Governance - NANOG Archive · Internet Governance Internet governance is the development and application by Governments, the private sector and civil society, in their respective

21 March 2012 GPF7.0 - Global Regulation Effects on Interconnection

Electronic copy available at: http://ssrn.com/abstract=1926768

Electronic copy available at: http://ssrn.com/abstract=1926768

WIK-Consult Final Report

Analytical study

Network operators and content providers: Who bears the cost?

for submission to Google

by

J. Scott Marcus and Alessandro Monti WIK-Consult GmbH Rhöndorfer Str. 68 53604 Bad Honnef Germany

This report solely reflects the views of the authors.

It does not necessarily represent the views of Google, Inc.

Bad Honnef, 9 September 2011

QUESTION:

DOES THE AUDIENCE WANT MORE GOVERNMENT AND REGULATORY INVOLVEMENT IN PEERING AND

INTERCONNECTION WORLD?

BEREC expert workshop on IP-Interconnection in cooperation with

OECD

November 2nd , Bloom Hotel Brussels, 9:00-17:30

The goal of the workshop is to bring experts from the IP- interconnection community in contact

with experts on interconnection from national regulatory authorities and to discuss future

interconnection in an all-IP world.

The Internet’s way of using peering and transit as the basis for commercial negotiations

differs considerably from the telephony’s world of Calling Party’s Network Pays. As a result

even when talking the two worlds seem to be speaking about different things even when using

the same words.

BEREC has been looking into these different approaches to interconnection in a series of

papers since 2007 (ERG Report on IP-Interconnection 2007, ERG Common Statement on

Regulatory Principles of IP Interconnection 2008, BEREC Common Statement on NGN future

charging mechanisms, 2010). The OECD has studied Internet traffic exchange in a series of

reports in 1998, 2002, 2005 and in a forthcoming paper in 2011. Furthermore, it has studied

Internet traffic exchange in relation to the development of local content in cooperation with

UNESCO and it has also organized a workshop on the topic in 2001 in cooperation with the

German government. IP-interconnection markets are global markets crossing national borders

and even continents. Therefore the OECD is singular in its analysis of trends in Internet

interconnection taking a global perspective. Following the same objective of safeguarding

competition, BEREC and the OECD take this workshop as a starting point hopefully to be

continued in the future.

The format of the 4 session is intended to allow for an extensive discussion with the audience.

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T: +44(20) 7047 1919, www.plumconsulting.co.uk

Brian Williamson

David Black

Thomas Punton

The open

internet –

a platform

for growth

A report for

the BBC, Blinkbox,

Channel 4, Skype

and Yahoo! October 2011

Intro question by Martin Levy

A View of Top-Down Internet Governance

Jesse SowellMIT ESD PhD Candidate

A View of Top-Down Internet Governance

Jesse SowellMIT ESD PhD Candidate

My primary research focuses on

understanding how the bottom-up

communities (that’s you) act as a form of “governance.” This talk gives an idea of

how some of the top-down institutions think

about governance.

Overview

• Take-away• Definitions of (Internet) Governance• WGIG• Academic/Operational

• Evolution of “governance” issue areas• ITU and global regulation• Historical telecomm treaty facilitator• Aspiring global regulator

• Discuss!

4

Overview

• Take-away• Definitions of (Internet) Governance• WGIG• Academic/Operational

• Evolution of “governance” issue areas• ITU and global regulation• Historical telecomm treaty facilitator• Aspiring global regulator

• Discuss!

4

No really, please do come up with questions at the end.

Take-away first• ITU is renegotiating ITRs• Under current ITR, Internet is exempt (Art. 9)

• Proposals include• IPv6 Internet Registry independent of RIRs• Regulation of peering arrangements

• “Legitimacy” based on WSIS-IGF but bottom-up community addresses many of the same substantive issues• How should the community:• Convey these positive outcomes to regulators?• Construct mechanisms for engaging with top-down

governance organizations?5

Take-away first• ITU is renegotiating ITRs• Under current ITR, Internet is exempt (Art. 9)

• Proposals include• IPv6 Internet Registry independent of RIRs• Regulation of peering arrangements

• “Legitimacy” based on WSIS-IGF but bottom-up community addresses many of the same substantive issues• How should the community:• Convey these positive outcomes to regulators?• Construct mechanisms for engaging with top-down

governance organizations?5

The “g” word. I am going to try to convince you that it isn’t all that

evil and that you may be doing some of it

already...

