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Stupid Reasons to Oppose Net Neutrality #1: Why Not Net Neutrality for Newspapers?

Phillip Dampier September 28, 2009 Editorial & Site News, Net Neutrality 7 Comments

failure-of-logic-fail-demotivational-poster-1209989155Now that FCC Chairman Julius Genachowski has put the issue of Net Neutrality on the front burner, the often-ludicrous reasons some people give to oppose Net Neutrality are coming out all over the place.  When you find one that is particularly preposterous, use the Contact Us link at the top of the screen and drop us a summary and a link.  We’ll be calling out the silliest and debunking those that might sound good on the surface but have a soft, squishy, logic-free center.

To get us started, this letter to the editor turned up last week in The Seattle Times:

The recent Seattle Times editorial on net neutrality seemed logical on the surface [“Protecting net neutrality,” Opinion, Sept. 22], but in reality was a Robin Hood-style regulation.

Let me pose a question: What would The Times’ opinion be if the Federal Communications Commission mandated The Times’ facilities were open to anyone who wants to use it as they wished?

I suspect the company would probably make an argument that it made the huge capital investment, and therefore should have control over who can or cannot use it.

So explain, what is the fundamental difference between the management of this capital asset and that of a company such as Comcast or any other Internet provider?

I suspect nothing other than another example of government intervention into a business and technology they do not understand. The Times should be thankful they are not focused on the newspaper industry.

I’ve long accused the Federal Communications Commission of being out of touch and not understanding (‘broadband over power lines’ advocacy being a particularly stupid idea on their part), but rest assured, they are well acquainted with the arguments the broadband industry makes to preserve its position.  Providers spend tens of millions of dollars to hire lobbyists to advocate just that.

To use Robin Hood as an analogy puts us squarely in OppositeLand, where ‘up is down’ and ‘right is left.’  Robin Hood was a story about robbing from the rich to give to the poor.  This writer seems to think the “poor” are Comcast and AT&T, and the individual customers most at risk from Net Neutrality abuse are somehow the “rich.”

Perhaps it would have been more apt to suggest the Seattle Times would be guilty of Net Neutrality abuse if it openly refused to print ‘letters to the editor’ or interview people for stories who did not have a home delivery subscription to the newspaper.

A newspaper, of course, is not the equivalent of the global Internet.  It’s just one of countless content creators that use the Internet to make their content more accessible to an online audience, one that might choose to read what they publish.  That’s an important distinction, because Net Neutrality does not interfere with content creators and tell them what they can and cannot say.  It helps protect their independence.  The Seattle Times can print whatever they see fit, and you and I make the individual decision to read or not read what they publish.

More importantly, and why the writer’s analogy misses the mark:  If you or I don’t like The Times and think we can do a better job, we can start our own website and publish our own content.  We don’t need the imprimatur of establishment media to make our own content available to the masses.  Individual readers will judge the quality and value of our content individually, and determine its importance and relevance accordingly.  So you or I don’t need to demand The Seattle Times open up their presses to our content — we can simply publish our own content independently, enjoying the exact same global reach, and have the potential to be just as successful as they are.

But let’s get back to the writer’s premise and adjust it slightly.  The Times pays a web hosting company to make their articles available online.  They have a business relationship with that hosting company, which uses part of that hosting fee to pay for their own pipeline to the Internet.

Meanwhile, you and I pay a monthly fee for an Internet Service Provider (ISP).  We pay them every month to provide unencumbered connectivity to the Internet, which happens to include the website for The Seattle Times.

One day, our ISP mails a letter to The Times and tells them that unless they pay to become a “preferred content partner,” they can no longer guarantee that the newspaper’s web pages will always reach you and I on a timely basis.  In effect, our ISP now wants to be paid twice — once by us to access the Internet, and once by the newspaper for “assurances” their content will reach us at broadband speeds.

The Times doesn’t have a business relationship with our ISP, but you and I do — specifically to provide the connectivity they suggest may soon no longer be guaranteed to those who “use their pipes for free.”

Now the problem becomes clearer to understand.  Even more concerning is that some of these ISPs own and manage news content sites.  Will they charge themselves the same price they ask from others?

Net Neutrality in its entirety protects content producers, like this website, from having its reach impacted.  Remember, one of the biggest strengths of the Internet is that anyone, anywhere, can reach this website or The Seattle Times on equal terms just by typing in the address.  No Internet user or content producer should have to face a blockade from providers that don’t like the message, had their content moved to the “slow lane” for not paying an unprecedented fee, or had their website overshadowed because a competitor leveraged favorable treatment from their “preferred content partner” status.

