Net neutrality is half-dead: Court strikes down FCC’s anti-blocking rules
arstechnica.com
arstechnica.com
The FCC could change their rules to treat broadband suppliers as common carriers. However, that's something that big-name broadband providers don't seem to want, as it would reduce their freedom of operations.
These things matter.
Of course, such a decision would itself be challenged, with ISPs arguing that what they do is not "telecommunications" as defined in the Telecommunications Act (I'm not saying this argument would be correct, but its not an uncontroversial position that the conflict between the order and the law can be remedied by simply reframing the order without a change in the law.)
- Allow for consolidation of radio stations (and thus, the meteoric rise of ClearChannel)
- Allow for consolidation of telecommunications companies (and thus, almost the major phone service companies are the progeny of the Baby Bells)
It also did some very good things, like requiring entrants into the data services market to interconnect with incumbents.
But it also allowed telecoms to rip off the USGOV and taxpayers in extraordinary lengths (see previous discussion on HN: https://news.ycombinator.com/item?id=7021057 )
The DC Court handles all of these big, Federal cases that make the top of HN. A President's impact on the DC Court is almost as important as their impact on the Supreme Court.
No, it doesn't. The Court of Appeals for the DC Circuit handles appeals of federal regulatory agency decisions, but -- while this FCC decision is an example of those -- you don't see a lot of them make the top of HN. Most of the "big, federal" cases that make the top of HN are either:
1) criminal cases, which go to trial in the District Court in which the crime occurred, and for appeal to the Circuit Court in which that District Court is located (which might happen to be the DC Circuit if the trial was originally in the District Court for the District of Columbia, but usually that's not the case); or
2) coyright cases, which again go through any of the District Courts for trial, and the corresponding Circuit Court for appeals; or
3) patent cases, which go to trial in the District Court in which the crime occurred, and for appeal to the Court of Appeals for the Federal (not DC) Circuit.
While the DC Circuit is very important, its not that commonly involved in cases that make the front page of HN.
Note that Silberman's dissent was because Silberman thought the whole Open Internet Order should have been struck down (including the disclosure requirements), while Rogers and Tatel only thought that that the requirements they characterize as "common carrier" requirements (non-discrimination and non-blocking) should be struck down.
So this wasn't "Clinton appointees vote against FCC, Reagan appointee backs FCC".
http://online.wsj.com/news/articles/SB1000142405270230393690... "For the 12-months ending in September, the D.C. Circuit had 149 appeals filed per active judge. By comparison, the 11th Circuit had 778 appeals filed per active judge for the same period... The national average of appeals per active judge is 383."
These things matter.
Of course, I'm not at all surprised to see a News Corp outlet overlook a critical distinction that is inconvenient for the propaganda interests of the Republican Party.
The D.C. Circuit's docket consists very disproportionately of highly complex regulatory appeals, which take much more time than simpler types of cases. These cases are not only often very factually complex, but of a nature that leaves more scope for appellate review. Roughly speaking, when a circuit court reviews the factual findings or discretionary actions of a lower court, it does so deferentially. E.g. an appellate court reviews sentences imposed by a district court only for abuse of discretion. However, a circuit court reviews the legal conclusions of a lower court from scratch (de novo). Regulatory appeals in the D.C. Circuit are much more likely to turn on complex issues of legal interpretation that the appellate court must review from scratch, than on factual disputes that the appellate court need only review for clear error.
The D.C. Circuit has 10% criminal cases. 5 circuits have above 25% criminal cases. The D.C. Circuit has over 30% administrative cases, most circuits have under 10%. The D.C. Circuit has almost no private prisoner cases (cases by prisoners against state officials for violations of rights), while most circuits have over 15%. The D.C. Circuit has over 20% U.S. civil cases (civil cases in which the U.S. is a defendant), while most circuits have under 5%.
Even within those divisions there are relevant distinctions. An appeal from the Board of Immigration Appeals is an "administrative" case, but it's a much simpler matter to resolve, usually, than say a challenge to an EPA regulation. So while the 9th Circuit has almost 30% "administrative cases," each of those are likely much simpler to resolve than each administrative case on the D.C. Circuit's docket (not many people are getting deported from D.C.)
As an aside, why do you say that the DC Circuit is "underworked" instead of saying that the 11th Circuit is "overworked"?
If you're right that the 11th Circuit is overworked, then that point actually cuts against your argument: let's put more judges there where they need more help, and not the DC Circuit.