Internet Governance

Internet governance is the development and application by Governments, the private sector and civil society, in their respective roles, of shared principles, norms, rules, decision-making procedures, and programmes that shape the evolution and use of the Internet.

6

http://www.itu.int/wsis/docs2/tunis/off/6rev1.html, Art. 34

http://www.itu.int/wsis/docs2/tunis/off/6rev1.html


Internet Governance


6

as per the WGIG




Internet Governance


6

This is the WGIG definition of Internet governance. Note the mention of respective

roles.

as per the WGIG




Internet Governance


6

This is the WGIG definition of Internet governance. Note the mention of respective

roles.

Governments retain a privileged role (that capital “G”

isn’t a typo)

as per the WGIG





Internet Governance

7

as per the WGIGDoesn’t really mention who is doing

development and application, lots of

contention here on how





Internet Governance

8

as per the WGIG


Standard definition of a regime, but who creates these? What contributes

to legitimacy and authority? We will see lots of contenders...






Internet Governance

9

How? What mechanisms are effective? What

evidence do we have they are effective?

as per the WGIG




Internet Governance

10


as per the WGIG




Internet Governance

10


This is a broad definition that tells us what, but not how.

as per the WGIG



governance is the means by which a community effects its image of order

Governance (How)

11

O. E. Williamson, The Mechanisms of Governance. New York, NY: Oxford University Press, 1996.


Governance (How)

12

Despite the abstract definition, means is interpreted as the

pragmatic mechanisms a community has either implicitly or explicitly

adopted



Governance (How)

13



adopted

What is it that the community has found reifies its goals? What does the community value? Given context, why

are these effective?



Governance (How)

14



adopted

Should read images of order, there are lots of communities, each

of which operates more or less differently

What is it that the community has found reifies its goals? Waht does the community value? Given this context,

why are these effective?


Governance (Unpacking means)

governance is the means by which order is accomplished in a relation in which potential conflict threatens to undo or upset opportunities to realize mutual gains

15



Governance (Mechanisms)


16




16

This is one way to describe (very

abstractly) what the operator communities do. It is informal, but there are well-known

norms




16

This is one way to describe (very

abstractly) what the operator communities do. It is informal, but there are well-known

norms

As we walk through the ways UN bodies have framed governance, please consider how compare. Re conflict, there’s also a

nice conversation about dispute resolution in our future...

Brief WSIS-IGF Timeline

• Millennium Development Goals

• WSIS Geneva• Principles

• WGIG• Map principles to implementation options

• WSIS Tunis• Ratify elements of WGIG Report• Create IGF

• ITU’s aspirations, based on WSIS-IGF “consensus”17







This is where we got the “fun” top-down

definition







This is where we got the “fun” top-down

definition

Forthcoming treaty renegotiation based on underlying principles

WSIS Principles Origins

• Millennium Development Goals (2000)• Peace, security, disarmament• Development and poverty eradication• Protecting our common environment• Human rights, democracy and good governance• Protecting the vulnerable• Meeting the special needs of Africa• Strengthening the United Nations

18

http://www.un.org/millennium/declaration/ares552e.pdf




• Millenium Development Goals (2000)• Peace, security, disarmament• Development and poverty eradication• ICT infrastructure -> economic development -> better quality of life

• Protecting our common environment• Human rights, democracy and good governance• ICT infrastructure -> e-government -> more efficient and efficacious governance• ICT infrastructure -> greater mechanisms for expression -> democracy

• Protecting the vulnerable• Meeting the special needs of Africa• ICT infrastructure -> e-government -> more efficient and efficacious governance• ICT infrastructure -> economic development -> better quality of life

• Strengthening the United Nations• ITU gets more authority -> ITU remains relevant

19

http://www.un.org/millennium/declaration/ares552e.pdf, descriptions interpretation of author




• Millenium Development Goals (2000)• Peace, security, disarmament• Development and poverty eradication• ICT infrastructure -> economic development -> better quality of life

