1. Managing the (Traffic) Managers
TECHNICAL, ECONOMIC AND LEGAL ISSUES AROUND NET NEUTRALITY

2. Introduction Technical Issues: Managing Capacity
Economic Interests: Managing Interests and Externalities
Legal Issues: Managing Fairness
Political Issues: Managing Freedoms
No solutions, only questions!

3. How to manage internet traffic in a way that is economically efficient, legally justifiable, and respects human rights?

4. Technical Issues: Managing Capacity
New services and digital convergence
But the same old wires and connections
The long-term solution – more innovation, better infrastructure
But in the short term, traffic is managed… but how?
By volume?
By application?
By IP address?
And for what motivation?

5. or…
Sources: Wikimedia Commons:
Monty Python Wikia:

6. Economic Issues (1/3): Managing Interests and Externalities
The Virtuous Circle:
Better content and services…
… over better networks…
… lead to more demand…
… and so more investment and competition
(and/or the other way around)
Innovation in Services and Networks
Increased Demand for Broadband
Increased Investment and Competition
Source: OECD

7. Economic Issues (2/3): Managing Interests and Externalities
Consumers want to:
Get value for money (Closed garden? Open prairie?)
Risk of abuse?
Established Content Producers want to:
Maximise revenue – optimise customer base
Minimising costs – avoid additional payments
Potentially do deals?
New/Non-Commercial Players want to:
Maximise reach
Free access a ‘subsidy for creativity’
Shared interest in high quality, low cost connection

8. Economic Issues (3/3): Managing Interests and Externalities
For ISPs, a long term interest in better content, and loyal paying customers
But investment is uncertain
In the short-term:
Need to recoup costs of investment, reward shareholders (and invest), so…
Find efficiencies through traffic-shaping
Seek money from other ISPs?
Seek money from content providers?
Seek money from consumers?

9. Legal Issues: Managing Fairness
One Gatekeeper or Many?
Competition – promote consumer welfare, now and tomorrow
Can consumers switch?
Costs?
Transparency vs confusopoly?
Lower barriers to entry?
But if not
Enforcing quality of service
Enforcing net neutrality

10. Political Issues: Managing Freedoms?
Not just any type of telecoms network
Universal
Non-commercial origin
A human right?
Privacy implications
Fears of reversing freedom of expression and access to information gains?

11. Sources
Lee, Robin S. and Wu, T. (2009), Subsidizing Creativity through Network Design: Zero Pricing and Net Neutrality, Journal of Economic Perspectives (Vol. 23, No. 3, Summer 2009), pp 61-76
OECD (2016), Digital Convergence and Beyond – Innovation, Investment and Competition in Communication Policy and Regulation for the 21st Century – Background Report for 2016 Ministerial Meeting on the Digital Economy
Evans, D. (2011), Net Neutrality Regulation and the Evolution of the Internet Economy, Paper submitted for a hearing by the OECD’s Working Party on Competition and Regulation
Werbach, K. (2013), The Development of Fixed Broadband Networks, OECD Digital Economy Papers No. 239, OECD Publishing
Cave, M. (2011), Competition and Consumer Protection Issues in the Net Neutrality Debate, with Special Reference to Europe, Paper submitted for a hearing by the OECD’s Working Party on Competition and Regulation
Wu, T. (2002), A Proposal for Network Neutrality
Wu, T. (2005), Network Neutrality, Broadband Discrimination, Journal on Telecommunications and High Tech Law (Vol 2)
OECD (2007), Internet Traffic Prioritisation: An Overview, OECD Publishing