Net neutralist shows true colours

In a Hill Times letter that was intended to critique my previous week’s Op Ed, Russell McOrmond actually helped prove my thesis: there are elements among net neutrality proponents that want to nationalize the communications infrastructure of Canada’s carriers.

In his letter, he comes clean with a statement that confirms his objective.

You can find the full text of Russ’ submission (pre-editorial chopping) on his blog.

If we built communications networks the way I believe we should, we would have a separate communications infrastructure utility that is separate from any specific product or service someone would want to connect to. … It should be just as easy to connect directly to the home of someone else in Ottawa, or to a government service, as it is any specific commercial service.

Let’s look at the design objective – to be able to connect as easily to someone else’s home, or to a government service, as it is any specific commercial service. I’d suggest that this objective is consistent with that of every carrier. Do any of you have any difficulty using the commercial internet to do just that?

The question I have is, why does he think that there needs to be a new “very-high-speed connection at my home (example: fiber)” connection to accomplish this objective? And if you believe that this new utility is a viable business plan, then go ahead and get it financed. Except for one little problem: I don’t think he wants a commercial venture to operate this network. The term utility, at least in Canada, is often a code word for a government-owned operation.

No – I am not a McCarthy commie conspiracy kind of guy. Still, up until this letter to the editor, it is rare for the neutralists expose their nationalization objectives in plain language. We generally have to infer their ultimate objective.

But Russ’ letter concludes with precisely such a statement:

Not only are the incumbent service providers in North America not a useful path for rolling out future services, but we need to wrestle this critical infrastructure out of the hands of existing telecommunications and cable companies.

And these are the folks who took umbrage when I warned in my Op Ed to beware of the People’s Republic of Net Neutrality.

I am happy you put such clarity into your letter to the editor. Thank you for your support.

Is it doublespeak at the CRTC?

There is a deadline fast approaching for Cabinet to finalize its variance of the CRTC’s local forbearance decision from last year. The final order must be issued by April 6, 2007 – Good Friday.

So the CRTC rushed out a forbearance order for Fort McMurray today, perhaps to demonstrate that it was still in-charge. Why do I say ‘rushed’? The order was released at 11:00am but contained a significant enough typo that an amended order was released 3 hours later.

The caveat in the order was:

The Commission approves the introduction of local forbearance in the Fort McMurray residential relevant market once [TELUS] has demonstrated that it has met the CQ of S [Competitor Quality of Service] criterion that will be in effect at the time of its CQ of S filing.

Both Bell and TELUS were incensed with the terms of the order. According to Janet Yale of TELUS:

It is an undeniable fact that Fort McMurray residents have a choice of competitors for their basic phone service, and yet the CRTC insists on maintaining outdated restrictions on TELUS’ ability to make its best offers to customers. The conditions for deregulation they set out for local phone service are unattainable in any practical sense, and were rejected as such by the federal government. Their decision today runs entirely contrary to the government’s directive.

Lawson Hunter of Bell said:

This proves the need for the government to move forward on its commitment, as confirmed in the recent federal budget, for a new regulatory framework for local service forbearance that will bring the full benefits of open competition to consumers.

Their concern is that cabinet may choose not to issue a final version of its variance announced in December.

When the kids were young, they would ask for a cookie before dinner, and my wife would answer them with a ‘yes’ – as soon as they finished their dinner. The CRTC said yes, you can have forbearance…

Taming the internet

Mark Evans has a posting today with a title that is reminiscent of an Op Ed that Bernie Farber wrote in the Ottawa Citizen last fall: Taming the web’s Wild West.

As Bernie wrote at that time:

Those of us challenging the spread of hate promotion have tried for many years to find the fine balance between the right to free speech and the right of individuals not to be the objects of hate and violent speech.

Unfortunately, the dark side of the internet has chosen another target. Mark Evans suggests

the time has come for everyone (government, the business community, think-tanks, etc.) to determine how to fight the dark side while still allowing the Web to flourish and grow

There is a session that will look at the issue of Illegal Content on the Internet at The 2007 Canadian Telecom Summit. Bernie will be there, as will experts on child exploitation. It will be an interesting opportunity to explore meaningful ways to deal with these issues.

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Electric networks and net neutrality

Tim Wu of Columbia University compares the internet to the neutrality of electric utility grid. With electricity, he says, you don’t have to ask the electric company for permission to plug in whatever device you want. It is an interesting metaphor that is worth examining.

Let’s look at some reasons why I’m not convinced the metaphor fits:

  • Electric networks are generally uni-directional, and certainly not peer-to-peer. Virtually all of us are consumers of electricity, not generators. I suspect that when I choose to install a wind turbine in my backyard and I try to send some of the power over to my friend across town, and only my friend, it will need a little bit of effort from the electrical network. And try to send a bigger chunk of the power to a business colleague around the world – simultaneously.
  • There are exceptions to simple plug-and-play electrical power. My electric dryer and my wife’s ceramics kiln won’t just plug into the wall. I have an electrician rewire. So much for application independence.
  • The electric grid sometimes does interfere with my applications. Look at summer brown-outs, smart meters and systems that disable clothes dryers and air conditioners during peak periods.

Electricity is generally a metered service. I wonder how many of the network management challenges of retail internet access are created by the all-you-can-eat flat rate business model. But please don’t tell me the answer is to change the business model of retail internet sales to pay-as-you-go. If you want to enter the ISP business and offer that model, go ahead. But we don’t get to make those kinds of business decisions for other people – specifically ISPs.

Environmental concerns are further leading to an evolution in the electric grid that will challenge its neutrality. Already, people distinguish between essential and unprotected applications: which devices need to be connected to back-up power. If you are in your office, look for the orange electrical outlet.

The near future may see significant changes to the way power is delivered – interruptible power to certain demanding appliances – transforming the application neutrality of the electric grid because we can no longer afford such a luxury. Forcing us to dial down our major electricity consuming appliances sounds similar to traffic shaping those movie and music downloads, doesn’t it?

Still, there is something attractive about network neutrality as a “network design principle” as Professor Wu describes. Can there be agreement that not all bits can always be treated the same.

Consumer information may be the best way to manage expectations.

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Beyond bundling: extending the triple play

ATTAT&T; (NYSE: T) has announced content for 3 screens (TV, broadband and mobile) that moves the triple play beyond a pricing bundle.

Under an agreement with the Masters, AT&T; will provide golf fans with access to Masters previews and daily highlights, live tournament and practice range coverage, player interviews, live updates, links to real-time scoreboards and more.

By extending the excitement of the 2007 Masters Tournament across the three screens, AT&T; is giving golf fans more ways to enjoy one of the greatest traditions in all of sports

Masters programming, beginning next week, will be available to AT&T; customers at no additional charge, and select content will be available for 60 days following the conclusion of the tournament.

AT&T; is hosting the cocktail reception on June 11 at The 2007 Canadian Telecom Summit and will have the closing keynote speaker that day.

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