AT&T's net neutrality concession
Interesting bit that AT&T has offered a net neutrality concession in its bid to merge with SBC. It’s causing equal parts triumph and consternation among neutrality advocates. I think the consternation part is most accurate, since AT&T seems to have gained its merger without giving up much of anything.
Susan Crawford has what I found to be the most insightful analysis on this, for a number of reasons. She parses the language to point out a couple of important things. The first is that the neutrality provisions do not apply to AT&T’s new offerings, only to their existing DSL offering:
"Wireline broadband Internet access service" means traditional copper-wire digital subscriber line access provided by phone companies like AT&T. It's not very fast, but it's much faster than dial-up, and AT&T and Verizon sell it to a lot of people.
Importantly, neutrality does not apply to their new “U-verse” service, which offers Internet-based television to compete with cable. So in that regard, I am OK with it, since most of my concern about neutrality legislation is that it would put a straightjacket around new services.
And the “neutrality” is limited to the pipe from the consumer’s house to the first router that it hits at AT&T. So follow the wire from your home to where it first joins the network. That part is neutral. It’s also the least interesting part of the network, and not the place to put intelligence, in any case.
For these reasons the neutrality provisions are, to my mind, toothless. And in that regard I agree with neutrality advocates, though for me it’s a positive and for them it's a negative.
Susan also points out something I have been saying all along:
This means that naked, neutral, non-prioritized internet access (for AT&T customers, anyway) stays at 2001 speeds. AT&T has no incentive to upgrade its existing DSL facilities -- it wants to move everyone to this new U-verse.
Exactly right. AT&T (and any other network provider) has very little incentive to invest in a regulated, neutral network. By adding a neutrality promise to their existing DSL, they have removed any reason to build out that network further.
(Our copper phone infrastructure has remained in stasis for 100 years for this reason.)
So imagine if neutrality proponents get their way and enforce network neutrality via a governmental diktat. This disincentive would then apply to our entire network infrastructure. I am glad that Susan has pointed this out, though I suspect this isn’t the argument she wished to make.
Overall, AT&T made a concession out of political expedience, and I think it won’t mean much. The neutrality provisions are sunsetted after two years, and they don’t apply to the interesting parts of the network. I think AT&T won this round.
And, to be clear, I don’t much care if AT&T or any of the other players lives or dies. I am not rooting for anyone except the consumer, who is best served by an unregulated market.
------
Richard Bennett has more.



