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On Julius Genachowski and Net Neutrality

I am in danger of becoming a broken record on the issue of Net Neutrality in this space, but as aggressively as the Democrats are pushing the issue, it is a danger we all will have to live with. Once again, I will summarize the issue with a minimum of technological impediments to understanding:

Net Neutrality started out as a broad-based movement on the Internet. It wasn’t a left-wing thing at all, but rather was something most of us could support, because it was merely a movement to ensure (usually government franchise-backed) ISP firms could not abuse their monopoly or oligopoly power to coerce their customers to use other services by the firm, such as phone service in the case of AT&T or television service in the case of Comcast. I believe this is a reasonable request. It doesn’t prevent investors in Internet technology from profiting, but rather merely prevents them from abusing government-granted market power to benefit other businesses.

However on Monday, FCC Chairman Julius Genachowski went beyond that when he outlined his six principles of Net Neutrality in a speech to the Brookings Institution. What he proposes is an intrusive, never-ending government hand in the growth and management of the Internet, one that is clearly aimed at the Socialist goal of “single-payer Internet,” run with the same agile reactiveness as the DMV or the TSA.

He starts off innocently enough when he speaks of “non-discrimination,” and in fact says the right things about an important problem:

The fifth principle is one of non-discrimination — stating that broadband provider cannot discriminate against particular Internet content or applications. This means they cannot block or degrade lawful traffic over their networks, or pick winners by favoring some content or applications over others in the connection to subscribers’ homes. Nor can they disfavor an Internet service just because it competes with a similar service offered by that broadband provider.

This is all true. If Genachowski stopped here, I would not oppose him. I don’t agree that the FCC must act in this space; rather I believe the answer to this problem lies at the state level. Ending or reworking franchise monopolies and duopolies on phone and cable television would go further in fixing the problem government created, than creating more new government.

The FCC Chairman does not stop there, though. He goes on to speak of how government needs to play an active role in monitoring all network maintenance activities and configurations of ISPs and their infrastructure, in the name of “transparency:”

We cannot afford to rely on happenstance for consumers, businesses, and policymakers to learn about changes to the basic functioning of the Internet. Greater transparency will give consumers the confidence of knowing that they’re getting the service they’ve paid for, enable innovators to make their offerings work effectively over the Internet, and allow policymakers to ensure that broadband providers are preserving the Internet as a level playing field. It will also help facilitate discussion among all the participants in the Internet ecosystem, which can reduce the need for government involvement in network management disagreements.

In this fairly harmless-sounding paragraph lies much danger. For one of the aims of the socialist perversion of Net Neutrality is to prohibit ISPs from offering different “tiers” of service, giving customers who pay more money a higher priority over other customers. Should Genachowski get his way, regulators would be positioned to prohibit that, just as the far left internet users want. You see, people who download lots of things off of YouTube and the Pirate Bay, as well as firms like Google who seek to make money off of services like YouTube, would benefit if ISPs are required to offer all customers an “all you can eat” plan. Such plans effectively force casual, low-intensity users to subsidize the constant downloaders. Great for some, terrible for others, and totally inappropriate for government to mandate.

Further, Genachowski attacks the fundamental right of property owners to control their property when he says this. He openly acknowledges that he wants the FCC to have an active role in resolving “network management disagreements,” in which outsiders can complain to the FCC about a private computer network’s configuration. Presumably the FCC would then grant itself the power to compel holders of networks to change such configurations on demand. Why else demand transparency if not to start making changes?

The Internet is not a single network. It is a network of networks, all of which talk to each other through standardized protocols. When I send this post to RedState, for example, it will travel over five different networks: Mine, Verizon, Alter.net, Level 3, and ThePlanet. This is not an ecosystem. This is a neighborhood, with property lines that are clearly drawn.

Genachowski is showing himself to be a tool of the radical left when he attempts to use the Net Neutrality banner to conquer the whole Internet, or at least the US-based parts of it, and put them under total government control. He must be stopped.

COMMENTS

  • jnsmith76

    Neil,

    I appreciate your coverage of this important subject. Most writers in non-technical forums have not dared venture into this subject.

    However, I feel that I must weight in from a technical point of view. Unfortunately, most people, and companies, must choose their internet service providers from a short list of companies with government licenses: cable companies, incumbent telecoms and CLECs who are resellers for the incumbent carriers. Due to this reality, it falls to the government to provide for the regulation of that forced relationship.

    (I am going to grossly simplify the function of the “network of networks”)

    At my home, and in my business, I pay my ISPs for an allotment of bandwidth. Beyond that limitation; the basic rule is that “a packet, is a packet is a packet” regardless of source, destination or type.

