Welcome!

Big Data Journal Authors: Jnan Dash, Kevin Jackson, Carmen Gonzalez, David Skok, Jason Bloomberg

Related Topics: Web 2.0, Java, SOA & WOA, Linux, Cloud Expo, Big Data Journal

Web 2.0: Article

Living with “Fast” and “Slow” Internet Lanes: FCC Votes in Favor

Who will step in and introduce the kind of competition that is needed to prevent the doomsday scenarios from becoming reality?

The Internet has been buzzing over the recent news of a federal proposal that creates the equivalent of "slow" and "fast" lanes online. The Federal Communications Commission (FCC) voted on Thursday, May 15, 3-2 in favor of a new proposal that enables the creation of Internet fast lanes, where broadband and cable providers such as Comcast can charge companies like Netflix, Amazon, YouTube and other over-the-top (OTT) providers to pay for priority traffic over a fast lane. The original FCC Open Internet Order of 2010 didn't declare that Internet Service Providers (ISPs) were common carriers that must transport everything irrespective of the content - but it did outlaw pay-for-play fast lanes. The 2010 Open Internet Order is what companies like Verizon challenged and what led to parts being struck down in January 2014 by the US Court of Appeals. The 2010 Order failed to provide legal reasons for "the anti-discrimination and anti-blocking rules" and the US Federal Appeals Court agreed with the ISPs. In order to impose such regulations, ISPs would need to be classified as common carriers, and would essentially be held to the same standards and regulations as your telephone company (telco). Your telco provider does not charge you extra to make calls during peak hours or to guarantee that calls won't be dropped. The public will now be allowed to provide comment, before the FCC enacts the final ruling later in the year. Adding fuel to the debate is whether or not the FCC can enforce policies that do not "divide the Internet into the ‘haves' and ‘have nots.'" Categorizing the debate this way does have the result of drawing individuals into the discussion that would otherwise have been content on the sidelines.

FCC Chairman Tom Wheeler insisted that the new proposal would not squeeze out the little players and that fast lanes will only be made available when they are "reasonable." It will be interesting to see what constitutes reasonable. He also called out that ISPs could not prioritize traffic from their own subsidiaries to the detriment of others and that Internet providers won't be able to penalize companies that don't pay for the fast lane by slowing their speeds. But giving one company more lanes on the Internet highway translates to a possible unintended consequence of fewer lanes for the rest of the traffic. And that additional fast lane revenue could create an incentive for broadband providers to allow network congestion to build, forcing companies to pay up or deal with the consequence of slow service.

The FCC fast lane plan did not impact deals like the ones reached between Comcast, Verizon and Netflix, in which Netflix (kicking and screaming) agreed to pay for direct connections to the broadband companies' networks to improve streaming speeds. The fast lane plan also does not cover traffic discrimination on the mobile Web. AT&T moved early this year to monetize wireless data caps by charging content providers for the right to serve up video and other media without chewing up consumers' monthly data limits. Eligible 4G customers can get mobile content and apps over AT&T's wireless network without impacting their monthly wireless data plan. The price of data is charged to the content provider and customers are billed based on usage.

The FCC has to consider public comments and face scrutiny from lawmakers before anything can happen. Many of the prophets out there are playing out the ultimate Internet doomsday scenarios, such as:

  1. Only popular and profitable services get capacity because these providers can afford to pay.
  2. Rates go up significantly and niche applications are blocked or relegated to the slow lane.
  3. When you sign on with an ISP, you will then get access to only the restricted portfolio of services offered by that particular ISP. It will be just like signing on to a cable company and getting only the programming the cable company has chosen.
  4. Will ISPs each issue their list of Internet "channels" to tell us what we can access? This may be easier than providing a list of what is blocked or slowed down.
  5. If service providers can adjust charging for the optimization of the increasingly scarce resource of bandwidth, what incentive is there for them to build more capacity? Why not just keep the network the way it is, and command higher and higher prices for the privilege of using it?

While the debate continues to play out in the media and increasingly in Washington, I thought it worthwhile to provide an alternative view on why the situation is perhaps not as dire as some would have us believe: good old-fashioned innovation and competition, the cornerstone of American capitalism.

