Home
Archive
Columnists
Video
Blogs
Discuss
About
Search
Donate
Advertise

If the big corporations win their push to charge internet users different rates for the same product, the Web as we know it will wither on the vine.

Advertisement
Advertisement
Advertisement
Advertisement
Register to Vote: Rock the Vote, powered by Working Assets Wireless
Advertisement
  • AlterNetYour turn

Support AlterNet
Do you value the information you're getting from AlterNet? Please show your support with a tax-deductible donation.


Feedback
Tell us how we're doing.

The Web We Love is Endangered

By Annalee Newitz, AlterNet. Posted May 8, 2006.


If the big corporations win their push to charge internet users different rates for the same product, the Web as we know it will wither on the vine.

Share and save this post:
Digg iconDelicious iconReddit iconFark iconYahoo! iconNewsvine! iconFacebook iconNewsTrust icon

More stories by Annalee Newitz

Get AlterNet in
your mailbox!

 
Advertisement

There's been a lot of hysteria on the Internet lately over something called "network neutrality," and you can blame it partly on AT&T chair Edward E. Whitacre Jr. Whitacre, whose company's recent merger with SBC Communications makes it one of the biggest owners of telecommunications cables in the country, got all huffy late last year about sharing AT&T's precious wires with any old Internet service provider who felt like sending packets. "For a Google or a Yahoo or a Vonage or anybody to expect to use these pipes for free is nuts!" he told a Business Week reporter in one of those classic "will somebody please tell our chair to shut up" moments.

However crudely put, Whitacre gave voice to a sentiment that's becoming common among execs of companies like AT&T, Comcast, BellSouth, and others that provide the actual physical wires (often called "pipes") that bring us the shiny Web. Because companies like Google take up a lot of space on AT&T's wires, AT&T wants to get paid extra to handle that. Think how much more cash it could be making if Google paid for the privilege of offering faster searches over AT&T. That's exactly the way Whitacre and his ilk see it.

The problem with this moneymaking idea is that the architects of the Internet and industry regulators at the FCC are enamored of something they call the network neutrality principle. Although never written into US law, this principle holds that nobody's Internet traffic should be privileged over anybody else's -- to do so would be like letting an electricity company cut a deal with GE so that only GE appliances got good current. As it turns out, the neutral network provides an excellent platform for business models that cluster at the ends of the wires: Everything from Google and eBay to ISPs and music-downloading companies are based on the idea that money is made by shooting good stuff over the wires, not by making some wires better at getting good stuff.

Underlying network neutrality is the idea that people should be allowed to attach whatever they like to the ends of the Internet's wires -- and they should be able to do it without significant hindrances, like paying steep access fees to AT&T to get their businesses online. Neutrality is why we routinely get cool new "end" innovations like virtual reality world Second Life or smart phones that connect to the Internet. As both Internet protocol inventor Vint Cerf and former FCC chair Michael Powell have argued, these kinds of new worlds and widgets are only possible because the wires are neutral and their ends are open.

What would a world without network neutrality be like? The worst possibility is that companies like AT&T would create "prejudiced pipes" that push paying customers' traffic along more quickly than nonpaying customers'. If indie bookstore Powell's wasn't able to pay AT&T's fees, its online store might load far more slowly than Amazon's -- if it even loaded at all. Some companies might force music and movie companies to pay extra to make their downloads work, thus preventing anyone but the major labels and studios from making their wares available online. Ultimately, consumers would have less choice online, and small "end" start-ups would be at a great disadvantage when they put their stuff online. If established players like the New York Times can pay the prejudiced-pipe owners for quicker load times, who will bother to read slow-moving blogs?

Many fear that this scenario may come to pass rather soon, because Congress is in the yearlong process of trying to replace the Telecommunications Act of 1996 with an updated legislation package. Several potential drafts have included language that would enshrine the principles of network neutrality in law. Proponents of this move, whom superwonk law professor Timothy Wu has dubbed "openists," say that mandating network neutrality will lead to greater innovation and consumer choice. Meanwhile, deregulationists like the AT&Ts of the world are pushing Congress to keep neutrality out of the law so they can build prejudiced pipes and start charging Google to use 'em.

If the deregulationists succeed, power over the Internet will be centralized among the companies that own the wires, and everyone but the big corporations will lose. We may be about to witness the end of the ends.

Digg!

Annalee Newitz is a surly media nerd who prefers to stay neutral.

