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GAO finds wireless customers benefit despite few carriers

 By Larissa Anderson // Posted: 08/26/10 05:00 PM

A new report from the Government Accountability Office confirms there’s not much competition among wireless service providers. Nonetheless, wireless customers are getting lower prices and better coverage than they were 10 years ago.

Photo by Valerie Everett


Comments | Filed Under: wireless cell phone GAO Verizon T-Mobile AT&T Sprint

Leading Thinkers on Net Neutrality

 By Larissa Anderson // Posted: 08/19/10 11:39 AM

Net Neutrality is a complicated issue. The recent Google/Verizon policy proposal has raised new questions about the open internet - the idea that all online content gets treated equally. To explore this issue, we’re featuring a series of guest blog posts.

Christian Sandvig is Associate Professor of Communication, Media and Cinema Studies at the University of Illinois at Urbana Champaign and a Faculty Associate of the Berkman Center for Internet & Society at Harvard University. The Internet Tycoon Instruction Manual (8/20/10)

Larry Downes, a nonresident Fellow at the Stanford Law School Center for Internet & Society. Net Neutrality: What Are We Fighting For? (8/18/10)

David Weinberger, Senior Researcher at Harvard’s Berkman Center for Internet and Society: Notes from a Disappointed Fanboy (8/13/10)

More posts to come.  And you might also be interested in our Net Neutrality News Roundup.

Comments | Filed Under: David Weinberger Larry Downes google net neutrality verizon FCC

Verizon gives you a chance to watch TV while walking around

 by John Moe // Posted: 08/18/10 05:09 PM

Because maybe you want to.

And maybe you wouldn’t then start bumping into stuff.

Could happen.

Verizon is talking up an app for the iPad that will let you watch live TV. I think there are some obstacles here, like the small matter of cable companies not being crazy about this. But Verizon says they have the bandwidth for the streaming and the perfect receiver in the iPad. So as long as lawyers don’t get in the way, everything is golden.

Comments | Filed Under: verizon ipad we've got nothing better to do

Net Neutrality: What Are We Fighting For?

Posted: 08/18/10 06:30 AM

Net Neutrality is a complicated issue.  The recent Google/Verizon policy proposal has raised new questions about the open internet - the idea that all online content gets treated equally.  To explore this issue, we’re featuring a series of guest blog posts on our site.  Today, a post from Larry Downes, a nonresident Fellow at the Stanford Law School Center for Internet & Society. His books include “Unleashing the Killer App” and, most recently, “The Laws of Disruption: Harnessing the New Forces that Govern Life and Business in the Digital Age.” 

As both an Internet entrepreneur and a legal scholar, I’ve been watching and sometimes participating in the “net neutrality” debate for several years now.  At times it’s seemed like real progress was being made, but lately I’ve grown concerned about the prospects for a peaceful resolution.  It seems that some of the participants in what has been transformed into an honest-to-goodness fight over public policy have more to gain from aggravating the situation than in solving the problem.  I can’t predict what’s going to happen next.  Technology and business are rational subjects—politics is not.

Many of those now arguing the loudest in favor or against minimal or even drastic changes to U.S. law simply don’t understand enough about law, business, or the engineering details of how the Internet works to be making much sense. 

Unfortunately, uninformed opinions are being encouraged by a few media reform groups in Washington who have co-opted net neutrality.  They see it as an issue they can use to get their foot in the door to pursue broader agendas. 

(The broader agendas, which the groups make no secret of, include restrictions on media ownership—think of the pending Comcast-NBC Universal merger—and long-term hopes for full or partial nationalization of everything from the communications and broadcast infrastructure to the failing newspaper business.)

Reducing “net neutrality” to the kind of sound-bite screaming that so poisoned the debate on health care has many unfortunate side-effects.  Not the least of these is that the chance of any real resolution of the problem gets farther rather than closer.  For many of the groups advocating most vocally in “favor” of net neutrality, it is becoming clearer that they don’t actually want a resolution.  In pursuit of their long-term interests, they benefit much more from continued rancor.

