Comparative Telecommunications Law Spring, 2007 Prof. Karl Manheim 16: Internet III (Net Neutrality) Copyright © 2007

Spring, 2007CTL2 What is “Net Neutrality” Many different players comprise the I-net Fiber Backbone, Cable, DSL, Wireless, ISPs Some provide other services over same layers  Voice, video, leased lines, propriety networks Many different services over the I-net WWW, VoIP, IPTV, P2P, ATM, VPN I-net suppliers want to prioritize services To guarantee Quality of Service in some cases I-net users don’t want to be de-prioritized They want NET NEUTRALITY

Spring, 2007CTL3 Quality of Service How delivered & assured Tiered (priority) services Higher throughput (broader pipes) Dedication pathways (proprietary networks) How priced? Metered telecommunications  Wireline & wireless telephony  Cable & satellite video Unmetered  Broadcast Why shouldn’t the Internet be metered like these other services, based on cost recovery? Users of broadcast don’t “consume” scarce resources

Spring, 2007CTL4 Arguments in favor of Metering “Bellhead” perspective I-net carriers incur traffic sensitive charges  Borne by the network (hardware & network layers)  Application and content layers are “free riders”  All-you-can-eat users impose network externalities QoS can solve network congestion  Allocation by market pricing of scarce resources  Vs. socialist economy (common sharing of expenses) Broadband replacing TS pricing & investment  Same telcos own the PSTN and I-net backbone  Should capture rents now going to content providers

Spring, 2007CTL5 Arguments Against Metering Nethead” perspective Network costs already built into access pricing  Backbone providers charge ISPs, who charge users Tiering destroys leveling effect of I-net  Exacerbates the digital divide QoS impedes, rather than promotes, innovation  Service & content providers now compete by innov. Violates layering and end-to-end principles  Price discrimination at TCP/IP level Impedes free speech function of I-net  Skews “marketplace of ideas”

Spring, 2007CTL6 Regulating Network Neutrality Legacy telecom networks Govt-mandated neutrality a traditional feature FCC AT&T/BellSouth commitment to net neutrality  Condition for merger approval (28 Dec 2006) Investigation into IP blocking by LEC Congress COPE ( Communications Opportunity, Promotion and Enhancement Act of 2006 ) [HR 5252]HR 5252  Passed House, fillibustered in Senate

Spring, 2007CTL7 Digital Divide Defined Differential access to the knowledge economy and advanced telecom services Broadband access & bandwidth  Only rich nations/consumers widely deploy b-band Functionality  I-net architecture favors developed world IPN space; English-language domain names Importance I-net / b-band contribute to econ development Social networking and democratization effects

Spring, 2007CTL8 Solving the Digital Divide Computing Affordable hardware: 1 laptop/child program Connectivity Regulatory subsidies (universal service?) IPv6; IDN Content Cultural & language accessibility Capacity ICT literacy