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There’s a small but influential number of tech reporters and scholars who seem to delight in making the US sound like a broadband and technology backwater. A new Mercatus working paper by Roslyn Layton, a PhD fellow at a research center at Aalborg University, and Michael Horney a researcher at the Free State Foundation, counter that narrative and highlight data from several studies that show the US is at or near the top in important broadband categories.

For example, per Pew and ITU data, the vast majority of Americans use the Internet and the US is second in the world in data consumption per capita, trailing only South Korea. Pew reveals that for those who are not online the leading reasons are lack of usability and the Internet’s perceived lack of benefits. High cost, notably, is not the primary reason for infrequent use.

I’ve noted before some of the methodological problems in studies claiming the US has unusually high broadband prices. In what I consider their biggest contribution to the literature, Layton and Horney highlight another broadband cost frequently omitted in international comparisons: the mandatory media license fees many nations impose on broadband and television subscribers.

These fees can add as much as $44 to the monthly cost of broadband. When these fees are included in comparisons, American prices are frequently an even better value. In two-thirds of European countries and half of Asian countries, households pay a media license fee on top of the subscription fees to use devices such as connected computers and TVs. …When calculating the real cost of international broadband prices, one needs to take into account media license fees, taxation, and subsidies. …[T]hese inputs can materially affect the cost of broadband, especially in countries where broadband is subject to value-added taxes as high as 27 percent, not to mention media license fees of hundreds of dollars per year.

US broadband providers, the authors point out, have priced broadband relatively efficiently for heterogenous uses–there are low-cost, low-bandwidth connections available as well as more expensive, higher-quality connections for intensive users.

Further, the US is well-positioned for future broadband use. Unlike many wealthy countries, Americans typically have access, at least, to broadband from telephone companies (like AT&T DSL or UVerse) as well as from a local cable provider. Competition between ISPs has meant steady investment in network upgrades, despite the 2008 global recession. The story is very different in much of Europe, where broadband investment, as a percentage of the global total, has fallen noticeably in recent years. US wireless broadband is also a bright spot: 97% of Americans can subscribe to 4G LTE while only 26% in the EU have access (which partially explains, by the way, why Europeans often pay less for mobile subscriptions–they’re using an inferior product).

There’s a lot to praise in the study and it’s necessary reading for anyone looking to understand how US broadband policy compares to other nations’. The fashionable arguments that the US is at risk of falling behind technologically were never convincing–the US is THE place to be if you’re a tech company or startup, for one–but Layton and Horney show the vulnerability of that narrative with data and rigor.

There seems to be increasing chatter among net neutrality activists lately on the subject of reclassifying ISPs as Title II services, subject to common carriage regulation. Although the intent in pushing reclassification is to make the Internet more open and free, in reality such a move could backfire badly. Activists don’t seem to have considered the effect of reclassification on international Internet politics, where it would likely give enemies of Internet openness everything they have always wanted.

At the WCIT in 2012, one of the major issues up for debate was whether the revised International Telecommunication Regulations (ITRs) would apply to Operating Agencies (OAs) or to Recognized Operating Agencies (ROAs). OA is a very broad term that covers private network operators, leased line networks, and even ham radio operators. Since “OA” would have included IP service providers, the US and other more liberal countries were very much opposed to the application of the ITRs to OAs. ROAs, on the other hand, are OAs that operate “public correspondence or broadcasting service.” That first term, “public correspondence,” is a term of art that means basically common carriage. The US government was OK with the use of ROA in the treaty because it would have essentially cabined the regulations to international telephone service, leaving the Internet free from UN interference. What actually happened was that there was a failed compromise in which ITU Member States created a new term, Authorized Operating Agency, that was arguably somewhere in the middle—the definition included the word “public” but not “public correspondence”—and the US and other countries refused to sign the treaty out of concern that it was still too broad.

