Y490 Politics of the InternetI

1. Y490 Politics of the Y490 Politics of the Internet Internet November 10, 2010 November 10, 2010

2. Critical Political Economy Critical Political Economy “ “Traditionally, this type of analysis Traditionally, this type of analysis focuses on how economic inequalities focuses on how economic inequalities based upon ownership and control serve based upon ownership and control serve to narrow the range of media content to narrow the range of media content available in market-based societies.” available in market-based societies.” Source: Chadwick, p. 290.

3. Three Schools of Thought Three Schools of Thought  Strong political economy approach Strong political economy approach  Media should be seen as directly servicing a wider Media should be seen as directly servicing a wider system of material production (consumer capitalism) system of material production (consumer capitalism)  Weak political economy approach Weak political economy approach  Greater role for individual leadership in the media Greater role for individual leadership in the media industries (e.g. Bagdikian) industries (e.g. Bagdikian)  Instrumental approach Instrumental approach  How owners and political elites use the media as How owners and political elites use the media as instruments of ideological mobilization (e.g. instruments of ideological mobilization (e.g. Chomsky) Chomsky)

4. Top Global Web Sites (2009) Top Global Web Sites (2009)  Google Google  Facebook Facebook  Yahoo! Yahoo!  YouTube YouTube  Windows Live Windows Live  Wikipedia Wikipedia  Blogger.com Blogger.com  Baidu.com Baidu.com  Microsoft Network (MSN) Microsoft Network (MSN)

5. Top 10 ISPs Top 10 ISPs  SBC (AT&T) (business and consumer DSL, U-Verse, SBC (AT&T) (business and consumer DSL, U-Verse, and satellite—ISDN not disclosed) and satellite—ISDN not disclosed) 14.8 14.8 [October 22, 2008] [October 22, 2008] Press Release [.xls] Press Release [.xls] 15.4% 15.4% EarthLink (DSL, dialup, cable, satellite, PLC, and webhosting—some other business lines not included) 3.0 [October 31, 2008] SEC 10-Q 3.1% 7 Charter (cable broadband)2.9 [November 6, 2008] SEC 10-Q 3.0% 8 Qwest (DSL only)2.8 [October 29, 2008] Press Release [.xls] 2.9% 9 Cablevision (cable broadband)2.4 [November 6, 2008] SEC 10-Q 2.5% 10 United Online (counting paid access only) 1.5 [November 10, 2008] SEC 10-Q 1.5%    Comcast (cable broadband) Comcast (cable broadband) 14.7 14.7 [October 29, 2008] [October 29, 2008] SEC 10-Q SEC 10-Q 15.3% 15.3%    Road Runner Road Runner (cable broadband, both business and (cable broadband, both business and residential) residential) 8.6 8.6 [November 5, 2008] [November 5, 2008] Trending Schedules Trending Schedules 9.0% 9.0%     Verizon Verizon(FiOS and DSL) (FiOS and DSL)8.5 [October 27, 2008] [October 27, 2008] Press Release [.xls] Press Release [.xls] 8.8% 8.8% 5 5 America Online (all U.S. AOL brand accounts) America Online (all U.S. AOL brand accounts) 7.5 7.5 [November 5, 2008] [November 5, 2008] Trending Schedules Trending Schedules 7.7% 7.7% 8.5     

6. Decline of Newspapers? Decline of Newspapers?  Last year was the worst on record for the U.S. Last year was the worst on record for the U.S. newspaper industry. Total advertising revenues (both newspaper industry. Total advertising revenues (both print and online) declined 16.6 percent to $37.85 print and online) declined 16.6 percent to $37.85 billion, according to the latest figures from the billion, according to the latest figures from the Newspaper Association of America Newspaper Association of America. That is $7.5 billion less than in 2007. Print advertising alone declined less than in 2007. Print advertising alone declined 17.7. Classifieds were down 29.7 percent. And even 17.7. Classifieds were down 29.7 percent. And even online advertising was down 1.8 percent to $3.1 billion. online advertising was down 1.8 percent to $3.1 billion. . That is $7.5 billion Source: http://www.techcrunch.com/2009/03/29/the-wounded-us- newspaper-industry-lost-75-billion-in-advertising-revenues-last-year/

