PeerFlow

Internet, Not Broadband, for National Policy

A national broadband policy is what you get when you put bellheads in charge. Fortunately, Scott Bradner has been on the Internet since the beginning, and explains the difference.

Broadband is not the Internet. Broadband is shorthand for a diverse class of wired and wireless digital transmission technologies. The Internet, in contrast, is a set of public protocols for inter-networking systems that specifies how data packets are structured and processed. Broadband technologies, at their essence, are high-capacity and always-on. The essence of the Internet is (a) that it carries all packets that follow its protocols regardless of what kinds of data the packets carry, (b) that it can interconnect all networks that follow those protocols, and (c) its protocols are defined via well-established public processes.

There’s risk in confusing broadband and Internet. If the National Broadband Plan starts from the premise that the U.S. needs the innovation, increased productivity, new ideas and freedoms of expression that the Internet affords, then the Plan will be shaped around the Internet. If, instead, the Plan is premised on a need for broadband, it fails to address the ARRA’s mandated objectives directly. More importantly, the premise that broadband is the primary goal entertains the remaking of the Internet in ways that could put its benefits at risk. The primary goal of the Plan should be broadband connections to the Internet.

It's a petition. Please sign it.

-jsq

PS:

Therefore, we urge that the FCC’s National Broadband Plan emphasize that broadband connection to the Internet is the primary goal. In addition, we strongly suggest that the Plan incorporate the FCC Internet Policy Statement of 2005 and extend it to (a) include consumer information that meaningfully specifies connection performance and identifies any throttling, filtering, packet inspection, data collection, et cetera, that the provider imposes upon the connection, (b) prohibit discriminatory or preferential treatment of packets based on sender, recipient or packet contents. Finally, we suggest that the Internet is such a critical infrastructure that enforcement of mandated behavior should be accompanied by penalties severe enough to deter those behaviors.

While you're at it, urge the FCC to stop talking about "consumers" and start talking about participants.

Lessig's Herculean Holiday Present: Reboot the FCC

Here's a good test for the new U.S. Executive: to recognize that steady pragmatism means radical change, starting with the FCC:

The solution here is not tinkering. You can't fix DNA. You have to bury it. President Obama should get Congress to shut down the FCC and similar vestigial regulators, which put stability and special interests above the public good. In their place, Congress should create something we could call the Innovation Environment Protection Agency (iEPA), charged with a simple founding mission: "minimal intervention to maximize innovation." The iEPA's core purpose would be to protect innovation from its two historical enemies—excessive government favors, and excessive private monopoly power.

—Reboot the FCC, We'll stifle the Skypes and YouTubes of the future if we don't demolish the regulators that oversee our digital pipelines. By Lawrence Lessig, Newsweek Web Exclusive, 23 Dec 2008

Lessig gets the connection with his old topic of intellectual property and copyright. Those are monopolies granted by the federal government, and they have been abused by the monopoly holders just like the holders of communication monopolies:

Users Revolted: Net Neutrality to Win

The world has turned upside down:

This column is dedicated to the top managers of American business whose policies and practices helped ensure Barack Obama's victory. The mandate for change that sounded across this country is not limited to our new President and Congress. That bell also tolls for you. Obama's triumph was ignited in part by your failure to understand and respect your own consumers, customers, employees, and end users. The despair that fueled America's yearning for change and hope grew to maturity in your garden.

Millions of Americans heard President-elect Obama painfully recall his sense of frustration, powerlessness, and outrage when his mother's health insurer refused to cover her cancer treatments. Worse still, every one of them knew exactly how he felt. That long-simmering indignation is by now the defining experience of every consumer of health care, mortgages, insurance, travel, and financial services—the list goes on.

Obama's Victory: A Consumer-Citizen Revolt, The election confirms it's time for sober reappraisal and reinvention within the business community. If you don't do it, someone else will, By Shoshana Zuboff

She identifies Apple as one of the few companies that has actually gotten it about how to do business, with its iPod and iTunes. As we've previously seen, this is because Apple gets it that Porter's Five Forces model of competition breaks when open distribution channels are introduced.

It appears that Mark Anderson, Odile Richards, and William Gibson were right: "See-bare-espace... it is everting." Cyberspace just elected a president of the United States. And he knows it.

