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Federal Communications Commission Votes to Start Drafting Net Neutrality Policy That Verizon Seems to Suddenly Support

Phillip Dampier October 22, 2009 Data Caps, Editorial & Site News, Net Neutrality, Online Video, Public Policy & Gov't, Verizon, Video Comments Off on Federal Communications Commission Votes to Start Drafting Net Neutrality Policy That Verizon Seems to Suddenly Support

fccThe FCC today voted unanimously to begin writing a formal Net Neutrality policy to govern broadband services across the United States.  Three Democratic commissioners voted yes and applauded the concept of Net Neutrality.  The two Republican commissioners also voted to move the process forward, but signaled they would likely oppose the final draft of the rules.

Support for Net Neutrality, which would prohibit providers from slowing down, blocking, or charging higher pricing for favored access to web content, was spearheaded by FCC Chairman Julius Genachowski.

Genachowski said the rules were needed to protect consumers from abusive behavior by telecommunications companies that might seek to block or restrict access to broadband content, including telephone and video services.

“Internet users should always have the final say about their online service, whether it’s the software, applications or services they choose, or the networks and hardware they use to the connect to the Internet,” Genachowski said.

Other Democratic commissioners agreed with Genachowski.  Commissioner Michael Copps stated it was important to hear from everyone about the proposed rules.

“We need to recognize that the gatekeepers of today may not be the gatekeepers of tomorrow,” Copps said.

John McCain

John McCain

Many Republicans were unconvinced of the need to establish Net Neutrality as formal policy.

“I do not share the majority’s view that the Internet is showing breaks and cracks, nor do I believe that the government is the best tool to fix it,” Republican commissioner Robert McDowell said.

“These new rules should rightly be viewed by consumers suspiciously as another government power grab over a private service provided by private companies in a competitive marketplace,” Sen. John McCain wrote in an opinion piece published by The Washington Times.

McCain compared Net Neutrality with the federal bailout of Wall Street and the American auto industry.

Under the draft proposed rules, subject to reasonable network management, a provider of broadband Internet access service:

  1. would not be allowed to prevent any of its users from sending or receiving the lawful content of the user’s choice over the Internet;
  2. would not be allowed to prevent any of its users from running the lawful applications or using the lawful services of the user’s choice;
  3. would not be allowed to prevent any of its users from connecting to and using on its network the user’s choice of lawful devices that do not harm the network;
  4. would not be allowed to deprive any of its users of the user’s entitlement to competition among network providers, application providers, service providers, and content providers;
  5. would be required to treat lawful content, applications, and services in a nondiscriminatory manner; and
  6. would be required to disclose such information concerning network management and other practices as is reasonably required for users and content, application, and service providers to enjoy the protections specified in this rulemaking.

The draft rules make clear that providers would also be permitted to address harmful traffic and traffic unwanted by users, such as spam, and prevent both the transfer of unlawful content, such as child pornography, and the unlawful transfer of content, such as a transfer that would infringe copyright.

Today’s vote marks only a beginning of the process to begin writing the formal policy of Net Neutrality governing Internet use in the United States.  As with the ponderous debate on health care reform, what ends up defining “Net Neutrality” will be open to interpretation, and a barrage of lobbyists and arm twisting from politicians will be part of what comes next.

On the eve of the historic vote, Verizon Communications seemed to join Google in affirming some of the basic principles of Net Neutrality.

However, the devil is in the details, as is always the case in telecommunications policy.

verizon

Verizon supports its own interpretation of Net Neutrality, which is wrapped in a concept they call “innovation without permission,” which is code language for a deregulatory open free-market environment.  It broadly accepts the concept that telecommunications companies should not interfere with legal content, but the company doesn’t want a whole barrage of new regulations to specifically define what would constitute “interference.”  Verizon believes onerous rules would stifle investment, and that existing rules already in place at the FCC are sufficient protection.

Things get downright dicey when Verizon spells out its “network management” principles, warning the FCC overly specific rules in this area could have unintended consequences.

Broadband network providers should have the flexibility to manage their networks to deal with issues like traffic congestion, spam, “malware” and denial of service attacks, as well as other threats that may emerge in the future–so long as they do it reasonably, consistent with their customers’ preferences, and don’t unreasonably discriminate in ways that either harm users or are anti-competitive. They should also be free to offer managed network services, such as IP television.

It is in this area where very specific rules are appropriate to write, because what one company defines as appropriate “network management,” could be discriminatory against selected content those providers seek to “manage.”