    I join you in being concerned by this issue being twisted into some kind of social right. However, it is vital that net neutrality rules be implemented in an enviroment where so many of the government mandated ISPs are also content providers. The strongest thing that the Conservative/Republican community can do is to strongly support a true net neutrality bill in congress.

    Just saying “no” is not an option.

  • janis
  • http://www.hakubi.us/ Neil Stevens
  • http://www.hakubi.us/ Neil Stevens

    With this administration, we may have to support a bill rather than leave it purely in the hands of the executive.

  • Ganelon

    I cannot disagree with you more.

    ISPs have a unique advantage with vastly reduced completion. The currently charge high fees for substandard product. They charge 50 bucks a month for 10-20 Mbps. Japanese companies serve MORE people providing 150 Mbps for around the same rate… ans are very profitable.

    The problem here is that Old Cable doesn’t want to die. The ISPs are primarily cable providers with dual service. However, video media is transitioning into a purely on demand paradigm. HD TV and movies will be available as streamed content… it’s happending right now with HULU and Netflix. Ass in digital distribution of music and software, and you see a marketing born of a logical demand. Once the method of efficiently delivering content to the consumer became available, the demand become absolute.

    However, Old Cable doesn’t want to compete with itself. Why encourage Internet On Demand when it becomes a compellingly superior alternative to standard fixed cable?

    Most people do not understand that effective bandwidth is not expensive to expand. You could double it on an annual basis for 6 bucks a month per subscriber. Yes… it is that cheap. But, if the ISPs meet market demands… they lose their Cable TV cash cow. Here’s the thing… to meet current demands for streaming HDTV, music and software… you wouldn’t NEED to double it every year. Though the demand for bandwidth has grown over the last few years and such on-demand media has now become available… it will not continue the same level of growth because the effective need can only be so much.

    The technology is such that is it cheap to give every home a full unshared bandwidth … in the 100-150 Mbps range. Hell, using existing coaxial and Docsis 3.0 would put you in that ballpark for the low low 1 time cost of 100.00 bucks per home.

    No… ISPs are blessed with limited competition. They do not get stifle a market by Metering or tiering based on use. If I pay the sick monthly fees for my 20 Mbps, then by God I should be able to use it to the fullest 24 seven with no regard for my neighbor who just checks email.

    Net Neutrality is about letting the internet fulfill the market need for a unified and open delivery of all media content. Allowing an ISP to block that logical end is like letting the Horse and Buggy lobby defeat the automobile.

    My fellow republicans on on the wrong side of this one. And as far as voters are concerned, at the end of the day…nobody is going to buy into your argument. It’s a loser.

  • Ben White

    There are no real examples of real problems that are currently occurring that can be solved by net neutrality. It’s all theoretical. Forcing internet providers to act against their will is something that should not be done without showing an actual need for it.

    Net neutrality proponents are basically calling for government central planning and regulation of the Internet. Because otherwise something bad might happen. They’re going to induce the very sort of problems they seek to avoid.

  • Ganelon

    Here here!

  • Ganelon

    ISPs have been attempting to throttle down bandwidth based on use of it. As new HD steaming media delivery systems come on line (Like Netflix, VOIP, Direct2Drive, etc…), they become very real competition for the Cable TV products that those ISP companies bundle.

    The myth of limited bandwidth is used to justify this throttling or other attempts to put artificial limits on internet use(like metering).

  • Ben White

    “I want it” is hardly a real argument for the government to force internet companies to act against their will.

    The number of competitors and availability of high bandwidth services is increasing steadily. Adding government regulation of prices and service levels is the fastest way to end that progress.

    Why do I even need to point this out on Red State? Shouldn’t you already understand this?

    I guess we’re all supposed to think government control is The Answer this time, even as it destroys lives and families and industries in other cases.

  • Ben White

    That’s false. No one stops Netflix streaming from working. It works fine. VOIP works fine.

    You might be right if it were actually occurring. But it is not.

    And even if there were some complaints about real occurrences, why should the same old Internet whining we always hear about everything be enough justification to empower the government to force providers to act against their will? Because you like to download TV shows?

  • Ganelon

    “I want it” = The Market

    The vast majority of areas can only have 1 cable company ISP, and perhaps 1 FIOS provider. Add in fringe and inefficient broadband technologies like Cell based or Satellite (which had dramatic bandwidth limitations compared to hard line) and you have an effective limited market where the main players provide media content and internet access, which allows them to limit competing media content via the neutral delivery system of that internet connection.

  • Ben White

    The market is both customers and providers. A lot more providers will be willing to enter the market at $50 per month than whatever lower rate the Internet Rate Czar comes up with.

