Net neutrality is the principle that Internet service providers must treat all Internet traffic equally and not discriminate or charge differently by user, content, website, platform, application, type of attached equipment, or method of communication. The passage discusses the debate around net neutrality between Internet service providers who want to charge users different rates based on bandwidth usage and net neutrality supporters who believe this could disadvantage certain users or online services. While the U.S. and Europe have adopted some regulations requiring net neutrality, the debate continues as service providers challenge rules in court arguing the need to offset infrastructure costs.
Net neutrality is the principle that Internet service providers must treat all Internet traffic equally and not discriminate or charge differently by user, content, website, platform, application, type of attached equipment, or method of communication. The passage discusses the debate around net neutrality between Internet service providers who want to charge users different rates based on bandwidth usage and net neutrality supporters who believe this could disadvantage certain users or online services. While the U.S. and Europe have adopted some regulations requiring net neutrality, the debate continues as service providers challenge rules in court arguing the need to offset infrastructure costs.
Net neutrality is the principle that Internet service providers must treat all Internet traffic equally and not discriminate or charge differently by user, content, website, platform, application, type of attached equipment, or method of communication. The passage discusses the debate around net neutrality between Internet service providers who want to charge users different rates based on bandwidth usage and net neutrality supporters who believe this could disadvantage certain users or online services. While the U.S. and Europe have adopted some regulations requiring net neutrality, the debate continues as service providers challenge rules in court arguing the need to offset infrastructure costs.
Chapter 7 Telecommunications, the Internet, and Wireless Technology 291
INTERACTIVE SESSION: ORGANIZATIONS
The Global Battle over Net Neutrality pricing would impose heavy costs on heavy What kind of Internet user are you? Do you primarily bandwidth users such as YouTube, Skype, and other use the Net to do a little e-mail and online banking? innovative services, preventing high-bandwidth start- Or are you online all day, watching YouTube videos, up companies from gaining traction. Net neutrality downloading music files, or playing online games? supporters also argue that without net neutrality, ISPs Do you use your iPhone to stream TV shows and that are also cable companies, such as Comcast, might movies on a regular basis? If you’re a power Internet block online streaming video from Netflix or Hulu to or smartphone user, you are consuming a great deal force customers to use the cable company’s on- of bandwidth. Could hundreds of millions of people demand movie rental services. like you start to slow the Internet down? Network owners believe regulation to enforce net Video streaming on Netflix has accounted for 32 neutrality will impede competitiveness by percent of all bandwidth use in the United States discouraging capital expenditure for new networks and and Google’s YouTube for 19 percent of web traffic curbing their networks’ ability to cope with the at peak hours. If user demand overwhelms network exploding demand for Internet and wireless traffic. capacity, the Internet might not come to a screeching U.S. Inter- net service lags behind many other nations halt, but users could face sluggish download speeds and in overall speed, cost, and quality of service, adding video transmission. Heavy use of iPhones in urban credibility to this argument. Moreover, with enough areas such as New York and San Francisco has options for Internet access, dissatisfied consumers degraded service on the AT&T wireless network. could simply switch to providers who enforce net AT&T had reported that 3 percent of its subscriber neutrality and allow unlimited Internet use. base accounted for 40 percent of its data traffic. In the United States the Internet has recently Internet service providers (ISPs) assert that been declared a public utility, and therefore subject network congestion is a serious problem and that to regulation of the Federal Communications expanding their networks would require passing on Commission (FCC), which regulates the land burdensome costs to consumers. These companies telephone system. Public utilities are required to believe differential pricing methods, which include provide service on an equal footing to all users. data caps and metered use—charging based on the The new rules are intended to ensure that no amount of bandwidth consumed—are the fairest way content is blocked and that the Internet cannot be to finance necessary investments in their network divided into