June 2009

Internet access: faster, but not any cheaper

The monthly cost of Internet access has dropped regularly for years, but the big price reductions might now be behind us. New data from Point Topic shows that prices for fiber, cable, and DSL connections have remained essentially flat since September 2007. The worldwide price paid per megabit has been dropping over the last year when prices are translated directly into US dollars. Some of these drops have been impressive, too: fiber's price per megabit has dropped 20 percent, cable's has fallen 30 percent, and DSL's has declined by 37.5 percent. But when the total monthly bill for Internet access is graphed in terms of purchasing power parity (PPP), there's been no dropoff at all. So Internet access isn't getting cheaper when measured against people's purchasing power. Point Topic suggests that's because the Internet market is much closer to saturation in many economies, so the easy gains are now gone.

Deep Packet Inspection Here to Stay

The problems with so-called "deep packet inspection" are too big to ignore, a panel of broadband experts said on the third and final day of the Computers, Freedom and Privacy conference at George Washington University here. "Every corporation has some form of DPI," said Don Bowman, co-founder and chief technology officer of Sandvine, a technology company. Bowman was skeptical of the long-term effectiveness of legislation that would attempt to regulate such packet inspection. Bowman said that DPI is necessary for Internet capacity planning and prediction, and was also useful for quality experience measurement. What is needed instead, said Bowman, are broad guidelines with specific goals.

OECD Numbers Flawed, Gross says again

Former Ambassador David A. Gross, now a partner at the law firm of Wiley Rein, said that the Organization for Economic Cooperation and Development's broadband statistics are flawed, since they do not take wireless hotspots, and facility sharing, such as college dorms and single access points for large buildings, into account. "To their credit," however, "they are working on correcting it," he said. The "most fundamental flaw" in the way broadband statistics are interpreted is the assumption that "the winner ranks higher and the loser ranks lower," as if it were a zero sum game, he said. Because broadband benefits all, that zero-sum approach is not appropriate.

Comcast: Broadband Adoption Needs DTV-Like Education Campaign

Saying it wants a national broadband plan that works, and likening it to the full-court press on the DTV transition, Comcast executive VP David Cohen says the company is advising the FCC to concentrate on getting service to areas with no access to wireless or wired Internet, as well as on encouraging broadband adoption in places where there is already service available. Comcast wants carefully targeted government incentives to help reach the 8% of the country that does not have access to at least one broadband service provider. He points out that the other 92% that have it were built by companies without government subsidies or guarantees of a return, while the other 8% were where "it makes no economic sense for a company to build a network." He said that the $7 billion in economic stimulus money would be a good start to filling that 8% gap, suggesting there would be nothing left over to underwrite competition in the remaining 92%.

We Need a Network Neutrality Rulemaking Not A Backroom Deal

[Commentary] Verizon has supposedly shown a new willingness to discuss adding a "fifth network neutrality principle" on non-discrimination in addition to the existing four principles in the Internet Policy Statement. Verizon hasn't actually committed to anything or conceded anything. What Tauke's statement amounts to is simply a suggestion that Verizon might agree it could live with something unspecified in the future. While a welcome break from the endless "regulation of network neutrality will destroy the Internet" mantra, treating this as anything substantive would be a serious mistake. I find it no coincidence that Verizon makes this statement just when the new FCC is finally coming together and Julius Genachowski prepares to take over as chairman.

Scott Cleland: "Open and Free" really means "Closed and Restricted"

While backers of Network Neutrality have cheered President Obama's May 29 shout-out for the concept, Scott Cleland of the Precursor Group argues the president's strong message on cyber-security effectively redefines the idea — in a way that could actually be a boost to opponents of such mandates. Cleland pointed to the president's declaration that the administration would "deter, prevent, detect and defend against attacks and recover quickly from any disruptions or damage." That moves the discussion beyond pejoratives such as "discrimination," "block," "degrade" and "impair," he said. Cleland said the administration's commitment to public/private partnership on security protection "strongly suggests the government is not going to force 'openness' on the private sector in the form of dictates or mandates." Cleland represents cable and telecom companies — including Comcast and Time Warner Cable — in an online push against network neutrality. The group, Netcompetition.org, raises warnings about a government-run Internet with "activist regulation of broadband prices, terms and conditions."

Louisiana House backs 15-cent charge on Internet access

A 15-cent monthly surcharge should be levied on Internet access across Louisiana to fight online criminal activity, the House voted 81-9 Thursday, over the opposition of Gov Bobby Jindal (R). Rep Mack "Bodi" White (R-Denham Springs) said he sponsored the bill for Attorney General Buddy Caldwell, to raise money to finance a division in Caldwell's office that investigates Internet crimes, particularly online sex crimes against children. The measure would raise $2.4 million a year for Caldwell's department, according to a financial analysis. While White called it a usage fee, opponents called the charge a tax on Internet access. They also have questioned whether it would violate a federal law that prohibits states from taxing Internet services and would be challenged in court.

Staff Changes at FCC: Nilsson Out, Levin Back, Desai Reassigned

Former Federal Communications Commission Chief of Staff Blair Levin is returning to the Commission to help coordinate its development of a national broadband plan. Levin was a technology adviser for President Obama during his presidential campaign and transition. Levin worked closely with Julius Genachowski, Obama's pick to chair the FCC, on Obama's tech strategy during the campaign and transition, which led to the inclusion of broadband network projects in the economic stimulus plan. In addition, the Commission announced that: 1) Kent Nilsson, Inspector General (IG), has retired after serving at the Commission for 30 years. David Hunt, currently Assistant IG-Investigations, will serve as Acting IG. 2) Monica Shah Desai, Chief, Media Bureau (MB), will become Special Advisor to the General Counsel. Robert Ratcliffe will serve as Acting Chief, MB. Ratcliffe currently is Deputy Chief, Enforcement Bureau (EB). 3) Mary Beth Richards, currently Deputy General Counsel, will serve as Acting Managing Director.

CARU Questions 'Star Trek' Ads Placement In Children's Programming

The Children's Advertising Review Unit (CARU) of the Better Business Bureau has referred ads for Star Trek to the Motion Picture Association of America for its determination of whether they should have been placed in broadcast programming targeted to children. The film is PG-13 for "sci-fi action and violence, and brief sexual content." CARU has interpreted the PG-13 as meaning the ads are not appropriate for shows targeting kids, while the MPAA says that may not necessarily be the case.

ACA Asks FCC To Freeze Fees For Small Operators

The American Cable Association has asked the Federal Communications Commission to freeze regulatory fees for smaller operators at 2008 levels rather than charge them the 10% cable regulatory fee hike and the 25% CARS license regulatory fee hike it is proposing for the cable industry at large. According to a filing with the FCC Thursday, ACA, which represents over 900 small and mid-sized systems, wants the fee waived for systems with 5,000 or fewer subs, saying keeping up with filings and fees put a "substantial burden" on smaller operators trying to provide video, broadband and telephony in rural markets, but without the larger sub base over which to spread the cost.

Benton

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