• Protecting our common environment• Human rights, democracy and good governance• ICT infrastructure -> e-government -> more efficient and efficacious governance• ICT infrastructure -> greater mechanisms for expression -> democracy

• Protecting the vulnerable• Meeting the special needs of Africa• ICT infrastructure -> e-government -> more efficient and efficacious governance• ICT infrastructure -> economic development -> better quality of life

• Strengthening the United Nations• ITU gets more authority -> ITU remains relevant

19

http://www.un.org/millennium/declaration/ares552e.pdf, descriptions interpretation of author



WSIS Principles (2003)

• Multi-stakeholder• Development of ICT foundation• Access to information and knowledge• Capacity building• Building confidence and security in the use of ICTs• Enabling environment (for e-government, economy)• ICT enabling empowerment• Cultural diversity and local content• Media• Ethical dimensions• International and regional cooperation

20

The community is already doing some of this. How can these efforts be conveyed to actors attempting to develop

new processes?

Drawn from: D. MacLean, ed., Internet Governance: A Grand Collaboration. New York, NY: The United Nations Information and Communications Technologies Task Force, 2004.and http://www.itu.int/wsis/docs/geneva/official/dop.html

http://www.itu.int/wsis/docs/geneva/official/dop.html

http://www.itu.int/wsis/docs/geneva/official/dop.html

WGIG Issue Areas• Administration of DNS (root zone and servers)

• IP addressing (IPv6 deployment!)

• Interconnection costs

• Internet stability, security, and cybercrime

• Spam

• Freedom of expression

• Meaningful participation in global policy development

• Data protection and privacy rights

• Consumer rights

• Multilingualism

21

Drawn from: D. MacLean, ed., Internet Governance: A Grand Collaboration. New York, NY: The United Nations Information and Communications Technologies Task Force, 2004.

WGIG Issue Areas • Administration of DNS (root zone and servers)




• Spam




• Consumer rights

• Multilingualism

22

Drawn from: D. MacLean, ed., Internet Governance: A Grand Collaboration. New York, NY: The United Nations Information and Communications Technologies Task Force, 2004. Interpretation as per the author.





• Spam




• Consumer rights

• Multilingualism

22

“institutional responsibilities...to

guarantee continuity of a stable and secure

functioning of the root server system of the DNS”






• Spam




• Consumer rights

• Multilingualism

22




equitable access to address resources, back to this later






• Spam




• Consumer rights

• Multilingualism

22





studies by international agencies, development of regional and local

access points, financing IXPs, building on current international

agreements






• Spam




• Consumer rights

• Multilingualism

22







agreements

coordination with LEAs over protection of networks and

technological assets






• Spam




• Consumer rights

• Multilingualism

22







agreements

coordination with LEAs over protection of networks and

technological assets

opportunity for all, especially developing countries, to participate


WSIS Tunis Agenda

• Refined “respective roles”• “Policy authority...is the sovereign right of States.”• “Private sector...important role in development..in the

technical and economic fields”• Civil society as important role in community• IGOs have a role as:• facilitators and coordinators of Internet-related public policy issues• role in the development of technical standards and relevant policies

• Development• National, sub-regional, and regional IXPs• Encouraging fair and balanced interconnectivity costs

• Created the Internet Governance Forum...

23

http://www.itu.int/wsis/docs2/tunis/off/6rev1.html, Art. 35, 50, 72.



WSIS Tunis Agenda





23

Government with a capital “G”




WSIS Tunis Agenda





23

Government with a capital “G”




• Governance characteristics• Lightweight, decentralized structure• Transparent, democratic, and multilateral

• Mandate• Discuss policy issues• Foster discourse• Interface between institutions• Exchange of information and best practices• Advise stakeholders on Internet development• Identify emerging issues• Contribute to capacity building• Promote and assess WSIS principles

IGF as Mandated

24

http://www.itu.int/wsis/docs2/tunis/off/6rev1.html, Art. 72.



• Governance characteristics• Lightweight, decentralized structure• Transparent, democratic, and multilateral

• Mandate• Discuss policy issues• Foster discourse• Interface between institutions• Exchange of information and best practices• Advise stakeholders on Internet development• Identify emerging issues• Contribute to capacity building• Promote and assess WSIS principles

IGF as Mandated

Recently, there has been a push for more than just a discussion forum, (re)enter the ITU

24

http://www.itu.int/wsis/docs2/tunis/off/6rev1.html, Art. 72.



