Net Neutrality nightmare, illustrated

December 20, 2010: 11:14 AM ET

A presentation slide illustrates why telecom industry's plan to scrap Net Neutrality to increase profits will hurt consumers.

It doesn't get any clearer than this:

Feel sorry for that poor guy hammering away on that tablet above?  He's getting charged a separate additional fee for each different web service he's using.  Additionally, each different service coming over the air is being throttled according to the rules the telecoms set up.  Notice that Vodafone's services don't get throttled, while Google's (GOOG) YouTube and Facebook data are not only charged additionally, but slowed.

This is called "paid prioritization" of data on wireless networks and is at the heart of what the FCC will rule on tomorrow. 

"It is likely that there is going to be strong language disfavoring paid prioritization," said Andrew Jay Schwartzman, senior vice president and policy director of the Media Access Project.

The slide above is part of a presentation that Allot, a carrier infrastructure services company who counts AT&T (T) and Verizon (VZ) amongst its customers.  As part of the presentation, Allot says that these sort of services are already being implemented in "Net Neutrality affected parts of North America."

[We use] a number of different methods to accurately identify the application -- methods like heuristic analysis, behavioral and historical analysis, deep packet inspection, and a number of other techniques. What's key is that we have the best application identification available on the market, which means that even applications that are encrypted or use other methods to evade detection will be correctly identified and classified... We essentially feed this real-time information about traffic and application usage into the policy and charging system. Each subscriber has a particular service plan that they sign up for, and they're as generic or as personalized as the operator wants.

Wired's Epicenter got their hands on the presentation:

The companies, Allot Communications and Openet — suppliers to large wireless companies including AT&T and Verizon — showed off a new product in a web seminar Tuesday, which included a PowerPoint presentation (1.5-MB .pdf) that was sent to Wired by a trusted source.

Google, in a surprising change in policy, backed Verizon's 'view of Net Neutrality' for Wireless carriers earlier this year.  Google CEO Eric Schmidt said,

We have been talking to Verizon for a long time about trying to get an agreement on the definition of what net neutrality is. We're trying to find solutions that bridge between the hardcore net neutrality view and the telecom view. I want to be clear what we mean by net neutrality. What we mean is if you have one data type like video, you don't discriminate against one person's video in favor of another. But it's OK to discriminate across different types, so you could prioritize voice over video, and there is general agreement with Verizon and Google on that issue. The issues of wireless vs. wireline get very messy because of the issue of Type I vs Type II regulation and that is an FCC issue not a Google issue.

Join the Conversation
About This Author
Seth Weintraub
Seth Weintraub

Google went from searching the Web to worming its way into nearly every facet of business and government. Seth Weintraub unveils where the company is going, who it's competing with, who it's about to compete with and how market forces push the company to veer or adhere to its Don't Be Evil motto. For 15 years, Weintraub was a global IT director for a number of companies before becoming a blogger.

Email Seth
Featured Newsletters

Every morning, discover the companies, deals and trends in tech that are moving markets and making headlines.

Receive Fortune's newsletter on all the deals that matter, from Wall Street to Sand Hill Road. SUBSCRIBE

Covering the digital giants of Silicon Valley and beyond, an in-depth look at enterprise companies, and the startups disrupting them. Written by Michal Lev-Ram and emailed twice weekly.

Anne Fisher answers career-related questions and offers helpful advice for business professionals.

Company Price Change % Change
Bank of America Corp... 7.95 -0.16 -1.97%
Ford Motor Co 12.28 -0.25 -2.00%
General Electric Co 19.39 0.17 0.88%
Citigroup Inc 32.36 -1.00 -3.00%
Wal-Mart Stores Inc 58.60 -1.47 -2.45%
Data as of Feb 22
Index Last Change % Change
Dow 12,915.10 -23.57 -0.18%
Nasdaq 2,931.89 -1.28 -0.04%
S&P 500 1,355.64 -2.02 -0.15%
Treasuries 2.02 0.02 0.95%
Data as of 9:33am ET
Most Popular
Fear of Iran is inflating gas prices
 
Economic optimism to boost stocks
 
Why your cell phone bill is going up
 
Multi-million dollar foreclosures
 
How Congress is killing the recovery
 
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2012 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2012 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2012. All rights reserved. Most stock quote data provided by BATS.
Powered by WordPress.com VIP.