Stop the Cap! Movement Covered By Rochester Public Radio

Phillip Dampier September 24, 2009 Audio, Data Caps, Net Neutrality 2 Comments

The advancement of Net Neutrality by the Federal Communications Commission was the topic of this week’s Mixed Media, a feature from WXXI-AM, a public radio station in Rochester, New York.  Scott Fybush, who has been known to drop by Stop the Cap! from time to time, talked with WXXI’s Rachel Ward about Net Neutrality and the Stop the Cap! movement, and why Rochester is such an activist community when it comes to preserving reasonable and fair pricing for Internet access.

A Federal Communications Commissioner comes out strong for net neutrality. WXXI’s Rachel Ward and media and technology reporter Scott Fybush have more. (5 minutes)
You must remain on this page to hear the clip, or you can download the clip and listen later.

If you have any interest in radio or television, Scott’s Northeast Radio Watch is a must-read every week. WXXI’s Mixed Media does a good job of explaining technology stories and their impact on us in a way everyone can understand.

Senator Kay Bailey Hutchison (R-Texas) Tries To Insert Net Neutrality ‘Killer Amendment’ to Spending Measure

Phillip Dampier September 23, 2009 Net Neutrality, Public Policy & Gov't 12 Comments
Sen. Kay Bailey Hutchison (R-Texas)

Sen. Kay Bailey Hutchison (R-Texas)

Senator Kay Bailey Hutchison (R-Texas), who often adopts anti-consumer positions on telecommunications policy, has written a so-called “killer amendment” that would prohibit the Federal Communications Commission from enforcing proposed Net Neutrality rules.

Her amendment, informally proposed Monday as part of a House Interior Appropriations spending measure (H.R. 2996) states:

Purpose: To prohibit the FCC from expending any funds in fiscal year 2010 to implement any Internet neutrality or network management principles, or to promulgate any rules relating to such principles.

Hutchison’s amendment has several Republican co-sponsors: John Ensign (R-Nevada), Sam Brownback (R-Kansas), David Vitter (R-Louisiana), Jim DeMint (R-South Carolina),  and John Thune, (R-South Dakota).

Hutchison released a statement explaining the amendment: “I am deeply concerned by the direction the FCC appears to be heading. We must tread lightly when it comes to new regulations. The case has simply not been made for what amounts to a significant regulatory intervention into a vibrant marketplace. These new regulatory mandates and restrictions could stifle investment incentives.”

Following the Money: Cable's Best Friends in North Carolina Get a Payday

Ensign said Net Neutrality would punish a telecommunications industry at a time when it’s managing through an economic downturn.

“Any industry that is able to thrive should be allowed to do so without meddlesome government interference that could stifle innovation,” he said.

Brownback also has a history opposing the consumer interests of his constituents.  Back in May, he penned a letter to a Stop the Cap! reader in Kansas openly favoring Internet Overcharging schemes.

Public interest groups are calling on the public to express their displeasure with the Republican senators for their opposition to Net Neutrality.

One possible explanation for the sudden, strong interest by Hutchison and other Republicans to oppose Net Neutrality can be found in their respective bank accounts.  Hutchison accepted $67,300 in campaign contributions just from AT&T, her ninth largest contributor.

Combined, AT&T donated more than $400,000 among the six Republicans opposing Net Neutrality, and one of those senators, John Thune, used to work for a DC lobbying firm that was hired by Comcast.

The details were compiled by Sam Gustin, a reporter for DailyFinance:

Over the course of his career, Sen. Sam Brownback, a Kansas Republican, has received $220,914 from “telephone utilities,” including some $83,130 from AT&T, his second-largest donor, in the form of employee and lobbyist donations to his campaign and political-action committees. Sprint Nextel has given Brownback $35,550 over the course of his career.

Two of the co-sponsors of the bill, Sen. David Vitter of Lousiana and Sen. John Ensign of Nevada, who have both seen their reputations tarnished after sex scandals, have been on the receiving end of AT&T’s largesse. AT&T and predecessor BellSouth have donated $82,050 to Vitter’s campaigns and political-action committees. And over the last four years, AT&T has donated some $61,250 to Ensign’s campaign and political-action committees. Verizon-related entities donated $46,600 to Ensign during that period.

During that time, AT&T has donated $63,750 to the campaign and political-action committees of Sen. Jim DeMint, the South Carolina Republican. AT&T is DeMint’s second-largest donor.

Sen. John Thune, the South Dakota Republican, has not received significant donations from the telecom industry since his 2006 defeat of Sen. Tom Daschle, then Senate majority leader Tom Daschle. But from 2003 to 2005, Thune served as a senior policy adviser to the D.C. lobbying firm of Arent, Fox, when its client Comcast, the largest cable company in the U.S., paid some $40,000 in fees.

[Update: Yesterday evening, Washington Post reporter Cecilia Kang reported that the Republicans were, at least for now, backing off on pushing for their amendment:

“While we are still generally opposed to net neutrality regulations, we have decided to hold off on the amendment because [FCC Chairman Julius Genachowski] approached us and we are beginning a dialogue,” said a staff member on the committee.

