http://www.alternet.org/mediaculture/31753/

The End of the Internet

By Jeffrey Chester, The Nation. Posted February 6, 2006.

America's big phone and cable companies want to start charging 
exorbitant user fees for the supposedly-free internet.

The nation's largest telephone and cable companies are crafting an 
alarming set of strategies that would transform the free, open and 
nondiscriminatory Internet of today to a privately run and branded 
service that would charge a fee for virtually everything we do online.

Verizon, Comcast, Bell South and other communications giants are 
developing strategies that would track and store information on our 
every move in cyberspace in a vast data-collection and marketing 
system, the scope of which could rival the National Security Agency.

According to white papers now being circulated in the cable, 
telephone and telecommunications industries, those with the deepest 
pockets -- corporations, special-interest groups and major 
advertisers -- would get preferred treatment. Content from these 
providers would have first priority on our computer and television 
screens, while information seen as undesirable, such as peer-to-peer 
communications, could be relegated to a slow lane or simply shut out.

Under the plans they are considering, all of us -- from content 
providers to individual users -- would pay more to surf online, 
stream videos or even send e-mail. Industry planners are mulling new 
subscription plans that would further limit the online experience, 
establishing "platinum," "gold" and "silver" levels of Internet 
access that would set limits on the number of downloads, media 
streams or even e-mail messages that could be sent or received.

To make this pay-to-play vision a reality, phone and cable lobbyists 
are now engaged in a political campaign to further weaken the 
nation's communications policy laws. They want the federal government 
to permit them to operate Internet and other digital communications 
services as private networks, free of policy safeguards or 
governmental oversight. Indeed, both the Congress and the Federal 
Communications Commission (FCC) are considering proposals that will 
have far-reaching impact on the Internet's future. Ten years after 
passage of the ill-advised Telecommunications Act of 1996, telephone 
and cable companies are using the same political snake oil to 
convince compromised or clueless lawmakers to subvert the Internet 
into a turbo-charged digital retail machine.

The telephone industry has been somewhat more candid than the cable 
industry about its strategy for the Internet's future. Senior phone 
executives have publicly discussed plans to begin imposing a new 
scheme for the delivery of Internet content, especially from major 
Internet content companies. As Ed Whitacre, chairman and CEO of AT&T, 
told Business Week in November, "Why should they be allowed to use my 
pipes? The Internet can't be free in that sense, because we and the 
cable companies have made an investment, and for a Google or Yahoo! 
or Vonage or anybody to expect to use these pipes [for] free is nuts!"

The phone industry has marshaled its political allies to help win the 
freedom to impose this new broadband business model. At a recent 
conference held by the Progress and Freedom Foundation, a think tank 
funded by Comcast, Verizon, AT&T and other media companies, there was 
much discussion of a plan for phone companies to impose fees on a 
sliding scale, charging content providers different levels of 
service. "Price discrimination," noted PFF's resident media expert 
Adam Thierer, "drives the market-based capitalist economy."

Net Neutrality

To ward off the prospect of virtual toll booths on the information 
highway, some new media companies and public-interest groups are 
calling for new federal policies requiring "network neutrality" on 
the Internet. Common Cause, Amazon, Google, Free Press, Media Access 
Project and Consumers Union, among others, have proposed that 
broadband providers would be prohibited from discriminating against 
all forms of digital content. For example, phone or cable companies 
would not be allowed to slow down competing or undesirable content.

Without proactive intervention, the values and issues that we care 
about -- civil rights, economic justice, the environment and fair 
elections -- will be further threatened by this push for corporate 
control. Imagine how the next presidential election would unfold if 
major political advertisers could make strategic payments to Comcast 
so that ads from Democratic and Republican candidates were more 
visible and user-friendly than ads of third-party candidates with 
less funds.

Consider what would happen if an online advertisement promoting 
nuclear power prominently popped up on a cable broadband page, while 
a competing message from an environmental group was relegated to the 
margins. It is possible that all forms of civic and noncommercial 
online programming would be pushed to the end of a commercial digital 
queue.

But such "neutrality" safeguards are inadequate to address more 
fundamental changes the Bells and cable monopolies are seeking in 
their quest to monetize the Internet. If we permit the Internet to 
become a medium designed primarily to serve the interests of 
marketing and personal consumption, rather than global civic-related 
communications, we will face the political consequences for decades 
to come. Unless we push back, the "brandwashing" of America will 
permeate not only our information infrastructure but global society 
and culture as well.

