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March 1, 2006

Wyden to Introduce Stand-Alone Net Neutrality Bill

telecomactrewrite.gifWith the prospects dim for the inclusion of network neutrality provisions in telecom reform legislation, Senator Ron Wyden (D-OR) plans to introduce his own stand-alone bill tackling this issue. Wyden, a former member of the Senate Commerce Committee, testified before that committee in February on the need for laws that bar incumbent broadband providers from discriminating against unaffiliated applications and services.

Wyden’s new bill reportedly prohibits this kind of discrimination and goes even further — it also bars the creation of private networks that provide Internet access superior to the Internet access generally available to consumers. He’ll go into more detail during a media briefing tomorrow at 1:30.

Posted by Cynthia Brumfield at 5:20 PM | Print | Comments (0)

March 1, 2006

"Our Network Carries Our Services"

networkaccess.gifThe issue of net neutrality isn’t only a factor in the wireline broadband access space. As Forbes points out, it’s also starting to emerge in the wireless 3G space.

The creators of Slingbox…have another clever idea: Let consumers watch their home TV on handheld devices. One catch, though: In order for Sling Media’s mobile service to work, it will need the assent of the major wireless carriers before its scheduled March launch. And the carriers don’t seem interested in playing along.
None of the three big carriers with high-speed networks capable of carrying the service…have publicly agreed to sign on so far. “We have no immediate plans to run that service,” says Jeffrey Nelson, spokesman for Verizon Wireless…”What runs on our network are our services.” A spokesman for Sprint declined to comment on Sling Media, while a Cingular spokesman says the company “will have to look into it.”

Mike at Techdirt, describing the position expressed by Verizon’s Nelson as “backwards and short-sighted,” also raises questions about whether Sling Media “even needs permission or partnerships with the mobile operators.”

All [Sling Media] need[s] to do is create the app that works and make it downloadable. They have the app already. As long as the mobile operators actually sell “unlimited data plans,” then it would seem that there’s really nothing else that needs to be said. Users can just choose to use it.

Mike goes on to consider the possibility of wireless carriers taking steps to proactively block access to the new Slingbox service, even for customers that sign up for their unlimited-use service plans.

Of course, we all know those plans really aren’t unlimited. However, the operators would really need to proactively step in and block things like the Slingbox — and that’s only likely to stir up a negative PR storm they probably don’t want (not that it’s always stopped them in the past).

Mike points to a post at MobHappy by Carlo Longino entitled “Operators Don’t Sell Internet Access.” Citing the above quote from Verizon’s Nelson, Carlo says:

That’s the problem — a closed attitude that operators have to be at the center of everything, instead of empowering other content and service providers and working out an ecosystem through which everyone can profit. How many times will carriers’ closed systems have to fail before they learn this?

This kind of development reminds me once again of Bob Frankston’s argument that “Connectivity is a Utility” and how difficult it is to create the ecosystem Carlo refers to when broadband connectivity is provided by a very small number of service providers who have economic incentives to bundle connectivity with in-house services.

A good example on the wireline side is AT&T’s plans for the 20-25 Mbps it expects to be able to deliver on its next-generation fiber-to-the-node network.

AT&T plans to use most of this bandwidth for an in-house video entertainment service likely to deliver pretty much the same content already available via cable and satellite, albeit with some extra IP-enabled functionality that, from the users-perspective will probably be pretty similar to what AT&T’s competitors will be delivering in the same general timeframe.

But what will this much-touted next-generation IP network deliver in terms of access to the massively innovative public Internet, where companies like Brightcove are developing technology and business ecosystems to support potentially explosive expansion of media content and business models?

According to a recent presentation by an AT&T executive, the company plans to offer three tiers of Internet access on its Project Lightspeed FTTN network. All will feature 1 Mbps of upstream capacity, which is a marginal improvement from today’s typical services. On the downstream, Lightspeed will deliver speeds ranging from 1.5 Mbps to 6 Mbps, the latter already exceeded by some of today’s broadband offerings.

I don’t blame AT&T execs for their bandwidth allocation decision. Their primary obligation is to do what they think is best for their shareholders. And, as someone who follows the RBOC’s quarterly financial reporting, I understand that this is not easy to do in today’s environment and is a significantly riskier proposition in an Internet-centric market versus one in which Walled Gardens fortified by strong barriers to entry can be nurtured and where revenues and cash flows are reasonably predictable and controllable.

And I’m admittedly biased—if I had to choose, I’d gladly give up my cable TV service in exchange for the kind of video ecosystem envisioned by Brightcove and many others active in the Internet video space (in fact, my wife and I just unplugged the TV based on our latest cost-benefit analysis of its impacts).