If the US reclassified ISPs as Title II services, that would arguably make them ROAs for purposes at the ITU (arguably because it depends on how you read the definition of ROA and Article 6 of the ITU Constitution). This potentially opens ISPs up to regulation under the ITRs. This might not be so bad if the US were the only country in the world—after all, the US did not sign the 2012 ITRs, and it does not use the ITU’s accounting rate provisions to govern international telecom payments.

But what happens when other countries start copying the US, imposing common carriage requirements, and classifying their ISPs as ROAs? Then the story gets much worse. Countries that are signatories to the 2012 ITRs would have ITU mandates on security and spam imposed on their networks, which is to say that the UN would start essentially regulating content on the Internet. This is what Russia, Saudia Arabia, and China have always wanted. Furthermore (and perhaps more frighteningly), classification as ROAs would allow foreign ISPs to forgo commercial peering arrangements in favor of the ITU’s accounting rate system. This is what a number of African governments have always wanted. Ethiopia, for example, considered a bill (I’m not 100 percent sure it ever passed) that would send its own citizens to jail for 15 years for using VOIP, because this decreases Ethiopian international telecom revenues. Having the option of using the ITU accounting rate system would make it easier to extract revenues from international Internet use.

Whatever you think of, e.g., Comcast and Cogent’s peering dispute, applying ITU regulation to ISPs would be significantly worse in terms of keeping the Internet open. By reclassifying US ISPs as common carriers, we would open the door to exactly that. The US government has never objected to ITU regulation of ROAs, so if we ever create a norm under which ISPs are arguably ROAs, we would be essentially undoing all of the progress that we made at the WCIT in standing up for a distinction between old-school telecom and the Internet. I imagine that some net neutrality advocates will find this unfair—after all, their goal is openness, not ITU control over IP service. But this is the reality of international politics: the US would have a very hard time at the ITU arguing that regulating for neutrality and common carriage is OK, but regulating for security, content, and payment is not.

If the goal is to keep the Internet open, we must look somewhere besides Title II.

Day 1 of the Internet Governance Forum is in the books, and everyone is talking about what will happen on Day 2. Brazil recently announced that it will host a meeting on Internet governance in April. Tomorrow, ICANN is hosting a meeting at 1pm to explain how the April meeting will work.

Everyone that I’ve talked to in the hallways has brought up the meeting in April. No one is quite sure what to expect.

On one hand, Brazil has been part of the coalition that is pushing to do more Internet governance at the ITU. On the other hand, ICANN seems to be a willing participant in Brazil’s scheme. The recent “Montevideo Statement,” issued by various Internet organizations, called for globalizing the IANA function, which means at a minimum removing the US’s special role of maintaining the domain name system’s root zone file.

ICANN wants independence from the US government, and Brazil wants ICANN to be independent from the US government (and possibly dependent on the ITU), so this makes them allies for now.

Bizarrely, NSA surveillance continues to be cited as a reason for Brazil’s actions, although of course the IANA function has nothing to do with surveillance. The IANA issue is mostly about status. Other governments seem to feel slighted by the US’s control of the root zone file.

In any case, tomorrow we may know slightly more about ICANN and Brazil’s schemes.

The New York Times reports:

The Russians, who with only minimal success, had for years sought to make these companies provide law enforcement access to data within Russia, reacted angrily. Mr. Gattarov formed an ad hoc committee in response to Mr. Snowden’s leaks.

Ostensibly with the goal of safeguarding Russian citizens’ private lives and letters from spying, the committee revived a long-simmering Russian initiative to transfer control of Internet technical standards and domain name assignments from two nongovernmental groups that control them today to an arm of the United Nations, the International Telecommunications [sic] Union.

It’s not immediately clear to me how moving Internet standards and DNS from IETF and ICANN to the ITU is supposed to stop the NSA from spying on Russians, so the smart read is that this is retaliation pure and simple.

Brazil’s foreign minister, Antonio Patriota, for example, a week ago endorsed the Russian proposal to transfer some control over Internet technical standards to the United Nations telecommunications agency.

