What is the Network Neutrality Debate Really About?

By J. Gregory Sidak

Group 6 - Ritabrata Bhaumik (2008044) - Vivekanand Bollapinni (1012075) -Mekhala Govinda (2008036) -Nimesh Jain (2008134) -Sheetal Gupta (2009059)

Network Neutrality?

OK, So what's all the fuss about?

Some Data Points

Is it ability to pay & willingness to pay? Payment for prioritized delivery of packets can be considered fair (Eg: Youtube) Prioritization does not imply degradation (zero sum game)

Some Data Points

Debate

Debate

What other say?

-Official Sponsor for Youtubelive streaming. -Offered 2 Mbps for Free

Google on Airtel : We do not have any commercial arrangement with Airtel for preferential access to YouTube or to the IPLs channel. We did not ask for nor did we approve of giving YouTube any preferential treatment. This is independent of their sponsorship arrangement with us and is not a component of it.

What others Say?

What others say?

Recommendations!!

Questions

Implications for Regulators

Making ex ante provisions can be socially costly a solution in search of a problem Consumer welfare maximization need to be carefully examined & calibrated Convergence occurring among 2 very diff sets of players in telecom & media that currently employ diff business models

Network Neutality
Advocates no restrictions by Internet service providers or governments on consumers' access to networks that participate in the internet.

2 sided demand is a very important economic feature

OK, So what's all the fuss about?

S Washington iregulatory culture l >> Welfare of i cmarginal consumer o- Policy instrument (Price in a particular n Way) V >> NOT about censorship, rather a about content and applications which l are bandwidth intensive l >> e Best Efforts approach Prohibit Access Tiring y >> Avoid Vertical Integration C u l t u r e

>>

Is there a possible common ground?

Debate

For

Against

Would allow end user complete control over the content & application that they access.

Maximize choice among the a constrained set of applications.

Deep pocketed consumers would be able to gain access. Two sided market analysis : Allowing network provider to charge more would force consumer to pay more.

Consumers would choose the service based on level of requirement. Pricing flexibility allows to recover the cost of building additional bandwidth and reduce economic burden borne by end users.

Debate
For Key to internet revolution is commitment to architecture that decouples content and application providers Standardization provides price competition & interoperability. Innovation is best

Against Would chill innovation as part of innovation would be captured by network provider. Loss of product variety .

No protocol is optimized for every application.

FCCs contribution to NN
2005 classified broadband services as Title 1 information services, thereby subjecting them to a less rigorous regulatory framework than those services classified as telecommunications services. Issues Policy Statement, saying consumers are entitled to:
access the lawful Internet content of their choice. run applications and use services of their choice, subject to the needs of law enforcement. connect their choice of legal devices that do not harm the network. competition among network providers, application and service providers, and content providers. * In Oct 2009 2 additional rules were passed: - ISPs must not discriminate against any content or applications - ISPs are required to disclose all their policies to customers. * On December 21, 2010, the FCC approved new rules banning cable television and telephone service providers from preventing access to competitors or certain web sites such as Netflix.

Google The Big Brother

Has supported net neutrality from the beginning Jan 2010 Contract with IPL for live streaming on Youtube August 2010 Google writes to TRAI pushing for Net Neutrality October 2010 Google and Verizon submits joint filing to FCC: - Wireless carriers should be exempt from these strict net neutrality rules. - Verizon agrees with tenets, but makes exception for future services.

But Then
IPL 2010
-Official Sponsor for Youtubelive streaming. -Offered 2 Mbps for Free Google: We do not have any commercial arrangement with Airtel for preferential access to YouTube or to the IPLs channel. We did not ask for nor did we approve of giving YouTube any preferential treatment. This is independent of their sponsorship arrangement with us and is not a component of it.