Obama has been publicly in favor of net neutrality for at least a year. And he has not backed off. He's put Susan Crawford and Kevin Werbach in charge of reviewing the FCC. Now that's cyberspace inverted indeed!

An Integral Part: the Internet intertwined with everything else

This is what the Internet is best at:

My blog is an integral part of my life, and I'm neither ashamed of it, nor do I think my online friendships are lesser than physical friendships. And they become physical friendships, a lot of times. I travel all over the place, and whenever there's anybody in the area I try to meet up with them. I owe almost everything going on in my life right now to blogging and the Internet, and that's fine with me. The Internet does nothing so well as social networking. The other day, I realized I was living with someone I had met on LiveJournal, spreading jam I had gotten from a friend I met on LiveJournal, and having breakfast at a table I had bought on Craigslist — everything I was doing that day had to do with this glittering network of people I had found through the Internet. The blog doesn't really interfere with my writing because it comes from a completely different side of the brain. I do feel guilty when I get too busy and haven't posted, but I would never stop doing it. It's an integral part of the way I market my books and interact with my audience.

— Catherynne M. Valente: Playing in the Garden, Locus, May 2008

Valente writes fiction, yet many companies can attest to the same kind of intertwining of the Internet with everything else they do.

And there was not a word in there about wanting the Internet turned into cable TV.

-jsq

Fair Trade: Fixing Antitrust for the Internet

So suppose for the moment that net neutrality is an antitrust issue. Does this bill fix antitrust law enough to deal with it?

Federal lawmakers have introduced yet another network neutrality bill, but this time with a focus on fair trade issues.

This week, U.S. Rep. John Conyers, who chairs the House Judiciary Committee, has introduced legislation that addresses the issue by labeling it an antitrust matter. Conyers' H.R. 5994 would ban discriminatory network management practices by amending the Clayton Act.

The bill, labeled the Internet Freedom and Nondiscrimination Act, would require carriers to promote competition and allow people to use any device they want to on the carriers' networks. The bill makes exceptions for emergencies, criminal investigations, parental controls, marketing, and improvements to quality of service.

Under the Detroit Democrat's proposed legislation, ISPs could give preference to certain types of data, but they must give the preference regardless of the data source. It would ban ISPs from discriminating based on content, applications, or services.

— Lawmakers Eye Net Neutrality As Anti-Trust Issue, The Internet Freedom and Nondiscrimination Act would require carriers to promot e competition and allow people to use any device they want to on the carriers' networks. By K.C. Jones, InformationWeek, May 9, 2008 05:42 PM

And does this fix the problems Google and Ebay complain about?

Meanwhile, a cosponsor sums it up:

U.S. Rep. Zoe Lofgren, D-Calif., has co-sponsored the legislation.

"Recent events have shown that net neutrality is more than a hypothetical concern. We need a meaningful remedy to prevent those who control the infrastructure of the Internet from controlling the content on the Internet," Lofgren said. "This legislation will help guarantee that the innovative spirit of the Internet is not trampled."

-jsq

Internet Freedom Policy Act

Rep. Ed Markey (D-MA) and Rep. Chip Pickering (R-MS) have introduced the Internet Freedom Preservation Act of 2008, which will amend Title I of the Communications Act of 1934 to say Internet freedom, commerce, innovation, participation, and speech are the policy of the United States. It's interesting what this bill does not say. It doesn't specify any regulations, so that those who oppose net neutrality don't have a leg to stand on when they say net neutrality is all about regulation. It doesn't say "net neutrality": it says "freedom", "marketplace", "innovation", and other positive benefits. (I think I'll take a cue from Commissioner Copps and start referring to Internet freedom.) It doesn't say "consumers" except a few times, including once where that word is immediately qualified by

(i) access, use, send, receive, or offer lawful content, applications, or services over broadband networks, including the Internet;

Let's see, if "consumers" can send their own content, applications, and service, they're not really consumers in the traditional sense, now are they?

This is all very nice, in that Markey and Pickering apparently get it about what Internet freedom is about. However, why does this bill have no teeth, unlike Markey's bill of last year or the Snowe-Durgan bill before that?

Users Revolt: Net Neutrality Wins

This is the path to net neutrality:

"See-bare-espace... it is everting."