In my series of blogs on net neutrality, I've suggested that the removal of the FCC's open Internet rules on blocking and preferential services might not in reality provide U.S. Internet access providers with the clear and unfettered path they expected to create new profits from Internet traffic control. In one example, I speculate that the device manufacturers might get in the way or demand a financial cut. In another, I imagine that edge-providers might not be an easy sell, and may even be among those that choose to set up shop as competitive access providers, now that the gate has been opened to imaginative competitive differentiation.

Like most things, the reality will likely be vastly different than the frenzied speculation. An alternative view is that we can look at the end of net neutrality as a step forward for competition in the world of Internet access by providing increased differentiation opportunities which are good for competition. If the only difference between services is price, then it's tough for new entrants to make a business case for entering the market. However, if every access provider offers a different suite of preferred edge providers, this expands the opportunities.

Who will step in and introduce the kind of competition that is needed to prevent the doomsday scenarios from becoming reality? This is a network infrastructure business, and traditionally the cost of entry has been prohibitively high. That's why we tend to think of telecom carriers and cable companies as "natural monopolies" and choose to live with the situation, alleviated somewhat by a modicum of regulation. However, this is the 21st century and the world is a very different place then when the net neutrality debate began over 20 years ago and the legal wrangling began. The cost of bandwidth has plummeted, broadband wireless access technologies are much more capable and cost-effective, and there are many large corporations such as Amazon, Apple, Facebook and Google and more with deep pockets. There are also investors interested in anything disruptive and game-changing. What is clear is that disruption based on price alone will be the exception and not the norm.

Follow us on Twitter for more updates, and maybe more opposing views, on the ongoing net neutrality debate.

More Stories By Esmeralda Swartz

Esmeralda Swartz is CMO of MetraTech, now part of Ericsson. She has spent 15 years as a marketing, product management, and business development technology executive bringing disruptive technologies and companies to market. Esmeralda is responsible for go-to-market strategy and execution, product marketing, product management, business development and partner programs. Prior to MetraTech, Esmeralda was co-founder, Vice President of Marketing and Business Development at Lightwolf Technologies, a big data management startup. She was previously co-founder and Senior Vice President of Marketing and Business Development of Soapstone Networks, a developer of OSS software, now part of Extreme Networks (Nasdaq:EXTR). At Avici Systems (Nasdaq:AVCI), Esmeralda was Vice President of Marketing for the networking pioneer from startup through its successful IPO. Early in her career, she was a Director at IDC, where she led the network consulting practice and worked with startup and leading software and hardware companies, and Wall Street clients on product and market strategies. Esmeralda holds a Bachelor of Science with a concentration in Marketing and International Business from Northeastern University.

You can view her other blogs at www.metratech.com/blog.

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


@BigDataExpo Stories
DevOps Summit 2015 New York, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete...
“We help people build clusters, in the classical sense of the cluster. We help people put a full stack on top of every single one of those machines. We do the full bare metal install," explained Greg Bruno, Vice President of Engineering and co-founder of StackIQ, in this SYS-CON.tv interview at 15th Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Windstream, a leading provider of advanced network and cloud communications, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Windstream (Nasdaq: WIN), a FORTUNE 500 and S&P 500 company, is a leading provider of advanced network communications, including cloud computing and managed services, to businesses nationwide. The company also offers broadband, p...
The major cloud platforms defy a simple, side-by-side analysis. Each of the major IaaS public-cloud platforms offers their own unique strengths and functionality. Options for on-site private cloud are diverse as well, and must be designed and deployed while taking existing legacy architecture and infrastructure into account. Then the reality is that most enterprises are embarking on a hybrid cloud strategy and programs. In this Power Panel at 15th Cloud Expo (http://www.CloudComputingExpo.com...
"BSQUARE is in the business of selling software solutions for smart connected devices. It's obvious that IoT has moved from being a technology to being a fundamental part of business, and in the last 18 months people have said let's figure out how to do it and let's put some focus on it, " explained Dave Wagstaff, VP & Chief Architect, at BSQUARE Corporation, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.

