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More Than a Dime’s Worth of Difference Between GOP/Dems on Telecom Policy

On important issues for the online community, there are some substantial differences between the Democratic and Republican parties, particularly regarding Net Neutrality.

A review of the yas and nays in both party platforms (and past history in Congress) shows your vote can make a difference when Washington ultimately deals with privacy, network traffic, piracy, cybersecurity, and broadband expansion.

Net Neutrality – “Preserving the free and open Internet”: Prohibits providers from discriminating against different types of network traffic for profit or control

  • Democrats: Yas
  • Republicans: Nay

While the Democratic platform specifically states, “President Obama is strongly committed to protecting an open Internet,” one “that fosters investment, innovation, creativity, consumer choice, and free speech,” Republicans have treated Net Neutrality as anathema to the free market. Although virtually every Republican member of Congress has voted against Net Neutrality or publicly opposed the concept, some Democrats have as well, particularly those who have received significant financial contributions from the largest phone and cable companies lobbying against the policy.

Net Neutrality has not proved to be a major issue in Congress this year, with most of the recent battles taking place at the Federal Communications Commission. FCC chairman Julius Genachowski applauded a ‘third way’ for Net Neutrality, staking out a middle-of-the-road policy that pleased few outside of the FCC. It largely leaves the concept a “suggestion” for wireless carriers. Replete with loopholes and enforcement issues, even wired providers like Comcast have run around the policy for their own benefit.

Network Privacy – Full disclosure when websites track your browsing habits, and how online companies protect your private information

  • Democrats: Yas, provisionally
  • Republicans: Yas, provisionally

Net privacy is a topic many consumers hear about the most when a website gets hacked and private customer information is stolen in the process. But a growing number of consumers are also concerned about what websites are doing with their information and how their web visits are being tracked for advertising purposes. Large online companies like Facebook and Google have a vested interest in keeping this space as unregulated as possible to maintain lucrative revenue earned selling demographic information to advertisers. But consumers may not want advertisers to know the websites they visit, and members of both political parties have expressed growing interest in taming who gets their hands on your private stuff. Republicans are primarily concerned about tracking by government agencies, Democrats are more concerned with for-profit use of customer data.

The Republican platform abhors government intrusion into private liberty — primarily a reference to certain forms of surveillance. But the GOP platform is silent on enhancing privacy rights of consumers. The Obama Administration has been calling for a “Privacy Bill of Rights” that permits consumers to opt out of web tracking cookies and other tracking technology. Democrats separately want companies to do a better job disclosing and explaining how private information is being used. But Congress, under heavy lobbying to avoid the issue, never acted on the administration’s request.

Expanding Broadband: Finding New Wireless Spectrum and Improved Rural Access

  • Democrats: Yas on both
  • Republicans: Yas on one, vacillating  on the other

While neither party fully embraces their respective platforms while governing, their stated positions often reflect political positioning when new laws are contemplated.

The Democrats tout both their National Broadband Plan and the Obama Administration’s commitment to find Internet access for 98 percent of the country and expand spectrum available to meet the growing demands for wireless data. The Democratic platform touted President Obama’s proposal to promote wireless broadband as a possible rural Internet solution.

Republicans also want more wireless spectrum to be auctioned off as soon as possible. They also believe the solution to rural broadband is additional deregulation to stimulate private investment and a private marketplace solution. But they are short on specifics about how that can happen in areas deemed too unprofitable to serve.

Democrats are generally more tolerant of public and private broadband expansion projects and stimulus funding for expanded Internet access. The Obama Administration has overhauled the Universal Service Fund to help underwrite rural broadband expansion, a notion Republicans often oppose as unnecessary taxpayer or ratepayer-financed subsidization.

Online Piracy – Stopping those illegal file transfers of copyrighted content and Chinese-manufactured counterfeit DVDs sold by street peddlers.

  • Democrats: Yas
  • Republicans: Yas

Both parties are pointing fingers at China for supplying an endless quantity of counterfeit merchandise sold in flea markets, online, and by street peddlers in large cities. An enormous sum of Hollywood’s lobby money, and the presence of former Sen. Chris Dodd (D-Conn.) as head of the Motion Picture Assn. of America guarantees a Washington audience receptive to the industry’s arguments. Members of Congress from both political parties representing entertainment nerve centers in California and New York have adopted piracy legislation largely as written by industry lobbyists.

