net neutrality presentation
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Net Neutrality:An Issue By Any Other Name
GMU Information Economy Project Mini-Conference
September 28, 2006
Paul Misener / Amazon.com
Net Neutrality 2September 28, 2006
Outline
Pull is Fundamental Changing Business Model? Net Neutrality The Disagreement Get Paid? Questions/Discussion
Net Neutrality 3September 28, 2006
Pull is Fundamental Changing Business Model? Net Neutrality The Disagreement Get Paid? Questions/Discussion
Net Neutrality 4September 28, 2006
The Internet: “Pull” is Fundamental
ISP
Business
Business ISP
Home
Internet Backbone
Residential ISP
ISP
Net Neutrality 5September 28, 2006
The Internet: “Pull” is Fundamental
ISP
Business
Business ISP
Home
Internet Backbone
Residential ISP
ISP
HTTP “GET”
Net Neutrality 6September 28, 2006
The Internet: “Pull” is Fundamental
ISP
Business
Business ISP
Home
Internet Backbone
Residential ISP
ISP
“Resource”
Net Neutrality 7September 28, 2006
The Internet: “Pull” is Fundamental
ISP
Business
Business ISP
Home
Internet Backbone
Residential ISP
ISP
“Resource”
“Resource” gets here only if pulled by end user
Net Neutrality 8September 28, 2006
Pull is Fundamental Changing Business Model? Net Neutrality The Disagreement Get Paid? Questions/Discussion
Net Neutrality 9September 28, 2006
Internet Access
ISP
Business
Business ISP
Home
Internet Backbone
Residential ISP
ISP
$
$
Net Neutrality 10September 28, 2006
But Residential Internet Access is Changing
Concentration
Digital Technology
FCC Removal of Safeguards
Network Operator Plans
Net Neutrality 11September 28, 2006
Concentration
ISP
Business ISP
Home
Internet Backbone
Residential ISP
ISP
10s 1 or 2
Business
$
$
Net Neutrality 12September 28, 2006
Digital Technology
ISP
Business ISP
Home
Internet Backbone
Residential ISP
ISP
analog digital
Business
$
$
Net Neutrality 13September 28, 2006
FCC Removal of Safeguards
ISP
Business ISP
Home
Internet Backbone
Residential ISP
ISP
non-discrimination rule no rule
Business
$
$
Net Neutrality 14September 28, 2006
Network Operator Plans
ISP
Business ISP
Home
Internet Backbone
Residential ISP
ISP
Business
$
$
Net Neutrality 15September 28, 2006
Network Operator Plans
ISP
Business ISP
Home
Internet Backbone
Residential ISP
ISP
$
Business
$
$
Net Neutrality 16September 28, 2006
What is the new $?
X% of transactions?
X% of online revenue?
$X per net op subs that are OSP customers?
$X for “special” security measures?
Net Neutrality 17September 28, 2006
Internet of Today
3
Cable
Business ISPs
Homes
Internet Backbone
n
2
1
Telco
Residential ISPs
B
C
N
A
Business
Net Neutrality 18September 28, 2006
Internet of Tomorrow?
3
Cable
Business ISPs
Homes
Internet Backbone
n
2
1
Telco
Residential ISPs
$
B
C
N
A
Business
Net Neutrality 19September 28, 2006
Pull is Fundamental Changing Business Model? Net Neutrality The Disagreement Get Paid? Questions/Discussion
Net Neutrality 20September 28, 2006
Net Neutrality
Preserve the openness of the InternetGood for consumers, innovation
Prevent the extension of market powerNot bust up the power a la 96 Act
Core idea: no discrimination based on the source or ownership of content
Net Neutrality 21September 28, 2006
Pull is Fundamental Changing Business Model? Net Neutrality The Disagreement Get Paid? Questions/Discussion
Net Neutrality 22September 28, 2006
Disagree: Facts not Philosophy
Let the Competitive Free Market Work But >98% duopoly
Don’t Start Regulating the Internet But non-discrimination governed most
Net Ops Won’t Invest w/out Discrimination But fast deployment under non-discrimination
Common Carriage Bad, Video Competition Good But it’s not, and video comp bill relies on non-discrimination
Net Ops Should be Paid for Services
Net Neutrality 23September 28, 2006
Pull is Fundamental Changing Business Model? Net Neutrality The Disagreement Get Paid? Questions/Discussion
Net Neutrality 24September 28, 2006
OSP 1
OSP 2
End User B
End User A
No discrimination based on content source/ownership
Basic Model
OSP1 $OSP2 $
EU B $
EU A $
Router functionality operating at the packet and, perhaps, the sub-packet level, and not necessarily a separate physical device.
Net Neutrality 25September 28, 2006
OSP 1
OSP 2
End User B
End User A
No discrimination based on content source/ownership
Basic Model
OSP1 $OSP2 $
EU B $
EU A $
Details of the Local Cable or Telco Network
Router functionality operating at the packet and, perhaps, the sub-packet level, and not necessarily a separate physical device.
Net Neutrality 26September 28, 2006
OSP 1
Edge Server serving OSP1’s content, etc. (by, e.g.,
Akamai, or RAND by net op)
OSP 2
End User A
OSP1’s content, etc.
OSP Paid RAND Edge Serving
End User B
OSP1 $
OSP1 $
OSP2 $
No discrimination based on content source/ownership
EU B $
EU A $
Net Neutrality 27September 28, 2006
OSP 1
Private network carrying OSP1’s content, etc. (by, e.g., Level3, or RAND by net op)
OSP 2
End User B
End User A
OSP Paid RAND Private Net Injection
OSP1 $OSP2 $
OSP1 $
No discrimination based on content source/ownership
EU B $
EU A $
Net Neutrality 28September 28, 2006
OSP 1
OSP 2
End User B
End User A
User Paid QoS (“turbo button”)?
OSP2 $OSP1 $
No discrimination based on content source/ownership
EU B $
EU A $
EU A $
New
Net Neutrality 29September 28, 2006
OSP 1
OSP 2
End User B
End User A
OSP Paid RAND QoS?
OSP1 $OSP2 $
No discrimination based on content source/ownership
EU B $
EU A $
OSP1 $
New
Net Neutrality 30September 28, 2006
Pull is Fundamental Changing Business Model? Net Neutrality The Disagreement Get Paid? Questions/Discussion
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