We need both net and device neutrality

By Dana Blankenhorn | Nov 2, 2009 |

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 asĀ  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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  •  
    1

    christianm1973

    11/02/09 | Report as spam

    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.

  •  
    2

    randall.wilkinson@...

    11/03/09 | Report as spam

    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.

  •  
    3

    Gordon Parkin

    11/03/09 | Report as spam

    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.

  •  
    4

    Ken Fegore

    11/03/09 | Report as spam

    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.

  •  
    5

    p0figster

    11/03/09 | Report as spam

    @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).

  •  
    6

    adornoe@...

    11/03/09 | Report as spam

    "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.

  •  
    7

    DanaBlankenhorn

    11/05/09 | Report as spam

    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.

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John Dodge

John Dodge has answered the call of journalism for 33 years, most of the time covering technology, engineering and business. While he's run magazines, newsweeklies and web sites, reporting and writing always took up half his time. He has have plied his craft at the WSJ, Boston Globe, PC Week (now eWeek), EDN, Design News, Electronic Business, Bio-IT World, Health-IT World, the Lowell Sun, Haverhill Gazette and Newburyport Daily News. He would have like to have been around when Boston supported seven or more newspapers (1940s) and while steam locomotives still pulled trains, but that era was nearly over by the time he raced into the world. That said, he has been blogging and shooting and editing video, writing for web and other online contents tasks for years now.

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Dana Blankenhorn

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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.
The Thinking Tech blog focuses on technologies such as virtualization, smart electric grids, enterprise 2.0, open source, data center management, green technology and the intersection between the innovation and application of these advancements.