But there are limits. The Obama Administration ended up opposing the overreaching Stop Online Piracy Act because it failed to balance intellectual property rights with online privacy for consumers.

The Democratic platform said the administration is “vigorously protecting U.S. intellectual property—our technology and creativity—at home and abroad through better enforcement and innovative approaches such as voluntary efforts by all parties to minimize infringement while supporting the free flow of information.”

Cybersecurity: Tech Terrorism and CyberWars

  • Democrats: Yas
  • Republicans: Yas

Cyberattacks from foreign entities on American computer systems and the Internet receive near-equal attention from both political parties. But the GOP still feels the current administration has not done enough, accusing the Obama Administration of insufficient vigilance that has “failed to curb malicious actions by our adversaries.” The Republican platform demands an overhaul of a 10-year-old law governing computer security and demands more collaboration between the government and the private sector on cyber-incursions.

Democrats defend their performance expressing a pledge to, “continue to take steps to deter, prevent, detect, and defend against cyber intrusions by investing in cutting-edge research and development, promoting cybersecurity awareness and digital literacy, and strengthening private-sector and international partnerships.”

AT&T’s Fact-Free Defense of FaceTime Blocking Only Further Alienates Angry Customers

Phillip “At Least They Are Transparent About Robbing You” Dampier

The unassailable truth is that if there is a right way for a company to treat its customers and a wrong way, AT&T will always choose the wrong way. It’s the primary reason I refuse to do business with them.

The company’s recent decision to block Apple FaceTime for customers who refuse to be herded to one of AT&T’s new Mobile Share plans is another shot across the bow of Net Neutrality, which declares customers should be able to use the applications and services of their choosing — particularly on networks where they pay for those choices.

Principal #1 of Net Neutrality: Companies should not be playing favorites with applications or services by blocking or restricting those a provider does not favor.

AT&T’s response: ‘Whatever.’

The predictable outrage of customers should have come as no surprise to AT&T, but somehow it did.

The company picked testy senior vice president for regulatory affairs Bob Quinn to mount a rapid defense against the pitchfork-and-torch-yielding throngs on AT&T’s Public Policy Blog. That was their second mistake.

Quinn, who spent last December valiantly defending AT&T against its too-precious CupcakeGate mini-scandal, conjured up this pretzel-twisted logic tap dance to explain away its latest boorish behavior:

Providers of mobile broadband Internet access service are subject to two net neutrality requirements: (1) a transparency requirement pursuant to which they must disclose accurate information regarding the network management practices, performance, and commercial terms of their broadband Internet access services; and (2) a no-blocking requirement under which they are prohibited, subject to reasonable network management, from blocking applications that compete with the provider’s voice or video telephony services.

AT&T’s plans for FaceTime will not violate either requirement.  Our policies regarding FaceTime will be fully transparent to all consumers, and no one has argued to the contrary.  There is no transparency issue here.

Nor is there a blocking issue.  The FCC’s net neutrality rules do not regulate the availability to customers of applications that are preloaded on phones.  Indeed, the rules do not require that providers make available any preloaded apps.  Rather, they address whether customers are able to download apps that compete with our voice or video telephony services.   AT&T does not restrict customers from downloading any such lawful applications, and there are several video chat apps available in the various app stores serving particular operating systems. (I won’t name any of them for fear that I will be accused by these same groups of discriminating in favor of those apps.  But just go to your app store on your device and type “video chat.”)  Therefore, there is no net neutrality violation.

A company lecturing its customers for daring to question its decisions is always a good way to enhance those warm and fuzzy feelings people have about America’s least-liked wireless phone company. Quinn first scolds customers and consumer groups about their “knee jerk reaction,” for being upset about the issue. Then he declares they have “rushed to judgment,” using a turn of phrase not heard since O.J. Simpson’s defense team pounded it to death, and look where that ultimately got us.

The crux of AT&T’s argument is they get a free pass to “block and herd” because Apple FaceTime was pre-installed on customer phones. Therefore, since AT&T didn’t block you from downloading an app you already had, it cannot possibly be a Net Neutrality violation. Because as we all know, Net Neutrality is only about download blocking.

At least AT&T is keeping their promise to be transparent. They have, indeed, fully informed you they are mugging you while in the process of mugging you. Full disclosure… matters.