The system is, we have these seats, created by acts of Congress, which need to be filled. The President nominates candidates -- ideally candidates recommended by the Congressmen in the region, for regional appointments -- and the Senate vets them, and confirms or denies their appointment. The Republicans, however, aren't playing fair: they have been refusing to even allow votes on the candidates, even while admitting the candidates are qualified. Furthermore, they are not cooperating in the nomination process, refusing to recommend candidates to the President.
It's not fair, and everything after that is camouflage. If it was really a concern about the workload of the judiciary, and act of Congress could add or remove seats as necessary. But it isn't, and Congress isn't acting -- they are refusing to act, never in good faith and rarely at all.
They refused to classify the providers in a way that gave them express statutory authority to promulgate these regulations, and the court called them on it.
I want to see this happen, but the right way is for the FCC to stop pussyfooting around and classify them as common carriers, which they are, so it can regulate them as such.
They are just afraid of the political whining.
It's comments like these that make me not like net neutrality. There is no way you are going to stop people who spend more money from being able to enjoy better Internet connections.
On the other hand, ISPs ought to be stopped, in general, from discriminating against traffic based on a) their desire to sell their own service that competes with it, or b) who you are connecting to.
Your interpretation is ... strange. The big telecoms are publicly owned. So those "rich people who own the ISPs" are shareholders?
I'm pretty sure zem referred to "rich" and "poor" consumers of internet services. Not telecoms, not corporations.
Agreed, so there's no need to give them more ways to enhance their advantage. They are too far ahead already. Because that's what is all about...
Followed by the tort lawyers saturation bombing ads for class action lawsuits alleging breach of contract and tortious interference in contracts.
You can't prioritise some packets without disadvantaging others. Unless the rules were crafted very, very carefully (and, let's face it, do we really think that would happen), I could easily envisage major connectivity providers auctioning off a handful of "prime video streamer" slots to companies like YouTube and Netflix, leaving other companies' services unusable. And that's just what I can imagine - the unintended consequences that I can't imagine are potentially far, far worse.
We got from 14.4k dial-up to multi-megabit always-on broadband (both fixed-line AND mobile) without compromising on net neutrality. The potential disadvantages far outweigh the claimed advantages.
Net neutrality does nothing for rich or poor. The rich already benefit from better connectivity and internet access. Net neutrality doesn't automatically make internet cheaper either, in fact, it may make it more expensive because the telecoms cannot complement their internet fees with money collected from Youtube and Netflix for priority access. So at least theoretically, net neutrality could imply higher internet fees for the end-user.
I don't know which way you lean ideologically, but your line of reasoning is similar to arguing that cable packages are unethical, because the rich have better access and selection than the poor. You can argue it, but I'd disagree. The USA, along with most of the world, has a mixed economy which has capitalism as its foundation, complemented by a strong government which provides for common infrastructure, safety net, and regulation. There's a very good reason for having such a system, but it does mean that there will exist poor and rich (and everything in-between). Saying something is unethical just because there would be a difference between what the rich and the poor would have available to them is irrational. It most certainly doesn't apply to Net Neutrality.
//
For the record, I do support Net Neutrality, but I wouldn't characterize it as a moral or ethical issue. I see it as just good policy because it levels the playing field between big and small players, which makes everyone better off (rich and poor). Microsoft, Netflix, Google, Apple, Amazon are going to be fine in a non-net-neutral world, startups and mid-sized companies will be at a disadvantage.
They should be given two options: 1) open network and they can keep all their extras like security or 2) close network but no extras.
HD Video streaming services and software downloads (e.g. via Steam or Xbox) are probably the things most affect by Net Neutrality, especially since telecoms have competing services and those types of services benefit immensely from unlimited caps and lots of bandwidth.
So I'm still confused as to what argument you're trying to make. You're hand-waving quite a bit trying to position it as a grave ethical issue and I just don't see it. Again, I think Net Neutrality should be the law of the land. It benefits everyone (except telecoms) and it's been a huge success so far. Let's keep it.
But, even if we were to take your assumptions at face value, I'm not sure how you gloss over other details (such as their ability to price competitors like Netflix out of the market or essentially hold their users for ransom to the highest bidder).
Given that they are quasi-monopolies in most cases, these are certainly issues that deal with consumer choice on one end and access to opportunity on the other (i.e. for content providers, startups, etc.). In other words, these are issues of fairness. How can something be both made willfully unfair, yet be ethical? Would you not agree that fairness as a principle is morally right? That is the definition of ethical.