Liked this story? Get top stories in your inbox each week from AlterNet! Sign up now »


Advertisement

 

Comments Turn comments off sitewide Give us feedback »
Comments closed.
The comments for this story have been closed. Thank you to everyone who participated.
View:
AT&T will suck the internet dry
Posted by: lamar on May 8, 2006 12:43 PM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
Somehow I don't think Congress isn't being lobbied very hard from the internet neutrality point of view. Just like with the music industry, the big corporations will suck the medium dry of inspiration, then lobby for more governmental protection because the medium dried up.

In the end, AT&T's position is disengenuous because they aren't adding any value to their product that would distinguish it from the unpaid version. They're just jacking up the price for those that can pay, and taking a hammer to their unpaid service.

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]

Why non-neutrality is fundamentaly wrong
Posted by: hockeysk8 on May 8, 2006 3:38 PM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
Annalee forgot the most salient point in this argument. AT&T is asking Google and/or consumers to pay for service for which they have already paid.

Google pays an Internet service provider to hook up their massive data centre to the Internet. And undoubtedly Google pays an incredible sum for this service considering the size of their data centre(s). It is also typical of Internet service providers to charge for the amount of content that is uploaded/downloaded through that connection.

You as the consumer also pay for your DSL or cable connection and by doing so you are paying for accessing Google's content if you hit http://google.com with your browser.

So what right, exactly, does AT&T have in saying that Google should pay them? AT&T and the other Internet service providers already have internetworking agreements in place that allow packets to move from one provider's lines to the next (this is what makes the whole system work.)

This is a blatent money grab by companies that are very familiar with how to build a monopoly.

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]

Great analysis.
Posted by: ABetterFuture on May 8, 2006 10:03 PM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
The best "working man's" description of how the internet is currently--and arguably--best structured.

Two things, though: the ICANN ought to stay under U.S. private/public control,

...and...

free enterprise should be preserved--to include "network neutrality"....

...and to include no government/state/municipality shoving their pipes down our throats. Yuck...just what I need: some ai-hole lawyer/politician "admistrating" my bandwidth, subsidized or not. Thanks, but no-freaking-thank-you. I'll take "pro-choice".

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]

Vote No on the Information Toll Road
Posted by: k9disc on May 8, 2006 11:46 PM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
xposted @ dKos
The Information Toll Road
As the reality of an Information Toll Road draws near, people from all points of cyberspace are rallying around Net Neutrality, and airing their grievances in terms of that concept.
This is a strategic mistake that is going to allow the corporate Communications Cartel to push through their agenda and lock down the internet.

The internet is built around open standards and reliable and cheap access.
I run a few websites for communities that I am involved with and for my small business. I depend on these open standards to allow me to share information with my communities and my perspective customers. I built my web presence on Open Source software, so I am greatly indebted to the Open Source movement for both creating and protecting my ability to do the things that I do online.
The same could be said of the corporate Communications Cartel. They have co-opted many ideas and concepts from the Open Source movement, and have made them widespread realities for most of the planet. But let's be clear on one thing: the wonders of the private sector and markets did not create these things, it was a level playing field, open standards and access that made these things happen.
Firefox went global, even in the absence of a level playing field, because of open standards and access. Thousands of useful products, plug-ins, and extensions have made huge impacts on Information Technology, and since been integrated into the Internet as we know it. Most of these came from people and companies that would be left out in the cold if we allow corporate cartels to create the Information Toll Road.
The Information Toll Road is a dead end.
Information Markets and the Internet
In the United States, before the Internet, a citizen had the right to free speech, but did not have the right to be heard. With the advent of the internet, that changed; all of a sudden everyone had not only the ability to speak freely, but they had the ability to be heard.
When the Telecom Bill was pushed through by the corporate Communications Cartel in 1996, there was all kinds of talk of equality and redistributing information power: "Every man a publisher and content creator". Never mind the fact that the Telecom Bill consolidated the power of the corporate Communications Cartel (and the Corporate Media Cartel), the people were going to get something out of it.
Most never guessed it would be the shaft.
Decreased competition and relaxed regulation allowed access costs to skyrocket as options for the consumer were limited. When several controlling entities act as a cartel, limiting access and usability to drive up profit, an unhealthy market is created. When we talk about something as important as the free-flow of information, we are talking about something as important to society as air and water are to people.
Fortunately society nor people matter in markets, all that matters is profit. By this standard, the Information Toll Road Bill is an extremely important, and wonderful piece of legislation. At this point in time, so much information is shared instead of sold for profit. We are using their markets to share information; the nerve! Not only are we using their markets to share information, costing them profits, but we are sharing information that threatens the very concept of profit today, future profits for tomorrow, and to shed a light on nefarious past profits. (continued)

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]

communications fascists
Posted by: rsaxto on May 9, 2006 4:17 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
If the biggest biz communications companies succeed in controlling the internet then the internet will become owned by communications fascists who will destroy the internet in the same way that the Bushie fascists are destroying Iraq.

