Transcript Technology and Convergence Looking Back and Looking

Overview of Network
Neutrality
Kyle D. Dixon
Senior Fellow & Director, Federal Institute for Regulatory Law & Economics
The Progress & Freedom Foundation
Presented to the California Foundation on the Environment and the Economy
Roundtable Conference on Telecommunications and Advanced Technologies
May 4-5, 2006
Overview of Network Neutrality
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What is network neutrality?
Increasing complexity of the concept
Public policies and proposals
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What is Network Neutrality? – Out with the Old
Telephone
Cable Video
Broadcast
Traditional Communications Networks
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What is Network Neutrality? – In with the New
Applications, Content and Devices
Internet Protocol
Network Infrastructure
Broadband IP (“Edge”) Networks
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What is Network Neutrality? – The Opportunity
Traditional
Networks
Broadband IP
Networks
Intramodal
Competition
E.g., telecom
resale, UNE-p,
leased access
E.g., voice, video
or data content,
applications, etc.
Intermodal
Competition
Minimal
Existing and
potential
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What is Network Neutrality? – Early Conception
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Origins in “open access” debate (i.e., choice
of ISPs on cable modem service)
Consumer perspective: freedom to use
broadband to access content, applications
and devices of their choice
Company perspective: broadband networks
may not “discriminate” in favor of their own
or affiliated content, applications or devices
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Increasing complexity – Blocking/Degradation
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Blocking – not allowing certain data traffic to
reach end user (e.g., blocking voice packets
or ports)
Denying interconnection – refusing to link
networks physically
Re-routing – manipulating routes taken by
certain data traffic
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Increasing complexity – Network Management
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Quality of service – adjusting network
performance for specific applications
Security – preventing viruses, spam, etc.
Spectrum reservation – on broadband
connection for affiliated content, applications
Traffic shaping – limiting bandwidth available
for specific applications or end users
“Acceptable use” policies
“Caching” – storing content nearby
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Increasing complexity – Premium Service Fees
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Prioritization – speeding delivery of data for
extra fee to consumer or service provider
Tariffed tiering – offering content/applications
providers fee schedule for improved delivery
“Access charges” – charging
content/applications providers to deliver
traffic to end users over “last mile”
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Increasing complexity – Limits on Networks
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Technical feasibility
Commercially sustainable (e.g., avoiding
“bypass” on other networks or dodging
intended constraints)
Acceptance by government
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Increasing complexity – Limits on Networks
Likely to Prohibit:
• Blocking
• Denial of interconnection
• Re-routing traffic
• Access charges
Case By Case:
• Virus, other security
• Spectrum reservation
• Traffic shaping
• “Acceptable” uses
• Caching
Probably Allow:
• Quality of service
• Prioritization of traffic
• Tariffed tiering
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Public Policies and Proposals – The FCC
Net Neutrality Policy Statement
 Codifies commitment to openness and
competition among broadband networks
 Limited where harm to network, law
enforcement needs
 Rejects industry-wide rules at this time
Bell Merger Conditions
 Temporary, limited to merging companies
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Public Policies and Proposals – The FCC
Intramodal
Competition
Intermodal
Competition
Traditional
Networks
Broadband IP
Networks
E.g., telecom
resale, UNE-p,
leased access
Voluntary
access to
content; agency
can intervene if
necessary
Minimal
Regulation
could thwart
investment,
consumer
choice
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Public Policies and Proposals – Congress
Congress
 Several bills address net neutrality
 Approaches vary:
 monitoring/enforcement of Policy Statement
 abuse of “market power” test
 specific prohibitions with exceptions reflecting
evolving concept of “neutrality” his time
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Division on this issue may complicate
statutory reform generally
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Stay tuned . . .
Kyle D. Dixon, Senior Fellow
The Progress & Freedom Foundation
Phone: 202-289-8928
[email protected]
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