You made the argument in another comment that it's no more a matter of ethics than is raising taxes. But, certainly you can envision a scenario under which taxes can be raised in a manner and/or at the behest of certain groups which would make it unethical?
If none of this makes sense to you, then therein lies the divergence. It's one regarding the basic definition of ethical.
>How can something be both made willfully unfair, yet be ethical?
Is it unethical that Yankees spend twice the league average on their ball-club because it is most certainly unfair. After all, not every team gets to be based in New York.
And I'd be careful with words like 'fairness'. A socialist and a libertarian will have vastly different definitions of what is 'fair' and what is 'unfair'. To you it's unfair that Netflix may get priced out by a Telecom, but then again, Netflix didn't spend billions building and maintaining the infrastructure, as well as acquiring all those customers. Telecoms got subsidies to build their infrastructure, but they never agreed to Net Neutrality. Is that fair?
Yes, they are quasi-monopolies, and they are regulated as such. There are things they can do, and there are things they can't do. The things they can't do aren't things that are necessarily unethical. They are just regulations passed by democratically elected representatives.
So why is it so wrong in treating Net Neutrality as just a legislative issue, as opposed to a violation of a non-existent human right?
>But, certainly you can envision a scenario under which taxes can be raised in a manner and/or at the behest of certain groups which would make it unethical
Yes, I can envision such a scenario but low or high tax policy still isn't intrinsically an ethical issue. All you've argued is that it may be unethical to cheat the system in order to pass your pet tax policy. So yes, measures which are used to pass pro or anti net neutrality laws may be unethical.
Neither did the telecoms spend billions in developing movie streaming software, yet they benefited from all the content consumption.
> Telecoms got subsidies to build their infrastructure, but they never agreed to Net Neutrality. Is that fair?
Neither did they explicitly assert that they will be net-biased.
If the net wasnt neutral there would be no google we'd all be stuck using yahooor dogpile. The net and all its services would look a lot more like cable was begining to. I find it hard to take anyone seriously when they are defending companies that would have you pay in the blood of your first born if they could get away with it. You think the net would have gone mainstream? You think that facebook would exist? Amazon?
The world has changed with open unfiltered acess to the internet, anything trying to lock it down and monopolise the network transmissions at a base level is incredibly unethical and an attack on so many parts if your life now.
Its too much of a burden on carriers to be regulated like they should be? Fuck me man, its too much of a burden on the world at large not to.
The fcc needs to call them carriers, be done with it, fix the pricing, fix the dodgy dealing and if need be deregulate the issues that seem to be getting isps in such a huf.
We have heavily subsidized these companies. It's a bit of a rouse to say that they never agreed to Net Neutrality so shouldn't be beholden to it. The need for Net Neutrality arose because they wanted to go beyond their purview and accrete more power unto themselves. They are supposed to be serving customers, not holding access to them for ransom. Yes, they have invested in their infrastructures, and their reward is that they get to charge customers to access it, which they do handsomely.
BTW, your question implying some unfairness to the ISPs goes beyond a question of ethics (on which we'll agree to disagree) to an argument against Net Neutrality. Maybe that's where your real disagreement lies and the question of whether it's an ethical issue really isn't "all you're arguing".
So, according to you allowing a light weight to fight a heavy weight is ethical? In my view, it is not. Big corporations enjoy already great advantages that come from their size. If we let this go, we'll turn an oligopoly into a monopoly.
So imagine now if some ISP will have to BUY access to Netflix, Google, etc. So say 5 years from now, 1 carrier gives you Bing, Yahoo and Twitter while the other one gives you only Google. If you take the former you'll have to buy a proxy into Google because Google didn't pay the carrier and the carrier doesn't want free rides on his network. This could deteriorate faster then we might dare to think.
It's neither ethical nor unethical, that's all I'm saying. It's like saying "tax-cuts are unethical because of one thing or another". You can try to argue that, sure, but I think it'd be irrational.
By the way, I do support Net Neutrality because it's a good policy that makes everyone better off.
In some philosophical traditions making everyone better off is the actual definition of ethical.
Everyone except telecoms (and possibly the big guys who could afford the telecom toll).
Introducing extra data fees isn't necessarily the walled garden, I suppose, but depending on the structure, it walks us back some degree on the spectrum between the web and AOL.