Somehow, I missed the “preinstalled does not count” section in the Federal Communications Commission’s December 2010 order to providers telling them to preserve the free and open Internet. So I spent last night with this legalese page-turner (194 pages to be exact) to refresh my memory.

Nope, it isn’t in there. You can read it for yourself from the link above.

So it isn’t me. It is them, making up the rules as they go, again.

Quinn graciously offers customers one concession: AT&T will allow you to use Apple FaceTime over your own home Wi-Fi network. Gosh thanks!

For customers addicted to FaceTime, AT&T’s solution is an expensive plan change. An average customer currently paying $70 for 450-barely used voice minutes and 3GB of data will find FaceTime off-limits on AT&T’s network unless they “upgrade” to AT&T’s $95 Mobile Share plan, which gets you only 1GB of data, but endless voice minutes you don’t want and unlimited texting you don’t need.

Result: Pay $25 more a month and get your data allowance slashed by 2/3rds. That’s a deal — AT&T-style.

But it is one some customers are through taking. Nalin Kuachusri:

The new FaceTime restrictions will usher in the end of my 12+ year relationship with AT&T. I’m tired of the consistent manipulation of plans and features to extract more and more money for services I don’t need. For example: there used to be several text-message options (200, 1000, 1500, unlimited) so I could choose and pay for the one that fit my usage best. Then there was the option to move from unlimited data to 2GB/month to save $5. That was great for me and fit my usage. Then I was forced to move back to $30/month if I wanted to add tethering where I’ll get an extra GB that I’ll never use. Finally, after 12 years as a customer with an account in good standing, I was not allowed to unlock my phone for my 10-day trip to Europe so I could get a local SIM. I couldn’t be happier to give you one final $200 payment as an early-termination fee so I can move to Verizon.

Unfortunately for Kuachusri, the bosses at Verizon Wireless are likely slapping themselves silly because they did not come up with the idea first.

AT&T: No More Subsidized Tablets and We’re Restricting Your Use of FaceTime

AT&T and Verizon: The Doublemint Twins of Wireless

In an unsurprising move, AT&T has followed Verizon Wireless and announced it has discontinued subsidies for wireless tablet devices.

Engadget received word from an AT&T insider the company has withdrawn subsidies often amounting to $150 off the devices in return for a two-year contract. The subsidies helped defray the more costly ($400+) 3G/4G-capable units most consumers bypass in favor of less expensive Wi-Fi-only tablets. Verizon Wireless stopped subsidizing tablets in June.

Consumers can still buy the devices at full price from AT&T, and in another move, AT&T slightly reduced its DataConnect pricing by $5:

  • 250MB for $14.99
  • 3GB for $30
  • 5GB for $50
  • Tethering to an existing shared data plan is available for an extra $10

AT&T also announced it was planning to limit the use of Apple’s FaceTime exclusively to those who agree to switch to the company’s new “Mobile Share” plans. AT&T will not allow customers with older individual or family use plans to use the popular video conferencing service over its mobile broadband network at any price.

The official statement, first reported by 9 to 5 Mac:

AT&T will offer FaceTime over Cellular as an added benefit of our new Mobile Share data plans, which were created to meet customers’ growing data needs at a great value. With Mobile Share, the more data you use, the more you save. FaceTime will continue to be available over Wi-Fi for all our customers.

AT&T is able to introduce these types of restrictions because of the failure of the Federal Communications Commission to enforce Net Neutrality protection on wireless networks. Net Neutrality would require carriers to treat online content, applications, and services equally, allowing customers to use and pay for the services of their choice.

Wireless carriers fought Net Neutrality claiming it would harm efforts to technically manage their networks and would ultimately discourage investment. But AT&T’s arbitrary, non-technical restriction of FaceTime suggests the company is actually pushing customers to the more-profitable service plans AT&T favors.

Wood

Consumer group Free Press policy director Matt Wood:

“These tactics are designed with one goal in mind: separating customers from more of their money each month by handicapping alternatives to AT&T’s own products.  If customers want to use FaceTime on AT&T’s mobile network, then they have buy a more expensive monthly data plan with extra voice minutes and texts they’ll never use thrown in. Blocking mobile FaceTime access for much of its user base may be a win for AT&T but it’s a losing proposition for the rest of us.