—Odile Richards, Spook Country by William Gibson, 2007

Long version:

Top Ten Predictions for 2008

1. The Users Revolt. As advertisers focus in on social networking sites, users revolt against this trend, and power shifts in the worlds of Social Networking from owner to user, on issues ranging from Second Life rules and Facebook privacy to Cellphone Billing. Users will gain new leverage.

— My Top Ten Predictions for 2008, Mark Anderson, Strategic News Service Blog, 22 December 2007

He picks up on some of many signs of users' discontent, such as Facebook's Beacon fiasco:

Consolidation Flood: What Will Really Stifle Internet Innovation

Advocates of the "exabyte flood" political campaign against net neutrality claim they are for innovation and that the coming flood of Internet usage will stifle innovation unless they get their way.

What will really stifle innovation on the Internet is this:

The Federal Communications Commission, at the urging of Chair Kevin Martin, voted 3-2 on Tuesday to relax longstanding rules that block corporations from owning a broadcast TV station and a newspaper in the same city.

— Uproar Over FCC Vote on Media-Ownership Rules, By Frederick Lane, Top Tech News, December 19, 2007 10:14AM

No, not specifically newspaper and television consolidation. Further consolidation of media and information distribution in the hands of a tiny number of companies. This December the FCC lets newspapers and TV stations consolidate. Last December it let SBC buy Bellsouth. Internet access is already in the hands of a tiny number of companies (typically at most two in any given area) that are increasingly moving to control the information they carry on behalf of a small number of companies including themselves and movie and music content producers.

The exaflood politics isn't really about how much infrastructure the duopoly has to build out. It's about maintaining the duopoly and extending its control of information, to the duopoly's short-term profit and the long-term detriment of of us all, including the duopoly.

-jsq

Clogged: Internet Demise Predicted, Again

I predict this prediction will be misused by the duopoly to lobby for more favoratism for the duopoly:

User demand for the Internet could outpace network capacity by 2010, according to a study released today by Nemertes Research. The study found that corporate and consumer Internet usage could surpass the Internet access infrastructure, specifically in North America, but also worldwide, within the next three to five years.

...

As Internet capabilities continue to expand and users strive to be constantly connected, usage of the Internet via the mobile phone, set-top boxes and gaming devices has exponentially increased thus limiting bandwidth capacity. This is due in large part to voice and bandwidth-intensive applications, including streaming and interactive video, peer-to-peer file transfer and music downloads and file sharing. According to ComScore, nearly 75% of U.S. Internet users watched an average of 158 minutes of online video in one month alone and viewed more than 8.3 billion video streams.

— Internet could clog networks by 2010, study says, By Sarah Reedy, TelephoneOnline, Nov 19, 2007 1:03 PM

If I had a nickle for every time imminent demise of the Internet has been predicted. This has been going on since before the Internet even existed, and the results have been different than in this prediction.

Normative net neutrality: Milton Mueller on free association and free trade

Free as in free speech, free association, and free trade: Milton Mueller drafts an Internet governance paper using net neutrality as its central principle.

... as a normative guide to policy, network neutrality transcends domestic politics. The network neutrality debate addresses the right of Internet users to access content, services and applications on the Internet without interference from network operators or overbearing governments. It also encompasses the right of network operators to be reasonably free of liability for transmitting content and applications deemed illegal or undesirable by third parties. Those aspects of net neutrality are relevant in a growing number of countries and situations, as both public and private actors attempt to subject the Internet to more control. Because Internet connectivity does not conform to national borders, net neutrality is really a globally applicable principle that can guide Internet governance.

— Net Neutrality as Global Principle for Internet Governance, Milton Mueller, Internet Governance Forum, 5 November, 2007

Basically, instead of getting mired in discussions of bandwidth or technical methods of stifling, throttling, or censorship, let's get back to deriving net neutrality from general political and economic principles, which turns out to make net neutrality a convenient lens by which to view those principles and to apply them to the Internet.

Mosh by Nokia: A Telco Invents Something!

I'm always complaining about the telephone companies, so this item is refreshing:

When George Linardos was ordered to clear his diary to help dream up new business for Nokia (NOK1V.HE: Quote, Profile , Research), he imagined six weeks brainstorming on the terrace of a five-star hotel in the Caribbean.

