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Telcos Propose 2-Tier Internet

cshirky writes "Boston.com is reporting that 'AT&T Inc. and BellSouth Corp. are lobbying Capitol Hill for the right to create a two-tiered Internet, where the telecom carriers' own Internet services would be transmitted faster and more efficiently than those of their competitors.' The telcos basic fear, of course, is that the end to end design of the net (PDF version) will erode the telcos ability to use service charges to generate revenue for delivering video and voice; the proposed solution is to break end-to-end in order to protect pricing leverage over the users." We reported on this at the beginning of the month, when it was just speculation. Not any more.

64 of 414 comments (clear)

  1. Time for another breakup? by Scoth · · Score: 4, Insightful

    I admit to being a bit too young to remember the original, but maybe it's time for another breakup similar to the original Bell? Seems the current ones have gotten a bit too monopolistic, IMHO...

    1. Re:Time for another breakup? by dada21 · · Score: 3, Insightful

      No single company has the money to invest or support a seperate Internet over the long run. There are too many ISPs and backbone providers competing in the open market.

      Telcos can try to create their own Internet, but how long would it last if users can't get to sites they've commonly accesses? Google and Slashdot and other popular sites can refuse to pay the telco premium charges, and the users will bail.

      They should have tried this a decade ago. Too little, too late.

    2. Re:Time for another breakup? by Catbeller · · Score: 5, Insightful

      I'm more than old enough, so here's how it was, in brief: AT&T fought the monopoly battle in court for almost ten years, lost in '84, then was broken up into multiple geographical companies, AT&T for long distance only, and Bell Labs became Lucent Technologies.

      During the last twenty years, they've individually frozen out as much competition as they could, in a forward-guard holding action. And the last two decades have seen the installation of a lot of judges whose philosophies are decidedly pro-business with a jaundiced eye for monopoly regulation, as well as a large number of legislators and at least two Presidents, even three as Clinton wasn't exactly a flaming socialist, turning a blind eye and a curious lack of oversight as the Baby Bells merged together again.

      Right now, the Justice Department has found itself stripped of monies to enforce antitrust law for the last five years. No money for investigations, no investigators. It's like repealing antitrust legislation without the messy bother of repealing the laws. (Ditto environmental laws, pollution, meat inspection, etc. ad nauseum).

      So the last ones standing are AT&T and SBC. And they will merge very soon, so here we are again, with one monopoly dictating terms. And even if somehow a new set of enforcers come in after the next election, they will find a hostile Congress and court system slowing them down. Even in ideal circumstances, as we found with the original AT&T breakup and the Microsoft conviction, it takes ten years to get to the point of enforcing antitrust laws under a judge's supervision, and a lot can happen in ten years. A new Republican president can be elected, and the case dies. New technology can obsolete AT&T entirely in ten years -- if they let it happen (look at Philadephia and Pennsylvania trying to install municipal WiFi).

      Every decade, the corporate powers grow stronger, more integrated with the government and the courts. The ability to enforce antitrust laws is decreasing hyperbolically with each era.

    3. Re:Time for another breakup? by Anonymous Coward · · Score: 2, Insightful

      So I used to work for one of their equipment suppliers. I believe these companies are Evil (TM) but there is SOMETHING good about what they would like. They DO have the ability to control quality of service, end to end, and to use things like multicasting effectively. What this means to you and I is good quality media and let's say a very, very impressive Quake arena for all players and it could conceivably not be that expensive because they control the distribution equipment. It won't be cheap, but it COULD be, in a happier world, I digress.

      Unfortunately, because they are Evil(TM), this is going to be lost in the noise of a "two tier internet", in which one tier isn't really the internet, and will be designed to dwarf the one that is. Further, they are once again in the position of putting THEIR equipment in YOUR house and leave you with no alternatives. Have you ever wondered about why Sci-Atlanta is working with Cisco? Why MS is so hell bent on IPTV (and why they show up at SuperCom?) I can give you any number of STB companies working with telco equipment makers, big and small. I used to build some of them and ultimately quit because I was being compelled to architect them such that they would take choice away from the consumer. They are designed to control your home network, forcing you to license or upgrade (depending on the model) your network if you want to add equipment. Got an XBox? That'll be $4.95. Want an inbound port? That's extra. They are designed to control your household 802.11, bluetooth (and others) and license connections to you, and set up your firewall for you, even if you don't want that. They don't HAVE to do it that way, although they will argue it's the only way to ensure devices don't compete, but it's part of the greed grab.

      In the end, they probably have something that consumers might want to buy in one form or another, but they're going to try to shove down the monolithic 0wn1ng version by using the government as their weapon. We should resist this, even if they make it sound very attractive. The end goal should be the same: the bell's are bandwidth providers, nothing more. We should let them differentiate the types of bandwidth they offer, force them to compete to keep prices low, and forcibly separate them from the services layer. No video, internet or anything else from the bells. Just keep the wires working and let us purchase the types of bandwidth we want.

    4. Re:Time for another breakup? by Captain+Splendid · · Score: 4, Insightful
      You know, that's a comforting thought, but to the Telcos, it's just going to be another batch of obstacle they can whine about to Congress. The conversation might go something like this:

      Telcos: "Waahhh, this is turning out to be too expensive! Please make the taxpayers pay for it instead of us!"
      Congress: "Sure thing! Don't forget us during election time!"

      On a related note, anybody wanna take a crack at defending capitalism anymore?

      --
      Linux, you magnificent bastard, I read the fucking manual!
    5. Re:Time for another breakup? by Anonymous Coward · · Score: 2, Insightful

      Since what you described was an example of socialism and not capitalism, the burden is on you to take a crack at defending socialism.

      The key phrase, you used was: "Please make the taxpayers pay for it instead of us!". The fact that it's a company saying it does not make it any less socialistic.

