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Net Neutrality

Inside the Network

2

Net Neutrality

• Introduction

• What is Net Neutrality

• Key Stakeholders

• Balancing Free Market Principles

• History / Framework

• Network Technologies

• Last mile technologies deliver different user experiences

• Oversubscription of edge to core

• Middle mile

• Content Providers

• Public Engagement

• Rulemaking process

3

Don Holloway

• MBA, Lehigh University

• “Birds of a Feather” - Joint project between CSE and CBE• 2007 study of social networking

• Telecommunications Account Executive

• Sales of large scale systems• Working 12 – 24 months ahead of market

• 12 - 18 month sales cycle

• 12 – 18 month development cycle

• Network neurologist

@donholloway

www.donholloway.com

donholloway@gmail.com

Don.Holloway@teoco.com

4

Network Operations Optimization Priorities

• 90% problem cells fixed

• DCR improved by 30%

• RRC Estab. FR 25% better

• Coverage 10-20% better

• European Operator

electricity bill for cell sites:

€200m p.a.

• 30% of sites could be turned

down 30% of time

• Massive savings to realize

• Traffic grows by 90% p.a.

• Self Planning SON

• Capitalize on planning

know-how and software

Coverage/capacity +

neighbors + load

balancing + cell outage

detection

SON

changes

applied

Self Planning for traffic

offload – eg Small CellsEnergy Saving

Self planning new

coverage/capacity

e.g. Small cells

Capacity not

needed during

night time

5

What is Net Neutrality?

• Simple definition

• The principle that Internet service providers (ISPs) should treat all data that

travels over their networks equally

• Key Issues

• Free speech / censorship

• Role of Government

• Competition / Anti-trust

• Legal

• Technology

6

Key Stakeholders• Last mile ISPs

• Cable companies – Comcast, Time Warner Cable, Cox, Charter, Verizon

• Wired telecom – AT&T, Verizon, Century Link, Frontier, Google

• Wireless carriers – Verizon Wireless, AT&T, Sprint, TMobile, US Cellular

• Government

• FCC

• Courts

• Federal and State governments

• Information Content Providers

• Internet services – email, search, web-browsing, social networking

• Real Time Entertainment – YouTube, Netflix, Hulu, HBO, Gaming, NFL

• Communications –Skype, Facetime, What’s App

• Users

7

Wireline traffic by application

1H 2014 data – www.et.gy/sandvine-internet

8

Balancing Free Market Principles

Network Value Economics

• Bigger is better for

consumers and for

businesses• Metcalfe’s Law

• More elements mean more

potential connections for

each user

• Sarnoff’s Law

• Value of a broadcast

network is proportional to

the number of viewers

Competition

• Law of the land

• Sherman Anti Trust

• Protection for Free Speech

• “Master Switch” argument

• Industrial structure, not

government, that most

impacts free speech

9

History / Framework

• 1860 – Telegraph “neutrality” – first in / first out (except government)

• 1934 – Communications Act of 1934, Federal Law, authorizes FCC

• Title I – General Provisions

• Title II – Common Carriers

• Title III – Provisions related to radio

• Title IV – Procedural and administrative provisions

• Title V – Penal provisions, forfeitures

• Title VI – Cable communications (added in 1984)

• Title VII – Miscellaneous provisions

• 1992 – Cable Consumer Protection and Competition

• Required cable to carry local broadcast and prohibited from charging

• 1996 – New Telecommunications Act (amended 1934)

• Section 706 empowers FCC to promote broadband competition

• Regulated unbundling of network elements

• 2008 – Comcast / FCC order restricting management of peer to peer traffic

• 2010 – Court vacates order, FCC issues Open Internet Order (transparency, anti-blocking, anti-

discriminating) for cable, DSL, fiber – citing Section 706 (promoting competition) as authority

• 2011 – Verizon successfully sues FCC over authority to regulate internet. Court upholds authority

of 706 with regards to net neutrality, but some regulations (anti-discrimination, anti-blocking) were

reserved for Title II

10

Net Neutrality

• Introduction

• What is Net Neutrality

• Key Stakeholders

• Balancing Free Market Principles

• History / Framework

• Network Technologies

• Last mile technologies deliver different user experiences

• Oversubscription of edge to core

• Middle mile

• Content Providers

• Public Engagement

• Rulemaking process

11

Last Mile Networks

Cable Wired telco Cellular

Cable and cellular users share a common transport reducing per user

bandwidth

12

Oversubscription

Cable Wired telco Cellular

Oversubscription uses routing prioritization during peak volume times

13

Middle Mile

Cable Wired telco Cellular

Core network transport impacts Quality of Service (QoS)

14

Internet Content Providers

15

Where can a Internet Content Provider invest to

compete by improving the customer experience?

16

Additional Capacity in the Middle Mile

17

Collocate Content Delivery Node

18

Net Neutrality

• Introduction

• What is Net Neutrality

• Key Stakeholders

• Balancing Free Market Economics and Principles

• History / Framework

• Network Technologies

• Last mile technologies deliver different user experiences

• Oversubscription of edge to core

• Middle mile

• Content Providers

• Public Opinion

• Rulemaking process

19

Public engagement in process

• February 19, 2014

• Chairman Wheeler issues a statement on Open Internet Rules

• Intent to propose new rules

• Explore use of Section 706

• Solicit public comment

• Enhance competition, keep Title II authority

• May 15, 2014

• FCC approves Notice of Proposed Rulemaking

• Should the FCC should bar paid prioritization completely?

• Should the FCC apply Open Internet rules to mobile broadband Internet

service, not just fixed broadband Internet?

• Should the FCC reclassify broadband Internet service as a

telecommunications service under Title II of the Telecommunications Act?

• July 15, 2014

• Public comment period extended until September 10th

8/5/14 FCC released a

bulk machine readable

archive of 1.1 million

comments received

during first comment

period

10/19/14 FCC released

an additional 2,444,672

comments received

during additional

comment period

Previous highest comments were

1.48M over Janet Jackson

“nipplegate” Superbowl half time

show

20

Public Opinion

• Survey

• University of Delaware Center for Political Communication

(www.et.gy/DelCPC)

• Only 10% of the population were familiar with the issue

• Most of them get information from satirical shows

• Strong opposition to the concept of fast lanes

• Public Comment

• Sunlight Foundation analysis of first 800,000 (www.et.gy/sunlight-net)

• Less than 1% oppose Net Neutrality

• 60% form letters (less than typical)

• About 2/3rd were opposed to paid prioritization or speed tiers

• Roughly the same asked for Title II classification

21

Key Issue Summary

• Role of government• Strong Title II regulation vs. promoting competition through Section 706

• FCC considering at hybrid approach

• Free Speech• Explicit anti-discrimination law through Title II

• Monopolistic structures risk market led censorship

• Impact of tiered services

• Competition• Last mile

• Information Content Providers• This is where the disruptive innovators are