Commercialization of the Internet

darkbeaver

the universe is electric
Jan 26, 2006
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RR1 Distopia 666 Discordia
Commercialization and Future Access to the Internet Highway

By Prof Rodrigue Tremblay

Global Research, February 18, 2007

"Perhaps the most obvious political effect of controlled news is the advantage it gives powerful people in getting their issues on the political agenda and defining those issues in ways likely to influence their resolution."W. Lance Bennett
"The Bush majority on the FCC has bowed to the interests of the big cable and telephone companies to strip away, or undo, the Internet’s basic DNA of openness and non-discrimination.”Bill Moyers,
American Telegraph neutrality law;
"...messages received from any individual, company, or corporation, or from any telegraph lines connecting with this line at either of its termini, shall be impartially transmitted in the order of their reception, excepting that the dispatches of the government shall have priority."
—An act to facilitate communication between the Atlantic and Pacific states by electric telegraph., June 16, 1860
On January 3, 2007, the New York Times ran an editorial entitled "Protecting Internet Democracy". What the Times was referring to, was the need to uphold the "principle of Net Neutrality", the principle according to which Internet service providers (ISPs—essentially mega cable and telephone companies, such as AT&T, Verizon, Bell South, Comcast and other phone and cable giants which own physical infrastructures), should not be able to favor some users over others, because such a power would inevitably lead to censorship.
Indeed, what the giant telecommunications companies would like to obtain from politicians and from the five-person Federal Communications Commission (FCC) is the right to filter content and commercialize the Internet, using broadband lines, and to price-discriminate between users. They would like to obtain the right to charge websites to deliver their content to consumers and to give preferential service to favored clients by setting up special toll booths on the information superhighway. Their purpose is to be able to establish a two-tiered Internet system, with fast high fare lanes and slower lower fare lanes. Net-accessing users who pay hefty fees would have their Web pages delivered on the Internet in the current speedy fashion; other users who do not fork over a ton of cash to the service providers would be relegated to the slow lanes and would be placed at a big disadvantage. In such a system, the big Internet users would have access to exclusive deals and would become bigger, while the individuals, the creators, the innovators and the other small users would remain small or disappear. —Only the richest corporations would have access to the prime bandwidth opened by telecommunications corporations, while other smaller Internet users would be left behind.
Mind you, Internet users already pay more depending on the volume of data they ask servers to carry, just as trucks pay higher license fees than cars on public highways. What the service providers would like to do is different: they would like to divide the Internet into many different speed lanes and charge a different fee for each lane. It would be as if a public highway were charging different fees depending on whether one car happens to be on the 50-mile lane, the 60-mile lane, the 70-mile lane, etc. It is easy to understand why such a system, if implemented in a quasi monopoly environment, would be a money-grabbing scheme.
These are the stakes for the Internet information superhighway. The welfare and freedom of hundreds of millions of Internet users are pitted against the financial interests of a few greedy and very rich Internet providers. Will the politicians side with the people and the principle of free speech and the spirit of anti-monopoly laws by passing a 'net neutrality law' enjoining the FCC to require cable and telephone companies to continue providing Web sites to Internet users on an equal and nondiscriminatory basis, —or, will they buckle under the pressure of the cable and phone lobbies, and allow the exploitation of the many by the few? Net neutrality laws for common Net carriers have been adopted in many countries, including the United Kingdom, South Korea, and Japan, but not yet in the United States. In non-democratic countries, such as in Communist China, governments have implemented a digital divide by establishing countrywide content filters.
To understand what is at stake here, we have to consider that the Internet has been an unprecedented technological innovation that has democratized access to unfiltered information worldwide and has allowed creative new content provider companies, like Google, Microsoft, Yahoo, eBay, Wikipedia and others, to start small and grow larger. Just reflect that there are more than 100 million WEB sites in the world today. Therefore, it is not surprising that governments and corporations alike are following this explosion of free information with some trepidation, but for different reasons.
The reason people must be vigilant and act appropriately is that, in the past, powerful money interests have succeeded in persuading distracted or venal politicians to pass bad laws that turn up to be very much against the public interest. For instance, probably one of the worst laws ever adopted in the U.S. was the 1996 Telecom Act, passed by a Republican Congress but signed by Democrat President Bill Clinton. This law has opened wide the door to media ownership concentration in the U.S. and placed American consumers at the mercy of a handful huge conglomerates, most of them far-right conservative Republicans, which exercise near complete monopoly power over local electronic information channels, such as radio, TV or cable services. The predictable effect of this law has been more ownership concentration, less competition, less choice for the consumers and higher prices for reduced services. In other words, this was a law designed to promote special economic interests at the expense of the general public good. The end result of the law is there for everyone to see today. Nearly all broadcast news in the U.S. originates from one of six huge media conglomerates: Viacom(CBS), General Electric's NBC, Time Warner (CNN), Disney (ABC), Fox News Corp, and Clear Channel Communications.
The principle that airwaves and cyberspace belong to all the people and are public property needs to be reaffirmed, as the above mentioned 1860 U.S. law establishing freedom of access to the big invention of the time, the telegraph. A law guaranteeing freedom of access to the Internet is as much required as the law guaranteeing access to the telegraph one hundred and fifty years ago. A “tiered Internet” would be a terrible blow to consumer choice and to freedom of information. It should be opposed by all who value freedom and fairness.
In the future, democratic governments should consider favoring the creation of not-for-profit Internet service providers as they already exist in some large cities. Indeed, the Internet is a basic economic and social infrastructure and should be viewed as a public utility, on the same level as electricity and the telephone.
Professor Rodrigue Tremblay lives in Montreal and can be reached at rodrigue.tremblay@yahoo.com
http://www.thenewamericanempire.com/blog
 

Kreskin

Doctor of Thinkology
Feb 23, 2006
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Related commentary on Forbes.com

Information Super Traffic Jam
Phil Kerpen 01.31.07, 6:00 AM ET
Phil Kerpen

WASHINGTON, D.C. - A new assessment from Deloitte & Touche predicts that global traffic will exceed the Internet's capacity as soon as this year. Why? The rapid growth in the number of global Internet users, combined with the rise of online video services and the lack of investment in new infrastructure. If Deloitte's predictions are accurate, the traffic on many Internet backbones could slow to a crawl this year absent substantial new infrastructure investments and deployment.

