Y490 Politics of the Y490 Politics of the InternetInternet

March 28, 2012March 28, 2012

Critical Political EconomyCritical Political Economy

““Traditionally, this type of analysis focuses Traditionally, this type of analysis focuses on how economic inequalities based upon on how economic inequalities based upon ownership and control serve to narrow the ownership and control serve to narrow the range of media content available in market-range of media content available in market-based societies.”based societies.”

Source: Chadwick, p. 290.

Three Schools of ThoughtThree Schools of Thought Strong political economy approachStrong political economy approach

Media should be seen as directly servicing a wider Media should be seen as directly servicing a wider system of material production (e.g. system of material production (e.g. Theodor Adorno -- -- consumer capitalism)consumer capitalism)

Weak political economy approachWeak political economy approach Greater role for individual leadership in the media Greater role for individual leadership in the media

industries (e.g. industries (e.g. Benjamin Bagdikian)) Instrumental approachInstrumental approach

How owners and political elites use the media as How owners and political elites use the media as instruments of ideological mobilization (e.g. instruments of ideological mobilization (e.g. Noam Chomsky))

Decline of Newspapers?Decline of Newspapers? Readership is down relative to other media use.Readership is down relative to other media use. Last year was the worst on record for the U.S. newspaper Last year was the worst on record for the U.S. newspaper

industry advertising.  Total advertising revenues (both industry advertising.  Total advertising revenues (both print and online) declined to $25.84 billion in 2010, print and online) declined to $25.84 billion in 2010, according to the latest figures from the according to the latest figures from the Newspaper Association of America.  That is down from .  That is down from $48 billion in 2004. $48 billion in 2004. 

On-line newspaper advertising was up to $3 billion in On-line newspaper advertising was up to $3 billion in 2010 from $1.2 billion in 2003 but that clearly does not 2010 from $1.2 billion in 2003 but that clearly does not make up from the decline in other areas.make up from the decline in other areas.

Newspaper Death Watch

Print Newpaper Ad RevenuePrint Newpaper Ad Revenue

Print vs. Online Ad SpendingPrint vs. Online Ad Spending

New York Times RevenuesNew York Times Revenues

Decline in ReadershipDecline in Readership

Online readership Online readership is growing but is growing but overall readership overall readership is down according is down according to the Pew to the Pew Research Center Research Center

Newspaper Circulation, 2003-2010Newspaper Circulation, 2003-2010

Print and Online AdvertisingPrint and Online Advertising

Help Wanted Ad RevenuesHelp Wanted Ad Revenues

Main News Source by AgeMain News Source by Age

Closing of NewspapersClosing of Newspapers

At least 120 newspapers in the U.S. have At least 120 newspapers in the U.S. have shut down since January 2008, according shut down since January 2008, according to Paper Cuts, a Web site tracking the to Paper Cuts, a Web site tracking the newspaper industry. More than 21,000 newspaper industry. More than 21,000 jobs at 67 newspapers have vaporized in jobs at 67 newspapers have vaporized in that time, according to the site.that time, according to the site.

Source: http://www.cnn.com/2009/US/03/19/newspaper.decline.layoff/index.html

Origins of the Net Neutrality DebateOrigins of the Net Neutrality Debate

Coalition of Broadband Users and Innovators Coalition of Broadband Users and Innovators (CBUI) sent a letter to FCC Chairman (CBUI) sent a letter to FCC Chairman Michael Powell in November 2002Michael Powell in November 2002

It included the phrase “net neutrality” coined It included the phrase “net neutrality” coined by Tim Wu in an article written in 2002 and by Tim Wu in an article written in 2002 and published in 2003published in 2003

CBUI called for “nondiscrimination CBUI called for “nondiscrimination safeguards” to guarantee net neutralitysafeguards” to guarantee net neutrality

What is Net Neutrality?What is Net Neutrality? ““Net neutrality simply means that all like Internet Net neutrality simply means that all like Internet

content must be treated alike and move at the content must be treated alike and move at the same speed over the network. The owners of same speed over the network. The owners of the Internet’s wires cannot discriminate. This is the Internet’s wires cannot discriminate. This is the simple but brilliant “end-to-end” design of the simple but brilliant “end-to-end” design of the Internet that has made it such a powerful the Internet that has made it such a powerful force for economic and social good.”force for economic and social good.”

