Hey, Baby Bells: Information Still Wants to Be Free

http://www.freepress.net/news/13358

>From New York Times, January 15, 2006
By Randall Stross

At the top of my wish list for next year¹s Consumer Electronics Show is
this: the introduction of broadband service across the country that is as up
to date as that 103-inch flat-screen monitor just introduced by Panasonic.
The digital lifestyle I see portrayed so alluringly in ads is not possible
when the Internet plumbing in our homes is as pitiful as it is. The
broadband carriers that we have today provide service that attains negative
perfection: low speeds at high prices.

It gets worse. Now these same carriers ‹ led by Verizon Communications and
BellSouth ‹ want to create entirely new categories of fees that risk
destroying the anyone-can-publish culture of the Internet. And they are
lobbying for legislative protection of their meddling with the Internet
content that runs through their pipes. These are not good ideas.

Slow broadband seems to be our cursed lot. Until we get an upgrade ‹ or
rather an upgrade to an upgrade ‹ the only Americans who will enjoy truly
fast and inexpensive service will be those who leave the country. In
California, Comcast cable broadband provides top download speeds of 6
megabits a second for a little more than $50 a month. That falls well short,
however, of Verizon¹s 15-megabit fiber-based service offered on the East
Coast at about the same price. But what about the 100-megabit service in
Japan for $25 month? And better, much better: Stockholm¹s one-gigabit
service ‹ that is, 1,000 megabits, or more than 1,300 times faster than
Verizon¹s entry-level DSL service ‹ for less than 100 euros, or $120, a
month.

One-gigabit service is not in the offing in the United States. What the
network carriers seem most determined to sell is a premium form of Internet
service that offers a tantalizing prospect of faster, more reliable delivery
‹ but only if providers like Google, Yahoo and Microsoft pay a new charge
for special delivery of their content. (That charge, by the way, would be in
addition to the regular bandwidth-based Internet connection charges that
their carriers already levy.)

An executive vice president of Verizon, for example, said last week that the
proliferation of video programs offered via the Internet opens a new
opportunity for his company: a new class of premium online delivery for Web
sites wishing to pay extra to give smooth video streams to their customers
in the Verizon service area. The executive, Thomas J. Tauke, said that a
fast lane for premium content providers would not reduce the quality of
regular service for everyone else, and that sites could choose not to sign
up without suffering retribution. ³To the best of my knowledge,² he said,
³there¹s no negative.²

>From the consumer¹s perspective, given the dismal state of the status quo,
shouldn¹t any service improvement be welcomed? The short answer is: not
necessarily.

For one thing, the occasional need for a preferential fast lane for
streaming video ‹ that is, moving pictures displayed as fast as they arrive,
rather than downloaded first and played from memory ‹ exists in the United
States only because our standard broadband speeds are so slow. Were we ever
to become a nation with networks supporting gigabit service, streaming video
would not require special handling.

Perhaps more important, the superabundance of content in the Internet¹s
ecosystem is best explained by its organizing principle of ³network
neutrality.² The phrase refers to the way the Internet welcomes everyone who
wishes to post content. Consumers, in turn, enjoy limitless choices. Rather
than having network operators select content providers on our behalf ‹ the
philosophy of the local cable company ‹ the Internet allows all of us to act
as our own network programmers, serving a demographic of just one person.

Today, the network carrier has a minor, entirely neutral role in this system
‹ providing the pipe for the bits that move the last miles to the home. It
has no say about where those bits happened to have originated. Any proposed
change in its role should be examined carefully, especially if the change
entails expanding the carrier¹s power to pick and choose where bits come
from ‹ a power that has the potential to abrogate network neutrality.

This should be taken into account when Baby Bells say they need to extract
more revenue from their networks in order to finance service improvements.
Consumers will pay one way or the other, whether directly, as Internet
access fees, or indirectly, as charges when a content company opts for
special delivery and passes along its increased costs to its customers. It
would be better for the network carriers to continue to do as they have, by
charging higher rates for higher bandwidth. (Sign me up for that one-gigabit
service.)

Left unmentioned in Verizon¹s pitch is the concentration of power that it
enjoys in its service area, which would allow it to ignore the equal-access
principle whenever it wishes. We are asked to take on faith that it and the
other telephone companies with similar plans will handle ordinary network
traffic with the same care they would show if they had not begun parallel
businesses for the carriage trade. How likely is that?

Vinton G. Cerf has as good a claim as anyone to being the ³father² of the
Internet ‹ he was the co-author in the 1970¹s of key protocols that define
it. He worked for many years at MCI and joined Google last year. After
hearing a description of Verizon¹s contemplated offering of a premium
delivery service for video, he was skeptical that Verizon and other
broadband carriers, would adhere to promises to keep their networks open.

Mr. Cerf said that back in the 1990¹s, when the Web arrived, consumers could
choose from among hundreds of dial-up service providers, without
geographical constraints. But ³as broadband developed,² he added, ³the set
of choices telescoped to zero, one or two,² and the lack of choice means
that ³we now have a serious issue on our hands.²

Woe to us all if the Internet¹s content is limited by the companies who also
handle the plumbing. ³The Future of Ideas,² by Lawrence Lessig (Random
House, 2001), shows how innovation and creativity associated with the
Internet are the byproducts of its openness, its role as a commons that is
accessible, by design, to all. Professor Lessig, who teaches law at
Stanford, said last week that even now, broadband carriers have failed to
demonstrate their commitment to the principle of network neutrality.
³They¹ve fought it at each stage,² he said, ³and they have never embraced
the principle.²

An illustration of his point popped up the same day. In an interview,
William L. Smith, the chief technology officer at BellSouth, described to me
his company¹s trial offering in West Palm Beach, Fla., last year of a speedy
download service for Movielink content. When asked whether BellSouth would
offer its special service on an exclusive basis to a particular content site
and agree to exclude the sponsor¹s rivals, he did not hesitate in treating
the question as a matter of simply settling on the right price. The N.F.L.
and Nascar strike exclusive distribution deals, he said. Why not network
carriers?

The largest Internet companies are the ones that could easily afford
whatever terms the carriers demand for exclusive deals that would lock out
smaller rivals and new entrants. But they have not done special deals with
the carriers and instead have joined together to try to persuade Congress to
protect the principle of network neutrality and prevent the Bells from
striking exclusive deals with anyone. Last November, Amazon, eBay, Microsoft
and Google, among others, formally registered their concern with a House
committee that is revising the basic telecommunications law; they noted that
a draft version of the bill failed to make network neutrality a matter of
policy without exception. Whether the committee has responded positively to
the suggestions from the Internet players should be known soon.

IN his debut keynote address at the Consumer Electronics Show two weeks ago,
one of Google¹s founders, Larry Page, credited the ³dreamers in
universities² who had had the foresight to create a network system without
gatekeepers, which made it ³maximally flexible² to permit the unplanned
appearance of the World Wide Web. That, in turn, had made possible the
unplanned appearance of Google.

More unplanned appearances will follow ‹ but only if the ecosystem is
protected from tromping telephone companies that are genetically incapable
of understanding ³maximally flexible.²

‹ Randall Stross is a historian and author based in Silicon Valley.
E-mail:[EMAIL PROTECTED]



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