FCC Broadband Hearing - (semi) live notes

Drew Clark also has very good coverage of this.

11:00am: Lunch Hour:

Ed Markey (I think, this is an audiocast, so my TV only shows a caption screen) really opened up, talking about how in 1995 the FCC kept telcos from imposing per-minute charges on online services, and how that was a good idea then, and allowed the Internet to evolve as we know it. Markey wants more of a market for broadband, saying this should be "No country for old bandwidth."

Markey says that the telcos play too much of a "gatekeeper" role, and makes a distinction between "network services versus network access." He doesn't think there is either enough competition or enough broadband access right now, period.

(11:25)

Kevin Martin (R):

Chairman Martin (R) gets it. He talks about the Policy Statement and believes that it's important for the network operators to be transparent and that they should be able to access all lawful applications. He takes this seriously, I think, and believes that if a company is going to "manage" they'd better do it in a transparent manner. I like him more and more on this. He really does have an open mind on these things.

Michael Copps (D):

"Decisions made without you are usually made against you"

Is net neutrality real? He mentions the Verizon text messaging controversy from last year. Also points to Chairman Martin noting last year that two phones from the same manufacturer differed because the U.S. carrier didn't want wi-fi on the phone.

Copps wants a crystal clear policy allowing for "reasonable" management, but he says that non-discrimination should be the law.

Where is the line between discrimination and management? Copps wants a procedure for the FCC to examine the question to develop a "body of case law and rules of the road," in the tradition of common law, "the tree that grows with the roots up."

Copps is skeptical of claims of harm from network operators, harkening back to Carterphone, the claim that breaking up AT&T would hurt national security, and last year's claim that wireless open access would never work, which of course they reversed on.

Copps thinks these are difficult decisions, but wants them made in the sunshine.

Jonathan Adelstein (D):

"Don't drop out of school or you'll end up on the FCC"

Adelstein notes that the FTC tackled this over eight months ago. He also jokes about sending the videotaped testimony from this field hearing back to DC by BitTorrent. Some laughs in the audience...

Americans are very sensitive about free flow of their information, and Adelstein thinks now is the time to establish an "Internet Bill of Rights." He paraphrases Jefferson here. Nice.

"Nobody is in charge, and everybody is in charge."

Adelstein is big on the creativity that the Internet empowers. He wants to hear from the academics on this. Quoting Sir Berners-Lee on how important the Internet is becoming as the main medium by which we communicate...

"Openness is a fundamental requirement..."

He's pleased at the amount of diversity in applications, but concerned about consolidation of "last mile and backbone" as well as "content and services" Telcos control 93% of the residential market, and CRS says that last-mile provides have the ability and the desire to discriminate..."Old Media wants to maintain control of distribution channels..."

Adelstein is concerned that deregulation has removed special protections from Broadband, and wants to address "anticompetitive discrimination." He notes that AT&T and Verizon have agreed to uphold the IPS, and that AT&T in particular has agreed to keep their network open.

"Consumers don't want the Internet to become another version of Old Media...dominated by corporate giants."

Concerned about SMS Short Codes...Twitter anyone?

Adelstein wants transparency and disclosure for consumers...

"The reasonable practices can't undermine the policies themselves"

Adelstein notes that we're behind the broadband 8-ball. Preserving the openness and increasing availability go hand in hand.

"Access translates into opportunity..."

Also wants an "Internet Bill of Rights"

Robert McDowell (R):

New Media is "gangly and awkward"...

"YouTube alone consumes more bandwidth than the entire 'net in 2000"

He's optimistic about the potential of new media for consumer choice...

Competitive Markets are best equipped to satisfy demand...distrusts bureaucrats like himself..

"The Law of Unintended Consequences always has the last word."

Wants to make sure that capital is available to build out, but equally imporant for consumer choice "any time, anywhere, any device. Anyone who tries to frustrate that demand does so at their own peril..."

McDowell seems skeptical of any regulation at all, but wants consumer choice...refers back to the Internet Policy Statement. Wants to know what "reasonable network management" means...

Notes that thus far the FCC has let the market work, but is prepared to take action should practices "frustrate consumer demand" and wants to explore "new market conditions...and potential challenges..." Well, the Commissioners seem to get it...


Vuze CEO testifies...

Martin (R) clarifies that all the Vuze content is legal, and that Vuze users aren't breaking any contracts...good question, good answer. "Each of the consumers involved...has purchased a certain amount of capacity...and your application doesn't let consumers exceed what they have purchased..."

Free Press CEO compares this to 700mhz auction, says FCC should be consistant, notes that Comcast offers a VoD service that competes with Vuze..

Professor Benkler (Berkman): Net Neutrality is important and what we need is competition at every level right down to the physical layer...says that BitTorrent is the only scalable architecture for sharing large files. Does not attribute Comcast's actions to myopia or malice, but preventing it requires "genuine competition...." Concerned about the Last Mile, and that "Unbundling and Open Access are American innovations..."

David Cohen, EVP, Comcast:

"If customers want it, Comcast will deliver it..."

They can use any service they want. We "manage our network to maximize our customers' internet experience"

"every network must be managed..." lumps in Spam and Viruses with overall bandwidth consumption...

Says that their management of P2P uploads is "limited" in time and effect, on a "small number of users..."

"We do not block any websites or online applications, including P2P"

Notes Harvard Medical School blocks all P2P traffic.

Says they clarified their Acceptable Use Policy recently.

"Continue the policy of vigilant restraint..."

Tim Wu (Columbia):

Whatever "network management" is, it should not include blocking legal applications. Wu says he used to be on the other side and sell content filters, bandwidth managers, etc...now bothers him because biggest customers were "industries that wanted to censor speech..." ...compares to Chinese "great firewall..." "technologies of filtering are technologies of censorship..."

America should be..."the model...for open networks..." Compares our Internet policy to our foreign policy...

Christopher Yoo (UPenn):

What estimates on bandwidth growth should be believed? Congestion is a matter of time and space...gives a bit of a history lesson re client-server model versus p2p model...notes that thanks to YouTube, video downloads are majority client-server now.

"We have to guard against a one-size fits all solution..."

Question time...

Martin (talking to Ammori from Free Press) notes that Comcast actually denied they were even doing any blocking or "management" until confronted...

Wu doesn't think this is "reasonable." Notes that consumers get asked to buy more and more, and transparency benefits both consumers and application providers, and those who finance application providers..."very strange thing to be a free market person against transparency..."

Wu does good by pointing out that there is an economic benefit to transparency, that the market can manage well..."50% of VPNs guarantee a level of service..."

Heated exchange between Tim Wu and Cohen from Comcast regarding blocking versus "management." State Rep doesn't know what "reasonable" means and thinks that's a problem...

Commissioner Tate arrives late, had car trouble...is very happy everyone agrees that they want more broadband...at least she's positive...she's throwing a softball at Cohen who keeps comparing this to blocking spam and viruses...she wants to know if Comcast has recieved complaints.

Verizon guy says that people want disclosure and transparency...and as an industry they need to "step up to the plate and address these issues..." He's calling for an industry standard for disclosure...not a bad idea.

Now Tate is playing the "think of the children card" and bringing up music piracy, even though Vuze isn't pirating anything. Ugh.

Lunch is over, back to work for me...