Lawrence Lessig and Robert W. McChesney, “No Tolls on the Internet,” Lawrence Lessig and Robert W. McChesney, “No Tolls on the Internet,” Washington Post, June 8, 2006. Washington Post, June 8, 2006.

Ask a Ninja’s “What is Net Neutrality?” video

Eli Noam’s Possible MeaningsEli Noam’s Possible Meanings No different quality grades for serviceNo different quality grades for service No price discrimination among Internet providersNo price discrimination among Internet providers No monopoly price charged to content and No monopoly price charged to content and

application providersapplication providers No discrimination against content providers who No discrimination against content providers who

compete with carrier’s own contentcompete with carrier’s own content No selectivity by the carriers over the content that No selectivity by the carriers over the content that

they transmitthey transmit No blocking of the access of users to some websitesNo blocking of the access of users to some websites

Arguments of ProponentsArguments of Proponents End-to-end architecture of the Internet End-to-end architecture of the Internet

must be preservedmust be preserved This means preventing discrimination by This means preventing discrimination by

conduit companies against content and conduit companies against content and services that they do not control services that they do not control

Conduit companies will reserve lots of Conduit companies will reserve lots of bandwidth for services like cable TV bandwidth for services like cable TV which will degrade Internet performance which will degrade Internet performance for everyone elsefor everyone else

Vint Cerf

Congress and the FCC Encourage Congress and the FCC Encourage Telephone and Cable to CompeteTelephone and Cable to Compete

Telecom Act of 1996Telecom Act of 1996 FCC decisions to permit telephone FCC decisions to permit telephone

companies to buy cable networks and cable companies to buy cable networks and cable operators to compete in telephone marketsoperators to compete in telephone markets

FCC wanted telcos and cable companies to FCC wanted telcos and cable companies to compete in high-speed Internet and cable TV compete in high-speed Internet and cable TV services via new fiber optic networks built services via new fiber optic networks built without government subsidieswithout government subsidies

Top ISPs in the USA (2011)Top ISPs in the USA (2011)

ComcastComcast Time WarnerTime Warner AT&TAT&T CoxCox OptimumOptimum CharterCharter VerizonVerizon

Source: http://isp-review.toptenreviews.com/

Cable operators

Telephone companies

Top Global Web Sites (2011)Top Global Web Sites (2011) GoogleGoogle FacebookFacebook YouTubeYouTube Yahoo!Yahoo! WikipediaWikipedia BaiduBaidu BlogspotBlogspot TwitterTwitter

Michael Powell’s Internet Michael Powell’s Internet Freedoms, 2004Freedoms, 2004

freedom to access contentfreedom to access content freedom to use applicationsfreedom to use applications freedom to attach personal devicesfreedom to attach personal devices freedom to obtain service plan freedom to obtain service plan

information information

FCC Policy Statement 2005FCC Policy Statement 2005 consumers are entitled to access the lawful Internet consumers are entitled to access the lawful Internet

content of their choice content of their choice consumers are entitled to run applications and consumers are entitled to run applications and

services of their choice, subject to the needs of law services of their choice, subject to the needs of law enforcement enforcement

consumers are entitled to connect their choice of consumers are entitled to connect their choice of legal devices that do not harm the network legal devices that do not harm the network

consumers are entitled to competition among network consumers are entitled to competition among network providers, application and service providers, and providers, application and service providers, and content providerscontent providers

