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Net Neutrality: An Issue By Any Other Name

Net Neutrality: An Issue By Any Other Name. GMU Information Economy Project Mini-Conference September 28, 2006 Paul Misener / Amazon.com. Outline. Pull is Fundamental Changing Business Model? Net Neutrality The Disagreement Get Paid? Questions/Discussion. Pull is Fundamental

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Net Neutrality: An Issue By Any Other Name

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  1. Net Neutrality:An Issue By Any Other Name GMU Information Economy Project Mini-Conference September 28, 2006 Paul Misener / Amazon.com

  2. Outline • Pull is Fundamental • Changing Business Model? • Net Neutrality • The Disagreement • Get Paid? • Questions/Discussion Net Neutrality

  3. Pull is Fundamental • Changing Business Model? • Net Neutrality • The Disagreement • Get Paid? • Questions/Discussion Net Neutrality

  4. The Internet: “Pull” is Fundamental Internet Backbone Business ISP Residential ISP ISP ISP Home Business Net Neutrality

  5. The Internet: “Pull” is Fundamental Internet Backbone HTTP “GET” Business ISP Residential ISP ISP ISP Home Business Net Neutrality

  6. The Internet: “Pull” is Fundamental Internet Backbone Business ISP Residential ISP ISP ISP Home “Resource” Business Net Neutrality

  7. The Internet: “Pull” is Fundamental Internet Backbone Business ISP Residential ISP ISP ISP Home “Resource” Business “Resource” gets here only if pulled by end user Net Neutrality

  8. Pull is Fundamental • Changing Business Model? • Net Neutrality • The Disagreement • Get Paid? • Questions/Discussion Net Neutrality

  9. Internet Access $ Internet Backbone Business ISP Residential ISP ISP ISP Home Business $ Net Neutrality

  10. But Residential Internet Access is Changing • Concentration • Digital Technology • FCC Removal of Safeguards • Network Operator Plans Net Neutrality

  11. Concentration $ 10s  1 or 2 Internet Backbone Business ISP Residential ISP ISP ISP Home Business $ Net Neutrality

  12. Digital Technology $ analog  digital Internet Backbone Business ISP Residential ISP ISP ISP Home Business $ Net Neutrality

  13. FCC Removal of Safeguards non-discrimination rule  no rule $ Internet Backbone Business ISP Residential ISP ISP ISP Home Business $ Net Neutrality

  14. Network Operator Plans $ Internet Backbone Business ISP Residential ISP ISP ISP Home Business $ Net Neutrality

  15. Network Operator Plans $ $ Internet Backbone Business ISP Residential ISP ISP ISP Home Business $ Net Neutrality

  16. 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? Net Neutrality

  17. Internet of Today Business ISPs A 1 Residential ISPs Internet Backbone B Cable 2 3 Telco C Homes n N Business Net Neutrality

  18. Internet of Tomorrow? $ Business ISPs A 1 Residential ISPs Internet Backbone B Cable 2 3 Telco C Homes n N Business Net Neutrality

  19. Pull is Fundamental • Changing Business Model? • Net Neutrality • The Disagreement • Get Paid? • Questions/Discussion Net Neutrality

  20. Net Neutrality • Preserve the openness of the Internet • Good for consumers, innovation • Prevent the extension of market power • Not bust up the power a la 96 Act • Core idea: no discrimination based on the source or ownership of content Net Neutrality

  21. Pull is Fundamental • Changing Business Model? • Net Neutrality • The Disagreement • Get Paid? • Questions/Discussion Net Neutrality

  22. 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 Net Neutrality

  23. Pull is Fundamental • Changing Business Model? • Net Neutrality • The Disagreement • Get Paid? • Questions/Discussion Net Neutrality

  24. OSP 2 No discrimination based on content source/ownership OSP 1 OSP2$ OSP1$ End User B EU B$ EU A$ End User A Router functionality operating at the packet and, perhaps, the sub-packet level, and not necessarily a separate physical device. Basic Model Net Neutrality

  25. OSP 2 No discrimination based on content source/ownership OSP 1 OSP2$ OSP1$ End User B EU B$ EU A$ End User 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. Basic Model Net Neutrality

  26. OSP 2 No discrimination based on content source/ownership OSP 1 OSP2$ OSP1$ End User B EU B$ EU A$ End User A OSP1$ OSP1’s content, etc. Edge Server serving OSP1’s content, etc. (by, e.g., Akamai, or RAND by net op) OSP Paid RAND Edge Serving Net Neutrality

  27. OSP 2 No discrimination based on content source/ownership OSP 1 OSP2$ OSP1$ End User B EU B$ EU A$ End User A OSP1$ Private network carrying OSP1’s content, etc. (by, e.g., Level3, or RAND by net op) OSP Paid RAND Private Net Injection Net Neutrality

  28. OSP 2 No discrimination based on content source/ownership OSP 1 OSP2$ OSP1$ End User B New EU B$ EU A$ EU A$ End User A User Paid QoS (“turbo button”)? Net Neutrality

  29. OSP 2 No discrimination based on content source/ownership OSP 1 OSP2$ OSP1$ End User B New EU B$ OSP1$ EU A$ End User A OSP Paid RAND QoS? Net Neutrality

  30. Pull is Fundamental • Changing Business Model? • Net Neutrality • The Disagreement • Get Paid? • Questions/Discussion Net Neutrality

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