AT&T Concedes to Net Neutrality

One of the things I've learned is that building an open and neutral communications environment is a slugfest, a game of inches.  America has a top-down mass communications environment and a populace that is used to being marketed to.  We don't like thousands of advertising messages a day from people who lie to us for profit, but we accept it because it doesn't seem like there's any choice.  This creates a weird sort of muted anger that comes out in flashpoints on the right and the left (anger at free trade, immigration, and anti-media sentiments for starters).  Anyway, the net neutrality fight has shown us what happens when a frustrated public begins to organize against corporate elites.  AT&T, Verizon, and their various hired flunkies like Mike McCurry lie, obfuscate, and betray the public.  But when the political winds shift, they shift, and today there was an important and perceptible shift in the fight.  AT&T, the single worst company in terms of net neutrality, gave up a lot of ground to an angry public.

Here's the story - as a condition of AT&T's merger with Bellsouth, AT&T as agreed to net neutrality protections for 24 months or until net neutrality legislation is passed.  Scholar Tim Wu has a good analysis of the deal and how the precedent of this regulation will allow Congress to act more effectively to legislate on net neutrality protections.  The FCC will probably approve the merger with these new conditions.  Even though the merger shouldn't go through, getting net neutrality protections for the tens of millions of customers who use AT&T is a massive victory for a Bush-dominated FCC.  This is the biggest, baddest lobby in DC, and they didn't just lose on net neutrality last cycle, they lost again in what should have been a slam dunk.

There are a number of really important concessions that AT&T made.  First of all, the company acknowledged that the public has an interest in regulating these networks, that these networks are not AT&T's private property but are a regulated public communications vehicle that AT&T manages for profit.  This is a hugely important moral claim, and it shows that the public has won a subtle victory on who should control public communication.  Hint, it's not AT&T.  Second of all, this victory showed that the public can regulate AT&T's network.  AT&T CEO Ed Whiteacre, Hands Off the Internet Chair Mike McCurry, and telco-controlled Senator Ted Stevens have all argued that net neutrality can't be defined and so it can't be regulated.  Well it turns out that telecom companies can define net neutrality when it allows them to make billions.  Funny that.

There are other important technical victories here, including the fact that WiMax can now be subject to net neutrality regulations.  Now of course this is not a perfect deal, and there are very savvy skeptics who believe that AT&T will try to drive a truck through what look like very small loopholes.  And frankly, I tend to agree that these companies - the executives and lobbyists of whom lie without blinking - will try to get around any regulation they can, and failing that, will simply break the law and litigate.  We should be under no illusions that Verizon and AT&T act in good faith, ever, and react to anything except brute political force and their own greed.  I assume they will betray, but in betraying the deal, AT&T will show that it needs more regulatory oversight and not less, and in betraying it will generate even more of a public backlash.  There's going to be a fight in Congress over extending net neutrality protections through legislation, as well as genuinely building out a national high speed universal internet that these companies work against and that countries like South Korea had years ago.

For now, we can take solace in the fact a Bush-crony dominated FCC Chairman, Kevin Martin, and a multi-billion dollar telecom industry, lost to a group of public interest advocates and a fed-up public.  These executives, who do none of the work of operating the systems they use to loot the public through obnoxious toll-booths and subpar services, lost not only this battle, but the intellectual argument that they are anything but a series of PACs and lobbyists attached to a billing service.  And that's going to hurt.



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Re: AT&T Concedes to Net Neutrality (none / 0)

I hate to be negative here, but if AT&T agrees to "net neutrality protection" for 24 months OR until "net neutrality legislation is passed", what is stopping them from CONTINUING to lobby for net neutrality legislation which actually kills net neutrality.

I think we just got jobbed here, folks.


by alteran on Fri Dec 29, 2006 at 02:35:25 PM EST

Re: AT&T Concedes to Net Neutrality (none / 0)

Nothing is going to stop them from doing that.  In fact that's their plan.  

The point here is that this is a game of inches, and now it's harder for them to do that.  The choice was never between a neutral net with a happy set of telecoms and this deal.  The choice was a monolith with damaged credibility/net neutrality proto-regulations and a monolith with no restrictions.


by Matt Stoller on Fri Dec 29, 2006 at 03:09:05 PM EST
[ Parent ]

A big first down in a game of inches (none / 0)

First of all, the company acknowledged that the public has an interest in regulating these networks, that these networks are not AT&T's private property but are a regulated public communications vehicle that AT&T manages for profit.  This is a hugely important moral claim

Absolutely right, Matt - that's freakin' HUGE.  I've been following telecom issues since my days as a communications paralegal 25+ years ago.  The earth just shifted.

