Lex 8256: The Law in Cyberspace Seminar

Net Neutrality

-- Steve Grace

       
          
Network neutrality -- “net neutrality” -- is the belief that a network, or in this case the Internet, should not favor certain data over others.  The Internet providers (AT&T, SBC, etc) are pushing for legislation that allows the creation of intelligent networks.  Under this regime, certain information would be given priority over other information, but at a price for the content providers.  Please read the background section of this Wikipedia entry (1.1-1.11). 

             In August 2005, the FCC adopted the following policy in fighting broadband discrimination:
  1. Consumers are entitled to access the lawful Internet content of their choice;
  2. Consumers are entitled to run applications and services of their choice, subject to the needs of law enforcement;
  3. Consumers are entitled to connect their choice of legal devices that do not harm the network; and
  4. Consumers are entitled to competition among network providers, application and service providers, and content providers.

    Since this adoption, the FCC has taken action against an ISP that discriminated against VOIP (Internet phone services).  See Madison River Communications, No. EB-05-IH-0110 (FCC 2005).  Can these principles be applied realistically?  What are they trying to accomplish?  Why?

    The main catalyst in this area is the legislature.  Some bills have been defeated, some are still pending, but the battle rages on.  Please read section 3.1-3.2 of this Wikipedia article. Please also read the text of the Internet Freedom Preservation Act of 2006.  Does this bill do enough?  Who would you have policing the internet for neutrality?  How do you determine what “neutral” means?  At what point has an ISP reached “neutrality”?

The Players

        In the blue corner we have consumers and internet content providers.  According to Google, Yahoo, Microsoft, eBay and Amazon, this is what we should be afraid of.  On the scholarly side, Tim Wu of Columbia Law School is also pro net neutrality.  Also, please read Lessig’s Congressional hearing.

In the red corner we have the tellecommunications companies (ISPs).  They state that they have invested 40 billion dollars into the infrastructure of the Internet and that they should be able to recoup these expenses.  They want to pass these costs down, and to no surprise they choose internet content providers (Yahoo, Google, Microsoft).  In a free market economy they couldn’t raise prices or consumers would go elsewhere.  Please watch this piece of anti-net neutrality propaganda.  Also, please read the telcos' interpretation of Lessig’s statements: "Lessig is more" and "Lessig-nificant."
 

The Future

What we need now is a crystal ball.  What will the Internet look like 10 years from now under each regime?  What will the American economy look like?  What will the content on the internet look like?  Which of these views looks best to you?  I do know one thing, without net neutrality, www.hampsterdance.com might be in some financial trouble.  I’ll end it with that.