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Michael Rose

Michael Rose

Posted: July 7, 2010 11:01 AM

Net Neutrality Versus the Telecom Pirates

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Michael Winship, Pres. Writers Guild East & FCC Chairman Julius Genachowski courtesy Sarah Long

The standard set top box is an endangered species as entertainment and information converge and is increasingly delivered over the internet to your TV, laptop and handheld device. Not only will there be entertainment, sports and information sources available anywhere, anytime and on any device, the Internet will be the engine of job creation, at the center of health care reform and education. But to make this glimmering promise become a reality we have to move up the ladder from our position in 17th place for broadband Internet penetration among developed countries. We have to address our policy and technology shortcomings. This is one performance issue where size does matter.

"The number one biggest priority is our broadband future," said Federal Communications Commission (FCC) Chairman Julius Genachowski while extolling the benefits of an ever faster, more robust and open internet during a talk June 24, 2010 at the Silver Docs documentary festival and conference held in Silver Spring, Maryland.

What worries some is that the United States slipped from fourth place in broadband penetration at the turn of this century to 17th and is still sliding as other countries invest in connectivity and infrastructure, according to a study done by the Berkman Institute at Harvard University.

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Chairman Genachowski, Courtesy Sarah Long

"We are moving too slowly," Genachowski said. "We're not talking about pipes into the house we need to get the house built." And it's not just about entertainment. "We need to do this for health care, education, jobs and public safety," he said.

The ability to store and access your medical records online will help doctors and hospitals quickly track your treatments, make sure your medicines don't conflict and cut down on the cost of paperwork. This is one of the keys to bringing down the cost of health care in this country according to independent health care analyst Emily Friedman. This effort has begun with funding from the economic stimulus package, a.k.a. the American Recovery and Reinvestment Act, which underwrote $83.9-million in grants managed by the Department of Health and Human Services for "health information" technology. This is expected to double as health care reform rolls out over the next five years.

While the U.S. lags in some indices, we do have a lot of the basic infrastructure in place. "We have the benefit in this country because we have 92% cable penetration into the homes," said Genachowski. "There are opportunities for wireless but we don't have enough spectrum allocated now."

Last week the President announced a plan that incorporated the FCC's recommendations for "nearly doubling" the spectrum allocated to broadband. "We will need more and ever more," said Genachowski.

He believes the economic and social costs of exclusion in our country are too high not to create a robust broadband future. But access and affordability are a major concern. There will be costs involved to bridge the digital divide and make sure there aren't two classes of citizens, the plugged in and the unplugged.

"Ten year ago if you were looking for a job you could use a newspaper or a fax machine," said Genachowski. "Now companies are going online for job applications. Today if you don't have access to the internet, you're out of luck."

Which is also true in education. "If you grow up today and don't have the skills you need to participate in the digital environment, do research, homework and communicate," you won't be prepared for the future, he said.

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Sec'y of Treasury Timothy Geithner, President Obama, Sec'y of Agriculture Thomas Vilscak

Recognizing the need to start closing the digital divide, President Obama announced a $795-million package of broadband development grants on Friday (July 2nd) that will "invest in 66 new projects across America to finally bring reliable broadband service to communities that currently have little or no access," he said in remarks at Andrews Air Force Base. The grants will go to schools, libraries, health care facilities and businesses in financially strapped areas of all fifty states. These grants will be funneled through the Departments of Commerce and Agriculture and will be augmented with $200-million of outside investment.

Increasing broadband access worries some who fear it will lead to more piracy. While online piracy of music and movies is a problem some in the Silver Docs audience were more concerned about "corporate pirates" who've tried to hijack control of the Internet for their own commercial benefit and are using an army of well-paid lobbyists to influence Congress, the courts and the public.

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Robb Topolski from the film Barbershop Punk

"This place is absolutely coin operated," said Robb Topolski, who's featured in a film about net neutrality that premiered at Silver Docs. "I don't know how to take people who can take that in stride."

Topolski, a former cop and software engineer became an accidental champion for "net neutrality" after he stumbled on the fact that Comcast, his internet service provider (ISP) was consciously blocking attempts to email his collection of classic barbershop quartet music to his friends. This discovery set off a firestorm and made him the star of Barbershop Punk that traces the struggle to make Comcast play fair.

"The Internet Standards Committee has rules for dealing with congestion. But Comcast crossed the line by using a proprietary system and keeping it secret," explained Robb who is Chief Technologist for the Open Technology Initiative of the New America Foundation and currently consults with media policy organizations Public Knowledge and Free Press

"What we found out is Comcast lied about the whole thing," said Art Brodsky, spokesperson for Public Knowledge, the organization that filed the complaint. "They were throttling one technology with another."