The problem you have here is simple: The messaging is very hard to get to politicians in a way that makes it clear what a big deal this is, and how bad it's been.
They have no concept of things like "broadband speeds". On one side, they get told by the telecom union, verizon, comcast, ex-FCC chairs who are now lobbying, etc, that "if you impose these rules, we'll lose jobs and money, and it'll make the world a worse place. Plus, regulation has been stifling us for years. We want to do amazing things like increase speeds in your area, but we can't afford to invest if we have all these regulations, and if these guys won't pay their fair share" (The telecoms have their own made up presentations about how they really didn't waste billions of dollars and give people nothing in return but higher prices)
There is a lot inaccurate with this message, but it's still hard to counter. When what you mostly have is industry groups and tech companies arguing on the other side, it is hard for politicians to not believe their main beef is "we don't want to pay for this".
The "consumers are already paying these costs, people shouldn't pay twice" argument doesn't really fly.
If it affected politicians and their constituents ability to watch football, this would be easy.
Instead, it usually seems like it just affects some confusing and far away thing they don't want to bother understanding, or worse, take the telecom companies side on.
This would be a lot easier if there were millions of tech people arguing on the right side here, but that never actually happens
(I'll also point out Google took a huge hit back then for getting what it could out of this, when it was fairly clear even then that the FCC's position was going to be a loser in court. It was raked over the coals by everyone, including the same organizations now commenting on this court decision saying how the FCC should do something different. It was clear the FCC wasn't going to change its mind then, and Google at least got people something out of this nothing. Of course, i'm quite biased here).
Effective lobbying organizations have learned to speak the language. Environmental organizations these days aren't appealing to the duty of people to preserve the environment for future generations. They're talking in terms of externalized costs and how allowing pollution undermines economic efficiency.
From the FCC's point of view, the decision not to regulate the internet was considered a huge win. To this day, they crow about how abstaining from applying the heavy-handed common carrier regulations to internet service allowed it to blossom into what it is today. It's considered a massive success for policy that favors deregulation and private investment.
You can't get anywhere in this sort of environment speaking the language of "neutrality" and "openness." Post-Clinton, nobody in Washington speaks that language anymore.
And to be perfectly fair to everyone involved, nobody wants ISPs classified as common carriers, not with all the additional baggage that entails. Maybe Congress needs to legislate to give the FCC authority to implement certain "light touch" regulations over internet providers, but nobody wants to go back to the bad old days of oppressive 1950 s-1970's style regulatory burden.
When you say " To this day, they crow about how abstaining from applying the heavy-handed common carrier regulations to internet service allowed it to blossom into what it is today."
You hit the nail on the head here. Of course, this mixes up correlation and causation, but yes, the FCC somehow believes they played some role in all of this, when in fact, things happened despite them, not because of it...
The carrier have no reason to negotiate any regulation at all. Everyone is willing to give them everything they want, for nothing. The only thing that scares them is the uncertainty of courts, and they are doing wonderfully there :)
Give up the lobbyist payola, reclassify them, and introduce some real competition to my now more frequent than annual Crapcast price bumps (or significant humps, as it were).
(And in my case, this is primarily for Internet, although basic cable comes along as a quasi-freebie -- it costs, but then a discount on the combined package largely or totally negates that cost.)
Otherwise, you can bet I'm not voting for either major party, next time around.
As a consumer, I find that the only way to defeat this bullshit, is to stop paying for it. If I had an alternative to Crapcast in my neighborhood, I'd take it. (I don't count AT&T, because for a lonnngggg time they refused to deploy high speed Internet here, and because their policies and behaviour are just as bad. As well, they've personally screwed me in a prior location, as I've commented before.)
You do understand that regulating carriers as if they were utilities but then demanding more competition is inconsistent? Utilities get monopoly protection in return for offering universal service. That's the quid pro quo.
So there's one and only one highly regulated cable provider, and one and only one uverse , not sure about the WISP thing...
Let some government cost accountants loose on these incumbents' books. Then let me buy my capacity from a company that isn't trying to screw me vertically nor horizontally and that doesn't e.g. conscript me into a basic cable TV package when all I want is Internet.
Perhaps then, as well, we would be able to actually segregate infrastructure development and maintenance costs and be sure we are getting what we are paying for. E.g. if my cost goes up, it's because I'm actually getting more in return. At a time when wholesale bandwidth costs have been halving year upon year (at least, as of a couple of years ago), the near doubling of my monthly bill over the past few years is sorely in need of some -- independent and measurable and demonstrable -- justification.