    6. Re:Time for another breakup? by xs650 · · Score: 5, Informative
      So the last ones standing are AT&T and SBC. And they will merge very soon,

      It already happened on November 21st of this year.

      http://www.schwabpt.com/downloads/support/T_SBC_21 Nov05v3.pdf

      "Important Information about the new AT&T Inc. The AT&T Corp. ("AT&T") and SBC Communications Inc. ("SBC") merger completed effective November 21, 2005. The newly formed company is known as AT&T Inc. Initially AT&T shares will be exchanged for SBC shares under the 'SBC' ticker symbol. On December 1st, 2005, the newly formed company will take back the symbol 'T'"

    7. Re:Time for another breakup? by kgruscho · · Score: 3, Interesting

      BS,
      if you live in New York maybe, but living in central illinois, if I want landline phone service I have one choice SBC, if I want broadband I have one choice, InsightBB.

      SBC to offer DSL but left the market because it was small.

      The only telco service where I have had any choice is Cell phones. Most of the telcos have regional monopolies. Not national, but still pretty hard to deal with as a consumer.

    8. Re:Time for another breakup? by Anonymous Coward · · Score: 3, Informative

      The DOJ's budget was $23.4 billion dollars last year, as opposed to $21 billion in 2000. By the DOJ's AntiTrust division's own reports, its budget has gone up, even with respect to inflation: DOJ Budget Trend Data, Antitrust Division.

    9. Re:Time for another breakup? by dada21 · · Score: 4, Insightful

      On a related note, anybody wanna take a crack at defending capitalism anymore?

      I will.

      Capitalism is providing no regulation or public funding for a market. Mercantilism is providing corporate welfare for favored company. Lincoln fought a war to protect his mercantilist dreams. Congress today runs the mercantilist ship, with the Executive branch profiting from the warfare state. You have Congress doling out corporate welfare with the Executive's warfare manipulations.

      Don't confuse a free market with a regulated one. Capitalism is merely the process of billions of consumers and producers making unique trades that create common values that can change on a whim, but the entire process still runs. Mercantilism is stealing from the majority to support a minority that the majority didn't want to support at the price they were asking.

    10. Re:Time for another breakup? by llamaguy · · Score: 2, Interesting

      Depends what type of socialism you're talking about. Some types advocate heavy taxes and such on big business (eg, my particular stand), wheras others are more laissez-faire (eg, socio-anarchism), and of course there are the models that don't have private propery. Lumping everything vaguely welfare under the red flag is a fallacy, and that's not even touching on the more exotic left-wing principles.

      --
      HAH! I just wasted a second of your life making you read this, but I wasted a minute of mine thinking it up. DAMN.
    11. Re:Time for another breakup? by OwnedByTwoCats · · Score: 2, Informative

      After the 1984 breakup, there was AT&T for long distance. And AT&T's competitors, mainly MCI and Sprint. And the seven "Baby Bells": Ameritech, Bell Atlantic, BellSouth, NYNEX, Pacific Telesys, Southwestern Bell, and U S WEST. Southwestern Bell changed their name to SBC, and along the way bought up Pacific Telesys and Ameritech. Bell Atlantic bought NYNEX, and then merged with GTE (a non-Bell-System provider of local phone service, serving roughly as many customers as any of the baby bells, but geographically dispersed) to become Verizon. Qwest bought U S WEST. And SBC's offer to purchase the remains of AT&T were recently approved.

      AT&T was broken up because you only had one choice for long distance: AT&T. After the breakup, long distance was a competitive market, and now you can get Long Distance for a tenth of the cost it was before... and that's without inflation.

    12. Re:Time for another breakup? by Skreems · · Score: 4, Insightful

      Except the GP is pointing out the fact that what we try to pretend is a capitalist system is in reality a buddy-oriented socialist state. If we would just come out and ADMIT that we want to be socialist, then we could concentrate on making sure that the money propping up corporations is distributed to benefit the citizens at large, not the corporations and the corrupt politicians. In which case, there is no possible way we would consider paying corporations to take choice away from the citizens in the manner this article describes.

      --
      Slashdot needs a "-1, Wrong" moderation option.
      The Urban Hippie
    13. Re:Time for another breakup? by RevMike · · Score: 4, Interesting

      I don't deny everything you say, but the landscape today is very different than it was in 1984. Pre-breakup there was no other game in town. Now even if Ma' Bell is reassembled there are several alternatives.

      First, cell phones are wide spread, and the companies that control them aren't entirely under the thumb of Ma' Bell. Verizon and Cingular are closely related to Regional Bell operating companies, T-Mobile and Sprint are not. They'll limit any power that resurgent Ma' Bell could exercise.

      Second, the cable tv industry is making strong moves into telephony. The VoIP bundles offered by the cable companies provide the second line of defense against Ma' Bell.

      Third, municpal broadband would only become a stronger alternative in the face of a reassembled Ma' Bell. Municipal broadband, coupled with Skype, Vonage, or a dozen others will offer a third line of defense against Ma' Bell.

      Fourth, new technologies like WiMax will provide additional communications options.

      In 1984, Ma' Bell was a monopoly because not only did they completely control a particular service, but there was feasible substitute service available. Twenty-one years later there are several substitutes available and so the monopoly won't have near the market influence it once had. The attempts to reestablish Ma' Bell should be interpretted as a set of uncompetative companies merging in order to hopefully achieve economies of scale and become competative - not an attempt to reestablish an old monopoly.

    14. Re:Time for another breakup? by lgw · · Score: 2, Informative

      So the last ones standing are AT&T and SBC

      Amoung the many things wrong with your post: AT&T was not one of the "last ones standing". AT&T was an empty shell, and was bought by SBC just for the name. TFA talks about "AT&T and BellSouth". BellSouth is not SBC. AT&T is SBC's new name, but isn't the old AT&T. The old AT&T is history.

