Draft presentation prepared for ARNIC Spring 08 Workshop on "US Digital Policy in the Global Context: Issues and Prospects Beyond 2008" http://arnic.info/workshop08.php (copyright 2008 by authors)

1. Jonathan Aronson ARNIC Presentation April 11, 2008

2. My co-conspirators Peter F. Cowhey John Richards Donald Abelson

11. The Cheap Revolution Scientific American, January 2001 Number of Years 0 1 2 3 4 5 Performance per Dollar Spent Data Storage (bits per square inch) (Doubling time 12 Months) Optical Fiber (bits per second) (Doubling time 9 Months) Silicon Computer Chips (Number of Transistors) (Doubling time 18 Months)

13. Why Winners Don’t Take All in the New Era Source: Gartner (August 2006) Figure 1. Percentage of OS-Specific (Generally Windows) vs. OS-Agnostic Applications Figure 3. Application Development Mix — New Applications Figure 2. Number of OS-Specific (Generally Windows) vs. OS-Agnostic Applications in Our Model Organization (Installed Base)

18. The Rise of New Network Uses Source: Krishna Nathanson, IBM, 2006

21. Four Guiding Principles Principle 1: Enable transactions among modular ICT building blocks Principle 2: Facilitate interconnection of modular capabilities Principle 3: Facilitate supply chain efficiency, reduce transaction costs Principle 4: Reform domestically to help reorganize global governance

22. 10 Norms to Implement Principles A. Institutional Design Norm 1: Emphasize flexible, sometimes experimental, choices of agents, including mixed authority structures when delegating authority globally.

23. Norms to Enable the Modular Supply Chain B. Enabling the Modular Supply Chain Norm 2: Invest heavily in the creation of virtual common capabilities for the Internet, and its successors, in a competitively neutral manner. Norm 3: Reinforce the growing competitiveness of the supply chain by partly refocusing competition policy .

24. Norms for the Network Infrastructure The 10 Norms C. Norms for the Network Infrastructure Norm 4: Use a light regulatory touch regarding pricing, investment, and assets crucial to providing ICT networks and services. Norm 5: Narrow and reset network competition policy . - all networks must accept all traffic from other networks . - adopt a narrow scope for rules to assure network neutrality - separate decisions about peering from decisions about about interconnection when dealing with VAN functions

25. Norms for Consumer Services (1) Norms for Consumer Services D. Norms for Consumer Services Norm 6: Government policies generally should not restrict experiments new applications by limiting mixing and matching of services Or through pricing rules that limit experimentation Norm 7: Create rules for the globalization of multimedia AV content that balance the goals of encouraging the trade in services and fostering legitimate domestic media policies. Norm 8: Use networked ICT techniques and changes to tip practices toward new markets for trading and transacting digital rights.

26. Norms for Consumer Services (2) Norm 9: Enhance property rights for personal data and create mechanisms to allow commercial exchanges involving those rights on standard terms . Norm 10: Users may take their information with them when they depart from specific applications and experiences and own their “click-streams.”.