ARMONK, N.Y., Nov. 20, 2014 /PRNewswire/ --  IBM (NYSE: IBM) today announced that it is bringing a greater level of control, security and flexibility to cloud-based application development and delivery with a single-tenant version of Bluemix, IBM's

"People are a lot more knowledgeable about APIs now. There are two types of people who work with APIs - IT people who want to use APIs for something internal and the product managers who want to do something outside APIs for people to connect to them," explained Roberto Medrano, Executive Vice President at SOA Software, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
“We are a managed services company. We have taken the key aspects of the cloud and the purposed data center and merged the two together and launched the Purposed Cloud about 18–24 months ago," explained Chetan Patwardhan, CEO of Stratogent, in this SYS-CON.tv interview at 15th Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The Internet of Things is a misnomer. That implies that everything is on the Internet, and that simply should not be - especially for things that are blurring the line between medical devices that stimulate like a pacemaker and quantified self-sensors like a pedometer or pulse tracker. The mesh of things that we manage must be segmented into zones of trust for sensing data, transmitting data, receiving command and control administrative changes, and peer-to-peer mesh messaging. In his session a...
"At our booth we are showing how to provide trust in the Internet of Things. Trust is where everything starts to become secure and trustworthy. Now with the scaling of the Internet of Things it becomes an interesting question – I've heard numbers from 200 billion devices next year up to a trillion in the next 10 to 15 years," explained Johannes Lintzen, Vice President of Sales at Utimaco, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in San...
As enterprises engage with Big Data technologies to develop applications needed to meet operational demands, new computation fabrics are continually being introduced. To leverage these new innovations, organizations are sacrificing market opportunities to gain expertise in learning new systems. In his session at Big Data Expo, Supreet Oberoi, Vice President of Field Engineering at Concurrent, Inc., discussed how to leverage existing infrastructure and investments and future-proof them against e...
"Desktop as a Service is emerging as a very big trend. One of the big influencers of this – for Esri – is that we have a large user base that uses virtualization and they are looking at Desktop as a Service right now," explained John Meza, Product Engineer at Esri, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Gridstore™, the leader in hyper-converged infrastructure purpose-built to optimize Microsoft workloads, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Gridstore™ is the leader in hyper-converged infrastructure purpose-built for Microsoft workloads and designed to accelerate applications in virtualized environments. Gridstore’s hyper-converged infrastructure is the ...
We certainly live in interesting technological times. And no more interesting than the current competing IoT standards for connectivity. Various standards bodies, approaches, and ecosystems are vying for mindshare and positioning for a competitive edge. It is clear that when the dust settles, we will have new protocols, evolved protocols, that will change the way we interact with devices and infrastructure. We will also have evolved web protocols, like HTTP/2, that will be changing the very core...
SYS-CON Events announced today that Creative Business Solutions will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Creative Business Solutions is the top stocking authorized HP Renew Distributor in the U.S. Based out of Long Island, NY, Creative Business Solutions offers a one-stop shop for a diverse range of products including Proliant, Blade and Industry Standard Servers, Networking, Server Options and...
You use an agile process; your goal is to make your organization more agile. But what about your data infrastructure? The truth is, today's databases are anything but agile - they are effectively static repositories that are cumbersome to work with, difficult to change, and cannot keep pace with application demands. Performance suffers as a result, and it takes far longer than it should to deliver new features and capabilities needed to make your organization competitive. As your application an...
An effective way of thinking in Big Data is composed of a methodical framework for dealing with the predicted shortage of 50-60% of the qualified Big Data resources in the U.S. This holistic model comprises the scientific and engineering steps that are involved in accelerating Big Data solutions: problem, diagnosis, facts, analysis, hypothesis, solution, prototype and implementation. In his session at Big Data Expo®, Tony Shan focused on the concept, importance, and considerations for each of t...
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect at GE, and Ibrahim Gokcen, who leads GE's advanced IoT analytics, focused on the Internet of Things / Industrial Internet and how to make it operational for business end-users. Learn about the challenges posed by machine and sensor data and how to marry it with enterprise data. They also discussed the tips and tricks to provide the Industrial Internet as an end-user consumable service using Big Data Analytics and Industrial C...
As the Internet of Things unfolds, mobile and wearable devices are blurring the line between physical and digital, integrating ever more closely with our interests, our routines, our daily lives. Contextual computing and smart, sensor-equipped spaces bring the potential to walk through a world that recognizes us and responds accordingly. We become continuous transmitters and receivers of data. In his session at @ThingsExpo, Andrew Bolwell, Director of Innovation for HP's Printing and Personal S...