Net Neutrality Update Presentation to Montana Telecommunications Association Aug. 5, 2014

1. Net Neutrality Update Presentation to Montana Telecommunications AssociationAug. 5, 2014 John Windhausen Telepoly Consulting jwindhausen@telepolyconsulting.com

2. What is Net Neutrality About?

3. Life-long Learning

4. Net Neutrality History • 2002-2006: FCC classifies “broadband Internet access” as “Information Services”. • 2004: FCC Chairman Powell announces “Four Freedoms” – unenforceable principles to keep the Internet open. • 2008: FCC Chairman Martin finds Comcast in violation for blocking some file-sharing. • 2010: Court of Appeals overturns FCC ruling. • 2010: FCC adopts “AT&T compromise” on Net Neutrality.

5. D.C. Court of Appeals DecisionJanuary 2014 • Overturned and remanded 2 of 3 Net Neutrality rules. • Overturned No Discrimination Rule • Overturned No Blocking Rule • Upheld Transparency Rule • Upheld the FCC’s authority to regulate broadband under Section 706 (!) • The “triple bank shot”

6. Chairman Wheeler on the Hot Seat • Chairman Wheeler says he will pursue 706 “roadmap”, downplays Title II Reclassification. • Consumer groups in an uproar, demand Title II Reclassification. • Industry claims Reclassification will “blow up” (de-value) their broadband networks.

7. Current Status • FCC issues NPRM May 2014 • Comments due in July/September • FCC Decision by end of this year? • Legislation on both sides • Rep. Latta bill to bar reclassification • House and Senate bills to ban “Paid Prioritization”

8. Net Neutrality Issues • Legal Authority • Title II or 706? • “Commercially reasonable” or “Internet reasonable”? • Paid Prioritization • Fast Lanes/Slow lanes • User-Directed prioritization • Peering and Interconnection • Netflix v. Comcast • Data Caps • GAO Study/ Rep. Anna Eshoo

9. AT&T on Net Neutrality • “AT&T opposes fast lanes and slow lanes for connection to the Internet — the company can’t even figure out how that business model would work,” Cicconi said. “We think the better investment . . . is . . . increases of capacity to everybody,” he said. The only way the FCC could chill investments by companies like AT&T in their networks is if it imposes Title II or similar regulation on ISPs, he said. “It could bring about the very dangers that people are most worried about, . . . fast lanes, slow lanes.”

10. Net Neutrality Supporters Amazon, Cogent, Dropbox, Ebay, Etsy, Facebook,Foursquare, Google, Kickstarter, Level 3, LinkedIn, Lyft, Microsoft, Netflix, Reddit,Tumblr,Twitter, Vonage Holdings Corp., Yahoo!, Zynga and 100 others companies. “the [FCC’s] rules should protect users and Internet companies on both fixed and mobile platforms against blocking, discrimination, and paid prioritization.”

11. Higher Ed/Library Perspective NET NEUTRALITY PRINCIPLES American Association of Community Colleges, American Association of State Colleges and Universities, American Council on Education, American Library Association, Association of American Universities, Association of Public and Land-grant Universities, Association of Research Libraries, Chief Officers of State Library Agencies, EDUCAUSE, Modern Language Association, National Association of Independent Colleges and Universities July 10, 2014 • Without net neutrality rules, entertainment will get priority over education.

12. John Oliver - HBO “The internet is this weirdly level playing field. Startups can supplant established brands. Facebook supplanted MySpace, which supplanted Friendster, which supplanted actually having any friends.”

13. Thank you. John Windhausen President Telepoly Consulting jwindhausen@telepolyconsulting.com (202) 256-9616