      The breakup of Ma Bell did nothing to offer any consumer more than one choice for local service. It was only about long distance, and the plan worked as far as that went. It also allowed the cell phone industry to emerge unhindered, and consumers have many choices there.

      AT&T for long distance only, and Bell Labs became Lucent Technologies

      More than a decade after the breakup of Ma Bell into the Baby Bells, AT&T decided on its own to spin off both Lucent (which got Bell Labs, later spinning off part of Bell Labs as BellCore, and spinning off Avaya which would hire away monay of the remaining Bell Labs people) and NCR (which they bought in 1991). Many years after that (2001) they voluntarily spun off AT&T Wireless. AT&T Broadband was spun off in 2002. Not quite the monopolist cospiracy theory you seem to be peddling. In fact, I can't even keep all of the spin-offs and their spin-offs straight without a diagram.

      --
      Socialism: a lie told by totalitarians and believed by fools.
    15. Re:Time for another breakup? by Captain+Splendid · · Score: 3, Interesting
      Thnaks for the correction, but it still strikes me that we get the worst of both: Either it's a hyper-succesful company that basically exists due to slave, or quasi-slave labour; or a mildly succesful comapany that would be nothing but memories if it weren't for large chunks of taxpayer money.

      Everybody loses except a few thousand majority shareholders, executives and politicians, yet these are the systems that are held up as paragons to emulate.

      --
      Linux, you magnificent bastard, I read the fucking manual!
    16. Re:Time for another breakup? by kindbud · · Score: 5, Insightful

      I see. So, just like the communist utopias, unadulterated capitalism, too, is a pipe dream, dosconnected from reality, and will never be realized.

      --
      Edith Keeler Must Die
    17. Re:Time for another breakup? by advocate_one · · Score: 2, Insightful
      First, cell phones are wide spread, and the companies that control them aren't entirely under the thumb of Ma' Bell. Verizon and Cingular are closely related to Regional Bell operating companies, T-Mobile and Sprint are not. They'll limit any power that resurgent Ma' Bell could exercise.

      Only if they own their own cable... if their voice/data traffic has to travel via any wire owned by "Ma'Bell", as you put it, then they can be choked out by price rises and/or low prioritisation.

      Second, the cable tv industry is making strong moves into telephony. The VoIP bundles offered by the cable companies provide the second line of defense against Ma' Bell.
      ditto the above, plus VOIP is being subjected to legislation designed to require costly measures to achieve compliance. Note, when the 911 system was originally set up, the landline companies were subsidised heavily to get the infrastructure in place, this time, the VOIP companies are not getting any money or relief on the date to achieve compliance...
      Third, municpal broadband would only become a stronger alternative in the face of a reassembled Ma' Bell. Municipal broadband, coupled with Skype, Vonage, or a dozen others will offer a third line of defense against Ma' Bell.

      Municipal broadband with VOIP will also be heavily legislated such that it becomes very expensive to achieve compliance... that crap earlier on about all access points having to be encrypted and firewalled is expressly designed to make it very expensive to set up. And WiMax is going to run into a wall of legislation designed to make it expensive to achieve compliance as well.

      I've been watching the big telephone companies setting their ducks up in a row... shoes are starting to drop and the real results will soon be seen as the fledgling IP based upstarts will not be able to grow into healthy businesses.

      --
      Donald 'Duck' Dunn: We had a band powerful enough to turn goat piss into gasoline.
    18. Re:Time for another breakup? by Darby · · Score: 4, Insightful

      He used it twice. He meant it. And it is an incredibly accurate term to use with respect to the Bush administration's manipulation of policy and perception. Under the diseased system of government of today, we who question and seek accountability are the enemy.

      I hate Bush as much as any decent human being, but you really need to expand the blame to include pretty much the entire post World War 2 US foreign policy.
      Ike laid it out pretty clearly

      "In the councils of government, we must guard against the acquisition of unwarranted influence, whether sought or unsought, by the militaryindustrial complex. The potential for the disastrous rise of misplaced power exists and will persist."

      The problems with the weapons industry have long been clear. What you're seeing here is other industries trying to expand their membership in the club.
      Socialized costs and privatized profits are a very real problem, no matter the industry.

    19. Re:Time for another breakup? by RevMike · · Score: 2, Interesting

      I assume that cable tv isn't in this area to provide a counter. The way to provide competition in this kind of situation is by setting up a WISP. WiMax makes this easier and cheaper, but people have been doing it for a while now with decent levels of success.

    20. Re:Time for another breakup? by segfault_0 · · Score: 2, Interesting

      Maybe we should spend less time worrying about which category we fall under and instead find the right combination of capitalism and socialism and whateverism that meets the needs of the society it represents and protects our ability to compete with the rest of the world. The only thing wrong with capitalism is that sometimes it doesnt represent the states members but in the united states thats a problem with the organization and systems in place in the government and not the philosphical underpinnings that the system is based on. Theres no reason why a capitalist government has to operate for money and by money alone - only the people getting rich of the situation will try to convince you it will.

      There is more of a debate here than people would like to admit unfortunately. These businesses are acting on issues other than their own self interest here - they employee millions, millions who without jobs could seriously harm the economy, and each member of the state as well. So the debate ends up, what do we do when technology/tech companies make whole business sectors(which really translates to lots of people) irrelevant(or at least hand them their hat)? The idea of emminent domain and the governments ability to override the rights of the individuals is what is at the base of this argument, and that idea is not based in capitalist ideals - but socialist ones. The companies are asking government to take choice away, but the government agrees on the basis that it will protect or help the people since the believe the existance of the companies have become important to the well being of the people/economy.

      --

      I was crazy back when being crazy really meant something. (Charles Manson)
  2. Does this fall... by Spytap · · Score: 4, Insightful

    Does this fall under the heading of "If we ask permission, it's not illegal anymore?"

  3. Common Carrier? by mwsmith824 · · Score: 5, Insightful

    Wouldn't this go against the common carrier provisions? Wouldn't this sort of filtering and degrading things that they choose open them up to liability in other areas like P2P sharing that happens on their networks?

