1 “ “ NET” NEUTRALITY NET” NEUTRALITY Presentation for Presentation for Kennesaw State University Kennesaw State University Michael J. Coles College of Business Michael J. Coles College of Business November 7, 2010 November 7, 2010 Walt Sapronov Walt Sapronov Sapronov & Associates, P.C. Sapronov & Associates, P.C. 400 Northridge Road, Suite 515 400 Northridge Road, Suite 515 Atlanta, Georgia 30350 Atlanta, Georgia 30350 Telephone: 770-399-9100 Telephone: 770-399-9100 Facsimile: 770-395-0505 Facsimile: 770-395-0505 Email: [email protected]Email: [email protected]
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Walt Sapronov Sapronov & Associates, P.C. 400 Northridge Road, Suite 515 Atlanta, Georgia 30350
“NET” NEUTRALITY Presentation for Kennesaw State University Michael J. Coles College of Business November 7, 2010. Walt Sapronov Sapronov & Associates, P.C. 400 Northridge Road, Suite 515 Atlanta, Georgia 30350 Telephone: 770-399-9100 Facsimile: 770-395-0505 - PowerPoint PPT Presentation
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““NET” NEUTRALITYNET” NEUTRALITY
Presentation forPresentation for
Kennesaw State University Kennesaw State University Michael J. Coles College of BusinessMichael J. Coles College of Business
November 7, 2010 November 7, 2010
Walt SapronovWalt SapronovSapronov & Associates, P.C.Sapronov & Associates, P.C.400 Northridge Road, Suite 515400 Northridge Road, Suite 515Atlanta, Georgia 30350Atlanta, Georgia 30350Telephone: 770-399-9100Telephone: 770-399-9100Facsimile: 770-395-0505Facsimile: 770-395-0505Email: [email protected]: [email protected]
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ContentsContents
I. Overview
II. Net Neutrality Basics
III. FCC Authority
IV. Origins of the Comcast Decision
V. D.C. Circuit Court Reversal
VI. FCC “Third Way” Proposal
VII. Net Neutrality By Other Means
VIII. Future Developments
IX. Final Thoughts
OverviewOverview
Historically: Federal Communications Commission (FCC)
Has asserted jurisdiction over: Telecommunications Wireless Cable
BUT NOT OVER: Information Services
What about Internet?
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OverviewOverview
Internet Content (the “Cloud”) Clearly an unregulated information service
Internet Access (the “Pipes”) Classification not so clear Cable, DSL, Wireless
Are all regulated services? Provided by regulated cable and telcos But when combined with Internet Content?
They Create an Information Service (U.S. Supreme Court “Brand X” Decision)
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Current Internet Regulation (Title I)Current Internet Regulation (Title I)
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Computer processingAccess component
Title I
“Information Service”
Unregulated
Cloud
Pipe
Portal
OverviewOverview
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Net Neutrality BasicsNet Neutrality Basics
Neutral and open public network (the “Internet”) No restrictions on equipment or modes of
communication Principles do not permit discrimination, either in pricing
or access, of the type, quantity, content, sites, or applications
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Net Neutrality BasicsNet Neutrality Basics
Fundamental Principles Consumers are entitled to:
Access the lawful Internet content of their choice; Run applications and services of their choice subject
to the needs of law enforcement; Connect to their choice of legal devices that do not
harm the network; and Enjoy positive externalities of competition among
providers (network, application, service, and content)
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Net Neutrality BasicsNet Neutrality Basics
Fundamental Principles (con’t) Other Proposed Principles
Balance customer’s need for unfettered access to content/applications with Internet Service Provider’s (ISP’s) network management needs
Ensure transparency of ISP’s network management practices
BUT Does FCC have statutory authority to enforce Net
Neutrality principles?
FCC AuthorityFCC Authority
Federal Communications Act Title I (Ancillary Jurisdiction) Title II (Common Carrier)
content, not destination Result: Comcast blocked Internet traffic and limited
customers’ Internet use
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Origins of the Comcast DecisionOrigins of the Comcast Decision
The FCC required Comcast to: Disclose its network management practice details; Submit a compliance plan by end of year (2008); and Present new, non-discriminatory network management
practices to customers and the Commission
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Origins of the Comcast DecisionOrigins of the Comcast Decision
Enforcing an “Open” Internet -- Concerns Bypassing open Internet protections
Specialized services offered in bundles? Specialized services -- circumventing the rules
Network capacity not expanded as intended Anti-competitive conduct among broadband
providers The FCC labeled Comcast’s failure to disclose their
practices as “anticompetitive”
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Comcast argued that the FCC: Asserted its authority based on provisions of the
Communications Act which do not apply to Comcast Did not abide by notice and comment procedures in