That I think it what explains the strangely hostile response to the legislative framework proposed jointly by Google and Verizon last week.  Advocates and journalists, all of whom know better, continued to characterize the proposal as if it were some kind of secret deal to carve up the Internet and its users, like the clandestine treaty between Germany and Russia at the beginning of World War II.  I’ve seen the proposal referred to as a “deal,” “agreement,” “treaty,” “accord,” “pact,” “contract” or worse.  It’s not a business arrangement, it’s not law, and it’s not treason.

To understand why and why there’s such a strongly-vested interest in mischaracterizing pretty much everything said by anyone on the other side of the debate, let’s step back for a moment and ask how we got into this mess in the first place.

What is Net Neutrality?

For starters, it’s hard to come up with a concise definition of net neutrality, largely because it’s one of those terms, like “family values,” that means something different to everyone who uses it.  For me it’s become something of a litmus test—people who use it positively are generally hostile to large communications companies.  People who use it negatively are generally hostile to regulatory agencies.  A lot of that anger, wherever it comes, seems to get channeled into net neutrality.

In fact the Federal Communications Commission doesn’t even use the term—they talk about the “open and transparent” Internet instead.

But here’s the general idea.  The defining feature of the Internet is that information is broken up into small “packets” of data which are routed through any number of computers on the world-wide network and then are reassembled when they reach their destination.

Up until now, with some notable exceptions, every participating computer relays those packets without knowing what’s in them or who they come from.  The network operates on a packet-neutral model—when one computer receives it, it looks only to see where it’s heading and sends it, depending on traffic congestion at the time, to some other computer along the way just as quickly as it can.

That’s still the model on which the Internet works.  The “net neutrality” concern is not with current practice, but of future problems.   Increasingly, those advocating for new laws see a few dominant providers controlling the outgoing and incoming packets to and from consumers—the first and last mile. 

So while the computers between my house and Google headquarters all treat my packets to Google and Google’s packets back to me in a neutral fashion, there’s no law that keeps Comcast (my provider) from opening those packets on their way in or on their way out and deciding to slow or speed up some or all of them.

Why would they do that?  Perhaps they make a deal with Google to give priority to Google-related packets in exchange for a fee or a share of Google’s ad revenues.  Or, maybe they want to encourage me to watch Comcast programming instead of YouTube videos, and intentionally slow down YouTube packets to make those videos less appealing to watch.

Most of this is theoretical so far.  No ISP offers the premium or “fast lane” service to individual applications.  Comcast, however, was caught a few years ago experimenting with slowing down the file-sharing traffic of some of their customers who use the BitTorrent peer-to-peer protocol.  The reason was that some of Comcast’s most active customers were slowing down the network by sending and receiving very large files (mostly illegal copies of movies and other copyrighted content, as it turns out).

When Comcast was caught, the company agreed to stop offering “unlimited” access and to use more sophisticated network management techniques to ensure a few customers didn’t slow traffic for everyone else.  Comcast and BitTorrent made peace, but the FCC held hearings and sanctioned Comcast after-the-fact, leading to the court case that made clear the FCC has no authority to enforce its existing neutrality policies.  (More on that in a moment.)

The Network Was Never Neutral

The revelations about Comcast revived the net neutrality debate, this time with a strongly partisan bent.  Net neutrality, it was argued, was “about” free speech on the Internet, about a few large network operators destroying the innovative spirit of the net, about a secret plan to replace the Web with walled gardens of approved content.  There was either complete neutrality, or there was chaos.

But the with-us-or-against-us mentality of the rhetoric that followed this shift in the discussion leaves out some important and complicated technical details. 

First, some applications already require and get “premium” treatment for their packets.  Voice and video packets have to arrive pretty much at the same time in order to maintain good quality, so Voice over IP telephone calls (Skype, Vonage, Comcast digital voice) get priority treatment, as do cable programming packets, which, after all, are using the same connection to your home that the data uses.

Google, as one of the largest providers of outbound packets, has deals with some ISPs to locate Google-only servers in their hubs to ensure local copies of their web pages are always close by, a service called “caching” that is offered more generally by companies such as Akamai and LimeLight.  In that sense, technology is being used to give priority even to the most requested data packets, about which no one should complain.

When Should the Federal Government Step in?

