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Finding Common Ground on an Open Internet

Peter Thonis posted in Policy PolicyBlog  on October 21, 2009, 06:16 PM EST

The following is a joint statement from Lowell McAdam, CEO Verizon Wireless and Eric Schmidt, CEO Google:

 

(Cross-posted on the Google Public Policy blog.)

 

 

 

Verizon and Google might seem unlikely bedfellows in the current debate
around network neutrality, or an open Internet. And while it's true we
do disagree quite strongly about certain aspects of government policy in
this area--such as whether mobile networks should even be part of the
discussion--there are many issues on which we agree. For starters we
both think it's essential that the Internet remains an unrestricted and
open platform--where people can access any content (so long as it's
legal), as well as the services and applications of their choice.



There are two key factors driving innovation on the web today. First is
the programming language of the Internet, which was designed over forty
years ago by engineers who wanted the freedom to communicate from any
computer, anywhere in the world. It enables Macs to talk to PCs,
Blackberry Storms to iPhones, the newest computers to the oldest
hardware on the planet across any kind of network--cable, DSL, fiber,
mobile, WiFi or even dial up.



Second, private investment is dramatically increasing broadband capacity
and the intelligence of networks, creating the infrastructure to support
ever more sophisticated applications.



As a result, however or wherever you access the Internet the people you
want to connect with can receive your message. There is no central
authority that can step in and prevent you from talking to someone else,
or that imposes rules prescribing what services should be available.



Transformative is an over-used word, especially in the tech sector. But
the Internet has genuinely changed the world. Consumers of all stripes
can decide which services they want to use and the companies they trust
to provide them. In addition, if you're an entrepreneur with a big idea,
you can launch your service online and instantly connect to an audience
of billions. You don't need advance permission to use the network.  At
the same time, network providers are free to develop new applications,
either on their own or in collaboration with others.



This kind of "innovation without permission" has changed the way we do
business forever, fueling unprecedented collaboration, creativity and
opportunity. And because America has been at the forefront of most of
these changes, we have disproportionately benefited in terms of economic
growth and job creation.



So, in conjunction with the Federal Communications Commission's national
plan to bring broadband to all Americans, we understand its decision to
start a debate about how best to protect and promote the openness of the
Internet. FCC Chairman Julius Genachowski has promised a thoughtful,
transparent decision-making process, and we look forward to taking part
in the analysis and discussion that is to follow. We believe this kind
of process can work, because as the two of us have debated these issues
we have found a number of basic concepts to agree on.



First, it's obvious that users should continue to have the final say
about their web experience, from the networks and software they use, to
the hardware they plug in to the Internet and the services they access
online. The Internet revolution has been people powered from the very
beginning, and should remain so. The minute that anyone, whether from
government or the private sector, starts to control how people use the
Internet, it is the beginning of the end of the Net as we know it.



Second, advanced and open networks are essential to the future
development of the Web. Policies that continue to provide incentives for
investment and innovation are a vital part of the debate we are now
beginning.



Third, the FCC's existing wireline broadband principles make clear that
users are in charge of all aspects of their Internet experience--from
access to apps and content. So we think it makes sense for the
Commission to establish that these existing principles are enforceable,
and implement them on a case-by-case basis.



Fourth, we're in wild agreement that in this rapidly changing Internet
ecosystem, flexibility in government policy is key. Policymakers
sometimes fall prey to the temptation to write overly detailed rules,
attempting to predict every possible scenario and address every possible
concern. This can have unintended consequences.



Fifth, broadband network providers should have the flexibility to manage
their networks to deal with issues like traffic congestion, spam,
"malware" and denial of service attacks, as well as other threats that
may emerge in the future--so long as they do it reasonably, consistent
with their customers' preferences, and don't unreasonably discriminate
in ways that either harm users or are anti-competitive. They should also
be free to offer managed network services, such as IP television.



Finally, transparency is a must. Chairman Genachowski has proposed
adding this principle to the FCC's guidelines, and we both support this
step.  All providers of broadband access, services and applications
should provide their customers with clear information about their
offerings.



Doubtless, there will be disagreements along the way. While Verizon
supports openness across its networks, it believes that there is no
evidence of a problem today -- especially for wireless -- and no basis
for new rules and that regulation in the US could have a detrimental
effect globally. While Google supports light touch regulation, it
believes that safeguards are needed to combat the incentives for
carriers to pick winners and losers online.



Both of our businesses rely on each other. So we believe it's
appropriate to discuss how we ensure that consumers can get the
information, products, and services they want online, encourage
investment in advanced networks and ensure the openness of the web
around the world. We're ready to engage in this important policy
discussion.

