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Internet and the 1996 Act Impact of the Act on Internet evolution Internet as « inspiration »

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Presentation on theme: "Internet and the 1996 Act Impact of the Act on Internet evolution Internet as « inspiration »"— Presentation transcript:

1 Internet and the 1996 Act Impact of the Act on Internet evolution Internet as « inspiration »

2 NII prototype new network paradigm inspired NII political program industrial policy? –stimulate (neither regulate nor litigate... yet) –spin-offs from DARPA programs

3 Governance competition modalities (on what basis) tariffs and pricing interconnection universal service / cross-subsidies

4 User-driven Experimentation infrastructure technologies applications and services path dependence

5 Network size Willingness to pay Demand: p=n(N-n) Supply Three equilibria: 1) Failure 2) Critical Mass 3) Network size

6 Internet adoption in comparative perspective

7 History: 3 periods Defense Research mass-medium

8 Defense - ARPANET (1970s) –1969: BBN wins RFP –Protocol (TCP/IP) and Gateways –Three basic applications file transfer (FTP) remote login (Telnet)

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13 Research - NSFNet (1980s) NSF backbone linking supercomputer centers –One backbone –Regionals: BARRnet, Merit, NYSernet –three dominant applications Acceptable Use Policy (AUP) and commercialization: expanding visions privatisation of NSFNet April 30, 1995

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15 Mass Medium (1990s) New Structure –several nationwide backbones - National Service Providers (NSPs)backbones –Thousands of Internet Service Providers (ISPs)ISPs –Network Access Points (NAPs)NAPs

16 Emerging Industry Structure 2-3 Backbone providers ?? lots of ISPs for small customers direct connection to NSPs for big customers

17 Retail

18 Wholesale

19 New Governance, and its limits. Service and Pricing structure –Best-effort delivery –Sender keep all –Flat fee pricing (binary logic) –BUT congestion, different service level requirements.

20 New Governance (contd) Interconnection and peering –Decentralized governance - Difference with phone network Incentives for cooperation –Emerging tensions Standard setting –Cooperative / democratic –IETF, IAB, –emerging tensions

21 Four Key Success Factors Expanding Community of Users Users invent it Pricing: Networks binary logic Decentralized governance

22 Emerging Issues Congestion Peering Broadband Future of end-to-end

23 Congestion Local access and Backbone Pricing solutions Quality of Service

24 Interconnection: Peering From multilaterals to bilaterals Peering vs. Transit NAP Control FCC approach (Kende) –Decentralized, cooperative approach was good because didn't require regulation –Assess market competition –Antitrust remedies if there is a problem

25 How different from old issues? –industry structure (monopoly,...) –Natural Monopoly? –Tariffs, access charges and intl settlements –Cross-subsidies –Innovation at the end

26 Internet and Freedom: Jeffersonian myths Internet can't be regulated –Tech decentralized architecture no single control point cooperative governance "routes around censorship" –Government has no "moral right" over new space (cyberspace) and no credible means of enforcement (Barlow)

27 "Jeffersonian syndrome" Political: direct democracy Self-governing communities Economic: Perfect markets


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