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Thursday, August 03, 2006

Net Neutrality: Lessons from the Past

Continued from page 1

By Wade Roush

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But in other ways, comparisons between the Internet and mobile phone networks are inaccurate. For one thing, mobile phone networks lack a common platform, such as the Web browser on a PC, Mac, or Linux machine, to which content can be delivered; instead, hundreds of handsets run a half-dozen incompatible operating systems. And government-imposed decency standards for data transmitted over the airways mean mobile phone companies are obliged to screen and filter data traffic, while Internet routers can let it pass through regardless of content.

"James Glass," when contacted by Technology Review, acknowledged important differences between the Internet and cellular systems. (Glass asked to be identified only by his pseudonym in this piece, to avoid possible retribution by cellular carriers.) "People want to draw distinctions between the two networks, and that's fine," he says. "But the main thrust of my argument -- that the owners of networks want to maximize short-term profits and don't really care about anything that doesn't help them with the profits -- stands."

To back up his point, Glass offers his own historical analogy. In the 1950s, he notes, "It was illegal to attach anything to the phone network that wasn't owned by AT&T. So third parties couldn't make any devices that attached to the phone system." AT&T's control slowed the development of the telephone and computer industries, Glass argues. "Notably, they used their power to make it difficult for anyone to make a good modem," he says. "How much did this set back the development of the Internet? We don't know. Possibly years. It definitely made things more expensive for the consumer, which meant that fewer people tried to use them, which meant that fewer people tried to innovate."

Ironically, innovation is also cited by the telecommunications industry as an argument for abandoning net neutrality. Industry leaders say tiered pricing of Internet services would give them more incentive to innovate, introduce new services, and complete the broadband Internet infrastructure by running fiber-optic cables into more homes.

However, compared with the computing industry, telecoms invest little money in actual research and development. Here, again, history is instructive, say Princeton's Starr and others. "Even in its heyday, [Western Union] also devoted little to research," Starr says. The incumbents in the telecommunications business "invest more in politics than in technology -- indeed, they are downright frightened by innovation, whose ultimate effects they can't control."

The most important effect of net neutrality has been to ensure an "even playing field," says Craig Aaron, communications director at the Free Press in Washington, DC, which hosts the net-neutrality advocacy site SaveTheInternet.com. "Most of the big ideas on the Internet haven't come from the telecom companies; they've come from the garage."

Indeed, it is safe to say that nothing resembling today's Internet economy could have arisen under the Western Union regime in the 19th century or the old AT&T monopoly in the 20th century. And that's the main reason net neutrality should be preserved, says Aaron. "It's less about what happens to Google and Amazon and eBay -- they are big enough they could buy themselves a spot in the fast lane. The problem is, where do we get the next Google, the next eBay, the next blogging revolution?"

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Comments

  • [no subject]
    Guest (The Teacher) on 08/03/2006 at 12:00 AM
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    Telecom companies certainly have an absolute right to their private property, intellectual or otherwise. But experience has shown that, given unfettered expression of that right, the overall right of the rest of the population to develop new private property is deliberately hampered. On the basis of what is fair and just, and the relevant history being what it is, I vote for net neutrality.
    Rate this comment: 12345
  • Net Neutrality -- no need for lessons from the past
    Guest (Richard Tedrow) on 08/03/2006 at 12:00 AM
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    No examination of Western Union's practices a century and a half ago is necessary.  One need only look to the practices of Comcast and the rest of the cable television providers.  Nonetheless -- for the record -- the practice of buying up the competition ala' Western Union rather than innovating and competing certainly hasn't been lost on today's telephone/cellular oligopolies.  And -- hey -- aren't they largely the same companies lobbying against net neutrality?
    Rate this comment: 12345
  • Radio Neutrality
    Guest (Steve) on 08/03/2006 at 12:00 AM
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    Sadly, it seems that nothing ever gets resolved.

    Back in the day when radio was still fairly new, Marconi and then RCA-equiped stations were only allowed to communicate with other Marconi or RCA stations.  This was an attempt to control the market, obviously.

    It's a fairly good analogy for the current debate, because they weren't using different standards than anyone else.
    Rate this comment: 12345
  • umm...of course the federal government had granted monopoly status to AT&T...
    Guest (Robert Johnson) on 08/03/2006 at 12:00 AM
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    I don't know much about Western Union and government's role in the 1800s... it's a shame though that we've had no innovation and that we're still sending the same telegrams around.
    Rate this comment: 12345
    • innovation?
      Guest (mjc) on 08/03/2006 at 12:00 AM
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      The way that monopoly (telegraph) was broken was when a whole new technology (telephone) came along.
      Of course, that eventually developed its own monopoly.

      What new technology might come along to replace the internet?
      Rate this comment: 12345
  • Consumers will determine the future of net neutrality
    Guest (Stuart Lombard) on 08/03/2006 at 12:00 AM
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    The mantra of cable companies and telcos has long been that they want to be more than purveyors of dumb fat pipes. However, you don't need to look very far back in history to see why tiered service will not work. Compuserve, AOL, Prodigy, Excite@Home are all examples of failed tiered services and demonstrate how telcos and cable companies have no idea what consumers want when it comes to content. At the end of the day, consumers want a reliable fast pipe and they want the ability to get to whatever services they choose. If I can not get Skype, Google, Youtube, P2P, IM whatever in a fast and reliable way, I will switch providers. For example, a major Canadian broadband provider recently shut down access to P2P file sharing services due to the high bandwidth usuage. They lost 10% of their broadband customer base in 3 months.

    What sounds like a great strategy in a telco board room will not, in my opinion, work in the real world.
    Rate this comment: 12345
    • Re: Consumers will determine the future of net neutrality
      freeflight on 09/03/2006 at 11:31 PM
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      What you are saying is true but in many parts of the country there are a very limited number of broadband providers to choose from. Where I live there is only one, Time-Warner. I could switch to DSL but again I would only have one provider available.
      Rate this comment: 12345
  • Net-Neutrality or Net-Nepotism an important choice for US
    Guest (J.D.Bailey) on 08/03/2006 at 12:00 AM
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    The USA is ranked 20th at best by some US/EU surveys in telecommunications (voice/data, infrastructure, services, cost...) of the developed countries. There may even be a third world country, which proportionately has better telecommunications infrastructure, services, and cost then the USA. This is today's reality for the USA and letting the tele/cable-cos and politicians destroy Net-Neutrality will further trash our economy and push US eventually in to a third world WMD super power.

    Corporate welfare [AKA: Corporatist Communism] is destroying capitalism and democracy. Net-Nepotism is more of the same corporatist communism.
    Rate this comment: 12345
  • Net Neutrality
    Guest (A H Rosen) on 08/03/2006 at 12:00 AM
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    It took a massive assault by the Justice Dep't to break up the ATT monopoly; despite exemplary innovation at Bell Labs the public could only lease a black phone that would last forever, thereby assuring a robust stream of rental income. I suggest that the cell pnone companies' restrictive policies (especially over instruments) may invite the same scrutiny soon, if not now.
    Rate this comment: 12345
  • [no subject]
    Guest on 08/09/2006 at 12:00 AM
    Posts:
    1
    Rate this comment: 12345
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