Reader Comments
This is not net neutrality - this is business as usual in DC, companies agreeing and shoving the public to the side. Google, you should be ashamed - you have betrayed your friends and allies. A few of the problems: "Second, private investment is dramatically increasing broadband capacity and the intelligence of networks, creating the infrastructure to support ever more sophisticated applications." - Actually, private and public investment together are dramatically increasing broadband capacity - or will be, shortly. Furthermore, intelligent networks are not necessary to support "sophisticated" applications - only capacity. "There is no central authority that can step in and prevent you from talking to someone else, or that imposes rules prescribing what services should be available." - Actually, the end-user ISP providing your Internet access service is positioned to do just that. That's the reason for this debate in the first place - ISPs can, and do, impose rules prescribing the available services. Mobile ISPs continue to actively do this, with VoIP and other services. Google Voice itself is unavailable on many devices because there is one central authority with such power. "Third, the FCC's existing wireline broadband principles make clear that users are in charge of all aspects of their Internet experience--from access to apps and content. So we think it makes sense for the Commission to establish that these existing principles are enforceable, and implement them on a case-by-case basis." - Without adding a rigorous nondiscrimination principle, the four existing principles do not go far enough to prevent harm to consumers or to competition. Providers will be able to offer preferential treatment to their applications or anyone who will pay them, and even if they are required to allow "non-preferred uses", they will face strong incentives to make those uses slow and frustrating for consumers, to "encourage" application providers to pay for preferential treatment. "Fourth, we're in wild agreement that in this rapidly changing Internet ecosystem, flexibility in government policy is key." - Just as key is clarity. How can service providers invest, and how can application developers create software, without clear rules of the road? "Flexible" is just another word for "toothless", because overly "flexible" rules create loopholes for armies of Washington DC lawyers to exploit, either at the Commission or in the D.C. Circuit when every single enforcement order gets appealed. "Fifth, broadband network providers should have the flexibility to manage their networks..." - See above. "don't unreasonably discriminate in ways that either harm users or are anti-competitive." - This creates a burden on the user to show that the discrimination actually harmed them or is anti-competitive, problematic enough when considering enforcement. But when the harm is to innovation itself, then it is a harm to something that doesn't yet exist - so how can there be a showing of harm or anticompetitive impact? The very spirit of the Internet is that there be *no* discrimination - no interference with innovation - and a showing of "unreasonable discrimination" or clear harm is utterly inconsistent with that. "They should also be free to offer managed network services, such as IP television." - Are there any rules on these services whatsoever, or are they merely an alternative that allows every single misbehavior we're concerned about to take place outside the Internet? How can these services possibly coexist with the open Internet?
John posted on 10/21/2009 7:33:44 PM
Keep it open but affordable. Mobile internet is essential but carriers are edging towards price increases in data. Many people can not afford the data price plans the way they are now. Especially for smartphones on Verizon. The other thing i'd like to see is the new mobile Digital TV platform to be in future Verizon smartphone devices with no charge for the service. How can you charge for free over the air tv signals?
Paul posted on 10/21/2009 11:42:03 PM
http://arstechnica.com/tech-policy/news/2007/09/verizon-unhappy-with-700mhz-open-access-requirements-sues-fcc.ars
Michael posted on 10/21/2009 11:47:15 PM
Would the traffic congestions policies mirror those that CRTC recently passed for canadian providers? Would they impede the innovation of new technologies that may pose a slight burden on the system or would networks like Verizon be up to the challenge. I believe in net neutrality it just seems that the fifth point can lead to some sticky messes for customers. Overall I wish to say I am quite impressed with Verizon and Google making common ground for such an important part our lives.
Aruj posted on 10/22/2009 1:31:13 AM
Oddly, this comes on the same day that Verizon's CEO Mr. Siedenberg stated that Net Neutrality will kill innovation. Wow. Jeff Yablon President & CEO Answer Guy and Virtual VIP Computer Support, Business Change Coaching and Virtual Assistant Services
Jeff Yablon posted on 10/22/2009 10:55:30 AM
"And because America has been at the forefront of most of these changes, we have disproportionately benefited in terms of economic growth and job creation." -What in the world!?!?! I'm gonna go innovate and then punish myself for it. Genius! "The minute that anyone, whether from government or the private sector, starts to control how people use the Internet, it is the beginning of the end of the Net as we know it." - then why are you advocating this? Genius!
MP posted on 10/22/2009 12:50:47 PM
That's net neutrality and thank you for supporting it. Open hardware, open software, open ports and the assurance that the privacy of packets be respected (i.e.: no Phorm or NebuAd) unless there is a serious degradation of service to others, that's all we want and all we should expect on our wired connections. Again, thanks for supporting network neutrality.
BC posted on 10/25/2009 7:41:58 AM
You're absolutely right about one thing. Start messing with our net freedom and it will truly be the beginning of the end for the web. On the other hand, isn't that what they want...?
Harrison posted on 10/25/2009 9:45:04 AM
Congratulations to both companies for acknowledging the importance of openness in the internet. I do believe some regulations are important to safeguard the neutrality of the internet, especially as they start competing with the already established television and phone technology. I also think net neutrality should extend to wireless networks and let's go even further with interplanetary networks. The bottom line here is that the changes and modifications remain at the edges and not at the core.
Caminsky posted on 11/2/2009 12:50:32 AM
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