pay-to-play fast lanes for Internet and infrastructures. However, metering Internet use is media companies that can afford them and slow not widely accepted because of an ongoing debate lanes for everyone else. Outright blocking of con- about net neutrality. tent, slowing of transmissions, and the creation of Net neutrality is the idea that Internet service so-called fast lanes were prohibited. The FCC stated providers must allow customers equal access to content that it favors a light touch rather than the heavy- and applications, regardless of the source or nature handed regulations to which the old regulated tele- of the content. Presently, the Internet is neutral; all phone companies were subjected. One provision Internet traffic is treated equally on a first-come, requiring “just and reasonable” conduct allows the first-served basis by Internet backbone owners. How- FCC to decide what is acceptable on a case-by-case ever, this arrangement prevents telecommunications basis. The new rules apply to mobile data service and cable companies from charging differentiated for smartphones and tablets in addition to wired prices based on the amount of bandwidth consumed lines. The order also includes provisions to protect by the content being delivered over the Internet. consumer privacy and ensure that Internet service is The strange alliance of net neutrality advocates available to people with disabilities and in remote includes MoveOn.org; the Electronic Frontier areas. Foundation; the Christian Coalition; the American In Europe, telecommunications carriers are subject Library Association; data-intensive web businesses to the European Parliament, which in 2015 adopted net such as Netflix, Amazon, and Google; major consumer neutrality legislation that required Internet service groups; and a host of bloggers and small businesses. providers to treat all web traffic equally. In Net neutrality advocates argue that differentiated 2016 the Body of European Regulators for Electronic Communications (BEREC) issued regulations that prohibited ISPs from blocking or slowing down of Internet of Internet traffic except where necessary for traffic, except where necessary for maintenance and maintenance and security. security. In Europe, major ISPs including Deutsche Telekom, In 2015, United States Telecom Association, an Nokia, Vodafone, and BT promise to launch 5G industry trade group, filed a lawsuit to overturn networks in every country in the European Union by the government’s net neutrality rules. AT&T, the 2020 if authorities hold off on implementing the new National Cable & Telecommunications Association, rules. Otherwise, 5G networks will take a much longer and CTIA, which represents wireless carriers, filed time, they argue. similar legal challenges. Pro-net neutrality forces have asked the FCC to look at “zero-rating” practices, Sources: Amar Toor, “Europe’s Net Neutrality Guidelines Seen as a Victory for the Open Web,” The Verge, August 30, 2016; BEREC, “All You in which certain services, like Spotify and Netflix, Need to Know About Net Neutrality Rules in the EU,” berec. europa.eu, are exempt from data caps in a customer’s data plan. 2016; David Meyer, “Here’s Why Europe’s Net Neutral- ity Advocates The battle over net neutrality is not yet over Are Celebrating,” Fortune, August 30, 2016; John D. McKinnon and Brett Kendall, “FCC’s Net-Neutrality Rules Upheld by Appeals Court,” In Europe, telecommunications carriers are Wall Street Journal, June 14, 2016; Darren Orf, “The Next Battle for subject to the European Parliament, which in 2015 Net Neutrality Is Getting Bloody,” Gizmodo, May adopted net neutrality legislation that required inter- 25, 2016; Stephanie Milot, “GOP Moves to Gut Net Neutrality, FCC Budget,” PC Magazine, February 26, 2016; Rebecca Ruiz, “FCC Sets net service providers to treat all web traffic equally. In Net Neutrality Rules,” New York Times, March 12, 2015; Rebecca 2016, the Body of European Regulators for Electronic Ruiz and Steve Lohr, “F.C.C. Approves Net Neutrality Rules, Communications (BEREC) issued regulations that Classifying Broadband Internet Service as a Utility,” New York Times, February. 26, 2015; Robert M. McDowell, “The Turning Point for prohibited ISPs from blocking or slowing down Internet Freedom,” Wall Street Journal, January 19, 2015; Ryan Knutson, “AT&T Sues to Overturn FCC’s Net Neutrality Rules,” Wall Street Journal, April 14, 2015.
CASE STUDY QUESTIONS
1. What is net neutrality? Why has the Internet 4. It has been said that net neutrality is the most operated under net neutrality up to this point? important issue facing the Internet since the advent 2. Who’s in favor of net neutrality? Who’s opposed? of the Internet. Discuss the implications of this Why? statement. 3. What would be the impact on individual users, 5. Are you in favor of legislation enforcing network businesses, and government if Internet providers neutrality? Why or why not? switched to a tiered service model for transmission over landlines as well as wireless?