ITU

• Originally International Telegraph Union• Created 1865, oldest IGO• Primary telecomm standards and coordination body until

early 1990’s

• Organization• ITU-R: allocates radio spectrum and satellite orbits• ITU-T: technical standards and telecomm interconnection• ITU-D: telecomm access and ops for developing regions

• Facilitates telecomm treaties such as the International Telecommunications Regulations

25

http://www.itu.int/net/about/



ITU


early 1990’s



25

Member states are ultimate decision makers; states appoint delegations

that have technical members, but voting is done by state

representative




ITU


early 1990’s



25



representative

...and if you don’t tow the party line, you may very

likely be sent home




ITU


early 1990’s



25

At the moment the ITU does not have regulatory

power but that may change



representative

...and if you don’t tow the party line, you may very

likely be sent home




ITRs in a Nutshell

• ITR is a treaty, signed by ITU member states

• Baseline definitions• international telecommunication• international route

• Operational issues• safety of life and priority of telecommunications• calculation of charges and accounting• binding of ITU-T recommendations

•Currently Article 9 special arrangements exempts Internet communication

26

http://www.itu.int/oth/T3F01000001, Art. 2, 5, 6, 9, App. 1, Res. No. 3, Rec. No. 3.

http://www.itu.int/oth/T3F01000001


ITRs in a Nutshell





26

over any communication media




ITRs in a Nutshell





26

over any communication media

historically includes standards and cost

structures




A Dig at Bottom-up• “The most powerful actors are able to exercise a significant

degree of policy and regulatory control ‘from the bottom up’ by pursuing national and regional interests across a wide range of forums, while the most powerful private actors are able to exercise an equally significant degree of market control by coordinating their activities through private forums, or through the exercise of raw market power. But what is often missing are opportunities for the less powerful to be engaged in discussion of global governance issues, to participate in decision-making processes, to understand the consequences of these decisions, and to adapt their policies, regulations, and practices accordingly.”

27

D. MacLean, “Herding Schrödinger’s Cats: Some Conceptual Tools for Thinking About Internet Governance,” in Workshop on Internet Governance, (Geneva), ITU, February 2004. Attributed to MacLean et. al.’s work Louder Voices.

ITU Perspective

• Quotes from ITU Secretary General Hamadoun Touré

• “[w]e need updated ITRs because without them we risk the collapse of the ICT networks which underpin all communications technologies, including the internet.” • thinking of recent regulatory failures in finance and

banking, Touré is looking for “a framework that will avoid any catastrophe”

28http://www.whoswholegal.com/news/features/article/29378/the



ITU Perspective

• Quotes from ITU Secretary General Hamadoun Touré

• “[w]e need updated ITRs because without them we risk the collapse of the ICT networks which underpin all communications technologies, including the internet.” • thinking of recent regulatory failures in finance and

banking, Touré is looking for “a framework that will avoid any catastrophe”

28

Enter new proposals for the ITRs, coming in December 2012!

http://www.whoswholegal.com/news/features/article/29378/the



ITR Proposals

• Mandated application of ITU-T recommendations• Countermeasures against spam and malware• Dispute settlement• Interconnection• Peering arrangements• Impact of costs of international traffic

• Misuse of numbering, naming, addressing and subscriber identification• Cybersecurity (signaling, traffic, and billing info)• “Appropriate” use of billing models• “New technologies” regulation• Address allocation/distribution

29

http://www.internetsociety.org/background-international-telecommunication-regulations



ITR Proposals

• Mandated application of ITU-T recommendations• Countermeasures against spam and malware•Dispute settlement• Interconnection• Peering arrangements• Impact of costs of international traffic

• Misuse of numbering, naming, addressing and subscriber identification• Cybersecurity (signaling, traffic, and billing info)• “Appropriate” use of billing models• “New technologies” regulation• Address allocation/distribution

30

http://www.internetsociety.org/background-international-telecommunication-regulations, emphasis not in original



• Comments or request for presentation references: [email protected]

31

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Governance - NANOG Archive · Internet Governance Internet governance is the development and application by Governments, the private sector and civil society, in their respective