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We need both net and device neutrality

By | November 2, 2009, 12:46 PM PST

Computer industry legend Jim Warren (right, from the PC Hall of Fame) says we need to think about net neutrality differently in order to understand it.

It’s about content. It’s about carriers of content restricting access to competing content.

Cable companies have this in their business model. You can’t have an unlimited number of channels on a cable box. But they do have a crude way of gauging the popularity of content, and by offering Internet service they allow you go reach all the content there is.

So instead of worrying about AT&T or Verizon, he says, worry about Comcast deciding what you are and are not allowed to do with your cable Internet service.

And one more thing. Worry about Apple. Worry about Apple a lot.

This is a sort of Circle of Life story because, as co-founder of the West Coast Computer Faire (he called himself the Faire Chaircreature), Jim Warren ran the trade show at which the Apple II was introduced.

So why worry about Apple? Jim explained it all last week to Dave Farber’s Interesting People list:

Apple blocks iPhone users from choosing their own cell-service provider (in the USA, but apparently not in Communist China!); prohibits Adobe’s Flash app on iPhones and iPods and thus blocks user access to Flash CONTENT; blocks Netflix from access via [some] Apple
computers, etc.

Apple is doing this for EXACTLY the same reason that the railroads abused their position, and that the conglomerated communications cartel opposes content neutrality: Apple is using its position as  PLATFORM-maker to block access to CONTENT if it “competes” with Apple’s content or their monopoly deal with AT&T.

How long will it be before ALL equipment makers and communications carriers finish Balkinizing access and choking CONTENT providers into subservience to equipment-makers’ and communications-carriers’ all-powerful whims?

Think Jim’s crazy? Right now, Apple is pitching TV and cable networks about offering a $30/month programming package through its iTunes service. Apple already has a chokehold on the music business and if you’re not on iTunes you don’t have a song.

Most arguments about net neutrality are based on a railroad metaphor, writes VisiCalc co-founder Bob Frankston. But the track itself was not the problem. The problem was the control the track gave the railroad over commerce surrounding it. Absent regulation, railroads could price farmers or industrial suppliers out of their markets through its control of access to the market.

The same thing is constantly threatened in the world of technology, and often implemented. Anyone who can create a bottleneck will. When a device or network owner seeks to turn its bottleneck control into monopoly power, as the railroads had in the 1880s, that’s when government must step in.

The first such regulation was passed in 1887, and signed into law by President Grover Cleveland. Cleveland wasn’t a socialist, and he wasn’t anti-business. He, and the Congress, merely became convinced that bottlenecks between buyers and sellers must be controlled by someone other than their owners.

That should be your guide to the net neutrality debate.

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Dana Blankenhorn

About Dana Blankenhorn

Dana Blankenhorn was a contributing editor for SmartPlanet from 2009 to 2010.

Dana Blankenhorn

Dana Blankenhorn

Contributing Editor, Technology

Dana Blankenhorn has written for the Chicago Tribune, Advertising Age's "NetMarketing" supplement and founded the Interactive Age Daily for CMP Media. He holds degrees from Rice and Northwestern universities. He is based in Atlanta.

Follow him on Twitter.

Dana Blankenhorn

Dana Blankenhorn

Dana Blankenhorn has been a technology reporter since 1982, a business reporter since 1978, and a writer for as long as he can remember. His Schwab IRA has a few tech stocks in it, most notably some Intel and Applied Materials bought over 10 years ago. But the vast majority of his tiny fortune (emphasis on the word tiny) is invested in mutual funds. He presently writes for no one else but ZDNet, SmartPlanet and himself. But if you've got an opportunity let him know. If he takes the gig he"ll first add it to this disclosure page.

He writes for SmartPlanet and is not an employee of CBS.

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This post
I think I'm stupider after reading this post. If the cable companies starting blocking access to websites--not the bizarre world of BitTorrent--there would be a an actual revolution in this country. The fear of this isn't rationale. It won't happen.
Posted by christianm1973
2nd Nov 2009
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RE: We need both net and device neutrality
I agree that net neutrality may be a good idea, but the Government is not the entity to accomplish it. The Governement itself has an agenda and will not remain neutral. Allow the market to work. People will vote with their feet and their pocketbook when they feel providers are unfairly squeezing them.
Note: iTunes is not the only music game in town. I have been happily using Rhapsody for years.
Posted by randall.wilkinson@...
3rd Nov 2009
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RE: We need both net and device neutrality
It's an interesting prognosis that Jim puts forward and certainly one worth a lot more investigation. But there is no mention of Google and Google Android which would appear to be taking a more 'social' approach to the future global connectivity and content creation. I love my Mac but I do get annoyed at some of the restrictions (iTunes etc). I had an iPhone but stopped using it not because of the great apps but because I couldn't connect and send or receive content via Bluetooth from friends. Technology does need regulation but not ring fencing. I agree with Randall on this one, people will vote not only with their feet but with their wallets so at the end of the day the customer will prevail; it's about market forces versus egos.
Posted by Gordon Parkin
3rd Nov 2009
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It's all about healthy competition.
There are various misconceptions in this article, probably too
many to deal with but let me pick out a few.