What he got was a pot of porridge every morning at a Spartan hotel hours from Finnish capital Helsinki, with forests and snow all around.

Seeing the same half a dozen faces for 45 days and craving greater social interaction, Linardos and his team came up with a site aimed at making informal networking easier, especially for people without access to a PC.

The result, Mosh (http://mosh.nokia.com/), a social networking site that is accessible from mobile phones, is the latest piece in the puzzle for Nokia as it tries to build an Internet stronghold to balance a maturing cellphone business.

— Nokia's Mosh marries mobile with social networking, by Tarmo Virki, Reuters, 23 October 2007

Not only invented something, but something the inventor personally wants to use! This is the way Unix got invented, and Linux, by that other Finn, Linus Torvalds. I don't know how successful Mosh will be, but that's not the point, no more than how well a talking dog talks. And it's also beside the point that the invention simply crosses two existing ideas: mobile phones and social networking web sites. Many inventions are like that. A telephone company invented something!

Of course, it wasn't a U.S. telephone company.

-jsq

SCO, Unix, and Net Neutrality

What does this have to do with net neutrality?

The Lindon-based SCO Group Inc. says it is planning to lay off 16 of its 123 employees and has asked a federal bankruptcy court to keep their identities secret because it fears they could be harassed.

SCO also is facing an effort to push ahead with a trial in federal court in Utah that could determine that SCO owes Novell as much as $35 million in licensing fees because of a ruling in a dispute over ownership of the Unix software program.

SCO filed for bankruptcy on Sept. 14, the result of a long court battle with Novell and IBM over ownership and use of the Unix computer operating system program. SCO claimed it, and not Novell, owned the copyright to Unix and that IBM had used parts of that code in developing the Linux operating system, whose code is open to the public and can be used or altered by individuals or companies for their own uses.

— Stricken SCO to lay off 16 workers, Lindon-based firm asks court to keep ex-employees ID secret, By Tom Harvey, The Salt Lake Tribune Article Last Updated: 10/15/2007 11:45:43 PM MDT

Unix was actually invented by a couple of researchers at AT&T Bell Labs, in an attic, in their spare time. AT&T never knew what to do with Unix, and eventually shuffled it off to Western Electric, whence it finally percolated over to SCO (I've probably omitted a few owners in between).

Meanwhile, Microsoft made billions out of an operating system (and clever legal ploys such as boot loader contracts). And Unix and its offshoots such as Linux underly everything from Apple's OS-X to mobile phones to Google.

This seems to me the archetypical example of why we shouldn't expect telephone companies to innovate, no matter how much of a monopoly they have. If we want innovation, we want net neutrality and competition.

-jsq

Os Invasores: Brazilian Malware Education Videos

At the Anti-Phishing Working Group (APWG) meeting in Pittsburgh, one common theme was that people still fall for scams like phishing, and have little comprehension of the various forms of malware that phishing uses.

The Brazilian Computer Emergency Reponse Team, CERT.br, has one possible solution: animated videos from antispam.br. So far they've got a pair. Navegar e Preciso explains how the Internet works, and goes as far as firewalls. Os Invasores explains viruses, trojan horses, worms, bots, and spyware (keylogger and screenlogger). Both videos are in Portuguese, but it's pretty easy to follow what's going on. Spanish translations are already in progress, and other languages will probably follow.

A virus looks like a little purple crab with yellow eyese and welding torch. A worm has google eyes and a long cable-connector tail. A bot looks a bit like a worm, but with shady Doonesbury eyes, a mechanical-looking tail, and in the foreground in hand with a toy remote control. I wonder how long before somebody makes mass market toys out of these characters?

Unfortunately, I couldn't watch these videos in Pittsburgh, because the hotel Internet "high speed" connection was so slow. Ironic, isn't it? The most innovative approach to user education I've seen lately comes from Brazil, and back in the U.S. of A. there's difficulty finding fast enough bandwidth to watch it. At the moment I'm elsewhere on a cable connection, which works, although the larger version of Os Invasores (22.4Mb) takes several minutes to get here.

