August 2010

Cable Firms Eye Tablet Space

More TV shows and movies may be coming to tablet computers like Apple Inc.'s iPad -- for those who pay to watch. At least seven of the ten largest subscription-TV providers in the U.S. are building new tablet-computer applications that offer select TV shows and movies to their existing subscribers, often for little or no additional fee. The efforts are going head-to-head with a handful of existing video applications from TV networks and online video services such as Netflix Inc. and Hulu LLC, hoping to compete by offering more content and features that integrate with home TV service.

Google-Verizon should prompt FCC to demand Net Neutrality

[Commentary] Candidate Barack Obama told America that he believed in an open and "neutral" Internet -- one where the owners of the wires didn't get to pick and choose which applications would run on the network. Soon after Julius Genachowski was appointed as chairman of the Federal Communications Commission, he outlined a clear and ambitious plan to turn that commitment into a reality.

But now Verizon and Google have struck a deal for a legislative template that would allow Verizon to be the gatekeeper for services running over its Internet Protocol pipe, and Google to be the colorful, well-branded winner. The outcome of this negotiation between Godzilla and Shamu may be good for them, but it would destroy the promise of a neutral network. The FCC needs to assert its authority if the chairman's and president's promises are to be kept. The most serious issue is wireless. Smartphones are beginning to replace computers across the nation. These companies have agreed that wireless, too, should be an oversight-free zone, which could divide the Internet up into pieces based on how a consumer connects. The template they've proposed helps these companies' business plans. But it would weaken competition in the wireless markets and place a single access provider in charge of the plans of any wireless entrepreneur.

Our country has learned hard lessons about the dangers of allowing industries to write their own rules. Policymakers must look beyond the narrow interests of particular companies and do much more to protect consumers.

[Susan Crawford is a professor at Cardozo Law School, , and Tim Wu, Lawrence Lessig is a professor at Harvard Law School and director of the Edmond J. Safra Foundation Center for Ethics, Barbara Van Schewick is a professor at Stanford Law School, Tim Wu is a professor at Columbia Law School]

Google/Verizon Proposal Fails, FCC Must Act

In a letter to Federal Communications Commission Chairman Julius Genachowski, Media and Democracy Coalition members highlighted how a policy proposal from Google and Verizon fails to protect the Open Internet. The groups call on the FCC to act swiftly to oversee broadband and adopt strong Open Internet rules.

The groups argue that:

1) The Google/Verizon policy proposal is not adequately enforceable,
2) Wireless Internet connectivity must not be exempted from non-discrimination rules and other openness principles, and
3) "Additional Online Services" must not be allowed to cannibalize the Internet and become a loophole for paid prioritization.

The groups conclude: "The Google/Verizon announcement does not in any way alleviate the need for the Commission to act to protect consumers, small businesses, students, creators, innovators, investors and others that depend on an open, vibrant Internet. We urge the Commission to act swiftly to issue an order classifying broadband as Title II telecommunications service, and under that authority, adopt open Internet principles that are truly in the public interest."

Public Knowledge Urges the FCC to Keep Moving on the Third Way

Public Knowledge filed reply comments in the FCC's "Third Way" docket, urging the Commission to take the steps necessary to protect consumers online.

With all of the commotion over this week's Google/Verizon announcement, it is important to remember that the major decisions about broadband classification (and net neutrality) will be made at the FCC. Our original comments laid out the case for why the Commission should go forward with its third way plans. The reply comments are an opportunity to refute some of the claims made by others the first time around. The first point that we made was that, without Title II, the FCC will be unable to achieve the goals described in the National Broadband Plan. We also took some time to show what Title II classification does not mean -- we explain how various services (like VoIP, Facebook, and DNS) would be impacted by proper classification. Particularly relevant in light of the Google/Verizon announcement, we repeated why it was so important not to exclude wireless from any access rules. Finally, we addressed some of the administrative and constitutional objections that various ISPs raised in their first round comments. In many ways, this is the easiest part of any filing, because incumbent ISPs have been making the same senseless arguments for months, if not years.