So the net neutrality fight, aside from leaving out any real appreciation either for technological or business realities, is really a fight about the future.  As cable and telephone companies invest billions in the next generation of technology—including fiber optics and next-generation cellular services–application providers fear they will be asked to shoulder more of the costs of that investment through premium service fees.

That’s possible, of course, and it’s also possible that network operators will make business decisions that, in the long-term, will do great damage to the remarkable engine of innovation that the Internet has proven to be for the last decade.  If the market really does fail, or fails in significant local ways (rural or poor customers, for example, have no or little access to broadband Internet), then some kind of regulatory intervention might make sense. 

But history has shown that it’s a bad idea to regulate ahead of a market failure, especially when dealing with technology that is evolving rapidly.  In the last ten years, the Internet has proven to be a source of tremendous embarrassment for regulators trying to “fix” problems that shift under their feet even as they’re legislating.  Often the laws are meaningless by the time the ink is dry or—worse—inadvertently make the problems worse after the fact.

Nevertheless, in October of last year the FCC proposed—in a 107-page document—six net neutrality rules that would codify the principles described above and a number of peripheral, perhaps unrelated, ideas.  Implicit in that rulemaking was the assumption that someone needed to codify these principles, that the FCC was that someone, and that the agency had the authority from Congress to be that someone. 

There are good reasons to be skeptical that the FCC in particular is the right agency to solve this problem even if it is a problem.  Through most of its existence the agency has been fixed on regulating a legal monopoly—the old phone company—and on managing what were very limited broadcast spectrum—now largely supplanted by cable and more sophisticated technologies for managing the spectrum.

The FCC, recall, is the agency that watches broadcast (but not cable) television and issues fines for indecent content—an activity they do more, rather than less, even as broadcast becomes a trivial part of programming reception.  (An on-going challenge to how the FCC enforces broadcast decency rules is headed back to the U.S. Supreme Court soon.)  Congress has three times tried to give the FCC authority to regulate indecency on the Internet as well, but the U.S. Supreme Court has stopped all three.

But in April, as I noted, a federal court of appeals in D.C. ruled that the agency did not have the legal authority to enforce its existing net neutrality guidelines, which have been in place since 2005, regardless of their merits.   That decision also threw the proposed six rules into limbo. Why?  The FCC based its jurisdiction to issue them on the same legal theory the court rejected in its effort to enforce the earlier neutrality policy statement against Comcast.

So now the agency is pursuing a second avenue, which is to change the classification of broadband Internet access in a way that would give it all the authority it needs (and then some) to go ahead with the October rulemaking. 

A better solution, for many reasons, would have been to go back to Congress for specific authority over broadband, but the agency is feeling political pressure to move quickly on net neutrality, and so is pursuing what everyone understands is a procedure that stands on very shaky legal grounds, at best.  (Net neutrality means full employment for communications lawyers in Washington for a long time to come.)

Back to the Google-Verizon Proposal

Here’s where last week’s proposal from Google and Verizon fits in.  Network operators, content providers, and responsible consumer groups have come to recognize, as has the FCC itself, that the net neutrality policy fight has gotten out of hand.  Almost no one likes the way the FCC is trying to plug the holes in its legal dam which are appearing faster all the time.  Investors are unhappy, content providers are distracted, and the FCC’s more productive efforts, including the truly visionary National Broadband Plan issued and then forgotten back in March, are foundering.

So FCC Chairman Julius Genachowski sensibly asked his chief of staff to try to get all the parties together and figure out some way out of the legal logjam.  That shouldn’t have been hard, because almost everyone agrees on the basic principles of net neutrality—and has operated accordingly all along.  And, it seems, the meetings were going well, or as well as these things can go in Washington in the middle of a hot summer.

One positive side-effect of the meetings was that Google and Verizon discovered they had more common ground than they thought.  (The two companies have been working closely for some time—Verizon’s cellular network now handles smartphones that use Google’s Android operating system.)  The companies had earlier written a joint letter to the FCC, and jointly filed comments in the net neutrality rulemaking.  Those documents all indicated that Verizon was prepared to accept a larger FCC role in ensuring the continued success of the net neutrality model, a significant concession.