Robb's case helped convince the FCC, under a previous chairman, to order Comcast to treat all traffic coming over their network as equal. The argument was that "common carrier" rules have been applied to roads, electrical transmission lines and the telephone systems. The Internet should be seen in the same light as something that benefits the public and the providers shouldn't be able to play favorites. One company shouldn't be allowed to have its films, music or other content download faster than its rivals. That's the concept of net neutrality.

This ruling paved the way for current Chairman, Genachowski, to issue an ambitious 376 page National Broadband Plan in March, 2010 that promoted net neutrality. To develop the "Plan" they held "37 public workshops, that drew over 10,000 participants. The follow up Public Notices generated over 23,000 comments that took up 74,000 pages and prompted 1,100 ex parte filings that added another 13,000 pages to the record. The FCC conducted nine public hearings across the country and had "conversations" with numerous government agencies. Of course, they used the Internet to spread the word and the FCC Twitter feed attracted more than 330,000 followers.

This was rolled out as "America's plan, written by and for Americans." The report's preface proclaimed it was time to "act and invest in our future by bringing the power and promise of broadband to us all."

Unfortunately, the U. S. Court of Appeals for the District of Columbia didn't agree. It delivered a debilitating blow to "America's plan" one month after its unveiling when issuing its unanimous ruling saying the FCC lacks the authority to impose net neutrality under the current guidelines. These guidelines view the Internet as an information service and not a telecommunications service which would be regulated like the traditional phone companies. Comcast, Verizon and AT&T like this because it doesn't make them open up their broadband networks to competition versus the phone systems which must make the lines available to all comers.

Where does this leave Genachowski? What are the FCC's options? Can he change the guidelines?

"They have the authority to correct the Bush era mistake of taking broadband access services out of the telecommunications services and basically deregulating it. They can put broadband access back under regulation," said Brodsky. "They can do it, they just need to exercise it."

The question becomes will Genachowski's FCC choose this path and rule that the Internet should be seen like any other public utility, basically, a dumb pipe? Or will he appeal to the Supreme Court to overturn the Comcast decision, or wait for Congress to act? And can he afford to stir the pot with a controversial rule change during an election year as his party struggles to maintain control of Congress? If he does, he can expect a lobbying and public relations onslaught that will attempt to hammer him into submission.

Comcast, AT&T, Verizon and the other internet, cable and phone companies that combined control the bulk of access to the Internet now employ 276 former government officials who's mission is to lobby Congress and the executive branch. They value the status quo and are willing to pay whatever it takes to maintain their slices of the telecommunications pie.

This lobbyist army is formidable. According to the Sunlight Foundation, which has looked at lobbyist disclosure forms and the Center for Responsive Politics, 72% of the lobbyists hired by AT&T, Comcast, Time Warner Cable, Verizon, the National Cable & Telecommunications Association and the US Telecom Association have been in government. Some, like former senators John Breaux and Trent Lott, have held leadership positions in Congress. Several of the lobbyists are former lawmakers who were members of the House Committee on Energy & Commerce, the committee with telecommunications oversight. Breaux & Lott's operation spent $150,000 lobbying on behalf of AT&T in the first quarter of 2010. Combined, these groups have spent $20.6 million lobbying the federal government in the first quarter of 2010 alone.

It's a certainty that the campaign contributions will be flowing and the bulk of the money won't be coming from consumers struggling to get online to make a donation.

"We'll get there, it's too important," said Genachowski. While we know where "there," our digital destination should be - an open and robust Internet that promotes economic growth, improves health care and education - it isn't clear yet where "there" will be. Welcome aboard, it's going to be a bumpy flight.

 

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11:57 AM on 07/14/2010
“This is one performance issue where size does matter.” Are you kidding?!

After picking up my jaw from the floor after reading that sentence, I continued reviewing the article written by Mr. Rose. What struck me was the inherent contradiction in its two main arguments. Mr. Rose claims that we need to increase our Broadband Internet penetration, but then screams for a strong government hand that will clearly hamper the efforts of the companies that need to go out and build the network to reach that goal. Broadband Internet penetration has been consistently increasing without any particular help from the FCC.
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K377
11:06 AM on 07/14/2010
I agree with Chairman Genachowski that broadband is essential for progress in so many aspects of government, private industry, and our personal lives. It is my opinion, though, that the net neutrality crusade is detracting from the important goals found in the national broadband plan. Congress should intervene to grant the Commission limited authority to regulate the Internet so that we can move forward with realizing the goals of the plan.
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AltonEDrew
Managing Director, The Alton Drew Group LLC
01:39 PM on 07/09/2010
“We'll get there, it's too important," said Genachowski. While we know where "there," our digital destination should be - an open and robust Internet that promotes economic growth, improves health care and education - it isn't clear yet where "there" will be. Welcome aboard, it's going to be a bumpy flight.”