Uncertainty over potential network neutrality requirements is one of the major factors delaying necessary network upgrades. The proponents of such regulations are back on the offensive, heartened by sympathetic new Democratic majorities and the concession made by AT&T (nyse: T - news - people ) in its BellSouth (nyse: BLS - news - people ) acquisition. The Google/MoveOn.org coalition fighting for network neutrality mandates calls itself "Save the Internet." But the Internet doesn't need to be saved--it needs to be improved, expanded and bulked up. An attempt to "save" the Internet in its current state would be something akin to saving the telegraph from the telephone.

Robert Kahn and David Farber, the technologists known respectively as the father and grandfather of the Internet, have both been highly critical of network neutrality mandates. In a recent speech, Kahn pointed out that to incentivize innovation, network operators must be allowed to develop new technologies within their own networks first, something that network neutrality mandates could prevent. Farber has urged Congress not to enact network neutrality mandates that would prevent significant improvements to the Internet.

Without enormous new investments to upgrade the Internet's infrastructure, download speeds could crawl to a standstill. It would be unfortunate if network neutrality proponents successfully saved the rapidly aging, straining Internet by freezing out the technological innovations and infrastructure investments that would enable next generation technologies to be developed and deployed.

The video-heavy, much vaunted Web 2.0 advances of the last couple of years were made possible at low prices to consumers because the speculative overbuilding during the bubble era created massive overcapacity that made bandwidth cheap and abundant. It's now all being consumed.

One solution suggested by network operators is to prioritize traffic based on service tiers and use revenue from content providers in the premium tiers to subsidize the high costs of infrastructure deployment. The MoveOn.org crowd denounces this solution for creating Internet fast lanes and relegating everything else to the slow lane. But as the Deloitte report shows, the likely alternative is that there will be only slow lanes, potentially very slow lanes as soon as later this year. Call it the information super traffic jam.

Advanced networks cost billions of dollars to deploy and need to generate predictable revenue to make business sense. The infrastructure companies are unanimous in their belief that offering premium services with guaranteed bandwidth will be necessary for them to justify their investments. Quality-of-service issues alone are likely to require tiering, because in a world of finite bandwidth, people won't want high-value services like video and voice if they can be degraded by the peer-to-peer applications of teenage neighbors.

Craig Moffett of Bernstein Research told the Senate Commerce Committee last year that any telecom company that made a major infrastructure investment under a network neutrality regime would see its stock nosedive. Moffett estimated that the bandwidth for an average TV viewer would cost carriers $112 per month. A high-definition TV viewer would cost $560. Unless the YouTubes and Joosts of the world are willing (and legally permitted) to pay some of those costs, the investments are unlikely to happen.

If network neutrality proponents have their way the Internet may be frozen in time, an information superhighway with Los Angeles-like traffic delays. The Internet doesn’t need to be saved--it needs to keep getting better.

Phil Kerpen is policy director for Americans for Prosperity.
http://www.forbes.com/2007/01/30/info-traffic-jams-oped-cx_pk_0131network.html
 

Kreskin

Doctor of Thinkology
Feb 23, 2006
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Nothing is forever in this world, especially in technology. I find it amazing what we can do and get for nothing on the internet. Giving away everything for nothing isn't a sustainable business model, especially when the "highway" has finite capacity. If all of this is public domain who in the public will pay to improve the infrastructure? Is the internet a socialist domain? Something tells me the internet as we know it isn't much different from any other form of technology/system we've seen come and go over the years. What it will look like in the future, I have no idea. There is only one thing we do know for sure. It will change.

I think we're living in the good old days.
 

Kreskin

Doctor of Thinkology
Feb 23, 2006
21,155
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If the future internet is commercialized with the big companies dictating bandwidth allowance etc there's another issue that needs to be looked. Property tax on a URL address.

Presently a site like Yahoo need only pay about $9.95 per year for it's domain registry fee, yet the address alone is the only reason they are in business. Perhaps, if commercialization of internet access happens as some suggest, then all internet addresses could pay their fair share of infrastructure costs.

A homeowner may need to pay up to 1% of the value of his property to the municipality for the cost of operating services etc. A $300,000 real estate property may pay today, for example, $3000 per year for taxes. Since URL's are internet addresses then perhaps the property tax system could be implemented. A site like Yahoo could perhaps may millions of dollars per year to renew the URL address rather than $9.95. The millions of dollars can go to the infrastructure costs that other people pay to build a system that brings them clients.

If there is finite bandwidth and URL addresses are considered similar to that of being in high or low value neighbourhoods this could be brought to the table.
 

DurkaDurka

Internet Lawyer
Mar 15, 2006
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Toronto
A site like Yahoo could perhaps may millions of dollars per year to renew the URL address rather than $9.95. The millions of dollars can go to the infrastructure costs that other people pay to build a system that brings them clients.

The companies that have the fat pipes are already susidizing their infrastructure costs by selling bandwidth & connections to ISP's/End Users. I can't rationalize taxing one corporation to subsidize another.