So to those of us who have been following the maneuverings for a while, the proposal released by Google and Verizon was no surprise.  With one exception, it followed nearly exactly the earlier statements the companies had made together.

It also followed closely what the FCC has been proposing since October, 2009.  Most of all, it proposed nearly-identical rules to the six the FCC announced.

The rules proposed by Google and Verizon include the kinds of exceptions necessary for voice, video, and new services that are already in place.  The FCC proposed the same exceptions.

The Google-Verizon proposal excuses network operators from applying neutrality to unlawful content—including spam, viruses, and illegal fire sharing—just as the FCC proposal does.  It recognized the need fast-changing networks and new innovations in technology and user behavior create for “reasonable network management” and private “managed services,” just as the FCC’s proposal does.

And the Google-Verizon proposal called for Congress to make the neutrality rules a matter of federal law, enforceable on a case-by-case complaint basis by the FCC—precisely what the FCC said.

What was most disappointing about last week’s response to the Google-Verizon framework was the thick layer of hypocrisy and cynicism that came with it.  Much of the invective launched against the proposal criticized features of the Google-Verizon framework that were identical to aspects of the FCC proposal.  

Many of those doing the loudest complaining are those who most ardently supported the same rules when the FCC proposed them.

That’s what happens when a technology problem gets perverted into a political problem.  And it’s why so little progress is being made.

I mentioned that there was one important difference between the Google-Verizon proposal and the FCC’s.  That has to do with wireless broadband.  The FCC, albeit reluctantly, proposed in October that it would apply the six neutrality rules to wireless just as it would to wired broadband.  Google initially agreed, but now takes the same position as Verizon and other cellular operators, which is that the rules should not apply—at least not for now.

Why the distinction?  As anyone with a smartphone knows, wireless broadband access is seriously constrained by overburdened cellular networks.  Even at its best, the capacity of the wireless Internet is a tiny fraction of what can be delivered over cable or fiber, but its users want to do the same kind of high-bandwidth activities on the road as they do at home.  Watching high-definition videos or sharing large files on the wireless Internet is not just technically possible right now.

There are ways to increase the speed and reliability of cellular networks, but they require a combination of new technologies, additional spectrum allocation, and the cooperation of local communities, many of whom resist the installation of additional towers and other infrastructure.


So for now a growing consensus of Internet service and content providers acknowledge that wireless network operators need flexibility.  Some applications will indeed be blocked.

This kind of network management is not “evil.” It’s simply a technical necessity.  It doesn’t make sense to ban it, or even to put a slow-moving federal bureaucracy in charge of deciding how to implement it.

But that, at least, is a conversation that reasonable people could have.  Unfortunately there aren’t many of them around these days.

Comments | Filed Under: net neutrality Google Verizon open internet FCC broadband wireless

Net Neutrality news roundup

 By Larissa Anderson // Posted: 08/17/10 02:52 PM

The evolving conversation about net neutrality in wake of the Google/verizon policy proposal now includes a letter to the FCC from four Democrats in Congress.  In their letter dated August 16th(PDF), Edward Markey (D-Mass.), Anna Eshoo (D-Calif.), Jay Inslee (D-Wash.) and Mike Doyle (D-Pa.) urge the FCC to take formal action and consider four items:

1. The FCC must have oversight authority for broadband access services.
2. Paid prioritization would close the open Internet.
3. Wired and wireless services should have common regulatory framework and rules.
4. Broad “managed services” exceptions would swallow open Internet rules.

This week, Commissioners Michael Copps and Mignon Clyburn will be in Minneapolis, Minnesota this week to hear from the public about this issue.

Online, the debate continues. We’ve been covering the story - you can hear from Google and Verizon here and we’ve explored what this proposal means for us as we watch YouTube videos and search for things online

We’re also featuring a number of guest blog posts on the issue - the first one we’ve posted is from David Weinberger of Harvard’s Berkman Center for the Internet and Society

Jonathan Zittrain, Professor of Law at Harvard Law School and the Kennedy School of Government, Professor of Computer Science at Harvard’s School of Engineering and Applied Sciences and co-founder of the Berkman Center, has a substantial breakdown of the issue on his Future of the Internet blog.

