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Technology Stocks : The *NEW* Frank Coluccio Technology Forum

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To: fred g who wrote (14143)3/14/2006 12:16:52 AM
From: Frank A. Coluccio  Read Replies (2) of 46821
 
Network Neutrality

When a topic like network neutrality begins to appear in places like the "Talk of the Town" column of The New Yorker Magazine, then you know it's only a matter of time before it hits the mainstream of public awareness. And that's not such a bad thing.

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NET LOSSES

By James Surowiecki
march 13, 2006

In the first decades of the twentieth century, as a national telephone network spread across the United States, A.T. & T. adopted a policy of “tiered access” for businesses. Companies that paid an extra fee got better service: their customers’ calls went through immediately, were rarely disconnected, and sounded crystal-clear. Those who didn’t pony up had a harder time making calls out, and people calling them sometimes got an “all circuits busy” response. Over time, customers gravitated toward the higher-tier companies and away from the ones that were more difficult to reach. In effect, A.T. & T.’s policy turned it into a corporate kingmaker.

If you’ve never heard about this bit of business history, there’s a good reason: it never happened. Instead, A.T. & T. had to abide by a “common carriage” rule: it provided the same quality of service to all, and could not favor one customer over another. But, while “tiered access” never influenced the spread of the telephone network, it is becoming a major issue in the evolution of the Internet. Until recently, companies that provided Internet access followed a de-facto commoncarriage rule, usually called “network neutrality,” which meant that all Web sites got equal treatment. Network neutrality was considered so fundamental to the success of the Net that Michael Powell, when he was chairman of the F.C.C., described it as one of the basic rules of “Internet freedom.” In the past few months, though, companies like A.T. & T. and BellSouth have been trying to scuttle it. In the future, Web sites that pay extra to providers could receive what BellSouth recently called “special treatment,” and those that don’t could end up in the slow lane. One day, BellSouth customers may find that, say, NBC.com loads a lot faster than YouTube.com, and that the sites BellSouth favors just seem to run more smoothly. Tiered access will turn the providers into Internet gatekeepers.

Continued at:

newyorker.com
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