communities are building their own next-generation networks - they know that these networks are essential for economic development and ensuring everyone has "access to a quality education, quality health care and vocational opportunities." And they know that neither Comcast nor the federal government are going to make the necessary investments. They need a solution for the next 20 years, not just the next 2.

Community Networks Map

Comcast has a de facto monopoly in many communities. Modern cable networks offer much higher capacity connections than older phone networks using DSL. So unless you are one of the few Americans served by a community fiber network or FiOS, you probably have two choices in broadband: relatively faster connections from a cable company or relatively slower connections from the phone company. Private sector competition is not around the corner - overbuilding a massive provider like Comcast is very difficult, which is why so few companies try.

Due to the limited competition, Americans pay their cable companies too much for access to the Internet. Consider that Tacoma residents pay less for the same services as those in Seattle, because Tacoma long ago built its own cable network.

Comcast uses its vast profits to lobby Congress and the Federal Communications Commission to repeal rules that stop big cable and phone companies from slowing down competitors like Netflix.

This is the rub. Comcast builds and operates networks to maximize its profit -- a model that simply does not fit essential infrastructure like the Internet. Who would invest in FedEx if UPS owned the roads and set the rules for access?

The question is how to solve this age-old problem. Even Comcast recognizes that its normal approach leaves millions behind. We can do better.

Chattanooga, Tennessee; Lafayette, Louisiana; Reedsburg, Wisconsin; Windom, Minnesota; Cedar Falls, Iowa; Wilson, North Carolina; Monmouth, Oregon; Highland, Illinois; Kutztown, Pennsylvania; Spanish Fork, Utah, and many others have built networks that actually put community needs first.
Chattanooga has the nation's most advanced citywide network. Tiny Kutztown has kept an extra $2 million in its citizens pockets through lower bills over the past 10 years. Rural Windom kept employers in town when incumbent providers could not meet their needs.

Smart communities invest in themselves rather than depending on big, absentee corporations. Requiring Comcast to provide affordable broadband connections is better than not, but continuing to let Comcast effectively decide who can afford access to the Internet is madness.

Tethering, Verizon, and the Problem with Public Interest Requirements

When Verizon won an auction to use the 700MHz band of the spectrum to deliver mobile broadband, it promised to adhere to a set of openness rules that included allowing customers to use applications and devices of their choosing. But Verizon is now blocking "tethering" apps that allow us to use our cell phones as a modem for our computers.

Wendy Davis at MediaPost offered more context:

Whether it's legal for a wireless carrier to cripple tethering services is unclear. Verizon agreed to follow open Internet principles as a condition of acquiring the spectrum that it uses for 4G wireless phones. One interpretation of that condition is that the company shouldn't attempt to restrict tethering on its 4G network -- though apparently it's still free to do so on the 3G network.

But aside from neutrality issues, Verizon's move clearly seems hard to justify from a pricing standpoint. Given that the company is already going to charge new users based on the amount of data they consume, there's no reason for it to also impose a surcharge for tethering.

Free Press filed a complaint with the FCC to investigate:

Free Press Logo

Free Press will file a complaint today with the Federal Communications Commission against Verizon for violating the rules that govern the licenses for its LTE network. Licensees of the C Block of the upper 700 MHz block, over which Verizon runs its LTE network, may not “deny, limit, or restrict” the ability of their customers to use the applications or devices of the customers’ choosing.

Recent reports reveal that Verizon has been doing just that by asking Google to disable tethering applications in the Android Market. Tethering applications, which allow users to make their phones into mobile hot-spots, implicate the customers' ability to use both the applications and devices of their choice. Free Press argues that by preventing customers from downloading tethering applications from the Android Market, Verizon is restricting not only the applications available to them, but also limits use of tethered devices such as laptop or tablet computers. [Read the Full Complaint here]

Free Press Policy Counsel Aparna Sridhar noted:

“In 2007, Verizon argued aggressively against the adoption of these basic openness protections. Having lost that policy battle but won the auction for the spectrum licenses, Verizon has adopted a new regulatory strategy: simply ignore the rules on the books. The Commission must move quickly to investigate and stop these harmful practices.”

This is the problem with imposing public interest requirements, and more generally, regulating companies that are providing essential infrastructure. Companies like Verizon are incredibly powerful and regularly ignore rules they do not like, understanding that they can delay any rule or punishment for years. They can often delay long enough for DC to change administrations or simply grow weary of trying to defend the public interest (often when the public has no idea what is happening).

If the US pursued a policy where the infrastructure elements were publicly owned and independent service providers competed on top of that infrastructure, we would have more tools to prevent abusive practices. For one, companies would have to adhere to the rules in order to use the infrastructure. For another, we would have more providers competing, allowing people to switch away from abusive carriers -- a luxury many do not have currently given our duopolistic telecom markets.