Google offers "Facts about our network neutrality policy proposal"

Google sees some inaccuracies in the discussion about the proposal it has offered with Verizon around network neutrality.

1) Whitt claims Google hasn't sold out on network neutrality. "We're not saying this solution is perfect, but we believe that a proposal that locks in key enforceable protections for consumers is preferable to no protection at all."

2) He says the proposal is not a step backwards for the open Internet -- "If adopted, this proposal would for the first time give the FCC the ability to preserve the open Internet through enforceable rules on broadband providers. At the same time, the FCC would be prohibited from imposing regulations on the Internet itself."

3) The proposal doesn't eliminate network neutrality over wireless, Whitt says. "In our proposal, we agreed that the best first step is for wireless providers to be fully transparent with users about how network traffic is managed to avoid congestion, or prioritized for certain applications and content." And "It's also important to keep in mind that the future of wireless broadband increasingly will be found in the advanced, 4th generation (4G) networks now being constructed. Verizon will begin rolling out its 4G network this fall under openness license conditions that Google helped persuade the FCC to adopt. Clearwire is already providing 4G service in some markets, operating under a unique wholesale/openness business model. So consumers across the country are beginning to experience open Internet wireless platforms, which we hope will be enhanced and encouraged by our transparency proposal."

4) Whitt promises the proposal wouldn't allow broadband providers to "cannibalize" the public Internet.

5) 'Taint about Android. Whitt writes, "This is a policy proposal ­ not a business deal... ultimately this proposal has nothing to do with Android."

Public Interest Groups Protest Google to "Save the Internet"

A coalition of public interest groups including Free Press, MoveOn.org, ColorofChange.org, Credo Action, and the Progressive Change Campaign Committee are organizing a rally in front of Google's headquarters August 13 to protest a deal on Internet regulation unveiled by Google and Verizon.

"The Google-Verizon plan would create two separate, unequal sections of the Internet," wrote Josh Levy, online campaign manager at Free Press, in an email to supporters. "A high-speed and exclusive fast lane for big business, and a slow lane, the "public Internet" that would be available to the rest of us." The rally will take place at noon at the corner of Amphitheatre Parkway and Charleston Road in Mountain View (CA).

'Surrender Monkey' Google Slams the Door Shut

[Commentary] This week's joint statement from Google and Verizon means the Internet is finally growing up. Damn it.

On its face, the proposal from the two companies over Network Neutrality rules is just a declaration of principles they hope will influence future government policy making. The truth is, it represents a massive defection by Google from the cause of assuring a level playing field for providers of online content and services -- a cause that has been accepted as an article of faith from the Net's earliest days, and one of the keys to its explosive growth. And it will lead to an Internet that is more stultifying for businesses and consumers. There may be an argument that the net-neutrality cause was already so weakened its defenders needed to cut the best compromise they could, lest they lose everything. Internet service providers have a well-earned reputation for political clout in Washington; meanwhile, a federal court ruled in April that regulators lacked authority to censure Comcast Corp. for slowing traffic from a file-sharing network. The counter-argument is that if defenders of an open Internet acquiesce in allowing development of a tiered system and excluding wireless broadband from Net-neutrality rules, they'll lose everything anyway -- just in slow motion.

Either way, it's hard to shake the feeling that Google, having taken full advantage of the Net we've known for the last 15 or so years, is now helping pull the door shut behind it. A long time ago, I learned a valuable political lesson from my dad. "There are two parties in this country, but they aren't the Democrats and the Republicans," he said. "They're the Ins and the Outs." Google and Verizon just made clear they're members of the same party.

Is there a "caring about broadband" divide in the US?

The Pew Internet and American Life Project finds that a majority of Americans don't think making broadband more affordable should be a "major" government priority. And the poll found that most Americans don't see lack of broadband as a "major disadvantage" in any area. Forty-three percent think it is when it comes to education and 34 percent think it hampers getting good information about health. But those percentages drop below a third for similar queries about life enrichment, access to government services, keeping up with news, and following community events.