7. Decline in Readership Decline in Readership Online readership Online readership is growing but is growing but overall readership overall readership is down according is down according to the Pew to the Pew Research Center Research Center

8. Closing of Newspapers Closing of Newspapers At least 120 newspapers in the U.S. have At least 120 newspapers in the U.S. have shut down since January 2008, shut down since January 2008, according to Paper Cuts, a Web site according to Paper Cuts, a Web site tracking the newspaper industry. More tracking the newspaper industry. More than 21,000 jobs at 67 newspapers have than 21,000 jobs at 67 newspapers have vaporized in that time, according to the vaporized in that time, according to the site. site. Source: http://www.cnn.com/2009/US/03/19/newspaper.decline.layoff/index.html

9. Origins of the Debate Origins of the Debate Coalition of Broadband Users and Coalition of Broadband Users and Innovators (CBUI) sent a letter to FCC Innovators (CBUI) sent a letter to FCC Chairman Michael Powell in November Chairman Michael Powell in November 2002 2002 It included the phrase “net neutrality” It included the phrase “net neutrality” coined by Tim Wu in an article written in coined by Tim Wu in an article written in 2002 and published in 2003 2002 and published in 2003 CBUI called for “nondiscrimination CBUI called for “nondiscrimination safeguards” to guarantee net neutrality safeguards” to guarantee net neutrality

10. What is Net Neutrality? What is Net Neutrality? “ “Net neutrality simply means that all like Internet Net neutrality simply means that all like Internet content must be treated alike and move at the content must be treated alike and move at the same speed over the network. The owners of same speed over the network. The owners of the Internet’s wires cannot discriminate. This is the Internet’s wires cannot discriminate. This is the simple but brilliant “end-to-end” design of the simple but brilliant “end-to-end” design of the Internet that has made it such a powerful the Internet that has made it such a powerful force for economic and social good.” force for economic and social good.” Lawrence Lessig and Robert W. McChesney, “No Tolls on the Internet,” Lawrence Lessig and Robert W. McChesney, “No Tolls on the Internet,” Washington Post, June 8, 2006. Washington Post, June 8, 2006. Ask a Ninja’s “What is Net Neutrality?” video

11. Eli Noam’s Possible Meanings Eli Noam’s Possible Meanings  No different quality grades for service No different quality grades for service  No price discrimination among Internet No price discrimination among Internet providers providers  No monopoly price charged to content and No monopoly price charged to content and application providers application providers  No discrimination against content providers No discrimination against content providers who compete with carrier’s own content who compete with carrier’s own content  No selectivity by the carriers over the content No selectivity by the carriers over the content that they transmit that they transmit  No blocking of the access of users to some No blocking of the access of users to some websites websites

12. Arguments of Proponents Arguments of Proponents End-to-end architecture of the Internet End-to-end architecture of the Internet must be preserved must be preserved This means preventing discrimination by This means preventing discrimination by conduit companies against content and conduit companies against content and services that they do not control services that they do not control Conduit companies will reserve lots of Conduit companies will reserve lots of bandwidth for services like cable TV bandwidth for services like cable TV which will degrade Internet performance which will degrade Internet performance for everyone else for everyone else Vint Cerf

13. Congress and the FCC Encourage Congress and the FCC Encourage Telephone and Cable to Compete Telephone and Cable to Compete Telecom Act of 1996 Telecom Act of 1996 FCC decisions to permit telcos to buy FCC decisions to permit telcos to buy cable networks and cable operators to cable networks and cable operators to compete in telephone markets compete in telephone markets FCC wanted telcos and cable FCC wanted telcos and cable companies to compete in high-speed companies to compete in high-speed Internet and cable TV services via new Internet and cable TV services via new fiber optic networks built without fiber optic networks built without government subsidies government subsidies

14. Michael Powell’s Internet Michael Powell’s Internet Freedoms, 2004 Freedoms, 2004     freedom to access content freedom to access content freedom to use applications freedom to use applications freedom to attach personal devices freedom to attach personal devices freedom to obtain service plan freedom to obtain service plan information information