Hill watchers said the amendment itself represented standard operating procedure when attempting to block regulatory agency policy decisions, but characterized the Hutchison amendment’s chances of passage as remote.  Hutchison and the Republicans are in the minority in the Senate.]

CRTC Embarrassed By FCC Net Neutrality Actions?

Phillip Dampier September 22, 2009 Canada, Net Neutrality, Public Policy & Gov't, Recent Headlines, Video Comments Off on CRTC Embarrassed By FCC Net Neutrality Actions?
Professor Geist

Professor Geist

The Canadian Radio-television Telecommunications Commission, the Canadian equivalent of the Federal Communications Commission in Washington, may be forced to consider American broadband policy before defining Net Neutrality and its role in Canadian broadband, according to an article published today in The Globe & Mail.

[FCC Chairman Julius Genachowski’s] proposal – to codify and enforce some general principles of “Net neutrality” – comes as the Canadian Radio-television and Telecommunications Commission is expected to release its own position this fall, after public consultations this summer that prompted feedback from tens of thousands of Canadians.

“The kinds of principles that the FCC is now looking to put into rules are precisely what the CRTC heard from many groups this past summer,” said Michael Geist, a University of Ottawa professor who holds the Canada Research Chair in Internet and E-commerce Law. “The kinds of concerns that Canadians have been expressing have clearly been taken to heart by the FCC.”

Many Canadian citizens have been unhappy with the CRTC after a summer of hearings and policy decisions which have almost universally-favored Canadian broadband providers’ positions.  The CRTC seemed skeptical during hearings over the urgency to enforce Net Neutrality protections and stop provider’s throttling of peer to peer networks.  But consumers were even more upset when the Commission agreed with Bell, Canada’s largest phone company and wholesale broadband provider, and allowed the company to impose “usage based billing (UBB)” (Internet Overcharging) on wholesale buyers — primarily independent Internet Service Providers.  Canadian customers attempting to avoid usage caps and consumption billing relied on more generous policies from independent providers, policies likely to be revoked with the imposition of UBB, potentially making flat rate broadband service in Canada largely extinct.

In general terms, Net neutrality refers to the concept that access to all legal content on the Internet should be equal. The concept often comes up in relation to the practice of “bandwidth throttling,” where ISPs limit the transfer speed of certain kinds of data – such as the transfer of large movie files between users – but not other kinds.

Many large Canadian ISPs have argued that network management doesn’t affect Net neutrality, and taking away an ISP’s ability to manage its network results in worse service for a large number of customers.

Currently, there is no uniform practice among large ISPs in Canada when it comes to network management. Some firms throttle bandwidth during certain times of the day, whereas other limit bandwidth all the time, or not at all. A CRTC ruling this fall could go a long way toward implementing a uniform code for all ISPs.

“In light of what we’ve seen today, [the CRTC ruling] will be particularly telling because the benchmark now isn’t just what the CRTC heard during this hearing, the benchmark now is our neighbours to the south,” Prof. Geist said. “The CRTC will in many ways be measured up against what the FCC is doing in the U.S.”

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Video: FCC Chairman Julius Genachowski Announces Net Neutrality Proposal

Phillip Dampier September 21, 2009 Net Neutrality, Public Policy & Gov't, Video 3 Comments

FCC Chairman Julius Genachowski

FCC Chairman Julius Genachowski

FCC Chair Julius Genachowski announced a proposal that would prevent cable, wireless and telecommunications companies from blocking certain information on the Internet. A panel of industry analysts then discussed the concept called “net neutrality,” along with their ideas for improving broadband access.

Recognizing the need to expand the U.S. broadband network to ensure America’s infrastructure and economic development, Congress tasked the Federal Communications Commission (FCC) with developing a national broadband plan by February 17, 2010. On September 21, FCC Chairman Julius Genachowski delivered remarks on the national broadband plan and other communications issues.
[flv width=”320″ height=”240″]http://www.phillipdampier.com/video/Genachowski and Panel 9-21-09.flv[/flv]
C-SPAN covered the event this morning and had a comprehensive discussion about the state of broadband in America today. (1 Hour, 48 Minutes)

Event Information

When

Monday, September 21, 2009
10:00 AM to 12:00 PM

Where

Falk Auditorium
The Brookings Institution
1775 Massachusetts Ave., NW
Washington, DC

Participants

Featured Speaker

Julius Genachowski

Chairman
Federal Communications Commission

Moderator

Cecilia Kang

Reporter
The Washington Post

Panelists

Ben Scott

Policy Director
Free Press

Josh Silverman

CEO
Skype Technologies S.A.

Darrell M. West

Vice President and Director, Governance Studies

David E. Young

Vice President, Federal Regulatory Affairs
Verizon Communications

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