No broadband user has ever objected to network management that controls spam, “malware,” denial of service attacks, and other like-minded traffic.  In fact, most consumers wish more could be done to control these things.  Nothing in the current framework of telecommunications regulations or in those proposed have ever sought to impede this type of management.

No consumer minds having access to additional content, such as IP television.  But consumers do object when such content is used as an excuse to ram through Internet Overcharging schemes limiting broadband usage or imposing higher fees for using the types of services companies like Verizon now advocate.  “The broadband sky is falling” rhetoric about “exafloods,” overloaded “Internet brownouts,” and other such scaremongering nonsense often comes from the same providers that now want to provide IP television.  What they provide with their left hand, they want to limit with their right.

It’s anti-competitive, because the same companies with an interest in selling these pay television services (FiOS, cable television, fiber-telephone U-verse, etc.) also provide the broadband service that companies like Netflix and Hulu use to indirectly challenge their video business models.

Another concern is “traffic congestion” management, which all too often has meant speed throttles selectively imposed on “offending” applications, particularly peer to peer traffic.  There is good traffic management, such as routing equipment that provides even delivery of services like streaming video and Voice Over IP telephone calls, which rapidly deteriorate on loaded down networks, and then there is bad traffic management which selectively slows down the speed of whatever the provider deems to be of “lower priority.”  Allowing the customer to make the decision about which traffic gets priority is one thing.  Allowing a provider to do it without the consent of the customer is quite another.

Too often, the “unintended consequences” Verizon and Google speak about in the joint statement go to the provider’s favor, not to the consumer.  Overly broad, non-specific language opens loopholes through which providers will eagerly leap through.

Verizon also advocates transparency — “All providers of broadband access, services and applications should provide their customers with clear information about their offerings.”

Disclosure alone doesn’t suffice for consumers, particularly if there are few competitive places to take your business if you disagree with company policies.  Those rules should include realistic speed information (marketing stating “up to 10Mbps” that in reality only delivers 3Mbps would be one example).  It should not simply be an escape clause for providers to abuse their customers with throttled, slow service, and give them the excuse that “we disclosed it.”

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Federal Communications Commission Open Meeting

October 22, 2009

112 minutes

(Warning: Loud audio)

The Wall Street Journal Quotes Stop the Cap! Founder & Addresses Internet Overcharging Schemes

Phillip "I Also Told You So" Dampier

Phillip Dampier

The Wall Street Journal today published an article reviewing the landscape of flat rate broadband service and how some Internet providers want to change it.

The article quotes me on the issue of Internet Overcharging becoming a political football in the Net Neutrality debate.

“This could come down to carriers saying, ‘If you don’t allow us to manage our networks the way we see fit, then we will just have to cap everything,’ ” says Phillip Dampier, a consumer advocate focusing on technology issues in Rochester, N.Y. “They’ll make it an either/or thing: give them more control over their network or expect metered broadband.”

Mr. Dampier was among those who forced Time Warner Cable to shelve a metered Internet pilot program in several cities last year. The company, which had argued the plan would be a fairer way to charge for access, acknowledged it was a “debacle.” It won’t say if it plans to revive the trials.

Unfortunately, the article never bothers to mention Stop the Cap!, the website dedicated to fighting these overcharging schemes.

AT&T's Internet Overcharging Experiment Gone Wild

AT&T weighs in on their experiment to overcharge consumers in Beaumont, Texas and Reno, Nevada, and analysts think Net Neutrality arguments may give providers an excuse to expand those experiments, launch price increases and blame it on Net Neutrality policies:

“Some type of usage-based model, for those customers who have abnormally high usage patterns, seems inevitable,” an AT&T spokesman says. AT&T declined to provide more details on its trials.

“Unquestionably, the carriers erred in their initial selling of broadband with a flat rate,” says Elroy Jopling, research director of Gartner Inc. “They assumed no one would use it as much as they do now, but then along came high-definition movies. They’re now trying to get around that mistake.”

Network neutrality deals primarily with ensuring that Internet providers don’t favor any online traffic over any other. Still, Mr. Jopling and other analysts argue, the net neutrality debate might provide the carriers with an opening to argue for changing that pricing.

“With network neutrality enforced, the only other option for carriers is to charge by the byte or to raise the flat-rate pricing,” says Johna Till Johnson, president of Nemertes Research. “Right now they’re just deciding which one to do. Just be prepared to pay more.”

It's "Rep. Eric Massa," Not 'Joe Messa'

It's "Rep. Eric Massa," Not 'Joe Messa'

The article has several flaws.