Tomorrow, we’ll feature a post from Larry Downes, currently a nonresident Fellow with the Stanford Law School Center for Internet & Society, and later this week, a guest blog post from Christian Sandvig, a Berkman Fellow and visiting research scholar in the Innovation Lab at MIT Sloan. 

Comments | Filed Under: FCC, Google Verizon broadband net neutrality open internet wireless

Battle lines being drawn for Google, Verizon, net neutrality

Posted: 08/13/10 06:00 AM

Google and Verizon issued a public policy statement Monday outlining their position on net neutrality, the idea that everything going over the internet should be given equal priority. They said they support a free and open web BUT future technologies might require special rules and shouldn’t be subject to the same restrictions.

Since that announcement, battle lines have been drawn. Standing against the plan: an FCC commissioner, a ton of bloggers, and even Facebook. As this story matures, we take a look at what the fallout might be.

Steve Henn from our sister program Marketplace joins us to talk about who’s aligning where. Amazon and eBay are backing Facebook but not very loudly, big media companies and most internet providers are saying nothing. We also talk to Larry Downes of Stanford University Law School’s Center for the Internet and Society who explains what this whole debate might mean for you sitting at home.

Comments | Filed Under: google verizon facebook net neutrality

Google and Verizon and the future of the web

Posted: 08/10/10 06:00 AM

Google is a company that’s full of mysteries. How does their page ranking system work? What will they turn YouTube into? Why did anyone think Wave would catch on? And most recently, what is their role in the future of net neutrality?

On Monday, Google CEO Eric Schmidt held a joint conference call with Verizon CEO Ivan Seiderberg to announce a new public policy statement about the future of the web. It reaffirmed both companies’ support for an open web but it also left a little wiggle room in the form of the fifth of seven points being made:


Fifth, we want the broadband infrastructure to be a platform for innovation. Therefore, our proposal would allow broadband providers to offer additional, differentiated online services, in addition to the Internet access and video services (such as Verizon’s FIOS TV) offered today. This means that broadband providers can work with other players to develop new services. It is too soon to predict how these new services will develop, but examples might include health care monitoring, the smart grid, advanced educational services, or new entertainment and gaming options. Our proposal also includes safeguards to ensure that such online services must be distinguishable from traditional broadband Internet access services and are not designed to circumvent the rules. The FCC would also monitor the development of these services to make sure they don’t interfere with the continued development of Internet access services.

Essentially, the companies are saying that new forms of content may require a different approach to distribution and that the old open internet model may no longer apply. They used the somewhat bizarre example of 3D opera.

We hear excerpts of Schmidt and Seidenberg’s from the press conference. We also talk to Glenn Fleishman of Wi-Fi Networking News about what this policy proposal, which both companies made sure to say is just an idea that they wish to float, would mean to the internet of tomorrow.

Comments | Filed Under: google verizon net neutrality

Will iPhone customers have a new carrier to curse in vain?

 by John Moe // Posted: 08/09/10 11:30 AM

MAYBE.

Verizon – iPhone rumors are heating up as they seem to do on every day ending with a y. Tech Crunch is reporting that Apple has ordered a huge number of CDMA chip sets from Qualcomm. Qualcomm is the leading supplier of CDMA and Apple has never ordered from them before. CDMA is at the heart of Verizon phones but NOT AT&T phones. Because there is some scarcity of materials for CDMA, the sets would have to be ordered pretty far in advance of when they would be needed. Tech Crunch extrapolates that this points to a January Verizon launch.  Meanwhile, AT&T is talking in an SEC filing about what happens when exclusivity deals end


Hot Chip - I Feel Better

Hot Chip | MySpace Music Videos

Comments | Filed Under: iphone verizon

Toss out your wallet, keep your phone

Posted: 08/03/10 06:00 AM

There are a few things you always make sure you have when you leave the house: keys, wallet, phone. What if you could skip the wallet?

Imagine going to the grocery store, getting all the stuff you need, and then, when you’re at the cash register and it’s time to pay, you don’t need to bother digging up your debit card. Instead you reach your phone, waggle it around a bit, and you’re on your way.