To the extent that it's a game of inches, this just raised the end of the playing field behind us by several inches, so that from here on out we're running a lot less uphill than we used to.  This is just awesome.

Sure, they'll try to run through any loophole they can.  That's who they are, that's what they do.  But we're paying attention now, and we've already moved the ball this far.

I'm just amazed at how much things have changed in just the last year.  A year ago, outside the telecom companies themselves, only a few geeks had any idea that this issue existed.  Last summer, we were playing catch-up on this issue from miles behind.  We lost in the House, and could have easily lost in the Senate, too - didn't Ted Stevens get a little too greedy about some other issue, which snarled things up?  We were way lucky, at any rate, that we didn't lose outright on this one in the last Congress.

But now, they're realizing the terrain isn't very good for them anymore.  The GOP no longer controls the levers of Congress, many Dems know what this issue is about now, and a roused citizenry is educating the rest of them.  That they're willing to trade Net Neutrality for a merger...that would have been unthinkable a year ago.

This war isn't over - not by a long shot - but this sends me into New Year's weekend in a celebratin' frame of mind.


by RT on Fri Dec 29, 2006 at 05:25:36 PM EST
[ Parent ]

Re: AT&T Concedes to Net Neutrality (none / 0)

Keep in mind that as this fight moves to the states we need to engage local actors. That means that MyDD readers should encourage their local bloggers to follow this issue and MyDD needs to keep in contact with local bloggers.

Nor should we confine ourselves to Democratic bloggers, BlogNetNews tracks local bloggers in several states. It has a marvelous search feature which allows you to find out what bloggers are saying about any issue in any of the states they have feeds for.

These are going to be key tools in the future, and not just for net neutraility.


by Alice Marshall on Fri Dec 29, 2006 at 04:11:50 PM EST

different things (none / 0)

This creates a weird sort of muted anger that comes out in flashpoints on the right and the left (anger at free trade, immigration, and anti-media sentiments for starters).

For what it's worth, my feelings on free trade, immigration, and the media are in no part due to any Muted Anger over advertising! Perhaps some others could agree with that statement, but it is false when applied to myself.

my anger over being lied to for someone else's profit stays right there. pointed at advertisers and the fact that we as a culture have accepted deception and manipulation as part of our everyday dialogue.

my feelings on the media, immigration and free trade have to do with these issues' effects on humans.


Dust in the wind. All we are is dust in the divine, flatulent wind.
by Nezua Limon Xoloquinta Jonez on Fri Dec 29, 2006 at 04:54:51 PM EST

Net Neutrality at what Price? (none / 0)

I got my notice from AT&T last week that I have the right (limited for 30 days) to terminate my services if I don't like the new addendum placed on my services agreement.
I knew then that I was in trouble when I saw that the addendum defined Service and Services and one section was about Price Changes and another about Changes to my Agreement.
I got my AT&T long distance bill today and the reliable package that I HAD never ran over $34.00 but this bill is for $54.16.
Thanks so much for the wonderful Net Neutrality victory.  irsouth2
by irsouth2 on Fri Dec 29, 2006 at 06:06:30 PM EST

Re: AT&T Concedes to Net Neutrality (none / 0)

This is huge.  Congratulations to the people powered movement and the Save the Internet Coalition.  Keep a watch on those telco K St. rascals, no victories are final in Washington.


by howardpark on Fri Dec 29, 2006 at 06:52:29 PM EST

Re: AT&T Concedes to Net Neutrality (none / 0)

This may move the goalposts slightly, but one thing's clear.

24 months? Net neutrality has to get passed this congress, or AT&T will enjoy their monopoly status and no longer have to pay the consequences.

Can we get the votes to get net neutrality through? Can we stop Ted Stevens blocking it? Because otherwise it's a moral victory, but an actual defeat.


Visit Forgotten Countries, my new foreign policy-based blog
by Englishlefty on Fri Dec 29, 2006 at 08:14:10 PM EST

Re: AT&T Concedes to Net Neutrality (none / 0)

We don't like thousands of advertising messages a day from people who lie to us for profit, but we accept it because it doesn't seem like there's any choice.

Actually, we put up with it because of this funny thing called the First Amendment. In that sense, yeah, there's not much choice if we consider the alternatives.