First of all, nobody is forced to put their content on the web in
Flash format. Flash is a proprietary, non-standard web format
that forces people to download a plug-in that is entirely owned
and controlled by Adobe.

No company should be forced to adopt proprietary and closed
technology. And if you are arguing that Apple should be forced
to allow Flash on the iPhone, then you are not 'neutral'.

Another bad example is Apple's tie-in with ATT. Everybody
knows that phone companies had exclusives with carriers for
many years. This is not a situation that Apple has created. The
benefit for the consumer is that they get their phones for a low
upfront payment and pay the rest with their contract. The
Motorola Droid is also exclusive, so is the Pre.

It is easy to see that Apple is not using the tie-in as a matter of
principle, in fact here in the UK we are already in a situation
where the iPhone will be offered by various other carriers. The
situation in the US is quite different, as I understand, as
Verizon, as the only other major carrier, is not using GSM.

Apple have a good market share on the online music
distribution but there are powerful alternatives for music
distribution: Google is just getting in on the game, Amazon is
already. And when I last checked, CDs and DVDs were still
available on my local high street.

As far as I am aware there is no restrictions for artists to sell
their music via iTunes, so the sentence " if you?re not on iTunes
you don?t have a song" is misleading. In fact, some artists
don't even wish to be on iTunes and surely the Beatles and the
Eagles still sell their music.

Even better, iTunes distributes thousands of free podcasts and
the excellent iTunes library of University lectures. Not to even
mention the fact that iTunes was the first large scale solution
that would allow people to download music painlessly and
legally. And despite reluctance of the Music Industry, it is also
now 80 percent DRM free. I can play my iTunes music
anywhere, I can also play any standard music file on my iPhone.

Apple operates in a market that has the biggest companies in
the world coming head to head, Microsoft, Google, Nokia,
Adobe, ATT, Verizon, RIM, Palm, Motorola, Amazon all compete
in this sector, and some people feel that Apple should fight
with one arm tied behind their back.

That is not 'neutrality' that is pure ignorance and the wish to
come across as the champion of the consumer, when in fact
the consumer is enjoying a lot more choice in the markets
where Apple is competing.
Posted by Ken Fegore
3rd Nov 2009
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@Ken Fegore
Flash may not be a standard, but is widely used on a number of
popular websites. Apple, by refusing to allow a Flash player to be
installed on the iPhone is in fact restricting content. Sure, they
have no obligation to provide it, but actively blocking third party
development of one - that's restricting content. Me demanding that
I be allowed to access what I want via an iPhone IS neutral (that
is, I believe that there shouldn't be content restrictions based on
hardware or connection). To say that I'm not being neutral is akin
to saying that Equal Rights movement wasn't about being equal, it
was about elevating a repressed group over another. Also - nobody
said anything about content providers being forced to put stuff on
the web in Flash - it's just a popular thing to do, so Apple
shouldn't restrict access to it.

Ok, iTunes provides lots of free podcasts and university lectures.
Can you take that content and play it wherever you want? I don't
know - if you can't, it's non-neutral (because it's restricted to
only working with their software/hardware) and if you can then it is
neutral, but that doesn't change the fact that Apple is all about
content restriction.

Nobody is saying that Apple should have to fight with one arm tied
behind their back, all anybody is saying is that when you buy a Mac,
Apple decides what stuff is and isn't OK for you to access on that
hardware. Like Netflix on your Mac or Flash on your iPhone. Nobody
else has restrictions like that - only Apple does. And that's not
even considering the fact that Apple won't let you install MacOS on
a computer they didn't build and despite their self assurances of
greatness they still went out of their way to develop a way to
install Windows on their Mac (neutral).
Posted by p0figster
3rd Nov 2009
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"Compjuter industry legend"...
That should be a quick warning to anyone that the material which is to follow is, well, very partisan and very single-minded and untrustworthy..

It's the equivalent of Al Gore stating that "the science is indisputable" and that "the science is settled" and that a "consensus has been reached" and that "global warming is proven beyond a shadow of a doubt".

When someone starts out with "the gurus say" or "most experts agree", then you know that you're in for a load of crap.
Posted by adornoe@...
3rd Nov 2009
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Randall:
I generally agree that market solutions are usually best.

In this case they don't exist. You have ATT, you have Verizon, you have Comcast. Between them they own the core, the last mile, and most of the wireless market.

When the market cannot offer choices, due to concentration, the government needs to step in. Ironically countries that adopted our 1996 policy -- requiring wholesaling of capacity to other players -- have efficient, choice-driven markets. It's only the U.S., which reversed course, that has these high prices and shared monopolies.

Oh, and throughout the decade, while they were concentrating power in this way, AT&T and Verizon claimed to be doing the work of the market. Market became a code word for monopoly. I know you didn't mean it like that, but there was something 1984-ish about the way they did it.

We have known for over a century that when the market delivers a monopoly, the only power that can break it is the government. The market won't break monopolies by itself.
Posted by DanaBlankenhorn
5th Nov 2009
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