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The Death Of The Internet

The big telecom companies have finally found a way to make money online. But they first have to destroy the Internet as it is currently used.
 
 
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The Internet’s promise as a new medium -- where text, audio, video and data can be freely exchanged -- is under attack by the corporations that control the public’s access to the 'Net, as they see opportunities to monitor and charge for the content people seek and send. The industry’s vision is the online equivalent of seizing the taxpayer-owned airways, as radio and television conglomerates did over the course of the 20th century.

To achieve this, the cable industry, which sells Internet access to most Americans, is pursuing multiple strategies to closely monitor and tightly control subscribers and their use of the net. One element can be seen in industry lobbying for new use-based pricing schemes, which has been widely reported in trade press. Related to this is the industry’s new public relations campaign, which seeks to introduce a new "menace" into the pricing debate and boost their case, the so-called "bandwidth hog."

But beyond political and press circles are another equally important development: new technologies being developed and embraced that can, in practice, transform today's open Internet into a new industry-regulated system that will prevent or discourage people from using the net for file-sharing, internet radio and video, and peer-to-peer communications. These are not merely the most popular cutting-edge applications used by young people; they also are the tools for fundamental new ways of conducting business and politics.

These goals and objectives are visible to anyone who cares to look at the arcane world of telecommunications policy and planning, either in the industry trade press or government documents. The bottom line is the industry want to kill the Internet as we know it.

Take a minute and wade through this bit of arcana -- and ponder its implications.

"The IP Service Control System from Ellacoya Networks gives the Broadband Operator ‘Total Service Control’ to closely monitor and tightly control its subscribers, network and offerings." So reads the Web site of Ellacoya.com, a relatively new firm, describing the business-to-business service that it is selling to large Internet service providers.

Ellacoya is backed by Wall Street investment powerhouse, Goldman Sachs, which sees a major opportunity to turn around the red ink-plagued broadband sector. Continuing, the website explains, "Establishing Total Service control enables operators to better manage traffic on the network, [and] easily introduce a range of tiered and usage based service plans... Talkative applications, especially peer-to-peer programs like KaZaA and Morpheus, tend to fill all of the available bandwidth... The IP Service Control System allows operators to identify, limit and report on these aggressive applications."

The fundamental character of the Internet today is that it lacks precisely these kinds of tolls, barriers and gatekeepers. But technology like Ellacoya’s hardware and software is not just an enticing idea; it’s more of a silver bullet for beleaguered telecom executives. It’s being tested in industry trials and points to the kind of Internet the industry would like to develop over the next few years. The way telecom corporations get from today’s open-access Internet to their version of the future starts by changing how people pay for the net.

Industry's New Business Plan

Most people now pay a flat fee for online access. But the big media companies offering Internet service; Comcast, ATT, AOL -- would like to change that, and already have in a few test locations.

The broadband industry’s plans to institute tiered pricing have been widely reported in its trade press. There are numerous articles about replacing today’s open 'Net environment with industry-self-described versions of "walled gardens" or "Internet Lite." (See "Cable Operators Seek to Corral Bandwidth Hogs", Cable Datacom News, 10/01/02) The central feature of these proposals is much like telephone companies; there’s a price plan for everyone.

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