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]

The term is called EXTORTION
Posted by: owlbear1 on May 9, 2006 5:53 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
Used to be a crime and still is for anyone who doesn't have a last name of Incorporated.

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]

Vertical monpoly?
Posted by: sgr on May 9, 2006 7:36 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
Perhaps this could be opposed legally on the grounds that it is a vertical monopoly: a group of companies conspire to control an entire distribution chain for goods and services, from point of production to delivery to the consumer.

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]

I already pay for my pipes!
Posted by: adocann on May 9, 2006 8:26 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
I already pay at@t to provide me with DSL. I expect that they will pass through all trafic directly to me at the contracted rate. To do anything otherwise is in violation and I will sue their pants off.

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]

who is America "for?"
Posted by: TagsNOLA on May 9, 2006 8:42 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
If you are not a corporate shareholder you do not count nor should you. America is for those with property or who aspire to accumulate property. If you do not own property or aspire to ownership, you have settled for the crumbs off another man's table. You're not who or what America is about. You're just along for the ride and must settle for whatever you are allowed to have. In the end, your opinions do not count. They do not matter. If something like the internet can afford more profit to corporate shareholders, it will be. That IS how it is going to be and there is nothing effective that anyone can or will do to stop it. The ultimate upshot of legislation that is to replace existing law will be a working compromise among competing corporate and financial interests and little if any energy will be expended bothering to justify this decision to the public. Maybe some passing comment to the effect that the existing model is and never was truly economically viable and now reality must come to the fore "for the benefit of the majority."
If you do not beleive that the above is the mindset that governs lawmakers in Washington, in the statehouses and local government, you are out of touch with reality. The sad fact is, it is also the mindset that governs the majority of the people in our country. Witness the recent Supreme Court ruling that allows public condemnation of private property for PRIVATE development interests. That is now the law of the land and the people have had no say in the matter.
We no longer possess the politcal anti-elitist elan' that once characterized the American population. We will not be effective in any attempted defense against the "information toll road" because, as a people, we no longer possess the moral or intellectual fitness for self government.
If we were the calibre of people we have been in the past, the telecommunication "wires" would be like the interestate highway system. They would be funded by Congress and maintained by the states. Watch for the Interstates to be handed over to private interests before it's all over with, in the interest of "efficiencies" attendant to private ownership.
I sincerely hope I am wrong in this assessment but I fear I am bang on.
TagsNOLA

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]

» RE: who is America "for?" Posted by: Lincoln fan
» RE: who is America "for?" Posted by: TagsNOLA
» corrected link Posted by: Lincoln fan
» RE: corrected link Posted by: TagsNOLA
Innovation is the answer.....
Posted by: Salvapath on May 9, 2006 8:44 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
Google, Yahoo and every body that wants neutrality being the rule in the web, should get at work to create a powerful an efficient technology that won't need "pipes" at all; wireless is what should be the rule in the net to send AT&A and all the other greedy merchants to where they belong: hyper hell.....

Forget about the government saving the internet from AT&A, the gov is a corporation in it self, do not forget that, OK? We need to get what we want by our selves, that is power by the people and for the people.....

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]

Is this just the US
Posted by: iremember on May 9, 2006 11:42 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
Please forgive my ignorance. Is this just about net neutrality in the US? Will net users in foreign countries still have net neutrality but Americans won't?

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]

I'm no conservative, but do we really want socialism?
Posted by: Skankbait on May 9, 2006 11:54 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
I know this message will get flamed, but this article is really uninformed about the real issue here. If the government paid to lay fiber and we all paid taxes to finance it, then what you're all saying might apply.