-jsq

NYTimes Sets Itself Free

Two years ago the New York Times made its best marketing estimate of how to derive income from the web, and put many of its back stories beyond a paywall called TimeSelect, at $49.95/year or $7.95/month. Times change:

In addition to opening the entire site to all readers, The Times will also make available its archives from 1987 to the present without charge, as well as those from 1851 to 1922, which are in the public domain. There will be charges for some material from the period 1923 to 1986, and some will be free.

The Times said the project had met expectations, drawing 227,000 paying subscribers — out of 787,000 over all — and generating about $10 million a year in revenue.

“But our projections for growth on that paid subscriber base were low, compared to the growth of online advertising,” said Vivian L. Schiller, senior vice president and general manager of the site, NYTimes.com.

What changed, The Times said, was that many more readers started coming to the site from search engines and links on other sites instead of coming directly to NYTimes.com. These indirect readers, unable to get access to articles behind the pay wall and less likely to pay subscription fees than the more loyal direct users, were seen as opportunities for more page views and increased advertising revenue.

“What wasn’t anticipated was the explosion in how much of our traffic would be generated by Google, by Yahoo and some others,” Ms. Schiller said.

— Times to Stop Charging for Parts of Its Web Site, By RICHARD PÉREZ-PEÑA, New York Times, September 18, 2007

This is why it's a bad idea to let the telcos and cablecos determine what we can see or do on the web. Nobody can predict what will work best, especially for deriving revenue.

Hm, this would also mean that the duopoly's insistence on TV as the future of Internet revenue could be just as wrong for them as it is for the rest of us.

-jsq

PS: Seen on BoingBoing.

Twaddle v. a Wonder of the World

It's good to see a newspaper not mince words:

A free-for-all web (after normal monthly broadband charges have been paid) is one of the wonders of the world and a binding force for all communities.

...

The Federal Communications Commission has just been advised by the US department of justice, under heavy lobbying from the operators who stand to gain from higher data charges, that a neutral net might "prevent, rather than promote" investment and innovation. This is twaddle. An open-access net has produced one of the greatest surges of innovation ever recorded and has given an opportunity for people all over the world to communicate with each other and share knowledge on equal terms. Long may it continue to be so.

— In praise of... a freely available internet, Leader, The Guardian, Tuesday September 11, 2007

The Guardian brings up a related point:

It has only become an issue because the US Congress is scrutinising the question of "net neutrality", though why the US authorities - rather than an international body - should deem themselves to have jurisdiction over the internet is not clear.

The usual answer to that is that a properly constituted international body would do even worse. Although nowadays, it seems the otherwise unlateralist U.S. government is toeing the (pseudo-)capitalist international party line.

-jsq

Whatevermerit

Photograph by Martynka Wawrzyniak

Ashley Qualls, aged 17, builds a myspace site, Whateverlife, earns $70,000/month, quits school, buys house, refuses $1.5 million buy out.

Her MySpace page layouts are available for the bargain price of…nothing. They’re free for the taking. Her only significant source of revenue so far is advertising.

— Girl Power, by Chuck Salter, Fast Company, Issue 118, September 2007, Page 104

Ads by ValueClick Media, not DoubleClick.

Now imagine her doing this on a properly commoditized and monetized broadcast content duopoly-controled Internet. She wouldn't be able to get approval, and if she did, she wouldn't be able to afford the broadcast fees.

Internet freedom? Whatever!

-jsq

PS: Seen on SocialDailyNews.com.

Broadband Speed by Country

Letting a picture tell the story of how Japan, Korea, France, Poland, Portugal, and other countries have faster broadband than the U.S., here's a graphical illustration of average broadband speeds per country. Finland, Sweden, Norway, and Iceland I would expect, since they've long been fast. But Poland?

There seem to be two tiers. Japan and Korea are the top tier. Then Finland, Sweden, and France. Then a third tier starting with the Netherlands. The U.S. is either in that third tier or in a fourth tier, depending on how you look at it.

The source report, Assessing Broadband in America: OECD and ITIF Broadband Rankings, By Daniel K. Correa, Information Technology and Innovation Foundation, April 2007, also examines broadband uptake, in which the U.S. is also fifteenth in these OECD rankings.

Maybe it's time for a change. A change in public policy and the addition of competition.

