The Net Neutrality Conundrum: Does the Internet Need Regulation
Information Trends, March 2011, Pages: 60
This report titled, “The Net Neutrality Conundrum: Does the Internet need Regulation,” examines the debate raging in the United States on the neutrality of the Internet. It discusses the significance of net neutrality, and the case for and against net neutrality. It examines forces that are trying to undo net neutrality in favor of a closed Internet. The report provides an analysis of net neutrality within the context of developments impacting telecommunications and IT markets.
This report titled, “The Net Neutrality Conundrum: Does the Internet need Regulation,” examines the debate raging in the United States on the neutrality of the Internet. It discusses the significance of net neutrality, and the case for and against net neutrality. It examines forces that are trying to undo net neutrality in favour of a closed Internet. The report provides an analysis of net neutrality within the context of developments impacting telecommunications and IT markets.
FCC's ability to implement the National Broadband Plan will be severely compromised if the current push to clip its authority succeeds, according to this study. Titled, “The Net Neutrality Conundrum: Does the Internet need Regulation,” the study examine recent moves to limit the reach of FCC so as to prevent it from enforcing Net Neutrality, the neutrality of the Internet.
The FCC is being attacked on two fronts, the study pointed out. On the one hand, ISP's such as Verizon and MetroPCS have sued the FCC in an attempt to have its Open Internet rules repealed. On the other hand, the House of Representatives has passed a bill seeking to curb FCC's ability to enforce Net Neutrality. These moves, on a broader level, will severely inhibit the ability of the FCC to perform its functions, particularly with reference to the "public interest, convenience and necessity" provision the Communications Act, the study said.
With Web 2.0 has come the capability for operators to block or slow access to competitors Websites that will allow operators to realize their “paid prioritization” plans, the study said. The FCC has always exercised forbearance in regulating computer technologies, the study said, and its Net Neutrality rules are designed to keep the Internet free of attempts by operators to prioritize traffic.
The beauty of the Internet is a user's ability to go to any website and access any application without intervention of a third party, the report said. Paid prioritization will change this because it will put into the hands of the operator the power to control a user's Internet access. It will inhibit the growth of small, entrepreneurial companies who are not able to match major corporations in filling the coffers of the operators.
If operators were allowed to selectively prioritize Internet traffic, the study said, it will amount to censorship of content in violation of First Amendment rights of content providers. Such a move will have international repercussions since it will set a precedent for other countries to follow. Prioritization of Internet traffic will be used by governments in non-democratic governments to block their citizen's access to information.
It is true that the Internet traffic is seeing rapid growth, but the solution is to add network capacity rather than prioritizing traffic. Any attempt to stifle net neutrality will inflict a blow on new product innovation, limit a user's Internet access, and increase price of operators' Internet services. One the other hand, if the Internet is allowed to continue it's traditional of openness, it will spur market growth and technical innovation.
The Internet is one of the most phenomenal developments of this age, and it is critical that its neutrality is maintained, the study said. Web 2.0 represents dynamic as opposed to static site content. The provider of a Web 2.0 service offers a platform for the users to interact. With Web 2.0, a group of people collaborate to create and share information.
1.0 Executive Summary
2.0 Net Neutrality
2.1 What is Net Neutrality?
2.2 Background to Net Neutrality
2.3 2005 FCC Policy Statement on Internet
2.4 March 2008 Auction
3.0 Congressional Mandates on Net Neutrality
3.1 Section 706 of Communications Act
3.2 Section 230 of Communications Act
4.0 Comcast Controversy
4.1 P2P Networking
4.2 Interference with File-Sharing Networks
4.3 Comcast's Position
4.4 FCC Memorandum Opinion and Order on Comcast's Practice
4.5 Comcast's Petitions for Review
4.6 Court of Appeals' Verdict
4.6.1 FCC's Argument
4.6.2 Comcast's Argument
4.6.3 Court's Judgment
4.6.4 Court of Appeals Composition
4.7 FCC's Authority over Broadband Classification
4.7.1 Classification of Cable Modem Service
4.7.2 Alternatives Proposed
4.7.3 Abandonment of Effort
5.0 Google-Verizon Initiatives
5.1 Statement on Net Neutrality
5.2 Joint Filing to the FCC
5.3 New York Times Report
5.4 FCC Meetings with Internet Stakeholders
5.5 Google-Verizon Legislative Framework Proposal
5.6 Reaction to Google-Verizon Net Neutrality Proposal
5.6.1 Engadget
5.6.2 Electronic Frontier Foundation
6.0 FCC's Open Internet Rules
6.1 December 2010 Report and Order
6.2 FCC's Regulatory Authority
6.3 Commissioners' Positions
7.0 Lawsuits against Order
7.1 Verizon's Lawsuit
7.1.1 Verizon's Contentions
7.1.2 Verizon's Strategy
7.2 MetroPCS Lawsuit
7.2.1 Reason for Filing the Lawsuit
7.2.2 Lawsuit and MetroPCS Pricing Plans
7.3 FCC Motion against Lawsuits
7.4 Possible Legal Scenarios
7.5 Significance of Federal Register
8.0 Reaction to Report and Order
8.1 Industry Groups and Representatives
8.1.1 Free Press
8.1.2 Public Knowledge
8.1.3 Heritage Foundation
8.1.4 AT&T
8.2 Republican Party's Strategy
8.2.1 Congressional Bills
8.2.2 Congressional Review Act
8.2.3 Appropriations Measures
8.3 Democratic Approaches
8.3.1 Senate Bill
8.3.2 Leveraging Universal Service Fund
9.0 Impact Analysis
9.1 Wireless Networks
9.1.1 Network Speeds
9.1.2 Spectrum Shortage
9.1.3 Cell Site Size Dimensions
9.2 Cloud Computing
9.2.1 Move to Cloud Computing
9.2.2 Cloud Computing Adoption
9.3 Market Competition
9.3.1 Industry Concentration
9.3.2 Landline Broadband
9.3.3 Wireless Broadband
9.4 National Broadband Plan
9.4.1 What is Broadband?
9.4.2 Broadband Users
9.4.3 Creation of National Broadband Plan
9.4.4 Importance of Broadband Transmission
9.4.5 Long-Term Goals of the National Broadband Plan
9.4.6 National Broadband Plan and FCC Authority
10.0 Regulating the Internet
10.1 Role of Regulation
10.2 Regulatory Perspective on Internet Regulation
10.3 Telecommunications Act of 1996
10.4 Regulation and Net Neutrality
11.0 Conclusions to be Drawn
Appendix 1: List of Acronyms
Appendix 2: Feedback Form
Appendix 3: About Information Trends
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