More Arguments of More Arguments of ProponentsProponents

There is insufficient competition between There is insufficient competition between cable operators and telcos to guarantee cable operators and telcos to guarantee non-discriminationnon-discrimination

There is a potential for violations of There is a potential for violations of freedom of speech in the absence of net freedom of speech in the absence of net neutrality guaranteesneutrality guarantees

Gigi Sohn LarryLessig

TimBerners-Lee

Organizations that Support Net Organizations that Support Net NeutralityNeutrality

ACLUACLU ALAALA Christian CoalitionChristian Coalition Gun Owners of AmericaGun Owners of America Consumers UnionConsumers Union Google, Amazon, Yahoo!Google, Amazon, Yahoo! American Electronics AssociationAmerican Electronics Association

The Opponents’ Perspective on The Opponents’ Perspective on Net NeutralityNet Neutrality NCTA anti-NN ad Fox News coverage Glenn Beck

David Farber

Arguments of OpponentsArguments of Opponents

Net neutrality guarantees constitute Net neutrality guarantees constitute unnecessary regulationunnecessary regulation

The threat of discrimination is overblownThe threat of discrimination is overblown Cable and telephone companies need new Cable and telephone companies need new

revenues to build out the networkrevenues to build out the network Need to have “intelligent networks” to Need to have “intelligent networks” to

obtain “quality of service”obtain “quality of service” Competition is sufficient to prevent abusesCompetition is sufficient to prevent abuses

The Video Franchise Bill, 2006The Video Franchise Bill, 2006 Attempts by Democrats led by Ed Markey in Attempts by Democrats led by Ed Markey in

the House to add net neutrality amendments the House to add net neutrality amendments failed in committee and on the floorfailed in committee and on the floor

Net neutrality amendment proposed by Net neutrality amendment proposed by Senator Olympia Snowe (R-ME) failed to Senator Olympia Snowe (R-ME) failed to pass in an 11-11 committee votepass in an 11-11 committee vote

Senator Ted Stevens (R-AK) voted against Senator Ted Stevens (R-AK) voted against the amendmentthe amendment

Ted Stevens’ Tubes StatementTed Stevens’ Tubes Statement And again, the Internet is not something you just dump And again, the Internet is not something you just dump

something on. It's not a big truck. It's a something on. It's not a big truck. It's a series of tubesseries of tubes. . And if you don't understand those tubes can be filled and And if you don't understand those tubes can be filled and if they are filled, when you put your message in, it gets in if they are filled, when you put your message in, it gets in line and it's going to be delayed by anyone that puts into line and it's going to be delayed by anyone that puts into that tube enormous amounts of material, enormous that tube enormous amounts of material, enormous amounts of material. amounts of material.

June 28, 2006

Video by Y490 class members in Spring 2010

People People ReactReact to Stevens’ Explanation to Stevens’ Explanation

Telecom Lobbying Money Spent in Telecom Lobbying Money Spent in the First Half of 2006the First Half of 2006

Category Specific Firms and Organization

Amount in $ millions

Telephone Interests

AT&T, Verizon, BellSouth, and USTA

30.3

Cable Interests Comcast, Time Warner, Cox, and NCTA

12.2

Internet Interests

Google, Yahoo!, eBay, Microsoft, Amazon.com

8.8

Total 51.3

Wyden Saves the DayWyden Saves the Day Ron Wyden used his Senatorial privilege to Ron Wyden used his Senatorial privilege to

place a hold on the Video Franchise bill place a hold on the Video Franchise bill because of the lack of net neutrality because of the lack of net neutrality guarantees. Since Ted Stevens did not have guarantees. Since Ted Stevens did not have the 60 votes needed to override Wyden’s hold, the 60 votes needed to override Wyden’s hold, the bill was not put up for a vote on the Senate the bill was not put up for a vote on the Senate floor.floor.

