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Net Neutrality:An Issue By Any Other Name
GMU Information Economy Project Mini-Conference
September 28, 2006
Paul Misener / Amazon.com
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Net Neutrality 2September 28, 2006
Outline
Pull is Fundamental Changing Business Model? Net Neutrality The Disagreement Get Paid? Questions/Discussion
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Net Neutrality 3September 28, 2006
Pull is Fundamental Changing Business Model? Net Neutrality The Disagreement Get Paid? Questions/Discussion
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Net Neutrality 4September 28, 2006
The Internet: “Pull” is Fundamental
ISP
Business
Business ISP
Home
Internet Backbone
Residential ISP
ISP
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Net Neutrality 5September 28, 2006
The Internet: “Pull” is Fundamental
ISP
Business
Business ISP
Home
Internet Backbone
Residential ISP
ISP
HTTP “GET”
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Net Neutrality 6September 28, 2006
The Internet: “Pull” is Fundamental
ISP
Business
Business ISP
Home
Internet Backbone
Residential ISP
ISP
“Resource”
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Net Neutrality 7September 28, 2006
The Internet: “Pull” is Fundamental
ISP
Business
Business ISP
Home
Internet Backbone
Residential ISP
ISP
“Resource”
“Resource” gets here only if pulled by end user
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Net Neutrality 8September 28, 2006
Pull is Fundamental Changing Business Model? Net Neutrality The Disagreement Get Paid? Questions/Discussion
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Net Neutrality 9September 28, 2006
Internet Access
ISP
Business
Business ISP
Home
Internet Backbone
Residential ISP
ISP
$
$
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Net Neutrality 10September 28, 2006
But Residential Internet Access is Changing
Concentration
Digital Technology
FCC Removal of Safeguards
Network Operator Plans
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Net Neutrality 11September 28, 2006
Concentration
ISP
Business ISP
Home
Internet Backbone
Residential ISP
ISP
10s 1 or 2
Business
$
$
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Net Neutrality 12September 28, 2006
Digital Technology
ISP
Business ISP
Home
Internet Backbone
Residential ISP
ISP
analog digital
Business
$
$
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Net Neutrality 13September 28, 2006
FCC Removal of Safeguards
ISP
Business ISP
Home
Internet Backbone
Residential ISP
ISP
non-discrimination rule no rule
Business
$
$
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Net Neutrality 14September 28, 2006
Network Operator Plans
ISP
Business ISP
Home
Internet Backbone
Residential ISP
ISP
Business
$
$
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Net Neutrality 15September 28, 2006
Network Operator Plans
ISP
Business ISP
Home
Internet Backbone
Residential ISP
ISP
$
Business
$
$
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Net Neutrality 16September 28, 2006
What is the new $?
X% of transactions?
X% of online revenue?
$X per net op subs that are OSP customers?
$X for “special” security measures?
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Net Neutrality 17September 28, 2006
Internet of Today
3
Cable
Business ISPs
Homes
Internet Backbone
n
2
1
Telco
Residential ISPs
B
C
N
A
Business
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Net Neutrality 18September 28, 2006
Internet of Tomorrow?
3
Cable
Business ISPs
Homes
Internet Backbone
n
2
1
Telco
Residential ISPs
$
B
C
N
A
Business
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Net Neutrality 19September 28, 2006
Pull is Fundamental Changing Business Model? Net Neutrality The Disagreement Get Paid? Questions/Discussion
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Net Neutrality 20September 28, 2006
Net Neutrality
Preserve the openness of the InternetGood for consumers, innovation
Prevent the extension of market powerNot bust up the power a la 96 Act
Core idea: no discrimination based on the source or ownership of content
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Net Neutrality 21September 28, 2006
Pull is Fundamental Changing Business Model? Net Neutrality The Disagreement Get Paid? Questions/Discussion
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Net Neutrality 22September 28, 2006
Disagree: Facts not Philosophy
Let the Competitive Free Market Work But >98% duopoly
Don’t Start Regulating the Internet But non-discrimination governed most
Net Ops Won’t Invest w/out Discrimination But fast deployment under non-discrimination
Common Carriage Bad, Video Competition Good But it’s not, and video comp bill relies on non-discrimination
Net Ops Should be Paid for Services
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Net Neutrality 23September 28, 2006
Pull is Fundamental Changing Business Model? Net Neutrality The Disagreement Get Paid? Questions/Discussion
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Net Neutrality 24September 28, 2006
OSP 1
OSP 2
End User B
End User A
No discrimination based on content source/ownership
Basic Model
OSP1 $OSP2 $
EU B $
EU A $
Router functionality operating at the packet and, perhaps, the sub-packet level, and not necessarily a separate physical device.
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Net Neutrality 25September 28, 2006
OSP 1
OSP 2
End User B
End User A
No discrimination based on content source/ownership
Basic Model
OSP1 $OSP2 $
EU B $
EU A $
Details of the Local Cable or Telco Network
Router functionality operating at the packet and, perhaps, the sub-packet level, and not necessarily a separate physical device.
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Net Neutrality 26September 28, 2006
OSP 1
Edge Server serving OSP1’s content, etc. (by, e.g.,
Akamai, or RAND by net op)
OSP 2
End User A
OSP1’s content, etc.
OSP Paid RAND Edge Serving
End User B
OSP1 $
OSP1 $
OSP2 $
No discrimination based on content source/ownership
EU B $
EU A $
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Net Neutrality 27September 28, 2006
OSP 1
Private network carrying OSP1’s content, etc. (by, e.g., Level3, or RAND by net op)
OSP 2
End User B
End User A
OSP Paid RAND Private Net Injection
OSP1 $OSP2 $
OSP1 $
No discrimination based on content source/ownership
EU B $
EU A $
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Net Neutrality 28September 28, 2006
OSP 1
OSP 2
End User B
End User A
User Paid QoS (“turbo button”)?
OSP2 $OSP1 $
No discrimination based on content source/ownership
EU B $
EU A $
EU A $
New
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Net Neutrality 29September 28, 2006
OSP 1
OSP 2
End User B
End User A
OSP Paid RAND QoS?
OSP1 $OSP2 $
No discrimination based on content source/ownership
EU B $
EU A $
OSP1 $
New
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Net Neutrality 30September 28, 2006
Pull is Fundamental Changing Business Model? Net Neutrality The Disagreement Get Paid? Questions/Discussion