  4. Wait... by Malacon · · Score: 5, Insightful

    So they want to break the internet to make more money for themselves?

    Will anyone actually go for this?

    Seriously, what ever happened to running a business on the merits of its product, not on cash generated by hidden surcharges?

    1. Re:Wait... by bcattwoo · · Score: 5, Funny
      Will anyone actually go for this?

      You must be new to the real world where enough lobbying and campaign contributions can buy just about anything.

  5. what will happen to /. by tehwebguy · · Score: 3, Interesting

    not like anyone reading this doesn't know already, but this would be the worst thing ever to happen to the internet. if you think they would stop by offering crap connections for competitors, you're blind. things like /. would be low priorities since they love to expose what big bells are doing to screw us.

    --
    -- lol pwned
    1. Re:what will happen to /. by qkslvrwolf · · Score: 3, Insightful

      Capatialism only works when there is competition, and the only way for there to be competition is to mandate competition. Monopolies are not a part of a working capatalistic economy...they're what happens when the system breaks. However, monopolies are what the corporations want because they don't care about anything except shortt term personal gains. The rest of us need to worry about long term social gains.

      --
      Or have you only comfort...that stealthy thing that enters the house and guest then becomes host, then master - KG
    2. Re:what will happen to /. by rumcho · · Score: 2, Insightful

      I don't think this is the way to cheap internet. Look at South Korea - they have one of the cheapest and fastest internet connections in the whole world. The result was achieved with creating fierce competition among providers, not rigging the internet the way the bells want.

  6. Dumb Network by Kelson · · Score: 4, Interesting

    Hmm, maybe we need to send these telcos over to World of Ends and remind them that the end-to-end or "dumb" nature of the Internet (in the sense that all the logic is handled at each end, not in the middle) is a big part of what's made it successful.

    Not that that's ever stopped anyone from killing the goose that lays the golden eggs, of course...

  7. AT&T Inc. and BellSouth Corp by Spy+der+Mann · · Score: 2, Funny

    Google is fighting the proposal, along with other large Internet companies including Amazon.com Inc. and eBay Inc. They fear they may have to pay telecoms millions of dollars to gain access to customers who use the premium Internet services. In addition, they argue, many small Internet start-ups would be unable to pay the fees, which could reduce consumer choice.

    Ma' Bell strikes back!

  8. Why ask Congress? by dada21 · · Score: 4, Insightful

    It confuses me as to why Congress should have any say in companies creating additional networks. Interstate commerce clause? What a joke.

    If companies want to try to create supernets for their customers to better access each other, I say allow them to. I can not imagine any supernet subverting the Internet in any way. If an ISP decides to slow down traffic to non-ISP destinations, you're going to see user backlash. I've changed ISPs over the years due to bad routing (or repeatedly failed routing) and I know some of my non-techie friends have done the same.

    These supernets would just be a second backbone connecting their network together, correct? I think this is a great idea, especially for corporations that can not afford their own backbone connections for remote offices. If my companies could connect quickly through a secondary network at no additional cost (or lower cost), I'd jump on it immediately.

    I just can't understand why Congress has any say in what companies do with their own property. They're already providing for the "public need" and they should be free to supplement the "public need" for what other users are demanding/needing.

    1. Re:Why ask Congress? by Red+Flayer · · Score: 2, Insightful

      "If my companies could connect quickly through a secondary network at no additional cost (or lower cost), I'd jump on it immediately."

      You can bet it would cost more -- whether in terms of actual operating expenses for your company, or in terms of less valuable service provided to your company.

      --
      "Trolls they were, but filled with the evil will of their master: a fell race..." -- J.R.R. Tolkien on Olog-hai
    2. Re:Why ask Congress? by bwd · · Score: 2, Informative

      Because both Bellsouth and AT&T operate under a monopoly status granted by the federal government to provide local telephone service. That is why they have to ask Congress if they are going to change the terms of the service.

    3. Re:Why ask Congress? by Anonymous Coward · · Score: 3, Informative

      If companies want to try to create supernets for their customers to better access each other, I say allow them to.

      It isn't about them trying to create a supernet, it's about them breaking the current 'Net and inserting them selves between the end points. then they can prioritize traffic based on who coughs up the most money to them. No $$ = no access.

      This isn't a suppliment to what has become, in essence, a Utility.

      Unfortunately, with the current Administration's track record on pro-corporation, pro-Internet regulation, this proposal should look mighty juicy indeed. This will give them two things they always wanted. An easy wat to regulate/control the Internet, and more $$ for their friends.

    4. Re:Why ask Congress? by Nom+du+Keyboard · · Score: 5, Insightful
      I just can't understand why Congress has any say in what companies do with their own property.

      Allow me to elucidate.

      It's because they are a Monopoly. It's because you, the customer, doesn't have any other reasonable choice if you don't want to go with them. It's because in return for being allowed to be a monopoly that they have to play by different rules than the open market. You take your choice of monopoly or open market, but once you make it quit yer complaining about the rules you initially agreed to follow!

      Clear now?

      --
      "It's the height of ridiculousness to say for those 9 lines you get hundreds of millions."
    5. Re:Why ask Congress? by dada21 · · Score: 2, Interesting

      No matter how much control they receive through government force, they can't stop the process that billion of users are familiar with. Sure, the telcos likely control an enormous quantity of users' endpoints, but we will always have cable and dial-up (which isn't affected like DSL is as you can pick any ISP to dial into).

      There just isn't the motivation of users for better service when many users can get 50K/s downloads over a $20 DSL or cable line. If they truly want to disrupt Internet connections to major endpoints and expect to blackmail or start some racketeering (with government approval), they'll find themselves losing users left and right.

