Category Archives: Net Neutrality

Stop Calling Government Regulation of the Internet “Net Neutrality”

fcc-net-neutrality-voteImage from the FCC by way of Ars Technica

Stop using “net neutrality” to refer to government regulation of the internet.

That’s not what net neutrality is, and it’s certainly not what the government regulations promulgated by the FCC today are, in this case “Common Carrier” Rules.

People who don’t know any better are celebrating todays faux “net neutrality” FCC action as a victory for freedom and free speech on the internet, when in fact, it’s exactly the opposite.

I’ve written extensively about net neutrality and this is very much NOT it.

All the FCC has done today, is impose common carrier regulation on every ISP (oh and by the way, lots of other organizations as well who “provide internet access”. No-one has any idea how the regulations are going to be finalized, what the language will mean, who will be impacted and how… except everyone knows it’s going to cost a lot), instead of just the telephone companies it was already imposed on. Verizon for example, who was already one of the worst violators of net neutrality, even with common carrier regulation already in place for them.

Thus it makes competition and breaking of existing monopolies even harder, while not actually doing a damn thing to secure or improve neutrality… oh and it gives the FCC more control over the internet.

Absolutely none of those are good things.

Common carrier regulation is a big part of what made the current near monopolies on Internet access happen in the first place, because small independent companies, and even large regionals, couldn’t compete with the giant telcom conglomerates under those regulations. So, they all got swallowed up.

I’ve been working with telecommunications companies, and common carrier regulations, for more than 20 years. I’m an expert in governance and regulatory compliance, and I can tell you right now, NOBODY understands these regulations, because they are not capable of being understood.

These regulations and the rulings and case law associated with them go back to 1930s… and in some particulars all the way back to the 1870s. And of course, rather than replace them with something clear when they wanted to make new regulations, congress and the FCC just amended and added on and countermanded and…

I’ve flowcharted them before to try to see what applied how and where and when… the only thing I could come up with was “nobody knows for sure, it all depends what a regulator or judge says at the time”.

This wasn’t a blow for freedom and free speech… This was a giveaway to big corporate donors in the telecommunications industry.

The big telcos have been trying to get their primary competition, non-telco ISPs, burdened with the same regulatory load they labor under, for DECADES. Now, in one stroke, the FCC at the personal direction of the president, has given it to them.

Oh and guess what else common carrier regulation includes… SURVEILLANCE.

All common carriers are required to provide the government and law enforcement “reasonable access” for surveillance, as well as to give up records, usage details, and other subscriber and user data, WITHOUT A WARRANT.

What does “reasonable access” mean? Whatever the government says it means… and if you think I’m exaggerating, I’m not. I’ve dealt with the FBI on this issue, and that’s a direct quote.

Yes, this is not only a massive corporate crony handout, it’s also a huge gimme to the FBI and the NSA, who have wanted all ISPs stuck under common carrier for years as well.

Stop calling government regulation of the internet “net neutrality”. Letting the liars control the language helps them lie to you.

Net neutrality is not government regulation, and these regulations are certainly not net neutrality, nor anything like it. Don’t be taken in by fraud, cronyism, and statism, masquerading as freedom.

I am a cynically romantic optimistic pessimist. I am neither liberal, nor conservative. I am a (somewhat disgruntled) muscular minarchist… something like a constructive anarchist.

Basically what that means, is that I believe, all things being equal, responsible adults should be able to do whatever the hell they want to do, so long as nobody’s getting hurt, who isn’t paying extra

Quote of the Day: Refreshingly Honest Edition

I think age often brings humility. Back in the day, shoot- I thought I had all the answers. Now, I have to admit to myself that I’m still learning. I’m no longer afraid of saying, “I don’t know” when asked my opinion on something that I don’t understand. I’ve made it a rule to not comment unless I believe that I can defend my view if I’m challenged. I don’t understand the Israel/Palestine conflict enough. Net neutrality confuses me. Bitcoin sounds cool but I don’t get the mining part. It’s not me refusing to take sides because I’m scurred but rather: I’m ignorant and I’ll admit it. -Julie Borowski (Facebook status update)

It’s not possible to be adequately informed on every issue and it’s refreshing to see an intelligent person with a decent sized megaphone say so.

It so happens these very issues I don’t quite have a handle on either. Israel/Palestine is a much more complicated issue than most Americans understand (I don’t necessarily think Israel is always in the right and saying so doesn’t make me an anti-Semite). On Net Neutrality my instinct is just leave the internet alone; its working just fine as it is (but then again, this is just my instinct I could be wrong). Bitcoin – I like the idea and I hope it’s as good as advertised but I also worry it’s a giant “pump and dump” scam. Don’t buy more Bitcoin than you are willing to lose.