And hey - why stop there? If your financial information can be on there, why not your driver’s license too? Why not your ID card at work? Your library card?

Sounds futuristic but it may be fast approaching. Wireless carriers AT&T, Verizon, and T-Mobile are reportedly about to start testing a technology known as Near Field Communications or Contactless Payment in a few different cities. Everything you would need from your wallet would be on your phone.

We talk to Marc Rysman, Associate Professor of Economics at Boston University, about how the technology works. We also speak to Rachel Schneider, Innovation Director at the Center for Financial Services Innovation, about how the technology could be made even simpler, maybe just a sticker on the outside of a phone or anywhere you cared to put it.

Comments | Filed Under: phones wireless at&t verizon t-mobile

Cell phone trade group sues San Francisco over cell phone law

 by John Moe // Posted: 07/26/10 11:43 AM

The trade group CTIA represents Apple, Verizon, AT&T, Motorola, and Verizon is upset over a law passed in June in SF requiring any business selling a cell phone to display radiation levels emitted by a given device. The CTIA argues that the law oversteps the regulatory authority of the FCC, which does not require such disclosure. The FCC has said that all cell phones sold in the United States are safe. Some researchers say that the results are inconclusive.

(image from here)

Comments | Filed Under: cell phone apple Verizon AT&T motorola

The coming data traffic jam

Posted: 07/23/10 09:35 AM

If you don’t own a smart phone now, you probably will soon.

Here’s the picture from Wall Street:  Nokia, which pretty much makes regular old cell phones, announced a 40 percent drop in revenues Thursday. On the same day, AT&T said they had a huge quarter with lots of new customers for the iPhone activated 3.2 million new iPhones last quarter. Meanwhile, research firm Strategy Analytics says smart phone shipments are up 43 percent worldwide.

Americans are ditching cell phones in favor of devices that can make calls AND check email AND update Facebook AND stream video AND you get the idea.  In the process, we’re flooding the data networks these smart phones rely on. It’s lots of fun now, but is it sustainable? Can the networks do what we’re asking of them?

We check in with industry analyst Cheetan Sharma, whose clients include both AT&T and Verizon, about this issue. We also talk to Glenn Fleishman of Wi-Fi Networking News.

Also in this program, Foxconn says it will raise prices for the technology companies it works with. Foxconn builds popular products for Apple, HP, Dell, and others. We’ve been watching the situation with Foxconn for a while. Here are some links to past coverage:

Suicides in China (May 21)

More suicides at Foxconn (May 28)

Blog coverage

Comments | Filed Under: apple foxconn at&t verizon motorola iphone android

Verizon on iPhone? Okay. Sure. Maybe.

 by John Moe // Posted: 06/29/10 04:47 PM

Pardon me if I look at this story askance. Ajar. Askew. It has a lot of people buzzing today that AT&T and their, uh, inconsistent coverage areas may not be the only option for iPhone customers in the near future. But the sources are anonymous and, nothing against Bloomberg, it’s kind of hard to see it as anything but a rumor.

That being said, AT&T has had problems, Verizon and Apple could do a lot more business if this comes to pass, and it really does make sense for everyone except AT&T (who maybe wouldn’t mind carrying less weight on their networks).

So I can’t get excited about the story as absolute fact (just as with many similar stories I’ve seen) but that doesn’t mean I doubt it.

Comments | Filed Under: apple iphone verizon AT&T

today's show

What will we do with all this "white space"?

09/26/10 11:15 AM

There’s a vote coming up this week in Washington that will have a big impact on how you use the internet, what’s available to you, how much faster you’ll be able to get things online. On Thursday, the FCC is expected to open up unused parts of the broadcast spectrum, a lot of people call it “white space”. This is space that was positioned to be something of a buffer between television stations but such padding is proving less essential since the conversion to digital TV.

On today’s show, we talk to Glenn Fleishman from Wi-Fi Networking News and The Economist about how the spectrum works and what kind of new space we’re talking about. We also check in with Tim Wu from Columbia Law School about the companies that will look to use the space and what it all might mean for you and me as internet consumers.

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