| nternet has always been a source of confusion | | | | of ISPs denying some websites access to their |
| and angst on Capitol Hill. It has also been one of | | | | networks altogether. These scenarios are viewed |
| the more glamorous issues among the | | | | as an inherently unfair model subject to antitrust |
| lawmakers, because the impact it has had on the | | | | consideration, at least by some Democrats. |
| way Americans communicate, seek entertainment | | | | Google recently threatened to use antitrust |
| and do business. | | | | lawsuits should net neutrality initiatives fail and |
| As the speed of the internet has grown, as its | | | | they detect any signs of discrimination against |
| "bandwidth" has allowed it to carry large amounts | | | | their traffic. |
| of content at high speed, the internet highway | | | | Freedom of Speech or Freedom of Profit? |
| has become an enormously lucrative commercial | | | | The philosophical issues are interesting. But more |
| highway. It has also become much like a utility, in | | | | important in this issue are the potential business |
| that its services are delivered primarily by cable | | | | opportunities for both content providers and |
| operators and telephone companies, each industry | | | | network operators. The telephone companies that |
| operating in most markets as a de facto | | | | have large numbers of high speed internet |
| monopoly. | | | | subscribers intend to get into the television |
| Now, those cable and telephone companies that | | | | business via the internet. |
| are the internet service providers, or ISPs, are | | | | Yahoo and Google see opportunities in online |
| looking for additional revenue services beyond the | | | | video, and alliances between such websites and |
| subscription fees that they charge consumers | | | | movie companies are a real possibility. The cable |
| each month. They are considering charging major | | | | companies that provide internet service are also |
| content providers on the web a fee for massive | | | | interested in proprietary pay-per-view services |
| use of their networks. Large websites such as | | | | delivered via the internet. The service providers |
| Amazon, Google and Yahoo would be charged a | | | | would like to see a "tiered" structure wherein they |
| fee for the amount of traffic they put into the | | | | can charge large websites (with large revenue |
| webpipelines. | | | | streams) a fee. In addition, they would like to get |
| Keep in mind, these providers already pay for | | | | into thecontent business themselves. |
| their bandwidth. They pay for their connections to | | | | The ISPs argue that additional revenues are |
| the Internet through various datacenters and | | | | necessary in order for them to continue to invest |
| connections to various backbone networks. Some | | | | billions in high speed networks to better serve |
| don't do much to dispel the confusion their claims | | | | their customers. They are finding some allies |
| may cause, allowing people to think Google | | | | among hardware manufacturers, who see the |
| somehow isn't paying for their bandwidth usage | | | | implementation of a fee structure online as |
| already. All major content providers do pay, the | | | | requiring additional in-home equipment. Some |
| issue at the heart of this debate is whether they | | | | conservative Republicans are opposed to net |
| will have to pay more due to their size, or suffer | | | | neutrality as well, agreeing that the ISPs would be |
| less-than equal treatment when an ISP's | | | | denied the ability to expand their networks |
| customers attempt to reach their sites. | | | | without the additional revenue. |
| Net Neutrality Comes to Center Stage | | | | A Regulatory Conundrum |
| What has brought this issue to a head is the | | | | The FCC has left the issue alone. At one point, |
| pending ability of broadband cable networks to | | | | they dismissed the issue when raised by Amazon |
| deliver movies and other first run video | | | | and other major web content providers, saying |
| programming over the internet. But the success | | | | that regulation was unnecessary for activities that |
| of Google and Yahoo with their advertising | | | | had yet to occur. Then Madison River, a |
| revenue model and Amazon with its enormous | | | | telecommunications company in North Carolina, |
| retail presence has convinced the cable system | | | | blocked internet telephone service over their |
| operators that they are entitled to some of the | | | | telephone network which they used to deliver |
| revenue these companies are deriving from | | | | both internet access and telephone service. The |
| services delivered and transactions concluded | | | | FCC is no longer in a position to ignore the |
| over their networks - at no cost. | | | | matter, as they will be the enforcement body for |
| Thus "net neutrality" has become a buzzword on | | | | whatever rules emerge from the current debate |
| Capitol Hill and the focus of more than one | | | | A bill addressing net neutrality that was proposed |
| proposed piece of legislation in the past eighteen | | | | by Democrats failed in the House in April. |
| months. One of the problems facing the | | | | However attitudes are shifting. In May, a |
| lawmakers is that no one is exactly sure what | | | | seemingly bipartisan bill came out of the House |
| net neutrality means. For the big content | | | | Judiciary Committee that would add specific |
| providers, it means no additional fees for their | | | | language to existing antitrust law guaranteeing net |
| presence and availability on the internet. For the | | | | neutrality. The Judiciary bill would make it illegal |
| ISPs, it is a veiled term for regulated rates - or | | | | under antitrust law for network operators to |
| more accurately, the inability to create a rate | | | | impose fees or to fail to provide their services on |
| structure for major websites. | | | | "reasonable and nondiscriminatory terms." |
| The National Cable & Telecommunications | | | | Further, the bill would bar ISPs from blocking or |
| Association (NCTA) has fought cable regulation for | | | | impairing internet sites. The house has two other |
| years, and sees net neutrality as another | | | | pending bills as well, both emanating from |
| governmental threat. Says a spokesman, "For | | | | Democrats. One of the proposals is from |
| instance, does network neutrality mean that | | | | Congressman Ed Markey, a longtime expert on |
| network operators can't block spam? Should | | | | cable and telecommunications issues. He proposes |
| network operators be allowed to stop viruses | | | | to amend a telecommunications bill slated for |
| from spreading? Should large users of | | | | consideration by both houses later this year. |
| peer-to-peer software be allowed unlimited | | | | On the Senate side, there is a major rewrite of |
| bandwidth so service for other users is slower?" | | | | the Telecommunications Act of 1996 underway |
| The major internet search engines and retail sites | | | | and debate over this issue has made its way into |
| are active in their support for net neutrality, and | | | | the process. At the moment, the proposed bill |
| they are joined by some likely allies including | | | | includes language that charges the FCC with |
| internet freedom of speech advocates, liberal | | | | watching for potential violations of net neutrality |
| organizations such as MoveOn and some | | | | and reporting its findings to Congress. This "when |
| libertarian organizations. | | | | in doubt, commission a study" approach suits the |
| The legislative concern is that the monopolistic | | | | NCTA perfectly. It's a good-government approach |
| service providers would be in a position to favor | | | | to continued non-regulation, and as the NCTA |
| some websites over others - and that providing | | | | president told a Senate committee "This is the |
| unlimited high speed delivery capability to major | | | | kind of issue that is most appropriately studied a |
| sites will push other websites into slower lanes on | | | | lot more. |
| the internet highway. There is also the possibility | | | | |