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Third Way Internet Regulation Richard Bennett Research Fellow Information Technology and Innovation Foundation [email protected] May 11, 2010

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Third Way Internet Regulation

Richard Bennett

Research Fellow

Information Technology and Innovation Foundation

[email protected]

May 11, 2010

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FCC’s Third Way

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Impact

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Impact

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OK, maybe not so much.

But still…it’s not good.

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Why is a Third Way Needed?

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Obama’s Campaign Promise

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The Net Roots Connection

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Net Roots’ Sole Issue

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FCC’s Motivation

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ITIF’s Third Way

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The Act

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Titles

Title I – General Provisions

Title II – Common Carriers

Title III – Provisions Relating to Radio

Title IV – Procedural and Administrative Provisions

Title V – Penal Provisions – Forfeitures

Title VI – Cable Communications

Title VII – Miscellaneous Provisions

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Where does the Internet Go?

Title I – General Provisions

Title II – Common Carriers

Title III – Provisions Relating to Radio

Title IV – Procedural and Administrative Provisions

Title V – Penal Provisions – Forfeitures

Title VI – Cable Communications

Title VII – Miscellaneous Provisions

Title [New] – Internet Services

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One Way to Get There

FCC Suggests Framework

Discussion Ensues

Congress Amends Communications Act

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Another Way to Get There

FCC cherry-picks the Act

Court battle ensues

FCC loses court battle

FCC Suggests Framework

Discussion Ensues

Congress Amends Communications Act

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Separable Transmission Component

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Separable Transmission Component

Point-to-Point

Wire?

Frame?

Hop-to-Hop Packet?

Network-to-Network

Transit?

Peering?

End-to-End

Application?

Cache?

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What is this “Framework” Thing?

Basic Principles of Internet Regulation

Starts with Powell’s Four Freedoms

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Powell’s Four Freedoms

Freedom to Access Content

Freedom to Use Applications

Freedom to Attach Personal Devices

Freedom to Obtain Service Plan Information

Fourth Freedom amended by FCC in Open Internet NPRM:

Subject to reasonable network management, a provider of

broadband Internet access service may not deprive any of its

users of the user’s entitlement to competition among network

providers, application providers, service providers, and content

providers.

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Network Policy Issues

Net Neutrality Consensus

Four Freedoms + Transparency

Managed Services

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Network Policy Issues

Net Neutrality Consensus

Four Freedoms + Transparency

Managed Services

Net Neutrality Controversy

What do we mean by “Discrimination?”

Good discrimination vs. Bad discrimination

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Network Policy Issues

Net Neutrality Consensus

Four Freedoms + Transparency

Managed Services

Net Neutrality Controversy

What do we mean by “Discrimination?”

Good discrimination vs. Bad discrimination

Two New Freedoms

Engineering Freedom

Business Model Freedom

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Network Policy Issues

Net Neutrality Consensus

Four Freedoms + Transparency

Managed Services

Net Neutrality Controversy

What do we mean by “Discrimination?”

Good discrimination vs. Bad discrimination

Two New Freedoms

Engineering Freedom

Business Model Freedom

Technical Advisory Groups

Specific Boundaries

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Spectrum Controversies

Licensed vs. License-exempt

410 MHz Licensed

650 MHz License-exempt

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Spectrum Controversies

Licensed vs. License-exempt

410 MHz Licensed

650 MHz License-exempt

License-Exempt is good for Small-scale Networks

Large networks must guarantee Service Quality

Hundreds of Millions of Small Networks

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Spectrum Controversies

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Spectrum Controversies

Licensed vs. License-exempt

410 MHz Licensed

650 MHz License-exempt

License-Exempt is good for Small-scale Networks

Large networks must guarantee Service Quality.

Hundreds of Millions of Small Networks

Need for 800 MHz of Licensed Bandwidth

Best Frequencies 1000 – 3000 MHz

DTV vs. Mobile Internet

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Edge-Managed Spectrum

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PacketDead Air Packet

Time

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Edge-Managed Spectrum

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PacketDead Air Packet

Time

Dead Air

Time

Packet Packet

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Spectrum Controversies

Big Historical Mistake:

TV Should be Wired.

Telephony Should be Wireless.

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New Freedoms

Mobile Internet Experience the Fruit of Innovation

Policy has to create the space for fundamental advances.

Innovation at the Bottom Enables Innovation at the Top.

We’re Not Done Yet.

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New Freedoms

Mobile Internet Experience the Fruit of Innovation

Policy has to create the space for fundamental advances.

Innovation at the Bottom Enables Innovation at the Top.

We’re Not Done Yet.

Engineering Freedom is Not a License to Steal

Reasonable Oversight, not Strangling Regulation

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New Freedoms

Mobile Internet Experience the Fruit of Innovation

Policy has to create the space for fundamental advances.

Innovation at the Bottom Enables Innovation at the Top.

We’re Not Done Yet.

Engineering Freedom is Not a License to Steal

Reasonable Oversight, not Strangling Regulation

Business Model Innovation is Essential

Internet Economy Clouded with Secret Deals

Peering and Transit Agreements are Trade Secret.

Fundamental Algorithms of Internet Economy are Trade Secret.

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Hot Potato Routing Dictates Internet Economics

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Technical Freedoms

Why No Attention so Far?

Four Freedoms Take Innovation for Granted.

Innovation is like Air: We only Notice it when it’s Gone.

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Thank you.

Please read:

Going Mobile: Technology and Policy Issues in the

Mobile Internet

http://www.itif.org/files/100302_GoingMobile.pdf

Contact me at:

[email protected]

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