Finally, Internet is no longer a luxury. It's a necessity. With often only a single distributor in many locations, they are effectively a common carrier.
After all the bad behaviour on the part of these companies, I have ZERO sympathy left for them. They've abused their positions. It's time for that abuse to end.
P.S. Yeah, I'm pissed. Probably not the best position from which to comment.
This month's Crapcast bill contained another circa 5.5 % increase -- for nothing. It's been well less than a year since their last increase, and inflation is running far under that figure.
As for build-out costs: I notice when my neighbours (that's one family of two adults) are home on weekends, because my one, rather occasional Netflix stream drops from quality 4 to 3 or not infrequently to 2. They aren't doing diddly to improve capacity/delivery in my neighbourhood.
One company maintains and lays cables, other provides connectivity to said cables etc. Which means that you could buy connectivity to internet from various suppliers depending on your needs.
Essentially if a company has to rely on other companies and cannot do the work themselves if they are capable of doing so, then results and competition may actually suffer if there are weak links or no competition at any point in the chain.
This isn't what stops it. Most honestly believe they are doing the right thing when they oppose it.
Ignorance, not maliciousness.
I hear that the US, there are only 2 ISPs: one of the big 2, or the little local one. In France, we have about 4. At the other end, we have Google, Amazon, but most notably we have YouTube and Netflix.
Clearly the market is not efficient. Why do we have so big players in the first place? Why do we tend to have only the big players?
Because of the infrastructure. In the way the internet is distributed, artificial economies of scale and barriers to entry favour the big ISPs (this is clearly the case in France, I suppose the US is the same). And, we have asymmetric bandwidth, which kills peer to peer exchanges. If people were allowed to host servers at home, there would be no need for things such as YouTube, Blogger, or Facebook (search engine are still a thorny problem, though).
If we got rid of this over-centralization, it would be harder to discriminate your bandwidth in the first place. Net Neutrality would be the default, instead of something we have to fight for.
How does France have 4 providers? Wherever we tried line-sharing here, the ILEC would stop repairing the lines used by competitors until the customers switched to the incumbent.
It's still bad, and we still have a relatively high barrier to entry, but it is possible. There exist for instance a number of little non-profit providers (not among the big 4), who make do by sub-leasing part of the big one's network.
There are still problems of the sort you're talking about (like "it's not us, it's the other company your data goes through"), but as people are now able to cut themselves off completely from the historical operator, their actual provider has to (and do) take responsibility, and fix the line.
As an aside, it is somewhat written in our law that to be called an "internet connection", it must provide a public IP address, and the user must be able to do whatever she wants. There are violations (Orange blocks the outgoing SMTP port), but it mostly holds: users are all allowed to host servers —though asymmetric bandwidth makes this impractical. Note that mobile connections are called "data" deals, not "internet" deals.
It goes over the transition from telegraph to telephone to internet, talks about the rise of media conglomerates, and basically explains how we're in the mess we're in today. Quite an enjoyable read, especially when learning about the differences between old and new styles of monopolies.
We'll be getting some leading net neutrality scholars and lawyers to annotate the doc, so check back later today for interesting, in-depth analysis along-side the key passages in the case.
I'm currently reading Susan Crawford's book Captive Audience, which is a detailed history of this exact topic. Recommended. Here's a talk she gave at Harvard summarizing the story and issues at stake: http://www.youtube.com/watch?v=7R4xhwy-1oI
https://en.wikipedia.org/wiki/United_States_v._Paramount_Pic....
http://en.wikipedia.org/wiki/Comcast_NBC_merger
(thanks for the link, interesting reading)
http://www.ustelecom.org/news/newsletters/broadband-connecti...
Is it a difficult thing technically or only politically for the FCC to change their minds / admit they did this wrong in the first place?
What is the downside of treating the cable networks as communications media?
There are some thoughts on that here, though note the source: http://www.attpublicpolicy.com/government-policy/the-fcc-hav... .
"(1) Advanced communications services The term “advanced communications services” means— (A) interconnected VoIP service; (B) non-interconnected VoIP service; (C) electronic messaging service; and (D) interoperable video conferencing service."
"(11) Common carrier The term “common carrier” or “carrier” means any person engaged as a common carrier for hire, in interstate or foreign communication by wire or radio or interstate or foreign radio transmission of energy, except where reference is made to common carriers not subject to this chapter; but a person engaged in radio broadcasting shall not, insofar as such person is so engaged, be deemed a common carrier."