15. FCC Policy Statement 2005 FCC Policy Statement 2005  consumers are entitled to access the lawful consumers are entitled to access the lawful Internet content of their choice Internet content of their choice  consumers are entitled to run applications and consumers are entitled to run applications and services of their choice, subject to the needs of services of their choice, subject to the needs of law enforcement law enforcement  consumers are entitled to connect their choice of consumers are entitled to connect their choice of legal devices that do not harm the network legal devices that do not harm the network  consumers are entitled to competition among consumers are entitled to competition among network providers, application and service network providers, application and service providers, and content providers providers, and content providers

16. More Arguments of More Arguments of Proponents Proponents There is insufficient competition between There is insufficient competition between cable operators and telcos to guarantee cable operators and telcos to guarantee non-discrimination non-discrimination There is a potential for violations of There is a potential for violations of freedom of speech in the absence of net freedom of speech in the absence of net neutrality guarantees neutrality guarantees Tim Berners-Lee Larry Lessig Gigi Sohn

17. Organizations that Support Net Organizations that Support Net Neutrality Neutrality ACLU ACLU ALA ALA Christian Coalition Christian Coalition Gun Owners of America Gun Owners of America Consumers Union Consumers Union Google, Amazon, Yahoo! Google, Amazon, Yahoo! American Electronics Association American Electronics Association

18. The Opponents’ Perspective on The Opponents’ Perspective on Net Neutrality Net Neutrality NCTA anti-NN ad NCTA anti-NN ad Fox News coverage Fox News coverage Glenn Beck Glenn Beck David Farber

19. Arguments of Opponents Arguments of Opponents Net neutrality guarantees constitute Net neutrality guarantees constitute unnecessary regulation unnecessary regulation The threat of discrimination is overblown The threat of discrimination is overblown Cable and telephone companies need Cable and telephone companies need new revenues to build out the network new revenues to build out the network Need to have “intelligent networks” to Need to have “intelligent networks” to obtain “quality of service” obtain “quality of service” Competition is sufficient to prevent Competition is sufficient to prevent abuses abuses

20. The Video Franchise Bill, 2006 The Video Franchise Bill, 2006 Attempts by Democrats led by Ed Attempts by Democrats led by Ed Markey in the House to add net neutrality Markey in the House to add net neutrality amendments failed in committee and on amendments failed in committee and on the floor the floor Net neutrality amendment proposed by Net neutrality amendment proposed by Senator Olympia Snowe (R-ME) failed to Senator Olympia Snowe (R-ME) failed to pass in an 11-11 committee vote pass in an 11-11 committee vote Senator Ted Stevens (R-AK) voted Senator Ted Stevens (R-AK) voted against the amendment against the amendment

21. Ted Stevens’ Tubes Statement Ted Stevens’ Tubes Statement  And again, the Internet is not something you just dump And again, the Internet is not something you just dump something on. It's not a big truck. It's a something on. It's not a big truck. It's a series of tubes And if you don't understand those tubes can be filled and And if you don't understand those tubes can be filled and if they are filled, when you put your message in, it gets in if they are filled, when you put your message in, it gets in line and it's going to be delayed by anyone that puts into line and it's going to be delayed by anyone that puts into that tube enormous amounts of material, enormous that tube enormous amounts of material, enormous amounts of material. amounts of material. series of tubes. . June 28, 2006 Video by Y490 class members in Spring 2010

22. People People React React to Stevens’ Explanation to Stevens’ Explanation

23. Telecom Lobbying Money Spent in Telecom Lobbying Money Spent in the First Half of 2006 the First Half of 2006 Category Specific Firms and Organization Amount in $ millions Telephone Interests Cable Interests Comcast, Time Warner, Cox, and NCTA Internet Interests Microsoft, Amazon.com AT&T, Verizon, BellSouth, and USTA 30.3 12.2 Google, Yahoo!, eBay, 8.8 Total 51.3

24. Wyden Saves the Day Wyden Saves the Day Ron Wyden used his Senatorial privilege Ron Wyden used his Senatorial privilege to place a hold on the Video Franchise to place a hold on the Video Franchise bill because of the lack of net neutrality bill because of the lack of net neutrality guarantees. Since Ted Stevens did not guarantees. Since Ted Stevens did not have the 60 votes needed to override have the 60 votes needed to override Wyden’s hold, the bill was not put up for Wyden’s hold, the bill was not put up for a vote on the Senate floor. a vote on the Senate floor.