    When I moved here a few years ago, broadband was not available. Then Comcast offered Cable Internet, then Qwest offered DSL, now Qwest offers fibre optic service. There are rumors of FIOS coming. Wireless offerings are starting to get competitive but aren’t quite there yet. This is good, steady progress. It’s supposed to work this way.

    The Federal Government should start messing with the situation now? To solve a non-existent (but theoretically possible) problem? Or because you envy Japan’s Internet capability (but don’t understand how our lower population density increases the wiring cost to providers)?

  • http://www.redstate.com/tnjim TNJim

    insert “level playing field” into anything, all kinds of red flags should go up. This is all about government control, regardless of how rosy they try to paint it, as Neil points out. If they get their foot in the door as far as tiers of service are concerned, you can bet content will be next.

  • http://www.redstate.com/tnjim TNJim
  • pythandmoan

    Internet radio is even worse with interruptions every 2 mins or so.
    On a 1 meg cable connection should this be a problem? All searches for a technical solution come down to one thing: my ISP. For $50/mo is it too much to expect streaming radio? This is no call for government intervention, but I’ve been looking around for a grass roots response.

  • http://www.hakubi.us/ Neil Stevens

    How do all these sweeping generalities, which probably came off of somebody’s talking points sheet, argue specifically for the authority of the FCC to have the authority to see every setting on every router, switch, and other piece of hardware that every private network owns?

    You’re doing a mediocre job arguing for the thing I agreed with. You’re not every trying to argue for the ‘transparency’ stuff that Genachowski is trying to sneak in through the back door.

  • http://www.hakubi.us/ Neil Stevens

    Explain this comment, and further, explain why you completely ignored a direct instruction given to you by a site moderator.

  • http://www.hakubi.us/ Neil Stevens

    Government is the problem.

    Literally. Government is why we don’t have more competition in these markets, but the Democrats are so ignorant, so ideological, and so radical that they just don’t care.

    It’s about the dialectic, it’s not about helping people.

  • The_Gadfly

    ‘I sub 1 want it’ + ‘I sub 2 can provide it and make money’ = The Market.

    Neil correctly identified the real problem early in his post:

    …(usually government franchise-backed) ISP firms could not abuse their monopoly or oligopoly power

    The only edit I would make to his statement would be to remove the parentheses and delete the word ‘usually.’ Which means the actual solution to the problem is for the Federal government to use its enumerated power to regulate interstate trade to negate the ability of states to establish local monopolies. Once that is done, the rest of the problems will disappear over time. And I expect it would be a fairly short timeline.

  • http://www.hakubi.us/ Neil Stevens

    There’s a good amount of competition in wireless networks. It’s not perfect but it’s much, much better than the wired networks, and it’ll get even better once everyone finally moves over to GSM.

  • Ganelon

    In my comment, I was quoting another reply(from justfortoday ) that basically asserted that Republicans(like me) were were defending Ms. Pain for her choice to keep her child on strictly partisan grounds. The quote mockingly suggested that if it were Chelsea Clinton, we would have castigated her.(i.e. the old rhetorical canard that we are hypocrites who should be disregarded)

    I was disagreeing by challenging that poster(justfortoday ) to prove his accusationby showing any evidence of mainstream conservatives doing that(disrespecting a democrats child who kept an out of wedlock child).

    Moreover, that seems pretty clear to me that the reply to’s are incorrectly linked. I replied to justfortoday , yet it is showing under a different poster. I would expect that the moderates was similarly mislinked, because it doesn’t make sense if it is a response to me.

    As I recall, Redstate has some database issues around that time.

  • http://www.hakubi.us/ Neil Stevens
  • Ganelon

    Sorry we disagree on this issue. I look at point #6 and the means to insure point #5.. with the scope of those powers to be limited to enforcing #5.

    I certainly agree that government intrusion into the micromanagement of networks and network structures is well beyond the spirit of Net Neutrality. But I would totally support FCC intervention on an ISPs attempts to limits or throttle bandwidth based on use of that bandwidth purchased.

    I simply believe that ISPs that provide media content have a vested interested in the diminshment of what the internet can, and indeed, should do. I also contend that they have a distinct advantage of subsidized infrastructure and exclusive contracting that gives them the means to act on their interests to the exclusion of serving the market demand.

    In the end, I cannot agree that this foreshadows a socialization of the internet… nor internet access. If it against principles of Free Market Absolutism? Yep. But thought I believe in Free Market solutions to most needs… in this case I’m deferring to the potential technology.

    Anyway, sorry if my disagreement has a disrespectful tone. I enjoy your posts.

  • jnsmith76

    Ben,

    Please understand that I do not support government intervention in the free market. I think our differences lie in that you seem to believe that the land line telecom and cable industries are free markets. I propose that they are not and have never been. I further propose that the internet itself is highly regulated.