Obama Using “Net Neutrality” to Obscure Federal Take-Over of Internet

fiber-optic-cable“The government will fuck the Internet up.”

So says Mark Cuban. Truer words were never spoken. Allowing the federal government to treat the Internet as a public utility, as President Obama is calling for, under the guise of “net neutrality,” is an abysmally bad idea.

To be clear, “net neutrality” and public utility regulation are two different but equally bad ideas. It appears Obama is using the former in a cynical bid to trick the electorate into accepting the latter. Neither is needed and both are undesirable.

“NET NEUTRALITY”

Net neutrality is the idea that, having paid for Internet service, consumers should have unfettered access to all content. It would prevent a whole host of business model experiments that Internet Service Providers (ISPs) might otherwise try:

  • Selling tiered data plans like cell phone companies do.
  • Developing their own content and then delivering that content at higher speeds than they deliver a competitor’s content.
  • Creating different “lanes” of Internet traffic and charging higher prices to content providers or users for access to the “fast lanes.”
  • Preferring certain content providers to others, likely depending on who pays.
  • Blocking users from using certain online content that takes up too much bandwidth and slows down the network for other customers.

I see none of this as frightening. We pay different rates based on the size and weight of the mail we send. We pay different rates for concert seats, cell phone plans, Netflix memberships, cable subscriptions and a whole host of other services.

The sun still rises.

What consumers who demand heavy content at low cost really want is to have other users overpay for light content while suffering the slow buffering speeds caused by the heavey users. As Casey Given, writing for Rare, observes:

Even if the FCC’s worst fears come to fruition and ISPs start charging cell phone-style “plans” for different levels of Internet access, online access would only become cheaper for low data users. As it is today, a grandmother who logs online once a day pays just as much as the tech-savvy teenager next door who regularly downloads gigabytes of data. As such, she is subsidizing his usage and could instead be paying a cheaper rate if her ISP offered varying plans.

In any case, ISPs own their technology and infrastructure. They invested in that property with the aim of making a profit. The idea that the public has some sort of claim against the property of ISPs reflects a sense of entitlement I cannot endorse. Rights are things we get to do—not things we get to have at others’ expense.

It is where we stand on this principle in the hard cases that defines us.

In addition to heavy content users, the other main beneficiaries of net neutrality are Internet giants like Facebook, Google and Netflix. These companies do not want to be charged by ISPs for the heavy traffic their users generate while slowing down buffering speeds for everyone else.

But is there any reason we should prefer the profit of big content providers over the profit of ISPs? Is there some principle that says Netflix should be allowed to earn whatever profit the market permits—but not the ISPs who deliver its content to consumers?

As Doug Mataconis wrote for TLP back in 2010:

It’s Comcast’s network, [it] should have the right to decide how it’s used and to take action to protect its property and its other customers.

PUBLIC UTILITY REGULATION

Obama’s plan to regulate the Internet is not the same as net neutrality. His plan is to treat it as a public utility, the “most draconian” level of regulation that could apply. It would require ISPs to provide universal service, i.e., “wire up every house.”

It would also allow them to charge the rates necessary to recoup that expenditure at a profit. In fact, public utility regulations allow the type of tiered pricing net neutrality advocates want to prevent:

What some critics of the Commission’s recent proposal may not realize is that even if the FCC agrees to impose the price, non-discrimination, and other forms of common carrier regulation on ISPs, Title II reclassification, would not necessarily ban paid prioritization. As former enforcement director at the Federal Trade Commission, David Balto, has pointed out, the title only prohibits “unjust and unreasonable” differences in services. Carriers regulated under Title II still “may offer different pricing (including volume and term discounts) … so long as they are ‘generally available to similarly situated customers.’”

In plain English, all this means that if some websites, like Netflix, want “faster lanes” on broadband networks, the providers of those networks can charge extra for that service even under Title II, so long as they stand ready to offer the same service to all similarly situated comers.

So Obama’s proposal presents a solution that does not fit the purported problem—which may not even exist.

In June 2006, there were two or more broadband providers in 92 percent of the nation’s zip codes, and four or more providers in 87 percent. A June 2014 study found at least two providers (wireline and wireless) for virtually all of the U.S., and at least two providers (cable and telephone) in nearly three quarters. Nick Gillespie reports at Time Magazine that 80% of households have at least two providers capable of delivering the Internet at 10Mbps or faster.

This access has been achieved even as prices have gone down:

President Obama’s call this week to regulate the Internet as a public utility is like pushing to replace the engine of a car that runs perfectly well. The U.S. data sector — including wired and wireless broadband — is the envy of the world, administering a powerful boost to consumer welfare, generating high-paying jobs and encouraging tens of billions of dollars in corporate investment. Indeed, the prices of data-related goods and services have dropped by almost 20 percent since 2007.