This creates a weird sort of muted anger that comes out in flashpoints on the right and the left (anger at free trade, immigration, and anti-media sentiments for starters).

What? Advertising is the driver behind the immigration debate? Anger (muted or otherwise) is best handled on the therapist's couch, not in telecoms policy.

Anyway, the net neutrality fight has shown us what happens when a frustrated public begins to organize against corporate elites.

Do you imagine that the multi-billion companies like Google, who are funding neutrality proponents, are somehow not corporate elites? It's not "the people", it big content companies versus big network companies.

Please, there is a lot of good discussion to be had here without such spin.


Matt
by ORinSF on Sat Dec 30, 2006 at 02:08:07 AM EST

Re: AT&T Concedes to Net Neutrality (none / 0)

"Actually, we put up with it because of this funny thing called the First Amendment. In that sense, yeah, there's not much choice if we consider the alternatives."

Non political advertisements are not politically protected free speech.  Even if they were, it is trivial to regulate them out of existence, especially when dealing with the public airwaves.

"Do you imagine that the multi-billion companies like Google, who are funding neutrality proponents, are somehow not corporate elites? It's not "the people", it big content companies versus big network companies."

Google came in late to the fight.  Thanks.

"Please, there is a lot of good discussion to be had here without such spin."

Might try it yourself.


by Ian Welsh on Sat Dec 30, 2006 at 04:20:25 AM EST

Re: AT&T Concedes to Net Neutrality (none / 0)

Well, Google's name has been on there for well over a year, as long as I've been involved. So even if it ever was "the people", it hasn't been for a long time. It's big money on both sides, looking to protect their interests.

If you happen to agree with one of the sides, that's fine, but don't imagine that it's anything but a commercial fight between behemoths.

Even if they were, it is trivial to regulate them out of existence, especially when dealing with the public airwaves.

Should I take this to mean you are comfortable in using gov't to regulate certain kinds of speech out of existence? Google has a commercial interest in net neutrality. If they fund an ad to that effect, is it not a commercial ad?

More to the point, do you want gov't deciding the line between acceptable and unacceptable speech?

The better solution is not to regulate it at all. You may like the idea of gov't shutting down speech that bothers you. But that isn't free speech, and it is most certainly not good for the people.


Matt
by ORinSF on Sat Dec 30, 2006 at 01:27:55 PM EST
[ Parent ]

Re: AT&T Concedes to Net Neutrality (none / 0)

"The better solution is not to regulate it at all. You may like the idea of gov't shutting down speech that bothers you. But that isn't free speech, and it is most certainly not good for the people."

For all your mistrust of government, you're putting a whole lot of faith in one monopolistic corporation.

It's been the experience in this country since the days of Teddy Roosevelt and the original trust-busters, that you do not allow services that are dominated by one or two corporations to operate without a substantial amount of regulation.

Back in the old days, everyone was free to go wherever they wanted -- but if you wanted to get their by train, you'd have to go by way of one of the robber barrons.

Somehow, I get the feeling that your definition of freedom of speech is pretty much useless for most people.  It only guarantees the freedom for the owner of the pipe.

Really old school.


Independent Illinois Grassroots: IllinoisDemNet.com
by patachon on Sat Dec 30, 2006 at 02:04:51 PM EST
[ Parent ]

Re: AT&T Concedes to Net Neutrality (none / 0)

Gov't control of speech (and technology) is about as old school as it gets.

It's also old school to imagine that our telecoms situation is similar to the days of Teddy Roosevelt. You seem to be making the argument that we should emulate those days. Can you imagine that it's 2006, and perhaps we should be looking forward?

Regulation is an excellent way to ensure that gov't-sanctioned companies dominate. Just look at PG&E out here in Cali.

AT&T is not a monopoly. They compete with Verizon, Level 3, Sprint, Global Crossing, Comcast, Cox, you name it. There are lots of pipes, from lots of companies, unless you are new to this internets stuff. "Monopolistic" is a nice semantic fudge, though.

I don't buy anything from AT&T. Yet somehow I am able to use the Internet. Weird that the robber barons control my life, somehow.

If I don't like AT&T, I can get get onto the net by many other means. If I don't like the government's judgment of acceptable speech, well, I am out of luck.

Where is the real monopoly?