A bumpy flight? Maybe. Before takeoff, however, Chairman Genachowski needs to get permission to roll from the gate. The tower, otherwise known as the Congress, should be the ones giving Mr. Genachowski permission to roll up to the flight line.

The Federal Communications Commission should expect turbulence from spokespersons that represent the anti-net neutrality portion of the debate. That is what a pluralistic society is all about. Failure to directly engage and consider the legitimate positions of broadband access providers as well as getting statutory authority from the Congress on any reclassification will only result in delay on the tarmac and better yet, seeing the Supreme Court cancel the flight altogether.

Either way, the last thing Mr. Genachowski needs to do is buzz the tower and be known as a hot dogging pilot.

Alton Drew
www.lawandpoliticsofbroadband.com
05:39 PM on 07/08/2010
You will note that this article mentions Public Knowledge, Free Press, the New America Foundation, and the Sunlight Foundation -- all lobbying organizations which have financial ties to Google. This is no coincidence. The purpose of the proposed "network neutrality" regulations (which aren't actually neutral in any way, shape, or form) is to benefit Google. They would harm the public by raising the cost of Internet service, decreasing its quality, killing innovation, and deterring deployment of and upgrades to networks.

Note that the author mentions the lobbying activities of Google's opponents, who are actually trying to bring quality broadband to America, but fails to mention that Google outspends every one of them. He also fails to note that Google also has hired former government officials and spends millions on "astroturf" -- phony grass roots lobbying. It certainly appears that he's yet another one of the Google "astroturfers" who have been trying to mislead readers of the Huffington Post.
01:31 PM on 07/09/2010
While it's true that Google and Yahoo are both backers of net neutrality, the fact remains that the United States has a lot of catching up to do in broadband deployment. Creating guidelines and setting goals is what the government is supposed to do. The creation of the Post Office spurred commerce, the backing of railroads, rural electrification, the interstate highway system and more all helped the country grow and prosper. A more robust and open Internet will encourage future growth and help this country compete in the 21st century. I'll take a look at who'll benefit in a future post. But let me be clear, there was no attempt to mislead the readers and I while I welcome robust disagreement on any issue I would prefer civil discourse to unfounded allegations questioning my professional motives and integrity.
05:24 PM on 07/11/2010
The regulations for which you lobby in the misleading article above would not make the Internet more robust or more open. They would benefit Google's corporate monopolies. The readers of the Huffington Post should not be misled by corporate shills and lobbyists.
06:34 PM on 07/07/2010
The net needs to stay neutral, there's no other way...
04:06 PM on 07/07/2010
The bottom line is, the big tech companies write the laws to favor themselves and do not care what others say or do. They screw customers out of as much money as possible and we see it in ALL the ridiculous nickle and dime techniques they have developed over the years

It isn't until law comes in to threaten them that they pull back and start realizing that they can't screw everyone that they STRAIGHTEN UP
JNarragansett
Check your premises
03:48 PM on 07/07/2010
Here's what I get out of all of this. Yet another example where a consumer was able to figure out that content was being throttled and resolve the problem. Every single attempt to throttle content or disrupt net neutrality has been successfully rebuffed by consumers in the past. You write about the fear of a future event because that is all you have, fear. I also get that the telecoms have an army of lobbyists, meaning that they will have more control over the FCC than consumers could ever hope to achieve. Once again, the telecoms could use the FCC to stifle the introduction of new technology, as it did with phones. Once again, the telecoms will use the FCC to entrench business models rather than having to deal with competition.

Anyone really concerned with preserving Net Neutrality would want the power to continue to reside with consumers and would want the FCC to stay out of the issue.
07:26 AM on 07/08/2010
Wrong information, there, chum. You need to get your facts straight. Without the FCC, corporations are free to do whatever they want with our airwaves that we own. Your logic is the logic that led to our now ranking at the bottom of industrialized nations for broadband. Why would you argue we need yet more of the same?
JNarragansett
Check your premises
09:35 AM on 07/08/2010
Do you know what net neutrality is? What I said wasn't about logic, but about the fact that net neutrality has been more than adequately protected by consumers. In the most publicized attack involving bittorrent and comcast, consumers and comcast came to a resolution 4 months before the FCC became involved.

Do some research first.
09:14 PM on 07/11/2010
Wrong information, there, Tom. The FCC has never enforced "network neutrality" and the Internet has grown, developed, and prospered as a result. We don't want the camel's nose in the tent, especially when the FCC's most senior Commissioner has already indicated a desire to censor content on the Net.
01:21 PM on 07/07/2010
A good explanation of net neutrality and why it's so important. The internet has to be available and accessible to everyone equally.