-jsq

Warp Speed From Behind

As we've mentioned before Japan has Internet connections much faster than those in the U.S. This point is getting more mainstream media play:

Broadband service here is eight to 30 times as fast as in the United States -- and considerably cheaper. Japan has the world's fastest Internet connections, delivering more data at a lower cost than anywhere else, recent studies show.

Accelerating broadband speed in this country -- as well as in South Korea and much of Europe -- is pushing open doors to Internet innovation that are likely to remain closed for years to come in much of the United States.

The speed advantage allows the Japanese to watch broadcast-quality, full-screen television over the Internet, an experience that mocks the grainy, wallet-size images Americans endure.

— Japan's Warp-Speed Ride to Internet Future, By Blaine Harden, Washington Post Foreign Service, Wednesday, August 29, 2007; Page A01

So is it just for video? If so, maybe we'd better let the telcos have their way.

Facebook as PicturePhone

Jeff Pulver has an interesting point that orty years later it's an Internet company that delivers what a telco long ago promised:

During the past couple of weeks I have come to appreciate just how simple and easy it has become to send Video Messages to friends on Facebook. While the concept of a video phone dates back to the work of AT&T and their demonstrations at the 1964 World’s Fair, it has taken the advent of the Video application on Facebook and it’s general ease of use to get me to take the time and use it as part of my daily (Internet) life. While I have discovered how the Facebook video application can be used in various ways, my favorite is to send a personal video message to a friend.

— My Favorite Facebook Application: Video, Jeff Pulver, Jeff Pulver blog, August 27, 2007

While a telco did invent or at least publicize the videophone, forty years later it's an Internet application that delivers something like it on a mass scale. And maybe one reason the Facebook version of it is popular is that it isn't quite like what AT&T predicted: it isn't interactive television. Experience indicates people don't necessarily want to be seen live any old time regardless of their state of dress or coffee.

And more obviously, there's no fancy equipment to buy, so the worldwide clientele is already there on the Internet. It's the difference between distributed participation and being sold a centralized service.

-jsq

Achille's Dark Heel

Raymond Kelly John Arquilla

"The Internet is the new Afghanistan," [New York police commissioner Raymond] Kelly said, as he released a New York Police Department (NYPD) report on the home-grown threat of attacks by Islamist extremists. "It is the de facto training ground. It's an area of concern."

The report found that the challenge for Western authorities was to identify, pre-empt and prevent home-grown threats, which was difficult because many of those who might undertake an attack often commit no crimes along the path to extremism.

The report identified the four stages to radicalization as pre-radicalization, self-identification, indoctrination, and jihadization, and said the Internet drove and enabled the process.

— Internet is "the new Afghanistan": NY police commissioner, By Michelle Nichols and Edith Honan, Reuters, Wed Aug 15, 3:51 PM ET

Nevermind that this makes about as much sense as saying "the telephone is the new Afghanistan" or "talking is the new Afghanistan". Of course the Internet enables that process! The Internet enables every communication process.

Let's look beyond communication and information to what people think they know because of those things:

As the information age deepens, a globe–circling realm of the mind is being created — the “noosphere” that Pierre Teilhard de Chardin identified 80 years ago. This will increasingly affect the nature of grand strategy and diplomacy. Traditional realpolitik, which ultimately relies on hard (principally military) power, will give way to the rise of noöpolitik (or noöspolitik), which relies on soft (principally ideational) power. This paper reiterates the authors’ views as initially stated in 1999, then adds an update for inclusion in a forthcoming handbook on public diplomacy. One key finding is that non–state actors — unfortunately, especially Al Qaeda and its affiliates — are using the Internet and other new media to practice noöpolitik more effectively than are state actors, such as the U.S. government. Whose story wins — the essence of noöpolitik — is at stake in the worldwide war of ideas.

— The promise of noöpolitik, by David Ronfeldt and John Arquilla, First Monday, volume 12, number 8 (August 2007)

This sounds almost like what the NYPD is saying.