Barack Obama Supports Net Barack Obama Supports Net NeutralityNeutrality

Speech on net neutrality at Google in 2007Speech on net neutrality at Google in 2007 Net neutrality becomes part of the official Net neutrality becomes part of the official

Democratic party platform in 2008Democratic party platform in 2008 Obama appoints Julius Genachowski as head Obama appoints Julius Genachowski as head

of the FCC in 2009of the FCC in 2009 American Recovery and Investment Act of American Recovery and Investment Act of

2009 provides $7.2 billion for broadband 2009 provides $7.2 billion for broadband infrastructure and mandates that the FCC infrastructure and mandates that the FCC prepare a National Broadband Planprepare a National Broadband Plan

Genachowski Adds Two Items to Genachowski Adds Two Items to FCC Policy Statement of 2005FCC Policy Statement of 2005 ““broadband providers cannot discriminate broadband providers cannot discriminate

against particular Internet content or against particular Internet content or applications” applications”

• “• “providers of broadband Internet access providers of broadband Internet access must be transparent about their network must be transparent about their network management processes.”management processes.”

Video of Genachowski

Comcast Throttling of Bit-Comcast Throttling of Bit-Torrent Traffic in 2007Torrent Traffic in 2007

Robb Topolski discovers delays in delivery of Robb Topolski discovers delays in delivery of Bit-Torrent files for his barber shop quartetBit-Torrent files for his barber shop quartet

Topolski publishes this on TorrentFreak blogTopolski publishes this on TorrentFreak blog EFF and AP verify independentlyEFF and AP verify independently Comcast eventually admits that it was “traffic Comcast eventually admits that it was “traffic

shaping” using an application called Sandvine shaping” using an application called Sandvine that prevents “seeding”that prevents “seeding”

The FCC told Comcast to stop doing thisThe FCC told Comcast to stop doing this Comcast complied but appealed to courtsComcast complied but appealed to courts

The Comcast RulingThe Comcast Ruling

US Circuit Court of Appeals of DC ruled on US Circuit Court of Appeals of DC ruled on April 6, 2010, that the FCC did not have the April 6, 2010, that the FCC did not have the authority to regulate ISPs under the authority to regulate ISPs under the Telecom Act of 1996 (therefore Comcast Telecom Act of 1996 (therefore Comcast was not bound to obey FCC rules regarding was not bound to obey FCC rules regarding traffic management)traffic management)

Ruling was based on FCC decision to Ruling was based on FCC decision to reclassify cable modems and DSL as reclassify cable modems and DSL as information servicesinformation services

The National Broadband PlanThe National Broadband Plan FCC announced intention to guarantee net FCC announced intention to guarantee net

neutrality in spite of Comcast rulingneutrality in spite of Comcast ruling Genachowski spoke of a “third way” between Genachowski spoke of a “third way” between

“heavy-handed prescriptive regulation” and “heavy-handed prescriptive regulation” and the “light-touch approach” of the pastthe “light-touch approach” of the past

FCC would attempt to reclassify FCC would attempt to reclassify transmission component of broadband as a transmission component of broadband as a “telecommunication service”“telecommunication service”

ConclusionsConclusions Net neutrality was framed by Republicans as a regulatory Net neutrality was framed by Republicans as a regulatory

issue.issue. Republicans and their supporters carried the day until Republicans and their supporters carried the day until

June 2006 when the political tide began turn against them.June 2006 when the political tide began turn against them. The 2006 and 2008 election results meant that Democrats The 2006 and 2008 election results meant that Democrats

and their allies would attempt to pass legislation and their allies would attempt to pass legislation guaranteeing net neutrality.guaranteeing net neutrality.

However, the Comcast ruling and strong Republican However, the Comcast ruling and strong Republican opposition to net neutrality made legislative action very opposition to net neutrality made legislative action very unlikely. It was not clear whether the FCC strategy to unlikely. It was not clear whether the FCC strategy to reclassify broadband transmission would work.reclassify broadband transmission would work.