And, yes, it is challenging at best for Congress and/or regulators to come up with policy solutions that are acceptable to all parties and that actually do more good than harm.

But I can certainly empathize with passionate advocates of net neutrality rules and municipal broadband/community Internet projects. Given all the problems our country and our world face, do we want to compromise (even a little bit) the great promise of the Internet to insure that incumbent service providers can more fully satisfy Wall Street analysts and better manage their cash flows by throttling access to the open Internet in exchange for the ability to add IP-based voting to high-margin reality TV shows? Though I’d like cable and telephone companies to remain financially healthy in the future, policies that make this kind of trade-off strike me as dangerously shortsighted.

As I said in an earlier post that discussed potential new broadband access alternatives, including open-access community-controlled networks, Goolink-like private-public hybrids, broadband over powerline (BPL) and unlicensed use of broadcast spectrum (which has recently attracted bi-partisan support in the Senate):

It’s hard to predict the prospects for any of these emerging access models, all of which would face intense competitive pressures from incumbents. But, given the value of increased competition as it relates to concerns about network neutrality, retention of a vibrantly innovative Internet, and potential anti-competitive behaviors by access incumbents, I’d urge policymakers at the federal, state and local levels to avoid any measures that increase the already formidable barriers to entry these newcomers face. Instead, they should adopt policies that enable new entrants to leverage their unique strengths and assets in ways that promote healthy competition and increase the value of services delivered on our nation’s broadband infrastructure.
Posted by Mitch Shapiro at 1:23 PM | Print | Comments (1)

RIAA Tries to Inject "Songlifter" into P2P Lexicon

nop2p.gifCourtesy of Techdirt, this lame effort by the RIAA to coin a new phrase that attempts to equate unauthorized music sharing with, er, shoplifting. Regarding the recent round of lawsuits against 750 individuals for unauthorized file-sharing, Cary Sherman, head of RIAA said in a statement

Prosecuting songlifting [emphasis added] is integral to helping protect the ability of record companies to invest in the up-and-coming bands of tomorrow and level the playing field for legal online services. The illegal downloading of music is just as wrong as shoplifting from a local store. It’s against the law, and breaking the law must carry consequences.

Songlifter? That actually sounds kind of pleasant. This is one attempt to reframe the debate that I hope falls flat.

I hope the RIAA picks a less wussy coinage to characterize the organized file-sharing ring busted by the Feds yesterday. TheJustice Department filed suit against against three members of the “Apocalypse Crew” warez (organized trafficking in copyrighted music) group.

Posted by Cynthia Brumfield at 9:50 AM | Print | Comments (0)

Must-Read: The Blogobubble

blogging.jpgCourtesy of Jeff Pulver, this essay from Tom Evslin on the tedious debate over whether the blog bubble has burst. Evslin makes the case that the bubble has indeed popped in the sense that, really, it can’t grow much bigger unless we find distant universes populated by blog writers and blog readers.

We’ll have to discover universes full of literate extraterrestrial beings and get them online and set up with TypePad accounts immediately if the growth rate in blogs or bloggers is going to continue.

He also makes the point that unlike other burst bubbles, the blog bubble doesn’t matter because it hasn’t been accompanied by stock market mania, so who cares?

But Evslin raises a crucial point by arguing that blogging, and Web 2.0 applications such as RSS, have changed the rules of the game for traditional publishers and if those publishers fail to adapt, they will die.

I don’t think blogging will destroy traditional media; it’ll both make it better and more accountable and more accessible. But, those information and entertainment companies which don’t adapt to the Internet in general and blog technology and openness in particular, will perish.

I see too many traditional publishers that have hunkered down in the hopes that all this Web 2.0 hoo-haw will blow over, and some have even tried to spit in the wind by becoming even more tightly controlled, more tightly controlling and more closed than ever. They’re doomed, as Evslin points out.

Posted by Cynthia Brumfield at 8:13 AM | Print | Comments (0)

Indecency Legislation Ahead?

The National Journal’s David Hatch reports that the Senate Commerce Committee will consider legislation on television indecency this spring. Speaking at an NAB legislative event, committee staff director Lisa Sutherland said she wasn’t sure if new legislation would extend to cable television, but Senator Jay Rockefeller (D-WV), speaking at the same event, said he hoped to expand indecency rules that now apply to broadcast stations to cable and satellite providers.

Rockefeller’s proposal, which reportedly also requires to the FCC to reduce “gratuitous violence” on TV, would be introduced as an amendment, or a series of amendments, to any telecom reform bill.

Posted by Cynthia Brumfield at 7:11 AM | Print | Comments (0)