French FttH

In the U.S., it's difficult for a municipality to put up a wireless Internet service even if it's a disaster zone and the telco hasn't gotten its POTS service back up, because the duopoly doesn't want the competition. Meanwhile, in France:

Municipalities, cities, states, territories and regions are driving the French municipal (wireless and wired) broadband uptake as newly authorized by law. A new article of French “code général des communications” passed in June 2004 (law ref code is L-1425-1) gives these public entities the following rights :

1. build, subsidize and develop “passive” telecom infrastructure and provide/transfer them to carriers or independent local users.
2. build open networks on a given territory and provide/transfer them to a territorial carrier.
3. operate open telecommunications networks in respect of regulations.
4. provide telecommunications services to end users.

— Municipal broadband in France, by Esme Vos, MuniWireless, at 7:42 PM on September 5, 2005

The municipality does have to demonstrate that there isn't already a similar service, but given the "open networks" aspect, that shouldn't be difficult. Could this have something to do with why France is ahead of the U.S. in Internet connectivity and speed?

Apparently so:

Nowadays there are over a hundred projects, small and big. One famous one One famous one is the plan to do FttH in Hauts-de-Seine, the department chaired by Mr Sarkozy until he became President. Sarkozy was the man personally proprosing the FttH roll out in Hauts de Seine.

— Some French muni BB inspiration to Maybe Rep's Boucher & Upton? Dirk H. van der Woude, Interesting People, 5 August 2007

He points out that picture FCC Commisioner Tate and ARCEP Commissioner Gauthey have met, as in the picture. Perhaps soon we'll get a U.S. president who might be influenced by French president Sarkozy on this subject.

-jsq

FCC's Martin Wireless Auction Plan

The Post has some interesting analysis of which FCC commissioners said what when they approved Chairman Kevin Martin's 700Mhz wireless auction plan:

The "open-access" provision was endorsed last month by FCC Chairman Kevin J. Martin, a Republican, and gained support from the two Democratic commissioners, Jonathan S. Adelstein and Michael J. Copps. Deborah Taylor Tate, a Republican commissioner, also voted in favor of the deal. Martin said he hoped the proposal would encourage a new entrant to compete with the cable and phone companies that provide broadband service.

Republican Commissioner Robert M. McDowell voted against the proposal, arguing that placing any conditions on the sale of airwaves would hurt smaller carriers by making smaller licenses without any requirements appealing to larger bidders.

"Smaller players, especially rural companies, will be unable to match the higher bids of the well-funded giants," he said.

— FCC Approves Airwave Use For All Phones, Wireless Network Opened To Options if Not Firms, By Kim Hart, Washington Post Staff Writer, Wednesday, August 1, 2007; Page D01

It's not clear to me where the bigger players will find enough smaller licenses without any requirements to be worth their while. Unless those licenses are also attractive because of the Universal Service Fund.

What did the corporate players say?

Internet Radio: DRM Air

Previously we saw a last-minute reprieve for Internet Radio. I read SoundExchange's press release, but I didn't catch this:

Under the new proposal, to be implemented by remand to the CRJs, SoundExchange has offered to cap the $500 per channel minimum fee at $50,000 per year for webcasters who agree to provide more detailed reporting of the music that they play and work to stop users from engaging in "streamripping" ­ turning Internet radio performances into a digital music library.

— SoundExchange Confirms Minimum Fee Offer: Reminds Commercial Webcasters of Obligations to Pay New Royalty Rates, Press Release, SoundExchange, 13 July 2007

Alan Wexelblat explains that part about "streamripping":

So it's that simple. Become our agents in preventing people from recording Web radio streams or face the financial axe.

— When is a Reprieve Not a Reprieve, by Alan Wexelblat , Copyfight, July 19, 2007

Musical Paradigm Shift

Prince just gave away copies of his latest CD with every copy of the London newspaper, the Mail, which of course resulted in it being available all over the Internet that same day. He also promises to give away copies at his concerts; 21 concerts in a row in London alone, each different, each priced so anyone can attend. Record stores go ballistic:

Kim Bayley, director general of the Entertainment Retailers' Association, said the move devalued music.

"The losers will be new artists who are trying to come through who won't have any support from recording companies because established artists are chucking out their music for free," she said.

— Prince album set free on internet, BBC, 16 July 2007

Well, let's see.

A Cisco Way

Cisco has a policy blog, in which they back no regulation before market failure:

In other words, there is no reason to rush to impose burdensome Net Neutrality regulations in the broadband market. If there is one thing that we have learned from 70+ years of communications regulation, it is that regulation has significant costs and unintended consequences. The FTC clearly recognizes that government should react to actual problems, not hypothetical ones.