Matt
by ORinSF on Sat Dec 30, 2006 at 03:00:37 PM EST
[ Parent ]

Re: AT&T Concedes to Net Neutrality (none / 0)

There is a bigger picture that adds to a consumer backlash.  It seems to me that the giant corporations have become so bold as to be openly and undisquisedly anti-consumerist -- through their lobbying and  policies resulting in the bankruptcy bill, the gutting of environmental protections, the endless harrassment of commercial phone calls to the home (especially this harrasment), the raising of gas prices, the horrible drug-company ripoff of our treasury and the challenges posed to individuals by the insane complexities of their new Medicare mess. At the same time we read of compensation to corporate execs in the hundreds of millions of dollars. These corporations seem to have dropped any pretense of listening to or respecting their customers. Along with providing goods and services they are challenging us on a personal level with assaults to our very peace of mind.
It is an environment that makes more and more of us really angry and ripe for a strong backlash.
by syolles on Sat Dec 30, 2006 at 11:52:46 AM EST

Watch for "Best of Web" video services (none / 0)

I agree that this is a significant step forward in ways that Matt and others address in their comments.  But, looking forward, I think it's also worth keeping in mind what folks like Dave Burstein have to say about the NN provisions in the merger agreement (see below for excerpt from today's issue of Dave B's newsletter, DSL Prime).  

As I read the agreement and comments by Dave and other technically knowledgeable folks, my sense is that AT&T's next-generation strategy--which will be constrained by a pipe capable of delivering only about 25 Mbps total--will be to deliver a "best of the web" video service along with their IP version of "cable TV" services on their "IPTV" network (not covered by the NN provision of the merger agreement).  

The Internet access service available on AT&T's nex-gen "Lightspeed/Uverse" network (just being introduced in about a dozen markets this past week) has a maximum download speed of just 6 Mbps (1 Mbps upload).  That's not likely to expand much for a good long time.  My guess is that they're hoping they'll be able to attract enough customers/revenue to compete successfully enough to keep Wall Street happy, even with a pretty lame nex-gen "Internet access" service by providing their customers happy with a "best of the web" video service.  As Dave explains below, their 6 Mbps broadband service (the one covered by the agreement's NN provision) will be very hard pressed to deliver competitive web-based video services.  I wouldn't be surprised if they're also hoping that cable operators will also move in this direction (of which there are already signs--e.g., Comcast is working on a "best of the web" video-on-demand service).  That would take some of the heat off them, with both sides of the duopoly moving toward private IP-video networks they package and sell for a fee.  This is the dance of the duopolists...each trying to leverage its strengths and minimize its weaknesses to gain the favor of Wall Street, while never going for the jugular of their competitor, which would attract regulatory attention (you'd have a potential monopoly) and could also backfire into a mutually damaging price war, which Wall Street would punish harshly.

That being said, the agreement is a healthy and at least partly successful confrontation of AT&T and Whitacre, and that's something the people who helped make it happen should be proud of.  It also gives Congress a little more to work with as they prepare to consider this sector and the NN issue.

Here's what Dave Burstein said this morning:


AT&T writes "AT&T/BellSouth also commits that it will maintain a neutral network and neutral routing," which sounds great. On Page 10, they make that hollow by writing "This commitment also does not apply to AT&T/BellSouth's Internet Protocol television (IPTV) service." An empirical look at AT&T's actual network and prior comments make clear it is precisely the "IPTV" network they will use for their privileged content. What they are calling the "IPTV" part of the network has Microsoft software and Alcatel 7750 routers designed for quality of service. These are the tools to make sure video gets rough "undegraded." They have not installed similar on the older parts of the network, and will shunt "unfavored" traffic there instead. When those lines are busy, video will start dropping out. There's some language AT&T can't favor different bits on the 1998 connections, but not that they can't degrade them all and force TV to what they will call "IPTV."

So they have a 1998 style network (six meg  downloads, tops) that they say is fine for Internet users. Then they prepare to overload it, meaning congestion slows down video. If you want to reliably get a live movie through at TV quality, pay us for CDN, IPTV, or whatever we choose to call it to get around this agreement.

To verify this, ask an engineer such as AT&T's CTO Chris Rice whether video on the part they are separating as "broadband Internet access service" will always get through with the quality they receive it at the peering point. His only answer will be "sometimes." Ask the supporters of the proposal, especially those speaking for the public interest, if AT&T explained to them that Internet video could be degraded, unless AT&T (with a financial interest) diverted it to the newer routers. It also directly contradicts what AT&T VP Cicconi told the press "We will not degrade," the same words SEO Ed Whitacre used testifying before the Senate.


by mitchipd on Sat Dec 30, 2006 at 11:51:07 PM EST


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