While these are not major changes in policy positions, the NSA’s surveillance programs seem to be galvanizing those who want the ITU to take an active role in Internet governance. It’s time for the USA to practice what it preaches on Internet freedom.

Next week, I’ll be in Geneva for the 2013 World Telecommunication/ICT Policy Forum, better known by the acronym WTPF-13. This is the first major ITU conference since the WCIT in December, and the first real test of whether what some are calling the “post-WCIT era” really exists, and if so, what it means. For those just now tuning in, the WCIT was a treaty conference in Dubai in which some ITU member states pushed hard to make elements of the Internet subject to intergovernmental agreement, resulting in the refusal of 55 countries to sign the treaty. I published a retrospective account of my experience at the WCIT at Ars Technica.

The WTPF will be different than the WCIT in several important ways: Continue reading →

People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public. — Adam Smith, The Wealth of Nations

As we approach the World Telecommunication/ICT Policy Forum, the debate over whether intergovernmental organizations like the International Telecommunication Union should have a role to play in Internet governance continues. One argument in favor of intergovernmentalism, advanced, for instance, by former ITU Counsellor Richard Hill (now operating his own ITU lobbying organization, delightfully named APIG), goes as follows:

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Jerry Brito and WCITLeaks co-creator Eli Dourado have a conversation about the recent World Conference on International Telecommunications (WCIT), a UN treaty conference that delved into questions of Internet governance.

In the lead-up to WCIT—which was convened to review the International Telecommunication Regulations (ITRs)—access to preparatory reports and proposed modifications to the ITRs was limited to International Telecommunications Union (ITU) member states and a few other privileged parties. Internet freedom advocates worried that the member states would use WCIT as an opportunity to exert control over the Internet. Frustrated by the lack of transparency, Brito and Dourado created WCITLeaks.org, which publishes leaked ITU documents from anonymous sources.

In December, Dourado traveled to Dubai as a member of the U.S. delegation and got an insider’s view of the politics behind international telecommunications policy. Dourado shares his experiences of the conference, what its failure means for the future of Internet freedom, and why the ITU is not as neutral as it claims.

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Vinton Cerf, one of the “fathers of the internet,” discusses what he sees as one of the greatest threats to the internet—the encroachment of the United Nations’ International Telecommunications Union (ITU) into the internet realm. ITU member states will meet this December in Dubai to update international telecommunications regulations and consider proposals to regulate the net. Cerf argues that, as the face of telecommunications is changing, the ITU is attempting to justify its continued existence by expanding its mandate to include the internet. Cerf says that the business model of the internet is fundamentally different from that of traditional telecommunications, and as a result, the ITU’s regulatory model will not work. In place of top-down ITU regulation, Cerf suggests that open multi-stakeholder processes and bilateral agreements may be a better solutions to the challenges of governance on the internet.

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While preparing my latest Forbes column, “Does the Internet Need a Global Regulator?” I collected some excellent resources. I figured I would just post all the links here since others might find them useful as we work our way up to the big U.N. International Telecommunication Union (ITU) World Conference on International Telecommunications (WCIT) in Dubai this December. Please let me know of other things that I should add to this resource database. I’ve divided the database into “General Resources” and “Opinion Pieces”: Continue reading →

Here’s a sharp editorial from The Economist about Internet governance entitled,  “In Praise of Chaos: Governments’ Attempts to Control the Internet Should be Resisted.” In the wake of the recent Internet Governance Forum meeting, many folks are once again debating the question of who rules the Net? Along with Wayne Crews, I edited a huge collection of essays on that topic back in 2003 and it’s a subject that continues to interest me greatly. As I noted here last week, many of those who desire greater centralization of control over Net governance decisions are using the fear that “fragmentation” will occur without some sort of greater plan for the Net’s future. I believe these fears are greatly overstated and are being used to justify expanded government meddling with online culture and economics.

The new Economist piece nicely brings into focus the key question about who or what we should trust to guide the future of the Internet. It rightly notes that the current state of Net governance is, well, messy. But that’s not such a bad thing when compared to the alternative: Continue reading →