For some folks who don't have broadband, "it's a very difficult thing to understand and obviously they think it wouldn't be useful in their life," commented Kevin Taglang of the Benton Foundation. "Obviously they're going to say, 'Why is the government pushing this thing that I think is of no value'?"

Sherwin Sly of Public Knowledge saw the problem in similar terms. "You don't know what you have until you've got it," he noted. "A person who hasn't had the experience of usable affordable connectivity isn't going to recognize its benefits." Both Sly and Joel Kelsey of Free Press pointed to skepticism in the last century about rural electrification and telephone service. "Every time the country has seen technological advancement, we've seen the same debate," Kelsey observed. "Long distance, rural electrification, even indoor plumbing. Some things just need to get built from our country to move forward. Broadband is one of them."

Indeed, for all the hoopla about "universal service" through the mid-20th century, it really wasn't until after the Second World War that residential telephone and long distance connectivity really took off in the United States. Even consumers who could afford phone connections in the 1920s sometimes declined that chance in favor of a family car, and phone subscribership dropped dramatically during the Great Depression. In that comparative context, the fact that Pew reports that a mild gain in broadband use through this punishing recession is good news. But there's definitely a divide between advocates of government-encouraged universal broadband and that big chunk of the public who haven't gotten there yet.

The "Pew report confirms what the FCC found in our broadband survey last year: there are still too many barriers to broadband adoption in America," said Jen Howard, FCC spokesperson. "That's why the National Broadband Plan lays out a strategy for improving digital literacy and ensuring that all Americans can take full advantage of the benefits of broadband. We're more committed than ever to educating Americans about the ways that broadband can improve their lives, whether that's helping them build their businesses, access education tools, enhance their health care, or communicate with their government and each other."

Universal Service Fund already supporting broadband

Today's federal universal telephone service programs have numerous flaws, but its voice focus is not the main problem.

There are essentially three network components that the high-cost portion of the federal universal service program helps fund: the loop, switching and interstate common line costs. And the only one of these components that doesn't have a big role in supporting broadband data delivery is switching. switching costs have been declining as carriers migrate to less costly packet-based softswitches.

The upshot is that universal service funding under today's voice-focused program undoubtedly has been an important factor in helping U.S. telcos make broadband available to about 95% of US homes. And because most rural carriers already have deployed broadband, few of them are using Universal Service funding strictly for voice support. Engebretson doesn't mean to imply that the system isn't due for retooling. troubling issues include the fund's support for wireless carriers based on landline costs and its dependence on what many view as an irrational access charge system. That system has driven some competitive carriers to extreme measures to avoid paying access charges while at the same time enticing some of those carriers to even more extreme measures in an effort to collect those charges. Whatever Universal Service funding has been wasted undoubtedly relates more to those issues than to the voice-focused nature of the program.

FCC Establishes Office of Native Affairs and Policy

In order to develop and advance an agenda aimed at bringing the benefits of a modern communications infrastructure to all Native communities, the Federal Communications Commission has established an Office of Native Affairs and Policy.

The office will work to promote the deployment and adoption of communications services and technologies throughout Tribal Lands and Native communities, by, among other things, ensuring robust government-to-government consultation with Tribal governments and increased coordination with Native organizations. The office will be headed by Geoffrey Blackwell, and will be part of the FCC's Consumer and Governmental Affairs Bureau. The Office of Native Affairs and Policy will handle ongoing consultation and coordination with American Indian Tribes, Alaska Native Villages, Native Hawaiian Organizations, and other Native and Tribal entities, and will be the official Commission contact point for these activities. It will also engage in work with Commissioners, bureaus, and offices, as well as with other government agencies, private organizations, and the communications industries, to develop and implement FCC policies regarding Tribal Nations and Native communities.