25. Barack Obama Supports Net Barack Obama Supports Net Neutrality Neutrality Speech on net neutrality at Google in Speech on net neutrality at Google in 2007 2007 Net neutrality becomes part of the official Net neutrality becomes part of the official Democratic party platform in 2008 Democratic party platform in 2008 Obama appoints Julius Genachowski as Obama appoints Julius Genachowski as head of the FCC in 2009 head of the FCC in 2009 American Recovery and Investment Act American Recovery and Investment Act of 2009 provides $7.2 billion for of 2009 provides $7.2 billion for broadband infrastructure and mandates broadband infrastructure and mandates that the FCC prepare a National that the FCC prepare a National Broadband Plan Broadband Plan

26. Genachowski Adds Two Items to Genachowski Adds Two Items to FCC Policy Statement of 2005 FCC Policy Statement of 2005 “ “broadband providers cannot discriminate broadband providers cannot discriminate against particular Internet content or against particular Internet content or applications” applications” • “ • “providers of broadband Internet access providers of broadband Internet access must be transparent about their network must be transparent about their network management processes.” management processes.” Video of Genachowski

27. Comcast Throttling of Bit- Comcast Throttling of Bit- Torrent Traffic in 2007 Torrent Traffic in 2007  Robb Topolski discovers delays in delivery of Robb Topolski discovers delays in delivery of Bit-Torrent files for his barber shop quartet Bit-Torrent files for his barber shop quartet  Topolski publishes this on TorrentFreak blog Topolski publishes this on TorrentFreak blog  EFF and AP verify independently EFF and AP verify independently  Comcast eventually admits that it was “traffic Comcast eventually admits that it was “traffic shaping” using an application called Sandvine shaping” using an application called Sandvine that prevents “seeding” that prevents “seeding”  The FCC told Comcast to stop doing this The FCC told Comcast to stop doing this  Comcast complied but appealed to courts Comcast complied but appealed to courts

28. The Comcast Ruling The Comcast Ruling US Circuit Court of Appeals of DC ruled US Circuit Court of Appeals of DC ruled on April 6, 2010, that the FCC did not on April 6, 2010, that the FCC did not have the authority to regulate ISPs under have the authority to regulate ISPs under the Telecom Act of 1996 (therefore the Telecom Act of 1996 (therefore Comcast was not bound to obey FCC Comcast was not bound to obey FCC rules regarding traffic management) rules regarding traffic management) Ruling was based on FCC decision to Ruling was based on FCC decision to reclassify cable modems and DSL as reclassify cable modems and DSL as information services information services

29. The National Broadband Plan The National Broadband Plan FCC announced intention to guarantee FCC announced intention to guarantee net neutrality in spite of Comcast ruling net neutrality in spite of Comcast ruling Genachowski spoke of a “third way” Genachowski spoke of a “third way” between “heavy-handed prescriptive between “heavy-handed prescriptive regulation” and the “light-touch approach” regulation” and the “light-touch approach” of the past of the past FCC would attempt to reclassify FCC would attempt to reclassify transmission component of broadband transmission component of broadband as a “telecommunication service” as a “telecommunication service”

30. Conclusions Conclusions  Net neutrality was framed by Republicans as a Net neutrality was framed by Republicans as a regulatory issue. regulatory issue.  Republicans and their supporters carried the day until Republicans and their supporters carried the day until June 2006 when the political tide began turn against June 2006 when the political tide began turn against them. them.  The 2006 and 2008 election results meant that The 2006 and 2008 election results meant that Democrats and their allies would attempt to pass Democrats and their allies would attempt to pass legislation guaranteeing net neutrality. legislation guaranteeing net neutrality.  However, the Comcast ruling and strong Republican However, the Comcast ruling and strong Republican opposition to net neutrality made legislative action very opposition to net neutrality made legislative action very unlikely. It was not clear whether the FCC strategy to unlikely. It was not clear whether the FCC strategy to reclassify broadband transmission would work. reclassify broadband transmission would work.