Ch 20 Advanced Services

1.0 Ch. 20 – Advanced Services
1.1 Introduction
1.2 Advanced Services Under Section706
1.2.1 Advanced Services: “high speed, switched, broadband telecommunications capability that enable users” essentially Web 2.0 capabilities. Just think what broadband offers.
1.2.1.1 Video, audio, pictures
1.2.2 Section 706: Part of Telecommunications Act of 1996
1.2.2.1 Directs the FCC to encourage broadband deployment
1.2.2.2 Ultimately defined broadband as “information service”
1.2.3 Overview of Network
1.2.3.1 Backbone: High speed, long distances; (Interstate Highway)
1.2.3.2 Middle Mile: Relatively fast, few miles to hundreds of miles (divide highway)
1.2.3.3 Last Mile: 200kbps; (Local road)
1.2.3.4 Last 100 ft: The wiring; (driveway)
1.2.4 Services Covered
1.2.4.1 Cable Broadband
1.2.4.2 DSL
1.2.4.3 Wireless
1.3 Unbundling, Interconnection, and Advanced Services
1.3.1 The Bells and DSL
1.3.1.1 DSL was going to be unbundled from regular telephone loops, but the Bells argued that as DSL was so new and that incumbents didn’t have market power in DSL as they did in voice it was safe from monopoly. The FCC accepted their argument.
1.3.2 Interconnections
1.3.2.1 The FCC chose not to enforce interconnection requirements on ISP backbones because internet users themselves forced the market to interconnect. Imagine if you had Comcast and couldn’t get Google!
1.3.2.2 FCC watches for antitrust and uses great scrutiny when mergers take place. This is instead of passing regulation on the Internet.
1.3.3 Intercarrier Compensation for ISP-Bound Traffic
1.3.3.1 The rate caps for ISP-bound traffic apply only if an incumbent LEC offers to exchange all local traffic at the same rate.
1.3.3.2 A cap will be imposed on total ISP-bound minutes for which a local exchange carrier (LEC) may receive this compensation equal to the number of ISP-bound minutes for which that LEC was previously entitled to compensation, plus a ten percent growth factor.
1.3.3.3 To identify ISP-bound traffic, the Commission adopts a rebuttable presumption that traffic exchanged between carriers that exceeds a 3:1 ratio of terminating to originating traffic is ISP-bound traffic subject to the compensation mechanism set forth in this Order.
1.4 Regulating DSL and Cable Modem Services
1.4.1 Opening Bits
1.4.1.1 Cable internet was largely unregulated because the internet flourished without government intervention.
1.4.1.2 FCC’s big issue is figuring out how to classify services properly because under the Communications Act labels are incredibly important in how things are regulated
1.4.2 AT&T v City of Portland
1.4.2.1 “This appeal presents the question of whether a local cable franchising authority may condition a transfer of a cable franchise upon the cable operator’s grant of unrestricted access to its cable broadband transmission facilities for ISPs other than the operator’s proprietary service. The communications act prohibits a franchising authority from doing so.”
1.4.2.2 Because cable internet transmission is a “telcom service” and not “cable service” it is not affected by cable license transfers as described in communications act
1.4.2.3 This is a Net Neutrality case: Court didn’t say cable operators are immune from open access rules or even decide if open access is good for the public.
1.4.3 NCTA v Brand X
1.4.4 FCC Classifies Broadband Internet as Information Service
1.4.4.1 Just as it sounds. The impact of which is that the FCC has little or no regulation over information services as of yet and this release was meant to simply classify what broadband cable internet was. The effect of which is seen in both Brand X and Comcast v FCC.
1.5 Network Neutrality
1.5.1 Definition
1.5.1.1 That broadband service providers charge consumers only once for internet access, don’t favor one content provider over another, and don’t charge content providers for sending info over lines
1.5.2 Three Issues
1.5.2.1 Blocking: Blocking certain traffic
1.5.2.2 Transparency: Clear statement of policies
1.5.2.3 Tiering: Price tiering
1.5.3 A Third Way Model for NN
1.5.3.1 Effective consumer protection measures
1.5.3.2 Sound competition policy oversight
1.5.3.3 Conditioned tax incentives
1.6 Voice over Internet Protocol (VoIP)
1.6.1 Is it a telecommunications service?
1.6.1.1 Looks like one, but FCC will let litigation decide.
1.6.2 Pulver.com
1.6.2.1 FCC said it wasn’t a telecommunications because the site acts more like a directory as individuals bring their own broadband connections, akin to providing your own phone lines. Determine it is an “information service.” Also offers more services than just voice transfer.
1.6.3 AT&T Phone-to-Phone IP charges
1.6.3.1 Rule it is a “telecommunications service” because it fails to meet the criteria in the Pulver case. AT&T just allowed for voice transfer AND they provided the transmission (lines), ergo it is a telecommunications service.
1.6.4 American Council v FCC
1.6.4.1 Issue: Can wiretapping be legally applied to broadband and VoIP?
1.6.4.2 Court found, yes, it can. However the effectiveness of such tapping on a non-centralized system remains suspect at best.
1.7 Competition in Telephony
1.7.1 Wireless
1.7.1.1 Many households are going wireless only, and cutting the line. Wireless subscriptions and use are up substantially from 1996-2004.
1.7.2 Instant Messenger
1.7.2.1 Laughable yes, but IM doesn’t require broadband and operates in real time. It can replace simple phone calls and allows for global reach.
1.7.3 Cable Internet
1.7.3.1 Offers video, data, and now…Voice!
1.7.4 More Competition
1.7.4.1 In most regions there are, at least, 3 competitors for services which increase services and keep prices down.
1.7.4.2 FCC mandated that phone #s carry when switching providers.

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