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Net Neutrality PPT

  1. Dylan Lee Curtis Sung
  2. What is Net Neutrality?  The concept of an “Open” Internet  Equal representation for all content providers (websites)  Transferring information without bias • It has basically been this way since the inception of the internet • Sounds good, right?
  3. So…Why is this a problem?  People are using more internet now than ever before  Netflix accounts for ~30% of internet capacity at peak hours  ISPs (Time Warner, Comcast) want to charge content providers (Netflix, Youtube) for using so much of the internet  ISPs have to work harder now more than ever to sustain their network infrastructure.  Which side are you on?
  4. To understand the internet, imagine a highway
  5.  Companies started making money using the internet, but the internet providers weren’t getting a piece of the pie
  6.  The principle of net neutrality has already been broken on several occasions.  Verizon sued the FCC and won back in 2013
  7. ISPs Reasons against Net Neutrality  Internet service providers are advocates for free enterprise (NO REGULATION)  the government should not micro-manage internet providers’ business.  Some data is more important than other data and should be prioritized.  FedEx & Amazon example
  8. Reasons For Net Neutrality  Advocates claim "we risk loss of the free flow and exchange of ideas central to our democracy"  Internet providers shouldn't be the ones to distinguish between acceptable and unacceptable content; their role is simply to transfer information without bias.
  9. If Net Neutrality loses…  Whatsapp is used for messaging, what if AT&T made sure whatsapp didn’t have internet access through their system?  Comcast owns NBC, they could give priority to NBC’s stream over Netflix. How many people would be willing to pay an extra $10 for Netflix?
  10. FCC Ruling  In February 16, 2015 the FCC voted 3-2 on party lines to approve strong rules to protect net neutrality, a landmark decision that was widely supported by the American public.  TomWheeler
  11. Porter’s Five Forces For ISPs
  12. Questions, Comments, Concerns?
  13. Sources    sidelines.html?_r=0   become-the-biggest-face-off-on-corporate-speech-since-citizens-united/  first-amendment-rights/  internet/  fails-internet-users/article_b1b01c93-a985-5ab9-8769-2f9c77f08677.html  

Notes de l'éditeur

  1. Dylan Intro Net Neutrality, basically the two most boring words you can string together in the English dictionary, but it is actually hugely important. Today we will do our best explain to you how net neutrality has affected you and may affect you in the future so that you will be able to confidently take a side when the debate ensues.
  2. Dylan Net Neutrality is the concept of an “open and free” internet where content providers are all given equal representation to download speeds and anyone can access any website without penalty. It is the transfer of information without bias and has been this way since the inception of the internet. Net neutrality sounds logical doesn’t it? Why would anyone want to change this exceptionally equal and free design?
  3. CURTIS If Internet Service Providers (ISPs) invested in more infrastructure to provide more bandwidth, this wouldn’t be a problem but if they arent getting paid, then why do it? Results in Crowding of the internet servers
  4. Dylan Imagine the Internet is 100 lane highway system that allows for bits of data, or cars, to be transferred. ISPs can throttle certain content flowing through their infrastructure. So they basically control and maintain the flow of traffic. Just like highways, they need to be maintained periodically and when there is a lot of traffic, congestion may occur.
  5. Dylan The internet is usually thought of as one person sends an email, it goes through the Internet service provider and pops out on the other side on your computer. In reality, the data travels through a complex web of ISPs before it reaches your computer. As you can see in the picture. It may travel from Verizon to Comcast, and then back to verizon for the last mile. This complex web gets even more complicated in the next slide. Eyeball- AT&T Verizon Comcast Time Warner Cable Transit- level 3
  6. Dylan Companies that are using the internet as their highway are making a lot of money, but the ISPs aren’t seeing any of that increased revenue. ISPs pay each other for the amount of data they allow to flow through their network. The more they have to work to allow data to flow, the more money they have to invest for transfer. So basically, with net neutrality, information is passed through this complex web of ISPs to your computer for no charge to the content provider.
  7. Curtis Verizon and other ISPs were regulated as a public utility but not classified as a public utility. They told the FCC they couldn’t do that so they sued on Sept. 9, 2013 and won January 14, 2014. Resulting in Net Neutrality being gutted… FCC came back even harder and reclassified ISPs as public utilities giving the FCC more power to regulate ISPs This is basically what brought the whole issue of Net Neutrality to the spot light.
  8. CURTIS In other words they feel they have the right to control what they provide through the internet because they Favored by republicans b/c they are against regulation FedEx realized that Amazon was using their service for the majority of their shipments. FedEx started to slow down shipments from amazon because they wanted amazon to pay for truck repairs. The consumers were the ones affected
  10. Dylan Examples of what can happen to businesses. Whatsapp is in competition with AT&T. If AT&T had the ability to throttle or block access to Whatsapp for AT&T users, Whatsapp would be eliminated and people would be forced to buy AT&T phone plans Also, Comcast owns NBC. Comcast and Netflix are in competition over streaming. What if NBC’s stream was faster that Netflix’s? Would you be willing to pay more for Netflix to get the speeds you already have now?
  11. Dylan In Feb. 2015, the FCC voted to enforce regulations on ISPs so that they could not throttle or block content providers. This was widely supported by the american public who actually sent over 600,000 comments to the FCC website. Tom Wheeler is the FCC chairman. He used to be one of the head lobbyists for ISPs, so when net neutrality advocates heard that he was appointed chairman, they were furious. He actually began his position against Net Neutrality, but after much public scrutiny he changed his position.
  12. Curtis When considering ISPs, their threat to substitute Products is very low because they basically have monopolized the industry. Therefore, the Threat of New Entrants is also low making their supplier power high and buyer power low. The Rivalry among existing competitors is null because they don’t operate in each other’s turf. They are practically cartels. “approximately 96-98% of the population has at most two internet providers”.