    The entire development of wire based communications has always depended upon the good graces of the government in order to create the rights of way for the lines. This is also true for electrical and sewer utilities. Almost no one in this country has a choice of who provides the last mile of service for any utility. Yes, during the telecom ?deregulation? we gained the privilege of deciding between a short list of highly regulated resellers to bill us for using the incumbent carrier?s right of way to deliver dial tone and data services. However, this entire business model was built upon the basic flaws of a highly regulated utility monopoly. I am fortunate that I have a cable monopoly and a phone monopoly to choose between, many people I know have only one choice.

    The internet itself is highly regulated as well. The basic protocols that drive the user?s internet experience are developed by the Internet Engineering Task Force, a branch of the IEEE in the form of RFCs (Requests for Comment). Furthermore, routing and addressing are strictly managed by groups such as ICANN and ARIN. This is necessary in order to create a global network that is actually able to function. The internet is not, nor has it ever been the ?wild west?.

    A basic example of conflict that exists within these models is Cox Communication?s cable modem service. They intentionally block TCP port 25. This violates IETF RFC 821, the simple mail transfer protocol. One could argue that RFC 821 allows submission under TCP port 587, but I would follow the traditional interpretation that blocking TCP 25 breaks protocol. Cox does not care that they are breaking the basic rules of the road for the internet. Nor do they care if customers complain about this. I know these to be facts from personal experience.

    It follows that if the government is going to enforce a non-free market monopoly which leaves some customers with no choice but to use Cox?s service, then the customer should be able to appeal to the government to force it?s agent to provide services within the accepted standards.

    I do agree with another commenter that wireless services change this picture. The government?s spectrum allocation scheme does seem to allow for robust competition. However, we are years away from that being a viable broadband alternative in many areas.

    Bottom line, telecoms and cable are licensees of a government monopoly. They are regulated. It is appropriate to ensure that that regulation is working in the interest of the customers that have had this monopoly forced on them. They are not and have never been free market agents.

    Regards,
    James

    P.S. I am just curious, do you work for an ISP?

  • http://www.hakubi.us/ Neil Stevens

    Genachowski doesn’t ever say or even imply that his transparency principle is designed to be limited in scope to enforcing the neutrality. Never, ever, ever.

    In fact he’s awfully ge neral about it, as I said in the piece. He wants the FCC to be the Internet traffic cop, which naturally leads to the exact opposite of what he claims he wants, a free and open Internet.

    Stop projecting and start reading what he’s saying. It’s ludicrous to take an Obama nominee at face value. Has anyone ever even run a background check on this guy?

  • http://www.luxurysarasotarealestate.com marcinsarasota

    Neil,

    Interesting post. Here is a link to an interesting story where AT&T filed a letter with the FCC saying that Google Voice calling system violates the commission?s network neutrality principles – http://bits.blogs.nytimes.com/2009/09/25/att-says-google-voice-violates-net-neutrality-principles/

  • Ben White

    They’re not free markets. But they’re getting more free (or more similar to free markets) as the number of providers increases.

    ISPs do what they do for a specific reason. Port 25 is blocked to stop spammers. Are you a spammer? Is RFC 821 some sort of iron-clad contract? Is it life or death? Do you want the Federal Government to send enforcement personnel to Cox to make them open up port 25 so you can run a mail server (for whatever reason)? Why do you think force is necessary or warranted here?

    I don’t work for an ISP. But I don’t like to see innocent people pushed around. And I don’t like organized hate campaigns. And that’s what this complaining about Cable providers is.

    Just saying “it’s not a free market” is not a license to do an unlimited amount of meddling, forcing, coercing, or whatever else is on your personal wish list. Something that’s not perfectly free should be left as free as possible.

    Regulation will make things worse. Regulations will pile up and stop the roll out of new services. Taxes will be added to Internet service to pay for the government costs of regulation. Etc. Etc.

    Please just leave it alone for 5 or 10 more years and then competitive pressures will regulate ISP behavior.

  • Ben White

    There are lots of things that could cause those problems: your wireless LAN, your neighbors running bittorrent continuously, your computer, your router, your wiring, IP address issues, etc. Or it could be intermittent service from your ISP.

    This is a technical problem. It’s very unlikely anyone is intentionally causing it.

  • chong

    I find it very interesting for anyone that is so oppose to big government is willing to support any government regulation just so they can benefit from it. If I understand what some of you are saying, let the government help expand competition so that we have more choices at a cheaper price. We will never learn our lesson, if we are willing to lose our principles because we will benefit from it. If you believe in the principles of small government and free market then you should follow it 100% of the time. Government is never the solution, it is the problem.

  • mycountry

    The Commie State has arrived!

  • mycountry

    The Commie State is here