“It’s not supposed to be this way. The Net Neutrality protections in place today for wireless are too weak, but at least prevent carriers from blocking these types of apps. The FCC’s rules prohibit such blatantly anti-competitive conduct by wireless companies. Such behavior would be a problem no matter what Internet platform you choose. It would be unimaginable on your home broadband connection. Apple’s FaceTime comes pre-installed on a Macbook Pro, too, but no home broadband provider would dream of blocking the app there unless you’d signed up for a more expensive data plan.

“The FCC’s Open Internet order aside, AT&T’s latest scheme to make you pay more for less would never fly if we had real competition in the wireless marketplace. Instead, we have Ma Bell’s twin offspring running amok and forcing consumers onto ridiculous plans that make them pay for the same data twice. It’s only going to get worse until lawmakers recognize the problem and act to solve this competition crisis.”

While AT&T will block many customers from using FaceTime, a competing service from Skype remains unaffected.

FCC Announces Open Internet Advisory Committee With No Consumer Representatives

Phillip Dampier

The Federal Communications Commission has announced the composition of its new Open Internet Advisory Committee to help track and evaluate the effects of the agency’s Net Neutrality policies, but has no member directly representing the interests of consumers.

The OIAC will focus on important Net Neutrality policies like transparency, reasonable network management practices, the differences governing policies for wired and wireless broadband, and issues like usage caps and speed throttling. But there are no voices on the committee that speak directly on behalf of end users — individual customers who use the Internet in their daily lives.

The FCC instead packed the panel with business, social policy and educational interests, many with direct financial ties to large telecommunications companies.

Selected members include:

  • Harvey Anderson, Vice President of Business Affairs & General Counsel, Mozilla
  • Brad Burnham, Founding Partner, Union Square Ventures
  • Alissa Cooper, Chief Computer Scientist, Center for Democracy & Technology
  • Leslie Daigle, Chief Internet Technology Officer, Internet Society
  • Jessica Gonzalez, Executive Board, Media and Democracy Coalition; Vice President for Policy & Legal Affairs, National Hispanic Media Coalition (representing NHMC)
  • Shane Greenstein, Professor and Kellogg Chair of Information Technology, Kellogg School of Management, Northwestern University
  • Russell Housley, Chair, Internet Engineering Task Force; Founder of Vigil Security, LLC (representing Vigil Security, LLC)
  • Neil Hunt, Chief Product Officer, Netflix
  • Charles Kalmanek, Vice President of Research, AT&T
  • Matthew Larsen, CEO, Vistabeam
  • Kevin McElearney, Senior Vice President for Network Engineering, Comcast
  • Marc Morial, President & CEO, National Urban League
  • Elaine Paul, Senior Vice President, Strategic Planning, The Walt Disney Company
  • Jennifer Rexford, Professor of Computer Science, Princeton University
  • Dennis Roberson, Vice Provost & Research Professor, Illinois Institute of Technology (representing T-Mobile)
  • Chip Sharp, Director, Technology Policy and Internet Governance, Cisco Systems
  • Charles Slocum, Assistant Executive Director, Writers Guild of America, West
  • Marcus Weldon, Chief Technology Officer, Alcatel-Lucent
  • Michelle Zatlyn, Co-Founder & Head of User Experience, CloudFlare

Missing are the voices of consumers who want an open Internet and do not believe in Comcast and AT&T’s definitions of “reasonable network management” that include Internet Overcharging schemes like usage caps and overlimit fees.

Consumers will instead have to depend on Internet businesses and institutions that coincidentally share an active dislike of traffic control measures, primarily for their own business reasons.

By excluding the consumer’s voice in policy debates, it is no wonder FCC Chairman Julius Genachowski increasingly seems amenable to the companies he is supposed to independently oversee — spending a considerable amount of time opening industry conventions with keynote speeches, reviewing lobbyist briefs about various communications issues, and talking directly with the corporate leadership of the companies involved. It is disturbingly clear he is listening less and less to consumers. A clear sign of that was his vocal support for the kinds of usage-based Internet pricing schemes that consumers generally loathe.

Genachowski and his staff need to spend more time listening to individual Internet users and the customers of providers and less time attending industry-sponsored events.

The OIAC is a good place to start. Consumers deserve a seat at the table in a debate that will impact every American Internet user.