The companies like AT&T that invest billions (literally) to lay fiber to provide high-speed internet access are being defrauded by companies (names like Worldcom, Adelphia and Global Crossing come to mind). These companies sell consumers or other companies service at cut-rates because they are defrauding other companies and using another's investment for free. If you own a retail business, would you want a competitor showing up at your store and selling their goods to customers out of the building that you paid for? Wouldn't you tell the the competitor that if he wants to sell stuff out of your shop, he needs to pay rent for access to that building? Then the competitor tells customers that you are greedy because you don't want free access to goods and paying rent is going to drive the price up . . . . Consumers are already paying for content, the question is whether companies have to compensate each other when they use another company's "pipes" to provide their services. Check out the fine print on Vonage . . . So who is really worse?

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]

does this make sense?
Posted by: beksabbath on May 9, 2006 11:55 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
I got this response to the article from an AT&T employee. Does this argument hold any water?
~~~~~~~~~
It is a bit more complicated than what is presented in this article, but that author is really advocating a form of socialism. Actually the issue espoused by Big Ed is intended to keep other companies from charging you the consumer for access to content but not paying to use pipes that deliver that content and cost other companies billions (literally) to construct. It began as a battle over other companies (like those crooks at Worldcom and others -- check out the princes at Adelphia) who sometimes fraudulently use another's pipes without any compensation. Nobody wants for it to be a pay per use type of thing, but Vonage provides phone service over AT&T pipes (check out the fine print), charges the customer, but claims it shouldn't have to pay AT&T to use its pipes (or it will pass that cost on to the customer).

... consumers are already paying for the content, the fight is over how it is divided up among the providers.

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]

sick of another socialism tirade.
Posted by: lamar on May 9, 2006 1:25 PM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
Likening neutrality to socialism is a rank appeal to folks who don't know what socialism is, but know that its a bogey man. Neutrality isn't a form of socialism, an offshoot, a strand, a boner, or a dark side. It has absolutely nothing to do with socialism. That accusation is just like Bill O'Reilly calling Paul Krugman a quasi-socialist. Krugman promptly called O'Reilly a quasi-murderer. So if AT&T can call neutrality "socialism" then we can rightly call AT&T's everyday business "national socialism" or "fascism". See how stupid the argument is?

The fact is, AT&T is a heavily regulated business that gets a lot of government help. So when our elected leaders, and the country as a whole, decide that neutrality is our policy decision, AT&T should shut the F up and leave the socialism rhetoric to real-life idiots. If you have AT&T, you already pay them. All they are proposing is to give you crappier service for the same price. If that's socialism, then so be it.

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]

Here is an argument the right can get behind
Posted by: chaoslegs on May 9, 2006 1:35 PM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
Like the "death tax" getting rid of network neutrality is charging us twice for the same damn thing.

What the right can't get behind us on is:

What we need is legislation like the onthat forced the companies to provide electricity in rural areas in the early 20th century. Of course in the world of any regulation is a bad regulation that won't happen, but it is what is needed.

I think the best grassroots solution to this is to go to your municipal government and see if they can get network neutrality into the agreement with the cable company that has a monopoly. A thousand little regulations might (not likely) make them give up because that would be a huge headache. Okay City A in State B has these rules. City C in State B has these rules. Death by a thousand paper cuts!!!!!

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]

hkc94501
Posted by: hkc on May 9, 2006 2:58 PM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
So much misinformation! Network Neutrality isn't a free speech issue but it might become one. Also Network Neutrality might be a very bad idea, certainly it's not the way that the net works today.

The net neutrality debate is often, especially in this forum, framed as being about equal access and democracy. There are indeed important policy questions as to whether or not a service provider should be able to favor their own service over another. This is not really about democracy or freedom it is about equal opportunity. For example if ATT offers VoIP service to their cable TV customers should they be able to give their own captive service better network service than they give to Vonage or Skype? Virtually all commentators not in thrall to the service providers believe that in this sense the network should be neutral, not giving favored service to captive services.

