The Federal Communications Commission, America's telcoms regulator, has formulated a plan to allow internet service providers (ISPs) to charge companies for the right to "premium" access to its customers. This is the worst internet policy news imaginable. It should strike terror into the heart of anyone who cares about fairness, politics, the widening gap between the rich and the poor, fair trade, entrepreneurship, or innovation. The FCC now stands as the world's foremost symbol for "regulatory capture," and its chairman – a former cable executive lobbyist – is the poster child for an unhealthy relationship between industry and its regulators.
What's at stake is "network neutrality," which is the simple principle that your ISP should give you the bits you ask for, as quickly as it can, and not deliberately slow down the data you're looking for.(There are valid arguments to be made about network management techniques that try to slow down some customers' connections in order to ensure that other customers get their fair share of the internet, but anyone who brings up those arguments in this context is just trying to sow confusion by changing the subject. Whatever network management is, it's not an ISP discriminatorily slowing down Netflix streams and delivering its own, competing streams with less jitter and delay because Netflix hasn't paid protection money this month.)
The ISPs say they only want to get paid for the use of their service, but the problem is, they're already getting paid. You pay your internet bill every month. Netflix, Google, Yahoo, the Guardian and Boing Boing all pay their internet bills every month. The ISPs aren't seeking to get paid, they're seeking to get paid twice: once by you, and a second time because you are now their hostage and the companies you want to do business with have to get through them to get to you.
There's a useful analogy to the phone company that I've written about here before: you pay for your phone service every month. The pizza place on the corner also pays for its phone service every month. When you want to order a pizza from Joe's Corner Pizzeria, you call their number. If their phone isn't engaged, it rings and you get to place your order. If they get more orders than they can handle on one line, they buy a second line, a third, even 10 lines to take their orders. Provided one of those lines is free, your call goes through to someone when you ring.
But what if your phone company decided that the way to bring in higher profits was to go around to all the pizza places and shake them down for "premium" access to "their" customers? If Joe's Corner Pizzeria turned them down, your call to Joe's might get a busy signal, even if there were plenty of free lines at Joe's place. Meanwhile, an order to the monied, tasteless sultan of global cardboard pizza-ite, that is, the company who has plenty of money for "premium" access – is easy to reach, because your phone company has promised them that every call will be put through.
The thing is, Joe's is paying for its lines. You're paying for your line. The phone company exists solely to connect people to the numbers they dial. But because there are "natural monopolies" in phone service (because there are only so many mobile frequencies and underground cable space), they can abuse their position to extort additional payments from the services you want to talk to. And the more popular a service is, the better it is, the more the ISP stands to profit from this racket. (...)
If you think of a business idea that's better than any that have come before – if you're ready to do to Google what Google did to Altavista; if you're ready to do to the iPod what the iPod did to the Walkman; if you're ready to do to Netflix what Netflix did to cable TV – you have to start out with a bribery warchest that beats out the firms that clawed their way to the top back when there was a fairer playing-field.
by Cory Doctrow, The Guardian | Read more:
Image: Nacho Doce/Reuters/Corbis