Comcast Proves It Doesn’t Need a 250GB Usage Cap; Net Neutrality Violation Alleged

Comcast Monday announced it was exempting its new Xbox streaming video service from the company’s long standing 250GB monthly usage cap, claiming since the network doesn’t exist on the public Internet, there is no reason to cap its usage.

Net Neutrality advocates immediately denounced the cable operator for violating Net Neutrality, giving favorable treatment to its own video service while leaving Netflix, Amazon, and others under its usage cap regime.

Public Knowledge president Gigi Sohn:

“The Xbox 360 provides a number of video services to compete for customer dollars, yet only one service is not counted against the data cap—the one provided by Comcast.” Sohn said. “This is nothing less than a wake-up call to the Commission to show it is serious about protecting the Open Internet.”

Stop the Cap! believes Comcast also inadvertently undercut its prime argument for the company’s 250GB usage cap — that it assures “heavy users” don’t negatively impact the online experience of other customers:

We work hard to manage our network resources effectively and fairly to ensure a high-quality online experience for all of our customers. But XFINITY Internet service runs on a shared network, so every user’s experience is potentially affected by his or her neighbors’ Internet usage.

Our number one priority is to ensure that every customer has a superior Internet service experience. Consistent with that goal, the threshold is intended to protect the online experience of the vast majority of our customers whose Internet speeds could be degraded because one or more of their neighbors engages in consistent high-volume Internet downloads and uploads.

The threshold also addresses potential problems that can be caused by the exceedingly small percentage of subscribers who may engage in very high-volume data consumption (over 250 GB in a calendar month). By applying a very high threshold on monthly consumption, we can help preserve a good online experience for everyone.

Comcast argues around the exemption of the Xbox service by reclassifying it as somehow separate from the public Internet.  The company then tries to claim the Xbox app functions more like an extra set top box, not as a data service.  But, in fact, it –is– a data service delivered over the same cable lines as Comcast’s broadband service, subject to the same “last-mile congestion problem” Comcast dubiously uses as the primary justification for placing limits on customers.

Cable providers who limit broadband use routinely use the “shared network experience” excuse as a justification for usage control measures.  Since cable broadband delivers a fixed amount of bandwidth into individual neighborhoods which everyone shares, a single user or small group of users can theoretically create congestion-related slowdowns during peak usage times.  Cable operators have successfully addressed this problem with upgrades to DOCSIS 3 technology, which supports a considerably larger pipeline unlikely to be congested by a few “heavy users.”

Comcast’s argument the Xbox service doesn’t deserve to be capped because it is delivered over Comcast’s own internal network misses the point.  That content reaches customers over the same infrastructure Comcast uses to reach every customer.  If too many customers access the service at the same time, it is subject to precisely the same congestion-related slowdowns as their broadband service.  Data is data — only the cable company decides whether to treat it equally with its other services or give it special, privileged attention.

Even if Comcast argues the Xbox streaming service exists on its own segregated, exclusive “data channel,” that represents part of a broader data pipeline that could have been dedicated to general Internet use.  The fact that special pipeline is available exclusively for Comcast’s chosen favorites, while keeping usage limits on immediate competitors, is discriminatory.

Comcast customers who have lived under an inflexible 250GB usage limit since 2008 should be wondering why the company can suddenly open unlimited access to some services while refusing to adjust its own usage limits on general broadband service.

Stop the Cap! believes Comcast has forfeit its own justification for usage caps and network management techniques that can slow customer Internet speeds.  We have no problem with the company offering unlimited access to the Xbox streaming service. But the company must treat general Internet access with equal generosity, removing the unjustified and arbitrary usage cap it imposed on customers in 2008.  After all, if the company can find vast, unlimited resources for a service it launched only this year, it should be able to find equal resources for a service it has sold customers (at a remarkable profit) for more than a decade.

Anything less makes us believe Comcast’s usage caps are more about giving some services an unfair advantage — violating the very Net Neutrality guidelines Comcast claimed it would voluntarily honor.

Stop the Cap! strongly believes usage caps are increasingly less about good network management and more about controlling and monetizing the online experience, seeking marketplace advantages and new revenue streams from consumers who already pay some of the world’s highest prices for broadband service.  As we’ve argued since 2008, Internet Overcharging through usage caps and usage based billing is also an end run around Net Neutrality.  The evidence is now apparent for all to see.

[Thanks to our readers Scott and Yannio for sharing developments.]

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