Net Neutrality: An Issue By Any Other Name

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Net NeutralityAn Issue By Any Other Name

• GMU Information Economy Project Mini-Conference
• September 28, 2006
• Paul Misener / Amazon.com

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Outline

• Pull is Fundamental
• Changing Business Model?
• Net Neutrality
• The Disagreement
• Get Paid?
• Questions/Discussion

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• Pull is Fundamental
• Changing Business Model?
• Net Neutrality
• The Disagreement
• Get Paid?
• Questions/Discussion

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The Internet Pull is Fundamental
Internet Backbone
Business ISP
Residential ISP
ISP
ISP
Home
Business
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The Internet Pull is Fundamental
Internet Backbone
HTTP GET
Business ISP
Residential ISP
ISP
ISP
Home
Business
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The Internet Pull is Fundamental
Internet Backbone
Business ISP
Residential ISP
ISP
ISP
Home
Resource
Business
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The Internet Pull is Fundamental
Internet Backbone
Business ISP
Residential ISP
ISP
ISP
Home
Resource
Business
Resource gets here only if pulled by end user
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• Pull is Fundamental
• Changing Business Model?
• Net Neutrality
• The Disagreement
• Get Paid?
• Questions/Discussion

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Internet Access

Internet Backbone
Business ISP
Residential ISP
ISP
ISP
Home
Business

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But Residential Internet Access is Changing
Concentration Digital Technology FCC Removal of
Safeguards Network Operator Plans
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Concentration

10s ? 1 or 2
Internet Backbone
Business ISP
Residential ISP
ISP
ISP
Home
Business

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Digital Technology

analog ? digital
Internet Backbone
Business ISP
Residential ISP
ISP
ISP
Home
Business

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FCC Removal of Safeguards
non-discrimination rule ? no rule

Internet Backbone
Business ISP
Residential ISP
ISP
ISP
Home
Business

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Network Operator Plans

Internet Backbone
Business ISP
Residential ISP
ISP
ISP
Home
Business

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Network Operator Plans


Internet Backbone
Business ISP
Residential ISP
ISP
ISP
Home
Business

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What is the new ?
X of transactions? X of online revenue? X
per net op subs that are OSP customers? X for
special security measures?
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Internet of Today
Business ISPs
A
1
Residential ISPs
Internet Backbone
Cable
B
2
3
Telco
C
Homes
n
N
Business
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Internet of Tomorrow?

Business ISPs
A
1
Residential ISPs
Internet Backbone
Cable
B
2
3
Telco
C
Homes
n
N
Business
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• Pull is Fundamental
• Changing Business Model?
• Net Neutrality
• The Disagreement
• Get Paid?
• Questions/Discussion

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Net Neutrality

• Preserve the openness of the Internet
• Good for consumers, innovation
• Prevent the extension of market power
• Not bust up the power a la 96 Act
• Core idea no discrimination based on the source
  or ownership of content

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• Pull is Fundamental
• Changing Business Model?
• Net Neutrality
• The Disagreement
• Get Paid?
• Questions/Discussion

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Disagree Facts not Philosophy

• Let the Competitive Free Market Work
• But gt98 duopoly
• Dont Start Regulating the Internet
• But non-discrimination governed most
• Net Ops Wont Invest w/out Discrimination
• But fast deployment under non-discrimination
• Common Carriage Bad, Video Competition Good
• But its not, and video comp bill relies on
  non-discrimination
• Net Ops Should be Paid for Services

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• Pull is Fundamental
• Changing Business Model?
• Net Neutrality
• The Disagreement
• Get Paid?
• Questions/Discussion

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OSP 2
No discrimination based on content
source/ownership
OSP 1
OSP2
OSP1
End User B
EU B
EU A
End User A
Router functionality operating at the packet and,
perhaps, the sub-packet level, and not
necessarily a separate physical device.
Basic Model
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OSP 2
No discrimination based on content
source/ownership
OSP 1
OSP2
OSP1
End User B
EU B
EU A
End User A
Details of the Local Cable or Telco Network
Router functionality operating at the packet and,
perhaps, the sub-packet level, and not
necessarily a separate physical device.
Basic Model
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OSP 2
No discrimination based on content
source/ownership
OSP 1
OSP2
OSP1
End User B
EU B
EU A
End User A
OSP1
OSP1s content, etc.
Edge Server serving OSP1s content, etc. (by,
e.g., Akamai, or RAND by net op)
OSP Paid RAND Edge Serving
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OSP 2
No discrimination based on content
source/ownership
OSP 1
OSP2
OSP1
End User B
EU B
EU A
End User A
OSP1
Private network carrying OSP1s content, etc.
(by, e.g., Level3, or RAND by net op)
OSP Paid RAND Private Net Injection
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OSP 2
No discrimination based on content
source/ownership
OSP 1
OSP2
OSP1
End User B
New
EU B
EU A
EU A
End User A
User Paid QoS (turbo button)?
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OSP 2
No discrimination based on content
source/ownership
OSP 1
OSP2
OSP1
End User B
New
EU B
OSP1
EU A
End User A
OSP Paid RAND QoS?
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• Pull is Fundamental
• Changing Business Model?
• Net Neutrality
• The Disagreement
• Get Paid?
• Questions/Discussion