  • It mis-identifies Rep. Eric Massa (D-New York) as “Rep. Joe Messa.”  Rep. Massa introduced legislation to ban Internet Overcharging when companies cannot produce actual evidence to justify it, particularly in the limited competitive marketplace for broadband in the United States.
  • The article fails to mention the usage limits proposed by smaller broadband providers, including Frontier’s infamous 5GB usage definition in their Acceptable Use Policy.  This is a very important fact to consider when the article quotes Professor Andrew Odlyzko, an independent authority on broadband usage, as stating the average broadband consumer uses triple that amount (15 gigabytes per month).
  • The quotation about the number of e-mails or web page views available under plan allowances that routinely appear in such articles ignores the increasing use of higher bandwidth applications like online video.  Telling a consumer they can send 75 million e-mails is irrelevant information because no consumer would ever need to worry about usage limits if they only used their account for web page browsing and e-mail usage.  They very much do have to be concerned if they use their service to watch online video from Hulu or Netflix, or use one of the online backup services.
  • The article makes no mention of publicly available financial reports from broadband providers like Time Warner Cable that prove that at the same time their profits on broadband service are increasing, the company’s costs to provide the service continue to decline, along with the dollar amounts they spend to maintain and expand that network to meet demand.  Providing readers with insight into the true financial picture of a broadband provider, instead of simply quoting the public relations line of the day would seem particularly appropriate for The Wall Street Journal.
  • The article doesn’t make mention that the same providers arguing increased Internet traffic is creating a problem for them are also working to launch an online video distribution platform that will rival Hulu in size and scope.  TV Everywhere will consume an enormous amount of the broadband network they claim can’t handle today’s traffic without Internet Overcharging schemes being thrown on customers.  Of course, such usage limits are very convenient for companies like Comcast, Time Warner Cable and AT&T, which are now in the business of selling pay television programming to consumers.  Should a consumer choose to watch all of their television online instead of paying for a cable package, a usage allowance will help put a stop to that very quickly, as will planned restrictions that only provide online video to “authenticated” existing pay television subscribers.

One thing remains certain – providers are still itching to overcharge you for your broadband service.  Consumers and the public interest groups that want to represent them must stand unified in opposition to Internet Overcharging schemes and for Net Neutrality protection, and never accept sacrificing one for the other.

Triad Region: Time Warner Cable Introduces Road Runner Mobile WiMax on December 1st

Phillip Dampier October 14, 2009 Wireless Broadband 8 Comments

Carol Hevey, executive vice president of operations for TWC’s Carolinas region.

Carol Hevey, executive vice president of operations for TWC’s Carolinas region.

Stop the Cap!‘s strong readership in the Triad region of North Carolina comes from their experience with Time Warner Cable’s Internet Overcharging experiment this past April.  For residents in greater Greensboro and surrounding communities, now you get a chance to be pioneers of a different sort.

Time Warner Cable today announced Greensboro, Raleigh, and Charlotte, all in North Carolina, among the first in the nation able to purchase Road Runner Mobile, a new 4G wireless mobile broadband service designed to accompany your existing Road Runner subscription.

On December 1st, Time Warner Cable customers can sign up for the service, providing speeds up to 6Mbps, starting at $34.95 per month, if you are on a Price Lock Guarantee (a service commitment requiring you to remain with Time Warner Cable in return for service discounts) and subscribe to a bundle of services.  That low priced option has a usage allowance of 2 gigabytes per month.

Time Warner Cable's Carolinas region service area

Time Warner Cable's Carolinas region service area

“With Time Warner Cable’s 4G Mobile Network, we now offer the fastest mobile service available and extend our reach outside the home.” said Carol Hevey, Executive Vice President of the Carolina Region for Time Warner Cable.  “Giving our customers the convenience of mobility and the speed of 4G, Road Runner Mobile lets customers take their favorite Internet service wherever they go.  This is an important part of our strategy to give our customers any content, on any device, anytime, anywhere.”

Time Warner Cable is using the Clearwire WiMax network to provide the service, a benefit it gained along with Comcast when they became part-owners of the Sprint-Clearwire venture.

Pricing will vary depending on the level of service customers need:

  • Road Runner Mobile 4G National Elite gives unlimited access to both Time Warner Cable’s 4G Mobile Network and a national 3G network (Sprint, presumably), for use when traveling.
    o $79.95 per month for Road Runner Standard or Turbo customers.
    o Further discounts for Double and Triple play customers and those on a Price Lock Guarantee.
  • Road Runner Mobile 4G Elite gives customers unlimited access to the Time Warner Cable 4G Mobile Network.
    o $49.95 per month for Road Runner Standard or Turbo customers.
    o Further discounts for Double and Triple play customers and those on a Price Lock Guarantee.
  • Road Runner Mobile 4G Choice gives light users 2GB of service on the Time Warner Cable 4G network each month.
    o Available for $39.95 per month to customers of at least one other Time Warner Cable service.  Additional $5 off if you have a Price Lock Guarantee and bundled service package.

