TomorrowTomorrow’’s Internets Internet

What Is the Internet?

A collection of individual networks - mainly privately owned -

that connect

with each other to form a web of interconnected networks.

• The Internet is the most transformative invention of our generation.

• Similar to highways that connect cities and towns, the Internet works by linking users with information.

• It’s not just a collection, but a connection of information with information traveling from one place to another over a series of separate networks – backbone, first mile and last mile.

How Did the Internet Get So Big?

• The Internet is what it is because of private investment, competition and innovation.

• Investment in the current system has kept the Internet robust by encouraging the use of new technology to increase network efficiency and the offering of new services.

Who Owns the Networks That Make up the Internet?

The Internet map traces routes of all registered Internet entities, showing the paths to most of the networks on the Internet.

Simplified Drawing of Internet Connections

Local Loop

Local Switch

BONE

ISP RegionalISP

Backbone Carrier

Modem

LocalLoop

Thousands of ISPs in the market; more than 50%of customers use dialup modem

Dozens of regionalISPs connectlocal ISPs tobackbone

Thirty or more carriersCarry the traffic

BACK

Bitrates and Bandwidth

• The volume of “stuff” sent through the pipe

• Number of bits (1’s and 0’s) transmitted per second

• Bps, kbps, Mbps, Gbps, Tbps

• The “width” of the pipe• The potential signal

capacity of a channel as measured by cycles/second (Hertz)

• The actual amount of information carried depends on connection quality and “overhead”

Bitrate Bandwidth

Think of it this way...

Bitrate Bandwidth

Think of it this way...

Bitrate Bandwidth

1 second

Think of it this way...

Bitrate Bandwidth

Bandwidth

• Over 1 billion Internet users worldwide; growing by 10 million each month.

• In 1996, 1.5 million gigabytes traveled through major U.S. Internet connection lines per month. By 2006, 700 million gigabytes traveled through major U.S. Internet connection lines per month.*

• Daily email traffic is expected to grow from 90.4 billion emails in 2007 to 102 billion emails in 2009.**

• Half of all email contains image spam, which is five times the size of traditional text spam.***

• Backbone traffic is doubling every 12-15 months*The University of Minnesota Digital Technology Center

**IDC

***MSNBC

What Kind of Traffic Does Today’s Internet Handle?

How will the Internet Grow?

• The Library of Congress’ collection of millions of books, pictures, maps and manuscripts took 2 centuries to assemble.

• Today we churn out an equivalent amount of digital information every 15 minutes – or about 100 times each day.

What Options Are There for Broadband Access?

• DSL• Cable Modem• Satellite• Broadband over power line• Wireless• Fiber

Are We Reaching Our Universal Broadband Goals?

• 72% of Americans who use the Internet have broadband service *

• The U.S. has the largest number of broadband connections - 54.6 million households **

• By the end of 2009, U.S. broadband household penetration will exceed 70% ***

*Nielsen/Net Ratings

**e-Marketer

***Bear, Stearns & Co.

• The economy grows faster, jobs are more plentiful, and pay is higher in areas where broadband is easily accessible.

• Economists project universal broadband deployment could add 1.2 million jobs and $500 billion to the U.S. economy.

• Use of broadband could create $465B in new goods and services.

• Effective use of broadband could cut $800 billion from health care costs.

• Use of broadband would result in higher productivity of U.S. businesses by improving competitiveness in international markets.

What Does Broadband Mean for our Economy?

What is Driving Internet Growth? Entertainment

• Video and Movie Streaming• Social Networking Sites• P2P File Sharing• Music Downloads• Computer Gaming• Email

It’s also about …•Education•Health Care•Public Safety•Business Collaboration

But It’s Not Just Entertainment

Education and the Internet• Distance Learning

• Collaborative Online Learning Environment

• Computerized Assessment Testing

• Course Management Systems

Health Care and the Internet

• Telemedicine

• Medical Scans Online Distribution

• Teaching via Video Conferencing

• Monitoring At-Home Care Patients

• Language Translation Services

• Electronic Medical Records

Public Safety and the Internet• Emergency Operations Center

• Wireless Networks for Police and Fire Vehicles

• Interoperable Communications Applications

• Video Streaming for Training for Homeland Security

Business Collaboration and the Internet

• Video Conferencing for National and International Work Teams

• Greater File Sharing

• Small Business Development

• Telecommuting

Connectivity Principles Will Stimulate

Competition and Innovation

• Consumers can go where they wish on the Net

• Consumers can run any application they wish• Consumers can attach any compatible

device they wish• Companies can offer proprietary services to

stimulate consumer demand, innovative new offerings

Is a Dumb Pipe Good for America?

• Net regulation would not allow for intelligent services including:– Prioritizing emergency, medical or national

security information;– Adding security features to prevent identity

theft or spam;– Other valuable services for a better life that

have not even been created

Rural America and the Internet?

• Regulating the Internet would:– Inhibit creative business models tailored

to the needs of rural America – Delay or inhibit the deployment of

advanced services to rural consumers– Devalue small companies’ broadband facilities– Create a strong disincentive for small

companies to make the large per customer investments required to serve rural America

Key Challenges• Stimulating investment, innovation and

choice for consumers– Regulation leads to “least common denominator”

service• Allowing IP services and broadband

networks to grow will achieve key goals– More choice– More consumer control– Improved service– Jobs/GDP growth

• Studies by Chamber of Commerce show GDP growth of $640 billion over the next half decade and more than 300,000 jobs