      The only way that U.S. Congress can facilitate a "total control takeover" would be to tax the smaller ISPs out of existance. Sure, this can happen, but I don't see 180 million users in the U.S. accepting a price increase -- even if it will help prevent terrorism or win the battle against the Communists or stop the Reich from spreading throughout Europe. There is no mandate from the market to break apart what works right now, and nothing government can do short of making themselves bigger tyrants will change that.

    6. Re:Why ask Congress? by supabeast! · · Score: 4, Insightful

      "I have a cable modem, my friend across the country has one. A little free VoIP software and we've forgotten about the telco."

      The telco is still there. Comcast doesn't have its own huge backbone running connections out to all of its own users around the USA, it uses the backbones provided by the big telco monopolies to do that. So if they decide to create special high-priority networks accessible only at a premium charge, and degrade the quality of the existing networks to make VOIP unusable, you'll have to pay extra for a premium Comcast account that can send data over the premium networks.

      Unfortunately its next to impossible for anyone else to move in an build new networks that can challenge the big telcos, because years of overregulation kept everyone else out of the business for so long. So if the telcos manage to pull this one off, everyone who wants low-latency access will be paying extra to the big telcos unless a huge number of people pool their resources to build new backbones, which would most likely require government involvement that will make such actions illegal under the anti-municipal internet laws that the telcos will doublessly get pushed through at the federal level at the same time they get Congress to allow them to build the premium backbones.

    7. Re:Why ask Congress? by dada21 · · Score: 2, Insightful

      Because the wires wouldn't have gotten run without eminent domain.

      Prove this. The original telegraphy and radiotelegraphy was created without government funding or mandate. The railroads that were built with private dollars and private aquisition of land were quickly regulated in order to control the procedures (and incorporate taxes), but the telegraphy lines were privately funded and controlled.

      We believe we need government to help with communications because we've always had them around. I see many of the pushes for better and faster communications happening outside of government regulation and control. Sure (D)ARPA created the Internet, but it was private businesses that took it lightyears ahead. Government comes around with standards, but the protocols that continue to build on old protocols are invented by competitive companies.

      Government regulations hold us back. I lived in a town when I grew up that didn't mandate Ma Bell (we had a tiny local phone company called Centel) and my local phone company had no problem providing me with dry pairs between my house and my friends' houses. We had our own very basic phone system going back then, secondary to the telephone company. Centel was even trying to allow other companies to run their own phone lines (this is back in 1986-1989 or so), so that they could do the same in Ameritech's market. Who prevented this? Local governments.

      Alright, but not on wires running across my property. How's that for "better access?"

      Microwave direct connections make this concern invalid.

      You'd need new routing protocols (to distinguish between normal and "special" packets) and possibly a whole new DNS server structure (to tell which URL is in whose network). It has the potential to break IPv4 (at least) entirely.

      I'm sure Amazon and Slashdot would gladly jump on this network and lose all their users. I'm sure users that get on this network that can't connect to Amazon and Slashdot would just roll over and live with it. Anyone who attempts to break IPv4 would find themselves in a very lonely micronetwork.

      Again: if the telcos can't force people to sell easements, there is no network, or at least none without obnoxiously high pricing (in order to all the prices asked for by the milllions of property owners nationwide).

      Easements that are now unnecessary. Sure, over the past 100 years maybe you can argue you needed eminent domain, but I believe it could have been performed much faster without it. It would have been much more expensive, but this would have pushed inventors to find cheaper solutions through radiotelegraphy. Eminent domain hasn't solved any problems, all it does is force the public to pay for things that the free market would still find solutions to. Oh, and it helps pay off the cronies, too.

      Seriously, in your little anarcho-capitalist wet dream, I'm charging per packet to not put my shovel through the wire.

      And there would be 5 other wires ready to back it up. Or a microwave direct connect. Or a radiotelegraphy unidirectional signal. Or a satellite signal. There is no stopping the flow of information at a single point, not with the Internet. Back in the BBS days, you could have blown up my house. Today that would only stop one person, not billions.

    8. Re:Why ask Congress? by LaminatorX · · Score: 3, Interesting
      If the Telcos did business more or less privately like any normal business, you'd have a good point. However, that is far from the case.

      The Telcos have been the beneficiaries of large grants of land siezed or given to them by the government. The government taxes their customers and then hands that money to the Telcos to pay for capital improvements in less profitable geogephic markets. The Telcos benefit from government regulation that places enourmous barriers to entry for competitors attempting to enter their markets.

      So yeah, the are subject to congressional oversight. If they don't like that they should'nt have gone to Congress in the first place for all the freebies and just conducted business in an open market.

      It really hacks me off when whiney corps try to have it both ways.

    9. Re:Why ask Congress? by pthisis · · Score: 5, Informative
      Because the wires wouldn't have gotten run without eminent domain.

      Prove this. The original telegraphy and radiotelegraphy was created without government funding or mandate.


      Absolutely untrue. The original telegraph companies had government-backed eminent domain powers. Further, they often relied on railroad landed (acquired through eminent domain). There were constant battles between the two; see, for instance, Western Union Tel Co v. Pennsylvania R Co, 195 U.S. 594 (1904), available at: http://caselaw.lp.findlaw.com/scripts/getcase.pl?c ourt=us&vol=195&invol=594

      The Pennsylvania statute (mentioned in that ruling) granting eminent domain to the telegraph company was absolutely typical, and telegraph companies in the US relied on such mandates. Normally such power was granted to a single company, giving it a monopoly in the state or region.
      --
      rage, rage against the dying of the light
  9. Common Carrier Status by notNeilCasey · · Score: 4, Interesting

    Wouldn't this automatically end their common carrier status, if they're filtering blocking traffic from certain sources to certain destinations? Or is that something they hope the law they're lobbying for to address? The Telecommunications Cake Eating and Having Antiterrorism and Freedom Act of 2006!