Time Warner Cable plans to launch additional mobile services to customers in the future such as the ability to program a DVR from a mobile device and the ability to take their video content with them on the go.  Time Warner Cable will be expanding its 4G Mobile network to additional service areas over the next few months including Dallas, TX and Honolulu and Maui, HI.

Customer experiences with the Clearwire network have been decidedly mixed.  In Portland, uneven signal coverage has plagued service and fueled customer returns.  In Greensboro, some who have tested the Clearwire-branded version of the service report earlier speeds close to 5Mbps that have since slowed to below 2Mbps.

As with any wireless mobile service, inquire about trial options and cancellation policies before signing any contract.  Consumers should always verify service is available to them at tolerable speeds before committing to any contract.

Pondering Glenn Britt, CEO of Time Warner Cable

Phillip Dampier October 14, 2009 Data Caps, Editorial & Site News, Online Video, Video Comments Off on Pondering Glenn Britt, CEO of Time Warner Cable
Glenn Britt, CEO of Time Warner Cable

Glenn Britt, CEO of Time Warner Cable

I spent the morning dealing with the dentist and some significant tooth pain, which could end up leading to another delightful root canal.  It’s times like these when I like to share the pain.  Back on April 2nd, Time Warner CEO Glenn Britt spoke with CNBC reporter Julia Boorstin about Britt’s thoughts on Internet Overcharging, the state of the cable industry, the growing reliance Time Warner Cable has on its broadband products, and where online video fits into the picture.  Although Time Warner Cable shelved the consumption billing experiment, the belief in such billing experiments has not changed.

Virtually everything else in the interview remains largely the same for the company, including the all-important topic of TV Everywhere and online video content, which is back in the news.

If you want to understand the challenges facing big cable, this is must-see-online-TV. (Check out the unintentionally ominous background music which appropriately turns up around four minutes in.)

[flv width=”400″ height=”300″]http://www.phillipdampier.com/video/CNBC Glenn Britt 4-6-09.flv[/flv]

CNBC’s Julia Boorstin talked with Time Warner Cable CEO Glenn Britt on April 2nd about the cable company and the state of the industry these days. (15 minutes)

Time Warner Cable to Rochester: No Faster Speeds for You! — TWC Upgrading FiOS Cities to Ultra-Wideband Service

Rochester, NY - New York's second largest economy on the shores of a broadband backwater

Rochester, NY - New York's second largest economy on the shores of a broadband backwater

Broadband Reports this morning received word from an “insider” that Time Warner Cable is laying the groundwork to introduce “wideband” broadband service up to 50Mbps throughout New York State’s Verizon FiOS-wired communities.  According to the report, Time Warner Cable plans to launch faster DOCSIS 3.0 service in Buffalo in mid-November, Syracuse in December, and Albany in January.  The company introduced “wideband” service in metropolitan New York City a few weeks ago.

Omitted from the upgrade list is New York’s second largest economy and high tech capital of upstate New York — Rochester.  The city was in the news in April when Time Warner designated Rochester as one of the “test cities” for an Internet Overcharging experiment.  The plan was shelved when customers organized a mass revolt against the plan and two federal legislators intervened.

From a logical standpoint, it wouldn’t seem to make sense for a broadband provider to omit a region with more than one million residents, many who have been highly educated and work for the community’s largest employers – the University of Rochester/Strong Health, Eastman Kodak, Xerox, ViaHealth/Rochester General Hospital, Rochester Institute of Technology, Paychex, and ITT.

But from the all-important business standpoint, Time Warner Cable enjoys extraordinarily limited competition in the area, and the gap only widens in the coming future.  The area’s telephone provider, Frontier Communications, is known mostly for providing service in rural communities, and has so far offered lackluster plans for a 21st century broadband platform, preferring to rely on now-aging DSL technology while Verizon wires most comparably-sized cities in the rest of the state for advanced fiber-to-the-home FiOS service.

While Frontier can live comfortably in rural communities where cable television is not an option, customers who live and work in their largest service area continue to find disadvantages from a company business plan that these days seems more focused on mergers and acquisitions, and is content with language that defines an appropriate amount of monthly broadband usage at a ridiculously small 5 gigabytes per month.

Against a competitor like that, why would Time Warner Cable bother?

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