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Part 2: Universal Internet Access

Part 2: Universal Internet Access. Robert Cannon Senior Counsel for Internet Issues Office of Plans and Policy US Federal Communications Commission. Standard Disclaimer. Views expressed are Robert Cannon’s and do not necessarily represent those of the FCC, the Commissioners, or its staff.

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Part 2: Universal Internet Access

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  1. Part 2:Universal Internet Access Robert Cannon Senior Counsel for Internet Issues Office of Plans and Policy US Federal Communications Commission

  2. Standard Disclaimer Views expressed are Robert Cannon’s and do not necessarily represent those of the FCC, the Commissioners, or its staff.

  3. “A Nascent Industry”

  4. 1991

  5. 1997

  6. Logarithmic Source: Matrix.net

  7. 1996 Distribution of ISPs September 1996

  8. 1998 Distribution of ISPs October 1998

  9. Number of Internet Hosts Source: Matrix.Net

  10. Decrease 100-200% 25-50% 50-100% Source: Matrix.net

  11. Online Populations Million Source: Morgan Stanley Dean Witter, The Global Internet Primer (June 2000)

  12. North AmericanBackbone Providers Number of Providers Source: Boardwatch Magazine

  13. Backbone Market Source: OECD

  14. Factors for Internet Deployment • Telecommunications Pricing • Universal Telecommunications Service • Customer Premises Equipment Market (Modems) • Computer Inquires: Telecom Safeguards • Open Platform / Bottlenecks • Anticompetitive Behavior

  15. Telecommunications Pricing

  16. 40 Hours US$ PPP (off-peak), September 2000www.oecd.org/dsti/sti/it/

  17. Internet subscribers and pricing

  18. Internet Development and Pricing

  19. ‘Traditional’: Australia, Canada, NZ, Mexico, US. Introduced in 2000: 24/7: Germany, Portugal, UK. Off-peak: Finland, Hungary, Korea, Spain. Close Call: Japan (NTT for ISDN and late night) Unmetered but not from incumbent: France, Netherlands, Ireland, Italy, Poland, Switzerland, Sweden. At the beginning of 2000 five countries had unmetered access. At the close of 2000 there will be 12. Source: OECD

  20. US Telecom Universal ServiceHistorical Telephone Penetration Estimates Great Depression Source: FCC

  21. Deregulation of CPE • Carterphone 1959: connects radio to telephone • FCC overturns AT&T tariff that prohibits interconnection • Standardize as Part 68 • Result in vibrant modem market

  22. Computer InquiresRecap • Separation of Basic and Enhanced • Unregulation of Enhanced Services • Affirmative regulation of carriers • to meet the needs of data processing • to promote innovation and competition in the data processing market • to assure equal access for computer service to essential communications services • to prevent anticompetitive behavior • Open communications platform

  23. Resulting MarketLow Barriers to Entry Many 1000s of Content and Application Providers 7000+ ISPs Telecom

  24. Mistakes We Have Made...

  25. I think there is room in the world for maybe five computers. - Thomas Watson Sr., Chairman of IBM Corp 1943

  26. This 'telephone' has too many shortcomings to be seriously considered as a means of communication. The device is inherently of no value to us. - Western Union, 1876.

  27. Internet ARPANet Bitnet Source: Matrix.net

  28. Community NetworksBandwidth v. Content • Training • Community Empowerment • Promote Local • Communication • Economy • Health • E-Democracy • Not a global shopping mall • Creators not Consumers Telecommunity Resource Center www.tcrc.net Gene Crick www.afcn.net

  29. ACLU v. Reno(Communications Decency Act) It is no exaggeration to conclude that the Internet has achieved, and continues to achieve, the most participatory marketplace of mass speech that this country -- and indeed the world -- has yet seen. The plaintiffs in these actions correctly describe the "democratizing” effects of Internet communication: individual citizens of limited means can speak to a worldwide audience on issues of concern to them. Federalists and Anti-Federalists may debate the structure of their government nightly, but these debates occur in newsgroups or chat rooms rather than in pamphlets. Modern-day Luthers still post their theses, but to electronic bulletin boards rather than the door of the Wittenberg Schlosskirche. More mundane (but from a constitutional perspective, equally important) dialogue occurs between aspiring artists, or French cooks, or dog lovers, or fly fishermen. . . . [T] the Internet may fairly be regarded as a never-ending worldwide conversation. The Government may not, through the CDA, interrupt that conversation. As the most participatory form of mass speech yet developed, the Internet deserves the highest protection from governmental intrusion.-- ACLU v. Reno, CA No. 96-963 (E.D.Pa June 11, 1996), affirmed, No. 96–511(S.Ct. June 26, 1997)

  30. Strategy of Universal AccessThrough Local Access PointsE-rate

  31. Schools and Libraries ProgramDiscount Matrix

  32. Schools and Libraries ProgramProcess School Forms Contract Money Universal Service Administrator Service Provider

  33. Covered Wiring Routers Hubs Network File Servers Necessary Software Installation Maintenance LANs Not Covered Computers Hardware Non-network software (applications) Fax Machines Modems Teacher Training Upgrades to Electrical System Asbestos Removal Security Schools and Libraries ProgramWhat is Covered Eligible Services List http://www.sl.universalservice.org/Reference/eligible.asp

  34. Schools with Internet Access www.sl.universalservice.org Percent E-Rate School and Library Internet Access Subsidies: 84% funding has gone to public schools $4B has been distributed

  35. Timeline W3C IAB TCP/IP Invented DNS Comp III 1970 1980 1990 2000 TCP/IP

  36. Concluding Thoughts... • Internet Growth is Robust • Telecommunications Policy is a key factor to Internet Deployment • Focus on bottlenecks • Government Partnership • Research & Development • Universal Service • Net is more than a global shopping mall

  37. Potential Policy SolutionsTexas High Technology, Demand Aggregation Competition Ability to Pay Loan and Tax Incentive Programs, Community Networking, Social Contracts Grant Development, Economic and Community Development Initiatives Low Low High Population Density Source: Brett Perlman, Texas Public Utility Commission

  38. Thank You . . . Robert Cannon Senior Counsel for Internet Issues FCC Office of Plans and Policy rcannon@fcc.gov

  39. Schools and Libraries ProgramResources • FCC School & Libraries Program website www.fcc.gov/ccb/universal_service/schoolsandlibs.html • Universal Service Administrator’s SL Website http://www.sl.universalservice.org/ • Merit.Net http://www.merit.edu/k12.michigan/usf/ • The New Universal Service: NTIA's Guide for Users http://www.ntia.doc.gov/opadhome/uniserve/univweb.htm

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