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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.
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?
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?
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
"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
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."
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.
I'm making my own internet!
I've got a spare linksys and two pringles cans; who's with me?
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'"
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?
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
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