Pipeline Publishing, Volume 7, Issue 6
This Month's Issue:
Going Over-The-Top
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Net Neutrality: Telecom’s Extremism
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network operators can’t offer exclusive, premium services that look like the Internet.

The Regulatory Challenge

Sometimes I feel bad for the folks at the FCC. Basically, the FCC is made up of a bunch of attorneys, some of whom are killing time in a government gig for one reason or another, who have to try to figure out what engineers are talking about every day and translate that into practical recommendations that Congress can adopt. This is no simple task. When I read the public comments the FCC solicits to help frame new policy, they are often mind boggling. The recommendations will get into semantic discussions about connectivity and capacity, trying to set a basis for determining what is and what is not the Internet based on how and to where it is routed and which technology it utilizes. Having worked with the FCC for 15 years, originally as a regulatory reporter, I can promise you that very few, if any, of the

we’ll see some movement on making the over-the-top guys pay more



overhead space on Southwest doesn’t mean I think the FAA should force Gulfstream out of business. If today’s Internet is coach, well maybe it’s time we got business class, first class, and more.

What Will Happen?

If anything is going to force net neutrality rules to change, I suspect it will be the wireless industry. I could base this argument on more techno-babble, getting into the nature of wireless devices and backhaul networks and how you have a clear delineation between the public Internet and wireless access networks. But the bottom line is that the CTIA, the U.S. Wireless industry’s lobby group, is extremely influential and has deep pockets. As the wireless industry grows and becomes wealthier, its power to shift rules in its favor becomes greater.


individuals who work there are ever going to be able to translate that mumbo-jumbo into something a U.S. Senator is going to support.

When you combine the techno-babble with the overly impassioned inputs from conspiracy theorists who believe any Internet regulation will turn the entire world into a Stalinist dictatorship and all people in corporate controlled automatons, the result is an important debate framed by extreme opinions that mostly fail to address an important question – where does the Internet go from here? Does it continue to play to the lowest common denominator, or can we differentiate it in ways that mirror many other aspects of society? Just because some people are fortunate enough to fly in custom business jets while I’m fighting for


Don’t let the recent noise about Bill Shock, and the little wrist slap Verizon Wireless received for its $1.99 data charges fool you – that’s all carefully choreographed. Right now, wireless providers benefit from over-the-top apps because those services, along with new smartphones, drive increasing data subscription revenue. That revenue is recurring, visible, predictable, and lucrative. When that market is fully penetrated, however, and the wireless industry needs new avenues for revenue growth, then I suspect we’ll see some movement on making the over-the-top guys pay more of the freight for the services they now deliver to wireless devices, over wireless networks or the Internet, at will.

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