    1. Re:Common Carrier Status by Red+Flayer · · Score: 2, Informative

      See my post from last time this was discussed on slashdot:

      ahref=http://slashdot.org/comments.pl?sid=169910&t hreshold=1&commentsort=0&tid=95&mode=thread&pid=14 162317%2314165101rel=url2html-32438http://slashdot .org/comments.pl?sid=169910&threshold=1&commentsor t=0&tid=95&mode=thread&pid=14162317#14165101>

      As long as they offer the same deals to everyone, without individualized contracts, they'd probably meet the nondiscrimination requirement of common carrier status.

      Fedex does this, for example. Their volume discount is determined by formula, and can't be negotiated off of the formula. No matter who you are, you'll get the same deal based on your volume -- so Fedex can keep its CC status.

      --
      "Trolls they were, but filled with the evil will of their master: a fell race..." -- J.R.R. Tolkien on Olog-hai
  10. This leads directly to fraud (hear me out) by kimvette · · Score: 5, Interesting

    This means that common carriers will be essentially committing fraud.

    If for example, I get a T1 from Verizon (I would never buy from them directly, we're going with an alternate provider, but hear me out) and AT&T has a dispute with Verizon. Were this thing to pass, data transfers between my T-1 and a customer's T1 (who happens to be an AT&T provider) would be downgraded. This means that my customer is not getting the full 1.54mbps bandwidth their SLA guarantees, and by effect neither would I. This is {potentially} interference with interstate commerce and is also discriminatory in deciding whose traffic goes where, not to mention breach of contract (violating the SLA).

    Implementing this kind of policy should immediately result in the provider's losing common carrier status, as by advertising one thing and then providing a different service, they are carrying out a bait-and-switch on the customer - in short, fraud.

    --
    The Christian Right is Neither (Christian nor right). See: Matthew 23, Matthew 25, Ezekiel 16:48-50
    1. Re:This leads directly to fraud (hear me out) by moosesocks · · Score: 4, Interesting

      Cell phone carriers do exactly what you're describing above in the form of in-network calling.

      Heck, I'm switching to Verizon's mobile service because it doesn't make any sense to pay Cingular when virtually all of my contacts are on verizon, and would be free to call if I were a verizon customer.

      It's probably racketeering, and definitely immoral, but it's a damn effective business strategy.

      --
      -- If you try to fail and succeed, which have you done? - Uli's moose
    2. Re:This leads directly to fraud (hear me out) by Urusai · · Score: 5, Funny

      It's only fraud if Congress hasn't been paid enough.

    3. Re:This leads directly to fraud (hear me out) by chill · · Score: 4, Informative

      This means that my customer is not getting the full 1.54mbps bandwidth their SLA guarantees, and by effect neither would I. This is {potentially} interference with interstate commerce and is also discriminatory in deciding whose traffic goes where, not to mention breach of contract (violating the SLA).

      Wrong.

      You'll get the full T1 from your termination point to theirs. That is ALL the SLA covers. You are not guaranteed any type on link to other networks at all. Never ever. Telcos don't guarantee service on their competitors networks.

      What most people dont' realize is that the common carriers DO THIS ALREADY. The connection equipment of choice is ATM, and that supports QoS. Leased circuits were configured with QoS depending on what was paid for by the customer. As a field engineer at Lucent, it was explicitly explained to us "see that level there, marked 'no guarantee, best effort'? That is all the Internet traffic -- lowest priority there is."

      However, all this is done at the network level and not the transport level. Major carriers routinely ran their own circuits high priority. Anyone else who paid for one, also got high priority circuits. Everone else got 'best effort' links. Links where they didn't control both endpoints, like to a competitor thru a peering agreement, were 'best effort'.

      The fuss is not that the carriers are doing this, it is that they want to do this further up the stack. They want to become more than carriers and get into the realm of "content providers". Thus, not just provide the wires, but the stuff on the wires as well. This is where they run afoul of the existing laws.

      In essence, they want to do QoS at the TCP level. Personally, I think that is fine by me as long as it is TARRIFED like services are now. If SBC wants to do it for SBC produced content, they have to charge that division the same as if it was a Google, Yahoo or NBC service. The "premium" costs the same no matter WHO you are.

      I'd love to have end-to-end QoS available, even if at a premium.

        -Charles

      --
      Learning HOW to think is more important than learning WHAT to think.
  11. What a mess by VaderPi · · Score: 3, Funny

    This has the potential to turn the Internet into a huge mess, especially as the telecoms continue to consolidate. I hope that Congress is not going to implement this. At least we have Google, Amazon, Ebay and Microsoft sticking up for us, because we all know that their interests are much more pure.

  12. This will never happen by borgheron · · Score: 3, Informative

    For one thing, it would require a radical change in how the internet currently works. TCP/IP was designed around the whole idea of having no central routing (note, I didn't say naming) authority. This is one of the features which make it resilient to damage, since the network can adapt to nodes which suddenly might go dark.

    This, after all, was the whole purpose of it, since ARPANET was intended to be resilient to enemy attack if parts of it were taken out.

    --
    Gregory Casamento
    ## Chief Maintainer for GNUstep
    1. Re:This will never happen by ivoras · · Score: 3, Interesting

      Yes, TCP/IP is built to be reliable and decentralized, but the lower-level protocols used by big telcos, like ATM, can discriminate just fine.

      --
      -- Sig down
    2. Re:This will never happen by otis+wildflower · · Score: 2, Informative

      True to a point, but then with protocols like BGP, telcos can easily set link preferences and AS paths for whatever reasons they choose. Technically, the correct answer is to select paths that are cheapest/fastest, but they could just as easily be defined by diktat ("make the UUNet link super expensive or route it over the slow line, because we as a corporation don't like them."). There's also traffic shaping and other stuff that can be done to "improve local connectivity".

      Not saying that it's particularly wise, but it is fairly straightforward to do.