"(24) Information service The term “information service” means the offering of a capability for generating, acquiring, storing, transforming, processing, retrieving, utilizing, or making available information via telecommunications, and includes electronic publishing, but does not include any use of any such capability for the management, control, or operation of a telecommunications system or the management of a telecommunications service."
I'm not a lawyer, but consider myself well grounded in tech and telecom, but reading these definitions I'm kind of at a loss. In common law, my understanding is that a "common carrier" is someone that makes transport services available to the public. These can be physical, such as shipping a crate, or technological (telecom) in nature. By that inference, transporting packets of information is essentially same as transporting normal packages.
Unfortunately, the "by wire or radio or interstate or foreign radio transmission of energy" is so period-specific that one could argue that it doesn't apply and the (24) Information Services is so broad and vague, it could practically be applied to anything.
One interesting bit, which makes me think that there is hope, is the definition of advanced communications, that include both VoIP and messaging services. Sadly, their definitions are not that broad...
One of the key purposes of the 1996 telecom act was to deregulate the industry to the extent that it was possible. The FCC consequently decided to treat internet service as an "information service" under the Act, so as to avoid subjecting it to all the regulations applicable to "common carriers."
So while you could argue that modern ISPs resemble common carriers in certain ways, one of the ways they do not is that they are relatively unregulated, and there was a lot of intent and purpose behind the decision to treat them that way.
Consider a simple ad supported news site. It may run ads hosted on hundreds of sources. When the page loads, the browser requests individual images from different sources. If some are not paying the verizon tax or not paying enough, the page loads slower or with broken content. This is pretty foundational stuff. It really isn't all that different from having different audio quality in a phone call depending if the local exchange operator was paid extra or not.
As the result, it seems to me that classification and the additional regulation is warranted.
freight n. - Goods carried by a vessel or vehicle, especially by a commercial carrier; cargo.
Packets are neither classified as people nor freight.
I'll clarify two things here. First: this actually had a net-positive effect on telephone communications in the US. Regulators were initially more informed, and Vail was able to grow AT&T by making legitimate concessions and demonstrating universal access and service. Second, we know in hindsight that this was also the start of a practice of regulatory capture, but regardless, that the history of regulating telecommunications has often-times been beneficial even when the regulators were biased.
Actually, web neutrality means the ISPs should treat all data in their network equally.
Does anyone in the industry know what this is all about, and what importance this decision really has on the future of mobile?
Everybody loses in the short term because the future is uncertain.
Edit: Wrong TLA agency
The Federal Trade Commission (FTC) has nothing to do with this.
The Federal Communications Commission (FCC) does.
> Everybody loses in the short term because the future is uncertain.
The incumbent carriers that had already been instituting practices that violate the at least the non-discrimination provision clearly benefit in the short term.
So say I want to create in my garage, an online store to compete with Amazon selling in the pet rock market. Oh what a pity, all your online shopping traffic got dropped at our border routers. We can "fix things" for you for a modest fee, just like Amazon. Of course we have a minimum payment of $50M/month to "fix" things. Oh you say you can't pay $50M out of your garage? Well our internet isn't for people like you anymore.
So yes, its very good news for large content providers because it eliminates any need for product development and eliminates competition.
The other way it eliminates competition is Amazon might be able to afford a department of a couple people to do nothing all day but negotiate with ISPs, but a startup could never spare the manpower. So startups could only release on TWC or Charter or AT&T or ... rather than everywhere on the internet.
[1] Though, I think small sites would just engage in collective bargaining of sorts.
The fact that it doesn't work that way already is largely just an accident of history, and I don't know if its necessary to keep that status quo artificially. Small entities are just in a bad leverage position, especially when their "product" depends heavily on someone else's very expensive and hard to reproduce infrastructure. Look at the app market. The people selling the infrastructure (Apple, Samsung) make all the money, because lots of people can write apps but very few can build cell phones. That's the natural state of things.
The people actually building the infrastructure (Android) arent't making much any money with it, while those using it (Samsung) are. That is how its supposed to work; if power companies and utilities had been able to extract all the profit from manufacturing companies and discriminate against specific ones or have the ability to simply deny necessary upgrades, we would still be using oil lights.