So what is really going on? Does Obama really think the future of the Internet requires the government to sort out squabbles between Netflix and Comast?

I doubt it.

Maybe it is intended to deliver to big donors. Maybe it is about the 16.1% tax on interstate revenues that would be paid by broadband consumers. Or maybe it is something more sinister. As Christopher Bowen wrote last week:

The problem with the government regulating the internet is that … when they get to determine the rules, the consequences turn sinister.

*     *     *

What about communications of interest to the government, such as anything with heavy encryption? Or Tor?

The government has a direct interest in controlling that kind of traffic—hello, Wikileaks/Edward Snowden/any other whistleblower—and if anyone thinks the federal government will look the other way on these things, they are naive.

This isn’t just a possibility, it’s the reality of current legislation on the books, as Chris Byrne pointed out in 2006. Every single packet, every communication, every image, would be captured and stored—by law—if common carrier became the letter of the law in regards to internet traffic, without a warrant, and it would take just a rubber stamp to get a warrant that would be used to punish anyone the government pleases…

REGULATION HURTS INVESTMENT IN INFRASTRUCTURE

For years, federal agencies themselves have resisted calls for regulation, on the states basis that forcing ISPs to treat content neutrally was not necessary, would impede the development of infrastructure, and would have an adverse effect on consumer welfare.

That is because developing the technology to respond to demands for bandwidth requires heavy investment. In fact, in 2013, telecom and cable companies topped the list of industries investing in the U.S., to the tune of $46 billion in investment.

Regulation cuts into the profits that encourage that level of investment.

This Cato Institute podcast, for example, covers the fact that Google Fiber does not provide Title II (public utility) services precisely to avoid the onerous regulations that come along with such endeavor. Another stark reminder of this basic fact came in the wake of the President’s message. On November 12, 2014, AT&T announced it would delay installing high-speed fiber-optic Internet infrastructure in 100 U.S. cities until the rules were clarified.

Perhaps this is why the American people oppose regulation. A November 2014 survey by Rasumussen Reports found that 61% oppose federal regulation of the Internet. Only 19% want more regulation than we already have. What is more, seventy-six percent like the quality of their Internet access.

Only 5% have complaints.

At best this is a solution in search of a problem. At worst, this is a Jonathan Gruber style misinformation campaign, designed to lull the public into complacency as the federal government assumes control of the Internet.

This time, let’s not fall for it.

Image via BandwithPlace.com

Sarah Baker is a libertarian, attorney and writer. She lives in Montana with her daughter and a house full of pets.

Net Neutrality: A Complex Issue With No Satisfactory Solutions

Yesterday, Chris Byrne had a write-up regarding President Obama’s “stated” support for Net Neutrality. “Stated” is in scare quotes because, as Chris noted, President Obama’s support for this ( much like his “support” for gay marriage) is a limp-wristed attempt to mollify his young, technologically literate base.

Of course, because it’s Obama and there’s a cottage industry dedicated to demonizing him, Ted Cruz had to come out with the stupidest political statement of the year (Non-Dollard/Kincannon Division).

With the mainstream attention these positions will now bring, and with an FCC decision on the issue due in 2015, the issue can no longer be ignored:

Net Neutrality is a major political issue, right now.

Chris Byrne correctly noted, that the lack of competitive options in local internet access is the primary factor leading us into the situation we’re in now. A deeper look into this shows… yeah, it shows we’re screwed either way.At the moment, there are no realistic answers that will satisfy consumers.

The explanation as to why is complex, to say the least.

Keep in mind that as I go through the issues surrounding net neutrality, I will be attempting to take common arguments, and technical background, and break them down into layman’s terms. Although readers of The Liberty Papers tend to skew more educated than most, I understand that not everyone is tech savvy enough to understand much about how the internet works beyond “I go to Google and email shows up!”. » Read more

Christopher Bowen covered the video games industry for eight years before moving onto politics and general interest. He is the Editor in Chief of Gaming Bus, and has worked for Diehard GameFan, Daily Games News, TalkingAboutGames.com and has freelanced elsewhere. He is a “liberaltarian” – a liberal libertarian. A network engineer by trade, he lives in Derby CT.

Net Neutrality… Obama… Cruz… How About Oliver?

Today, Barack Obama(D) has announced that he will pretend to support net neutrality:

 

 

In response, Ted Cruz (RPDGC*), has announced that Net Neutrality is the work of the devil:

 

 

The idea that either Democrats OR Republicans actually support net neutrality is a joke.