    3. Re:This will never happen by Bishop · · Score: 4, Informative

      it would require a radical change in how the internet currently works

      No it wouldn't. It is a common myth. TCP/IP was desgined to allow for dumb routers so that it is resiliant to damage. But TCP/IP does not enforce this feature. There is nothing to prevent smart routers from prioritising packets or simply dropping packets into the void. There is nothing preventing AT&T from closeing their massive network and disconnecting it from the Internet. The rest of the Internet will continue to function as designed, but that is little comfort to whose people who are left with an inferior network at a higher price.

  13. Don't worry! by Darth+Maul · · Score: 5, Funny

    "AT&T Inc. and BellSouth Corp. are lobbying Capitol Hill..." ...But our politicians are elected to best represent the needs of their constituents (and we all voted, right?), so everything will work out just fine in the best interest of the individual citizen.

    Whew. That was a close one.

    --
    --- witty signature
  14. Telcoms by PetriBORG · · Score: 3, Insightful

    Just another example of greed? This is directly comparable to them being allowed to degrade voice service from another phone company. Its ridiculous for voice its ridiculous for the internet. See what happens when you stop considering them to be common-carriers where everyone is on a level playing field? It will lead to no good, thats for sure.

    --
    Pete/Petri "damn, my chainsaw is clogged with 1's and 0's again." --clyde
  15. Difference between this and Internet2? by Jeff+Mahoney · · Score: 2, Interesting

    I'm not a fan of this proposal, but I'm curious what the real difference is between this and Internet2 connectivity that get people so incensed? Universities and corporations on Internet2 get higher bandwidth to each other than the rest of the internet, and for that they pay a premium.

    It seems to me that the major difference is that it's the telcos coming up with the idea and that end users may actually get to use it. While I'd prefer everyone get access to the higher speed network, what's stopping backbone providers from continuing to upgrade services as they have been?

    This seems quite a bit different than previous stories about telcos offering priority on the regular internet to services that pay up. That would definitely be questionable. This is using a completely separate network that they own and charge access to - why shouldn't they be allowed to do this?

  16. An Old Issue by One+Div+Zero · · Score: 2, Informative

    This is an old issue - Lessig has been writing about it since 2001.

    The idea pops up every few months, but in the end, it is economic suicide for a market that already has an open, neutral standard to splinter into a set of closed, preferential standards.

    In short, the competition between providers will reduce their profit below the current 'tacit agreement' point it is currently at, thanks to the neutral standard. This is especially true as long as they are not offering any additional value with their service, and only destroying the value of the current network effects.

    The economically feasible solution is to price discriminate (as much as existing customers hate it, it does reduce deadweight loss and increase revenue). Simply, charge by bandwidth provided, and charge less for 'preferred' types of bandwidth, such as traffic internal to their network.

    [Recommended Reading: The Innovator's Solution (which addresses closed vs. open standards) and anything about Nash-Bridges Equilibrium (which addresses tacit agreement among competing parties).]

  17. Isn't this what the cable companies already have? by RockClimbingFool · · Score: 4, Interesting
    Not to play devils advocate here, but isn't this the setup all cable companies currently have?

    They have their own private internet for video services and a separate internet for normal IP traffic flow.

    This allows them to send massive amounts of video with fairly reliable QOS.

  18. That's it! by temojen · · Score: 5, Funny

    I'm making my own internet!

    I've got a spare linksys and two pringles cans; who's with me?

  19. Better Internet by neildiamond · · Score: 2, Funny

    Does this mean if I want a better Internet, I now really will have to go to AOL? NOOOOOOO!

  20. No by bwd · · Score: 2, Informative

    Common Carrier status is granted when the provider doesn't filter content. However misguided this attempt is, it does not violate common carrier status, because they are not passing judgement or denying certain content. They're still allowing it all, albeit at different levels of service.

  21. Not if it is the law by marcus · · Score: 2, Informative

    And making it law is what they are trying to do.

    --
    Good judgement comes from experience, and experience comes from bad judgement.
    - W. Wriston, former Citibank CEO
  22. 6 Bullet points? How about 14? by Ellis+D.+Tripp · · Score: 2, Interesting

    Sounds like we're pretty much there...

    http://demopedia.democraticunderground.com/index.p hp/Fascism

    Dr. Lawrence Britt has examined the fascist regimes of Hitler (Germany), Mussolini (Italy), Franco (Spain), Suharto (Indonesia) and several Latin American regimes. Britt found 14 defining characteristics common to each:

    1. Powerful and Continuing Nationalism - Fascist regimes tend to make constant use of patriotic mottos, slogans, symbols, songs, and other paraphernalia. Flags are seen everywhere, as are flag symbols on clothing and in public displays.

    2. Disdain for the Recognition of Human Rights - Because of fear of enemies and the need for security, the people in fascist regimes are persuaded that human rights can be ignored in certain cases because of "need." The people tend to look the other way or even approve of torture, summary executions, assassinations, long incarcerations of prisoners, etc.

    3. Identification of Enemies/Scapegoats as a Unifying Cause - The people are rallied into a unifying patriotic frenzy over the need to eliminate a perceived common threat or foe: racial , ethnic or religious minorities; liberals; communists; socialists, terrorists, etc.

    4. Supremacy of the Military - Even when there are widespread domestic problems, the military is given a disproportionate amount of government funding, and the domestic agenda is neglected. Soldiers and military service are glamorized.

    5. Rampant Sexism - The governments of fascist nations tend to be almost exclusively male-dominated. Under fascist regimes, traditional gender roles are made more rigid. Divorce, abortion and homosexuality are suppressed and the state is represented as the ultimate guardian of the family institution.

    6. Controlled Mass Media - Sometimes to media is directly controlled by the government, but in other cases, the media is indirectly controlled by government regulation, or sympathetic media spokespeople and executives. Censorship, especially in war time, is very common.