I also respectfully disagree on the "very expensive" part. Internet access is one of the cheapest basic services, trivial to scale and the variable costs are basically zero. There is no inherent difficulty in transporting bits! Consider other infrastructure. Providing reliable electricity is very difficult (you need to balance demand and supply at all times), there is a very harsh regulatory environment that is constantly changing (in some countries, pocos need to prioritize renewable energy and pay guaranteed prices to customers inserting it), the hardware necessary is copper-heavy and poses significant reliability and safety issues.
Meanwhile, we are being reluctant to regulate internet providers to the point where they are the fast, dumb pipe we need, because lawmakers are clueless how this internet thing works (the 'cloud' isn't helping) and internet providers have this dream where they are the premier entertainment and media source (wakeup; YouTube and Netflix exist).
And there is nothing cheap about providing internet access. AT&T and Verizon lead the country in annual capital expenditure: http://news.investors.com/technology/091913-671712-institute....
> Meanwhile, we are being reluctant to regulate internet providers to the point where they are the fast, dumb pipe we need
Why should we regulate the telecoms into being fast, dumb pipes because that is what best serves the Youtubes and Netflixes of the world?
> because lawmakers are clueless how this internet thing works
There is a difference between not understanding the internet, and having a different value structure with respect to the internet. Saying that telcoms should be "fast, dumb pipes" isn't a matter of technical fact. It's not a part of any RFC. It's a (very software-centric) normative judgment about how the ideal organizational structure of the internet. It's certainly more consistent with how most software people view the internet to treat the physical infrastructure as dumb pipes, but that view has no technical basis. TCP/IP works just fine if AT&T gives higher priority to packets originating from companies that pay to play.
Of course it's not a technical fact. The basic idea is that regulating them to be the dumb pipe can yield the biggest gain for the general economy, while they get the benefit of a low margin, but extremely stable business (as with any other infrastructure).
The obvious problem right now is that instead of competing with each other, internet providers are trying to compete with their customers. That is not the sign of a working market, and it is not acceptable for critical infrastructure. Regulation is needed, and certainly not towards giving providers more flexibility.
It's hilarious for you to say CapEx doesn't matter, then invoke Moore's law, which is rooted in exponentially increasing CapEx! Guess who is in the top-5 of the CapEx list along with AT&T and Verizon? Hint: it's Intel.
Small entities already pay their fair share for access to that infrastructure. Have you forgotten that startups have to pay for their Internet service? The Internet is not a fancy cable TV system where service providers negotiate contracts with websites. Nobody needs "leverage" on the Internet; you are limited by your technical capabilities, not by your negotiating skills, and that is what makes the Internet a great step forward.
Net neutrality is why we do not talk about "paying for Verizon access" or "paying for Comcast access," but rather, "Paying for Internet access."
Imagine an urban parking lot that's near a number of stores. For awhile, it operates on a non-discriminatory basis. Everyone pays to park, and then goes wherever they want. One day, Wal-Mart moves in and cuts a deal with the parking lot. In return for a giant check each month, the parking lot will let Wal-Mart customers park for free. Now, Wal-Mart has a huge edge over the neighboring mom and pop stores. Is this wrong? Or is this just how the world works?
What you're doing is making a normative point: nobody should need leverage on the internet. That's a fine thing to believe, but it's just a belief. It's nothing inherent in the architecture of the internet.
No, but the technology is also not designed to facilitate such discrimination, and everything about the design of the Internet assumes net neutrality. There is nothing in TCP/IP that uniquely identifies services, nor anything that facilitates a notion of classes of service. One service may have multiple hosts and multiple IP addresses. One IP address may be shared by multiple services. It may or may not be possible to inspect packets to determine which service they belong to; nowhere is any promise of "inspectability" made.
So while nothing prevents it, imposing such fees does require substantial new infrastructure to be deployed and new protocols to be developed. In other words, the Internet itself has to change to accommodate such a system -- because as designed, the Internet assumes neutrality.
The FLOSS advocate in me is sad, as this is a compromise that I don't want to see go away.
"The court is saying the FCC needs to reclassify providers"
"The Republicans are holding up nominations"
so on so forth.As for wired connections, I see a way to get competitive pricing there too. Neighborhoods and towns should invest in their own last-mile fiber, and then buy transit at competitive rates. They could outsource the operation of the local network, but they would retain ownership of it and can always get competitive bids for another operator.
If a web service is hosted, say, in Europe and is being consumed by a customer also in Europe, will they be affected? AFAICT, they shouldn't.
in theory vs. in practice