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Telecommunications Reform : The Regulation of the Internet

Telecommunications Reform : The Regulation of the Internet. Wendy Wigen Garret Sern EDUCAUSE Federal Policy Office ICPL June 28, 2005. Why do we need Telecommunications Reform? What is being proposed? What does the higher education community support?. The Communications Act of 1934.

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Telecommunications Reform : The Regulation of the Internet

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  1. Telecommunications Reform:The Regulation of the Internet Wendy Wigen Garret Sern EDUCAUSE Federal Policy Office ICPL June 28, 2005

  2. Why do we need Telecommunications Reform? What is being proposed? What does the higher education community support?

  3. The Communications Act of 1934 Purpose: …to make available… to all the people of the United States… a rapid, efficient, Nation-wide, and world-wide wire and radio communication service with adequate facilities at reasonable charges.

  4. Communications as we knew it… LAW Title II Title III Title III Title VI VOICE WIRED VOICE WIRELESS AUDIO/ VIDEO BROADCAST TV/RADIO VIDEO CABLE TV

  5. Communications + the Internet… LAW Title II Title III Title III Title VI VOICE WIRED + Dial-up + DSL VOICE WIRELESS + Internet Access AUDIO/ VIDEO BROADCAST TV/RADIO VIDEO CABLE TV + Cable Modem

  6. Telecommunications Service: (phone to phone) Provides basic voice service for a fee Highly regulated Behavior (anti-trust, consumer protection…) Revenue (USF, 911…) Information Service: (computer to computer) Provides enhanced communication service that involves data storage/processing i.e. Internet access, voice mail…. Unregulated Internet Regulation Chapter 1

  7. The Internet…. We could have killed it but we wisely chose not to…. FCC 1999 We haven’t regulated it because we didn’t know how to… Senator Cantwell 2004 First, do no harm… Michael Powell, former Chairman of the FCC

  8. But then… Voice over IP, and Video over IP became commercially viable services

  9. Chapter 2: VoIPto regulate or not to regulate? • Computer to Computer: all Internet • Computer to Phone or Phone to Computer • Phone to Internet to Phone

  10. Telecom or Info. Service? • Computer to Computer: all Internet • Pulver Decision • Information Service – no regulation • Computer to Phone or Phone to Computer • Phone to Internet to Phone • AT&T Decision • Telecommunications Service – full regulation

  11. What is it ? “VoIP breaks the mold.  It is voice as a data service.  Considered another way, the 1996 (Telecommunications) Act assumes that data applications operate on top of a regulated voice network.  VoIP, by contrast, delivers voice on top of an Internet protocol data channel, which can run on anytype of digital network.” ….Kevin Werbach

  12. If in doubt, don’t regulate….

  13. What if a lot of people switch to VoIP? What happens to: • Law Enforcement Access (CALEA) • Emergency 911 Service (Public Safety) • Access for the disabled (Disabilities Act) • Support for the Universal Service Fund • State revenue…. 15%

  14. What if a lot of people switch to Video over IP? • What happens to public service requirements? • What about franchising rules: $$$ and control

  15. Unfair Competition VOICE WIRED + DSL VOICE WIRELESS + Internet Access AUDIO/ VIDEO BROADCAST TV/RADIO VIDEO CABLE TV + Cable Modem VoIP Video Over IP Video Over IP

  16. Where communications are going… voice data video Packet-based wired Ubiquitous wireless local long distance international Connection

  17. Convergence and Competition • Deregulate and let the market sort it out…. Use anti-trust law to deal with unfair competition. (mature industry i.e. railroads, airlines) • Status quo: The law is sufficient as is, it just needs to be enforced and clarified. • Write a new law based on how IP systems work.

  18. The “layered model” Content: text, speech, music, video, etc phone cellular Applications: web browsers, email client etc. Logical: TCP/IP protocol suite cable satellite Physical: access and transport modem, DSL, cable, fiber, WiFi, etc.

  19. The “layered model” Content: text, speech, music, video, etc Unregulated Applications: web browsers, email client etc. Logical: TCP/IP protocol suite Minimal regulation Physical: access and transport modem, DSL, cable, fiber, WiFi, etc.

  20. What is the higher education community doing?

  21. What is Congress doing?

  22. What is Congress doing? • 13 Telecom Related Bills Introduced in the 109Th Congress To Date; 8 Broadband Focused • Variety of approaches: • Gov’t grants; • tax breaks for providers and • NSF dedicated research on facilitating broadband services to rural and remote areas; • Prohibiting vs. Promoting Community Networks

  23. Battle over Muni-Networks No State or local statute or regulation, or other State or local legal requirement, may prohibit or have the effect of prohibiting the ability of any entity to provide any interstate or intrastate telecommunications service. • Section 253 Communications Act of 1934

  24. Nixon v Missouri Municipal League • Preserving Innovation in Telecom Act of 2005 (H.R.2726)- Sessions • Community Broadband Act of 2005 (S.1294)- Lautenberg/McCain • 11 Battleground States - 7 “Wins”

  25. The Internet: Chapter 3 • The Internet remains an open and innovative network • Broadband connectivity is available and affordable to as many persons in this country who want it • Broadband offers speeds that allow, not just advanced entertainment, but advanced: • Education • Medical services • Government Services

  26. The United States not only continues to compete but to lead in information technology.

  27. Federal Policy and the Internet “The apparently effortless technological supremacy Americans assume as a birthright…had nothing to do with market forces and everything to do with targeted policy decisions.” -Clyde Prestowitz, “Why Asia will eat our Lunch”

  28. More Information EDUCAUSE Policy Website http://www.educause.edu/policy wwigen@educause.edu gsern@educause.edu

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