This matter of tethering is incredibly important for the future of mobile access to the Internet, as explained by Barbara van Schewick (always a worthwhile read):

The questions raised by the complaint are too important to be decided without public participation: The C Block of the 700 MHz band is currently the only spectrum that is subject to mobile network neutrality rules.[1] Knowing that there is at least some part of the mobile spectrum that is protected by basic network neutrality principles is important for users, innovators and investors. Whether the openness conditions indeed afford protection depends, however, on how they are interpreted and enforced. Thus, the proceeding has important implications for many businesses, innovators and users in the Internet ecosystem, so they should have a chance to have their voice heard, too. In addition, as I explain in the letter, the proceeding raises important issues regarding openness in mobile networks in general.

FCC Logo

The good news is that the FCC has told Verizon is must respond to Free Press' complaint. The bad news is that we have no idea how long it will take to resolve this and whether the FCC, which has maintained a cozy relationship with the big carriers through Republican and Democratic Administrations, will actually protect the public. The FCC has two stellar Commissioners that regularly defend the public interest and two commissioners that regularly stand with the carriers. And the current Chair … well, he caved to AT&T and Verizon rather than standing for principles he defended for years and Obama campaigned on.

Thanks to Free Press, Barbara van Schewick, and all the others who are defending the public good.

#KillSwitch MoneyBomb Today - Let's Get it Made!

Today, take a moment to learn about a promising documentary and pledge some support to make sure it gets made! A short description:

Imagine if your favorite website was blocked or slowed down because it competed with the corporation that “owned” the Internet bandwidth. How would you react if your posts on Facebook were censored by the government? What would happen if independent blogs and news media became priced out of the Internet because they couldn’t afford the rates charged for a new Internet fast lane? What kind of power should lie within the governments? Should they have the ability to have a virtual Kill Switch?

We find these threats to the free and open Internet to be the single greatest danger to democracy today. #killswitch the film will inform and inspire action in a population largely unaware of these important issues. 

Video: 

The Fundamental Danger of Restricting Local Authority to Build Broadband Networks

Several days at the National Conference for Media Reform in Boston gave me time to reflect on the importance of protecting local authority to build, own, and operate their own networks connecting people and businesses to the Internet. Multiple presentations focused on the importance of and strategies for ensuring access to the Internet is not controlled by a few companies -- and most of these strategies are focused at federal government agencies and Congress.

While we support these efforts, the Institute for Local Self-Reliance is not a DC-centric organization. We try to help folks in DC learn about what is happening outside the beltway, but our passion and work focuses directly on helping local communities invest in themselves and preserve their self-determination. 

Access to the Internet will likely be the key infrastructure investment that determines how well communities fare in the coming years. Unfortunately, they have very little control over how those investments are made when the networks are owned by private, absentee companies. Efforts like Universal Service Fund reform, fixing the FCC, re-writing the telecom act, and ensuring network neutrality depend on overcoming incredibly powerful (due to their scale and lobbying power) interests in Washington, DC. But local communities have very little power outside their borders... with some in state capitals and practically none in the nation's capital.

Attacks at the state level on the fundamental right of communities to build this essential infrastructure are intended to eliminate their one means of gaining some control over their digital future. Too many states already ban or limit local authority to build these networks -- and with the Time Warner Cable bill to crush community networks in North Carolina picking up steam and South Carolina's similar attack even on broadband stimulus projects, we will see hundreds more communities with no power to ensure their citizens and businesses have access to fast, reliable, and affordable access to the Internet.

This is deeply concerning.  Taking away the one tool communities have to meet connectivity needs locally reducses them to begging providers to invest.  Many communities have already traveled this route and the results are rarely good.  

We strongly encourage you to talk to your legislators - (if you are in North Carolina, you need to do this IMMEDIATELY - the Senate is poised to act; see Stop the Cap! for more information) to say that communities must have the freedom to choose locally whether a community network is appropriate (and what that would mean, as there are a variety of approaches).

Talk to city leaders too, to make sure they are communicating with state officials, national officials, and relevant organizations (like National League of Cities, National Association of Counties, etc). Cable and telco lobbyists are constantly spreading lies and trying to preempt local authority. If decision-makers do not hear from you, the lobbyist message resonates all the more.

 

Barbara Van Schewick Explains the Internet on CBC Radio Show

A CBC show, Spark, offers a content-rich 40 minute interview with Barbara van Schewick discussing how the Internet developed and the role of network neutrality. Her explanation is very accessible, a great opportunity for people who are trying to learn more about the issue but frustrated at technical discussions.

Highly recommended. She explains how the innovate applications and products we use today developed precisely because no one controls the Internet. The danger now is that powerful ISPs may exert more control and retard the innovative nature of the net.

Publicly Owned Broadband Networks: Averting the Looming Broadband Monopoly

Publication Date: 
March 23, 2011
Author(s): 
Christopher Mitchell - Institute for Local Self-Reliance

The Institute for Local Self-Reliance is pleased to release the Community Broadband Map and report, Publicly Owned Broadband Networks: Averting the Looming Broadband Monopoly. The map plots the 54 cities, big and small, that own citywide fiber networks and another 79 own citywide cable networks. Over 3 million people have access to telecommunications networks whose objective is to maximize value to the community in which they are located rather than to distant stockholders and corporate executives.

For several years ILSR has been tracking telecommunications developments at the local and state level. We have worked with businesses and communities protecting their right to self-determination via the fundamental infrastructure for the information-based economy. This report offers some of our findings.