Why are the Bells and cable companies aggressively advancing such 
plans? With the arrival of the long-awaited "convergence" of 
communications, our media system is undergoing a major 
transformation. Telephone and cable giants envision a potential 
lucrative "triple play," as they impose near-monopoly control over 
the residential broadband services that send video, voice and data 
communications flowing into our televisions, home computers, cell 
phones and iPods. All of these many billions of bits will be 
delivered over the telephone and cable lines.

Video programming is of foremost interest to both the phone and cable 
companies. The telephone industry, like its cable rival, is now in 
the TV and media business, offering customers television channels, 
on-demand videos and games. Online advertising is increasingly 
integrating multimedia (such as animation and full-motion video) in 
its pitches. Since video-driven material requires a great deal of 
Internet bandwidth as it travels online, phone and cable companies 
want to make sure their television "applications" receive 
preferential treatment on the networks they operate. And their 
overall influence over the stream of information coming into your 
home (or mobile device) gives them the leverage to determine how the 
broadband business evolves.

Mining Your Data

At the core of the new power held by phone and cable companies are 
tools delivering what is known as "deep packet inspection." With 
these tools, AT&T and others can readily know the packets of 
information you are receiving online -- from e-mail, to websites, to 
sharing of music, video and software downloads.

These "deep packet inspection" technologies are partly designed to 
make sure that the Internet pipeline doesn't become so congested it 
chokes off the delivery of timely communications. Such products have 
already been sold to universities and large businesses that want to 
more economically manage their Internet services. They are also being 
used to limit some peer-to-peer downloading, especially for music.

But these tools are also being promoted as ways that companies, such 
as Comcast and Bell South, can simply grab greater control over the 
Internet. For example, in a series of recent white papers, Internet 
technology giant Cisco urges these companies to "meter individual 
subscriber usage by application," as individuals' online travels are 
"tracked" and "integrated with billing systems." Such tracking and 
billing is made possible because they will know "the identity and 
profile of the individual subscriber," "what the subscriber is doing" 
and "where the subscriber resides."

Will Google, Amazon and the other companies successfully fight the 
plans of the Bells and cable companies? Ultimately, they are likely 
to cut a deal because they, too, are interested in monetizing our 
online activities. After all, as Cisco notes, content companies and 
network providers will need to "cooperate with each other to leverage 
their value proposition." They will be drawn by the ability of cable 
and phone companies to track "content usageŠby subscriber," and where 
their online services can be "protected from piracy, metered, and 
appropriately valued."

Our Digital Destiny

It was former FCC chairman Michael Powell, with the support of 
then-commissioner and current chair Kevin Martin, who permitted phone 
and cable giants to have greater control over broadband. Powell and 
his GOP majority eliminated longstanding regulatory safeguards 
requiring phone companies to operate as nondiscriminatory networks 
(technically known as "common carriers"). He refused to require that 
cable companies, when providing Internet access, also operate in a 
similar nondiscriminatory manner. As Stanford University law 
professor Lawrence Lessig has long noted, it is government regulation 
of the phone lines that helped make the Internet today's vibrant, 
diverse and democratic medium.

But now, the phone companies are lobbying Washington to kill off 
what's left of "common carrier" policy. They wish to operate their 
Internet services as fully "private" networks. Phone and cable 
companies claim that the government shouldn't play a role in 
broadband regulation: Instead of the free and open network that 
offers equal access to all, they want to reduce the Internet to a 
series of business decisions between consumers and providers.

Besides their business interests, telephone and cable companies also 
have a larger political agenda. Both industries oppose giving local 
communities the right to create their own local Internet wireless or 
wi-fi networks. They also want to eliminate the last vestige of local 
oversight from electronic media -- the ability of city or county 
government, for example, to require telecommunications companies to 
serve the public interest with, for example, public-access TV 
channels. The Bells also want to further reduce the ability of the 
FCC to oversee communications policy. They hope that both the FCC and 
Congress -- via a new Communications Act -- will back these proposals.

The future of the online media in the United States will ultimately 
depend on whether the Bells and cable companies are allowed to 
determine the country's "digital destiny." So before there are any 
policy decisions, a national debate should begin about how the 
Internet should serve the public. We must insure that phone and cable 
companies operate their Internet services in the public interest -- 
as stewards for a vital medium for free expression.

If Americans are to succeed in designing an equitable digital destiny 
for themselves, they must mount an intensive opposition similar to 
the successful challenges to the FCC's media ownership rules in 2003. 
Without such a public outcry to rein in the GOP's corporate-driven 
agenda, it is likely that even many of the Democrats who rallied 
against further consolidation will be "tamed" by the well-funded 
lobbying campaigns of the powerful phone and cable industry.

Jeffrey Chester is executive director of the Center for Digital 
Democracy (www.democraticmedia.org).

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