It's funny how the Internet grew up with net neutrality, but now it's "burdensome." Maybe innovation and competition are burdensome to incumbents.

-jsq

Broadband Produces Employment

Many have assumed that broadband is good for the economy; now here's a study with rivets:

More specifically, for every one percentage point increase in broadband penetration in a state, employment is projected to increase by 0.2 to 0.3 percent per year.

— The Effects of Broadband Deployment on Output and Employment: A Cross-sectional Analysis of U.S. Data, By Robert Crandall, William Lehr and Robert Litan, Brookings Institution, 2007

Of course, this is like saying every state in medieval Germany that had a printing press produced employment in the printing industry. There are economic and social effects far beyond mere employment. What should be done?

The paper has a few recommendations:

The surest route to lower prices is provided by increasing competition in the delivery of broadband services.

FTC: What, Me Worry?

The U.S. Federal Trade Commission (FTC) says there's no need for net neutrality:

FTC Chairwoman Deborah Platt Majoras said that without evidence of "market failure or demonstrated consumer harm, policy makers should be particularly hesitant to enact new regulation in this area."

So in a "market" where the average customer has at most two choices, we're supposed to wait for a market failure?

Framing Net Neutrality

Here's an interesting exercise in framing net neutrality:

On the one side are traditional media - phone and cable companies, the carriers - in rare agreement. They do not want to be regulated, and they want to preserve the profitability potential that protects their network upgrades. They are therefore joined by some hardware tech firms. On the other side is what might be called the internet-industrial complex - consisting of idealistic net community folks, small start-ups, large Silicon Valley corporations pretending to be both - and Hollywood, in another strange bed fellowship.

The US Congress is in the middle; by the latest count six bills are pending, and while none is likely to be passed for now, the process itself has been a boon.

— A third way for net neutrality, By Eli Noam, Financial Times, 29 August 2006

Note "internet-industrial complex", in analogy to Eisenhower's phrase, "military-industrial complex". Yet the cablecos and telcos are said to be "in rare agreement" when actually they have long been acting on the same side on this issue; after all, it's in both their (short-term) interests to keep the number of players down. With no competition, there's no real market, and thus no real competition (which long-term means they won't be competitive with their international competitors, which are already offering speeds ten times faster for similar prices).

Reemphasizing Innovation

Pointing out the tiny little problem with globalization, namely that with fast global data networks many jobs from doctors and lawyers to clerks become offshoreable, an economist tries to look ahead:

What else is to be done? Trade protection won't work. You can't block electrons from crossing national borders. Because U.S. labor cannot compete on price, we must reemphasize the things that have kept us on top of the economic food chain for so long: technology, innovation, entrepreneurship, adaptability and the like. That means more science and engineering, more spending on R&D, keeping our capital markets big and vibrant, and not letting ourselves get locked into "sunset" industries.

— Alan Blinder: Free Trade's Great, but Offshoring Rattles Me, Grasping Reality with Both Hands: Brad DeLong's Semi-Daily Journal, 5 May 2007 quoting Free Trade's Great, but Offshoring Rattles Me, By Alan S. Blinder Washington Post, Sunday, May 6, 2007; B04

If this is the case, then it would seem that promoting innovation by promoting a fast, open, and participatory Internet would be important for the U.S., and also important to the rest of the rest of the world that wants the U.S. to remain a major market.

-jsq

Speed Is Trivial

Sometimes Bob Frankston makes me shake my head in wonder:

Speed is trivial — the dial up modem completely trounced the entire Interactive TV industry thanks to the web which gave people a reason to find their own solutions without waiting for a service provider to deign to provision a path. As long as you don't over-defined the solution you'll get speed — it's hard not to.

— Re: We're Stuck In The Slow Lane Of The Information Trollway -- it's all about the billing relationship, Bob Frankston, Interesting People, Sat, 12 May 2007 20:13:50 -0400

Yes, back in the 1990s, video on demand and interactive TV were the big plans of the cablecos and telcos. They tried it. Users didn't buy it. Instead, participants bought modems and the web boomed.