The Democrats have (and still do) very strongly supported big media and big communications, who are largely anti neutrality. it’s only when net neutrality obviously became a big issue among young liberals (who were largely unmotivated to turn out this midterm election) that they have pretended to support it.

The Dems could have made it a campaign issue, except then they wouldn’t have had the huge media and communications industry money for the elections, that they needed to avoid getting spanked even worse than they did.

If Obama had actually supported net neutrality, he wouldn’t have appointed an anti neutrality industry stooge as FCC chair… but again, if he did that, the Dems would have lost that sweet sweet big media money.

On the other hand, the Republicans are largely anti “big media” and anti “big communications”, and only became anti-neutrality when the Democrats decided to take it as an issue.

What is Net Neutrality?

Frankly, any libertarian should support net neutrality as a principle (government regulation is another matter).

Net neutrality as a principle, is simple. All legitimate traffic should be treated equally, no matter the source or destination. No internet service provider should filter, censor, or slow down traffic from their competitors, their critics, or because of politics or national origin; or for any reason other than technical requirements for safe, efficient, and reliable network operation.

It’s how the internet has always been run, up until recently, without any government action necessary. There’s a famous quote: “The internet interprets censorship as damage and routes around it”. Any internet service provider that censored, filtered, or slowed down traffic from anyone (for anything other than technical reasons) was routed around, and cut out of the net, by its peers. It was a great example of independent action and peer enforcement working in the marketplace.

Unfortunately, this is no longer the case.

Why is it an issue now?

Large media and communications companies like Comcast and Verizon have been deliberately and artificially blocking or slowing down traffic to and from their critics and competitors.

Of course, getting government involved does generally make things worse. In fact, it already did in this case, since the government has been involved from the beginning, and it was largely government action that created the current problem.

In a rational and unbiased competitive environment, consumers would have a reasonable choice of internet service providers, and any ISP that chose to censor or limit access, would lose customers, and either correct themselves or go out of business.

Unfortunately, we don’t have anything like a free and competitive market in internet access. Government regulation and favoritism has created huge monopolies (or at best duopolies, and no, wireless access is not realistic and reasonable competition given the distorted market and cost structures there either) in internet access.

We’ve reached a point where the telecommunications monopolies that government created and support, are in fact deliberately applying anticompetitive, unfair (and in some cases already unlawful) restraint against their critics and competitors.

Since they are government supported monopolies, the market is not allowed to correct the undesirable private action.

This means that, unfortunately, government action IS required… and even if it were not required, it’s inevitable, because politics is politics, and this is now an “Issue”.

So what do we do about the problem?

Please note, I don’t trust either Democrats OR Republicans on the issue in general, and I don’t trust either, or the FCC to regulate neutrality at all. Cruz does have at least one valid concern, in that the history of government regulation of almost every industry, but particularly technology, is mainly a long record of suppressing innovation and other negative unintended consequences.

The ideal solution is to end the government created internet access monopolies that most Americans live under, and allow free and open market competition to correct the problem.

Without government limitations on competition in actual high speed, high quality internet access; competition will increase, prices will fall, and any provider that filters or slows legitimate traffic will lose all their customers and go out of business.

This isn’t just a prediction or libertarian idealism talking by the way. It’s been proved out in Korea, Japan… even in the UK. Everywhere that internet access competition has been allowed to flourish, everything has improved (conversely, in the U.S. where we have deliberately increased the power and scope of these monopolies, we have the worst internet access of any technologically advanced nation).

Unfortunately, that isn’t going to happen.

The next best thing, is to mandate net neutrality in the least intrusive, least stupid way possible, and to react intelligently (and rapidly) to changes in technology and its uses, to avoid regulatory distortion and suppression of innovation.

Unfortunately, that isn’t likely to happen either…

That said, it’s remotely possible for us get closer to that, quicker, than we can to disassembling the thousands of federal, state, and local regulations, which have created these monopolies, and made the barriers to entry for competition impossibly high.

Of course neither Democrats nor Republicans support or plan to do that.

The whole thing is a spiraling charlie fox of disingenuous cynical idiocy.

Personally, I say forget Obama, forget Cruz, and listen to Oliver (or if you don’t care for Oliver, or can’t watch a video, there The Oatmeal):

 

 

*Reactionary Populist Disingenuous Grandstanding Cynic… not the Republican party, just Cruz

Edited to add a few paragraphs clarifying what net neutrality was, and why it’s currently an issue

I am a cynically romantic optimistic pessimist. I am neither liberal, nor conservative. I am a (somewhat disgruntled) muscular minarchist… something like a constructive anarchist.

Basically what that means, is that I believe, all things being equal, responsible adults should be able to do whatever the hell they want to do, so long as nobody’s getting hurt, who isn’t paying extra