In fact there are a lot of very good reasons to give some services better quality of service than others. In this context "quality of service" has a very specific technical meaning which includes both bandwidth (bits per second), latency(end to end delivery time) and jitter(variance in delivery time). Consider email. Do you really care if your email takes one second or thirty seconds to traverse the globe? Not likely. Email is a service which works just fine with "available bandwidth" i.e. lowest quality service. On the other hand consider voice telephony. If you are using the network to make voice phone calls then it makes a big difference whether a packet is delivered within 100 milliseconds or 500 milliseconds. Telephony is a service that requires a very responsive low latency network. On the other hand the bandwidth requirement is pretty modest. A voice grade line only requires 64Kilobits/second. You could theoretically stuff two to five of them into your DSL connection in addition to the basic telephone service that is already there. Finally consider video, bandwidth is an issue because there are lots of bits to transfer and it is better to do it quickly but latency is not so critical since buffering can allow the display to adapt to a wide variance in latency. The point is that different services need different levels of quality of service (QoS).

This QoS provisioning is actually nothing new and it is not a bad thing. If you get your broadband service from a cable TV company then you are already getting premium expedited service for your TV channels. If the TV channels had equal access to resources as your IP service then your TV reception would be unacceptable. Exactly the same thing applies to your telephone service and DSL IP service. The phone has dedicated bandwidth on the line, the DSL service uses what's left over. If they had to share then phone service would suffer.

The Network Neutrality debate that makes sense is not for equality vs privilege, rather differentiated quality of service is a necessity to deliver the services that we want at levels of quality that we expect. The Neutrality debate that matters is that the captive application service of the network service provider should not be favored over a third party that wants to offer a similar service. In simple terms if ATT begins to offer web search services they should not favor access to their service over access to Google.

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]

» RE: The issue isn't technical Posted by: NoPCZone
They ALREADY paid to use the lines!
Posted by: acidrain69 on May 9, 2006 8:32 PM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
I hate that nobody is making the obvious argument, the fact that companies like Google already PAY for internet service. They pay to have their fiber lines ran. People running blogs PAY for their hosting services, and part of that cost goes into the NETWORK. AT&T is trying to get paid twice. Their argument is that "Oh, they are making money off using our stuff, since they are making more money, we should make them pay again".

The next thing you know, they will say, "Oh, business X has our phone lines for an 800 number, and they are a successful business making money. We should charge them again to use our stuff, even though they already pay for the 800 number and all the calls on it". Or perhaps a more simple analogy, customer X is a Sprint customer. Customer Y is an AT&T customer. AT&T says they will charge sprint customers more money to call their customers. I'm talking land lines here. Cellular companies already do this. Verizon's "In the network" bit, Cingular nation, etc.

So I guess if you want to see the roots of this, look at Cellular phone service, which, SHOCK AND AWE! are the same companies trying to pull this shit on the net.

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]

Greed on the Prowl
Posted by: NoPCZone on May 10, 2006 6:45 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
The NEW AT&T (SBC with the AT&T name) wants to be like the old AT&T, essentially a monopoly. They have spent the last 20 years trying to undo the AT&T antitrust breakup and are just about there. With the exception of what is now Quest & Verizon, they have just about succeeded. Now that they have a monopoly on TelCo service in a great deal of the country, they are going to start behaving like one.

Like all good robber barons, they like to champion 'Free Enterprise'. The problem is that they like enterprise, but with a very stacked deck that is the opposite of free. The only competition they like is the 'K' Street kind between lobbyists buying and selling members of Congress and regulators at your and my expense. As this is written, AT&T and others are pulling every string and calling in every I.O.U. they have in order to chain you into a new child of monopoly called tiered networking.

As usual, it's all about money. They want to be your digital gatekeeper and line their pockets in the process. They will adopt business 'partners' who pay them for 1st tier access to the internet and can hobble or outright block access to others. How would you like an internet that gives you snail-like downloads from iTunes because Napster or some other digital music source has paid to be their 'preferred' service? How about outright blocking of Powell's Books because of a deal with Amazon? The same could apply to any service or site on the internet.

They will tell you it's their right under a free market. Free Markets have little to do with the rollout of the internet. The Internet was and is developed, funded and subsidized with truckloads of money, tax breaks and other freebies at the taxpayer's expense. Now that they have bought up most of the old AT&T, they want to block municipalities, co-ops and others from providing internet service. That's part of the same bill they are pushing through Congress. The last thing they want is free market competition. They want control of the Internet and want to block everyone else out of the party.

Essentially, they want to take something you have largely paid for from you and rob you blind to use it.

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]

Colbert and the news
Posted by: gfatjax on May 10, 2006 6:19 PM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
and rather than learning about Colbert's comments ... and much more significant and impactful issues ... from independent bloggers, we'll then receive online the sanitized versions of what major media think we should know ... just like we (or those who continue to rely only it) do from television.

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]