    7. Obsession with National Security - Fear is used as a motivational tool by the government over the masses.

    8. Religion and Government are Intertwined - Governments in fascist nations tend to use the most common religion in the nation as a tool to manipulate public opinion. Religious rhetoric and terminology is common from government leaders, even when the major tenets of the religion are diametrically opposed to the government's policies or actions.

    9. Corporate Power is Protected - The industrial and business aristocracy of a fascist nation often are the ones who put the government leaders into power, creating a mutually beneficial business/government relationship and power elite.

    10. Labor Power is Suppressed - Because the organizing power of labor is the only real threat to a fascist government, labor unions are either eliminated entirely, or are severely suppressed.

    11. Disdain for Intellectuals and the Arts - Fascist nations tend to promote and tolerate open hostility to higher education, and academia. It is not uncommon for professors and other academics to be censored or even arrested. Free expression in the arts and letters is openly attacked.

    12. Obsession with Crime and Punishment - Under fascist regimes, the police are given almost limitless power to enforce laws. The people are often willing to overlook police abuses and even forego civil liberties in the name of patriotism. There is often a national police force with virtually unlimited power in fascist nations.

    13. Rampant Cronyism and Corruption - Fascist regimes almost always are governed by groups of friends and associates who appoint each other to government positions and use governmental power and authority to protect their friends from accountability. It is not uncommon in fascist regimes for national resources and even treasures to be appropriated or even outright stolen by government leaders.

    --
    Remember "News for Nerds, Stuff that Matters"? Help make it a reality again! http://soylentnews.org
    1. Re:6 Bullet points? How about 14? by Jtheletter · · Score: 2, Insightful

      Wow. That was actually what I was hoping to get as a response, what I didn't count on was how perfectly America now fits that mold. I suspected such, but reality is worse apparently. Thanks for the great response. I can't rep this since I've posted, but I'll give you a point elsewhere. ;)

      --
      -- I'm not a pessimist, I'm a realist. It's not my fault that life sucks so much. --
  23. Misleading Title; Read TFA before commenting by h2d2 · · Score: 2, Informative

    The article mostly talks about the telcos trying to offer Video services at a "premium" to subscribers, not much else. This way they can take a huge chunk of the next-gen Video-over-IP market, by having better quality videos (and most likely live video feeds) over their network. How they would stop video.google.com if Google decides to up the ante and offer H.264 quality videos is beyong me... that would probably be illegal.

    So basically they are asking Congress to let them bundle a Video & Internet in one package sans the legal troubles. In my opinion, Verizon (a TELCO) is already doing something like that with their FiOS service (Broadband + Video), although in limited areas.

    --
    Mozilla stole tabs from NetCaptor. So what? Right?
  24. You misunderstand the issue. by Ungrounded+Lightning · · Score: 2, Interesting

    No single company has the money to invest or support a seperate Internet over the long run. There are too many ISPs and backbone providers competing in the open market.

    You misunderstand the issue.

    This is not about creating a separate internet. This is about giving some packets priority over others in a single transport - and the regulated transport operator being able to assign their OWN packets to the higher priority - and to include others' packets for an extra fee, when contracted to do so.

    No "second network" creation at all. Just first-class and coach-class packets. (Actually: Packets with confirmed reservations and packets "flying standby" or in "overbooked seating".)

    This sounds unfair. But actually, it's an economic necessity to enable a technical necessity.

    Normally, IP packets get best effort service. They're forwarded if there's bandwidth for them. But when there's a traffic jam packets are randomly picked to be dropped.

    This works FINE when there's lots more transport available than packets to use it. And for things like file transfers and terminal sessions it's still OK when things get tight: The TCP layer sits on top of IP, detecting the lost packets, retrying them, and throttling back until traffic flows smoothly through the traffic jam. Your data gets through - but slowed down to fairly "share the road".

    But for real-time things like real-time voice and video, retry takes too long, causing stops-and-starts, stuttering, echos, and a host of quality issues. (Even the delay necessary to insert slop to handle the hole-filling is a horrible problem in two-way communication.) Yet not retrying makes holes in the stream that have to be filled in by guess - and losing information when too many packets are dropped.

    IP had hooks to let you flag packets for special handling when needed. (They're the Type of Service (ToS) bits - intended to indicate what aspects of scheduling are important to the packets, intended to be mapped into Quality of Service (QoS) - how the scheduling decisions are made.)

    But protocol stacks have already cheated. (Notably Microsoft, which released an IP stack that improved its own performance by lying about the traffic's requirements - giving its packets priority over others that were more truthful.) With many cheaters deployed the ISPs and backbones just don't honor the ToS bits, or rewrite them at their own edges - to their own specs - when they do. (Thus, now that Microsoft wants to get into VoIP they find their past behavior hosed themselves. B-) And everybody else. B-( ) But even if ToS were honored and used honorably, there are no guarantees. So too many calls through a network node and they'd all deteriorate.

    Telcos write service contracts that guarantee performance levels for their phone calls - or for customers (like radio and television networks) that require reliable transport. High probability of establishing a connection (for dynamic things like phone calls), still higher performance guarantees once one is established. If they want to turn the call into packets and ship it over a shared IP backbone while still meeting the guarantees, the VoIP / stream packets themselves must have guarantees higher than "best effort". In particular they require virtual certainty of delivery and tight control of transit time variations. That means they must have higher priority than the competing packets that are doing less time-critical stuff (such as file transfer). Fortunately, VoIP streams are low and essentially constant bandwidth, so they can just reserve a tiny fraction of the bandwidth for them. (Video streams are 'way bigger - but not as transient. So you can design in bandwidth for them.)

    But if some packets are given priority over others, they have higher claim on system resources. They can bump other traffic. So it's appropriate to charge them extra for the privilege. (It's the same case as flying with a confirmed reservation vs. standby.) The bandwidth on the network l

    --
    Bantam Dominique roosters crow a four-note song. Once you've heard it as "Happy BIRTHday" you can't NOT hear it that way