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Showing posts with label Internet Regulation. Show all posts
Showing posts with label Internet Regulation. Show all posts

Friday, March 02, 2012

UN Control of Internet

Since having written a novel myself, I'm always looking for an idea or premise that would make for an interesting, exciting story.

How about the following? At the behest of authoritarian and communist regimes, the United Nations is used as a vehicle for gaining more control over the Internet, thereby allowing those governments to gain more resources and power, limit freedom, and undermine parts of our economy.

Unfortunately, this is not farfetched fiction. It's a very real concern due to a United Nations effort that was kicked off in Geneva in late February and will proceed to a culmination in Dubai towards the end of this year. The considerable risk is that a treaty, which would only need approval of a majority of 193 nations, would result in an attempt at centralized regulation of the Internet, which would result in a de facto fragmentation of the Internet. That, in turn, would restrict opportunity, communication, prosperity and freedom.

As reported on October 20, 2011 by Bill Gertz in The Washington Times, "Last month, Russia, China, Uzbekistan and Tajikistan submitted a resolution to the U.N. General Assembly calling for giving individual states the right to control the Internet. The resolution, submitted Sept. 14, calls for ‘an international code of conduct for information security.' It requests ‘international deliberations within the United Nations framework on such an international code, with the aim of achieving the earliest possible consensus on international norms and rules guiding the behavior of states in the information space.' China tightly controls the Internet through a cybersecurity police force estimated to be more than 10,000 people who monitor Internet users and websites. Russia's authoritarian government has taken steps in recent years to curb Internet freedoms. Uzbekistan and Tajikistan also are authoritarian regimes that seek to control Internet use."

Writing in The Wall Street Journal on February 21, 2011, FCC Commissioner Robert McDowell explained, "On Feb. 27, a diplomatic process will begin in Geneva that could result in a new treaty giving the United Nations unprecedented powers over the Internet. Dozens of countries, including Russia and China, are pushing hard to reach this goal by year's end. As Russian Prime Minister Vladimir Putin said last June, his goal and that of his allies is to establish ‘international control over the Internet' through the International Telecommunication Union (ITU), a treaty-based organization under U.N. auspices."

Concerns have come from various corners.

For example, Gertz reported, "The commander of the U.S. Cyber Command said Thursday that he does not favor giving the United Nations the power to regulate the Internet... But asked whether the U.N. should have a regulation role, [Army Gen. Keith Alexander, who is also director of the National Security Agency,] said: ‘No. I'm not for regulating, per se. I'm concerned about it, and this is a tough question. I would say, generally speaking, I'm not into that portion of regulating as you would espouse.'"

On February 27, FoxNews.com highlighted that a memorandum from the Obama administration. It was stated in the article, "The memo, dated Jan. 23, states that in January 2011, U.S. officials harbored ‘great and widespread concern' that the conference ‘would be a battle over investing the (International Telecommunication Union) with explicit Internet governance authority.' However, American diplomats, the memo maintains, succeeded in ‘narrowing the focus' of the conference by emphasizing the administration's ‘deregulatory position at every opportunity.' The memo concludes that the likelihood of the conference posing any ‘foundational' threats to the freedom of the Internet ‘seems low at this time.'"

That's a bit of a mixed message. While the emphasis on fighting off international regulation is correct, there seems to be a somewhat disconcerting lack of urgency.

FCC Commissioner McDowell is obviously far more concerned.

First, he noted the great success of Internet deregulation and privatization. He pointed out, "If successful, these new regulatory proposals would upend the Internet's flourishing regime, which has been in place since 1988. That year, delegates from 114 countries gathered in Australia to agree to a treaty that set the stage for dramatic liberalization of international telecommunications. This insulated the Internet from economic and technical regulation and quickly became the greatest deregulatory success story of all time." A bit later, he added, "This consensus-driven private-sector approach has been the key to the Net's phenomenal success. In 1995, shortly after it was privatized, only 16 million people used the Internet world-wide. By 2011, more than two billion were online-and that number is growing by as much as half a million every day. This explosive growth is the direct result of governments generally keeping their hands off the Internet sphere."

Second, McDowell warned, "Even though Internet-based technologies are improving billions of lives everywhere, some governments feel excluded and want more control. And let's face it, strong-arm regimes are threatened by popular outcries for political freedom that are empowered by unfettered Internet connectivity. They have formed impressive coalitions, and their efforts have progressed significantly." He also noted the desire to increase governmental revenues through possible and varied fees.

Third, he drove home the fundamental problem: "A top-down, centralized, international regulatory overlay is antithetical to the architecture of the Net, which is a global network of networks without borders. No government, let alone an intergovernmental body, can make engineering and economic decisions in lightning-fast Internet time. Productivity, rising living standards and the spread of freedom everywhere, but especially in the developing world, would grind to a halt as engineering and business decisions become politically paralyzed within a global regulatory body."

For good measure, in late February, Google's executive chairman Eric Schmidt declared his worries. At the Mobile World Congress 2012, as reported by ZDNet UK, "Schmidt said handing over control of things such as naming and DNS to the UN's International Telecommunications Union (ITU) would divide the Internet, allowing it to be further broken into pieces regulated in different ways. ‘That would be a disaster... To some, the openness and interoperability is one of the greatest achievements of mankind in our lifetime. Do not give that up easily. You will regret it. You will hate it, because all of a sudden all that freedom, all that flexibility, you'll find it shipped away for one good reason after another,' Schmidt said. ‘I cannot be more emphatic. Be very, very careful about moves which seem logical, but have the effect of balkanising the Internet,' he added, urging everyone to strongly resist the moves."

Entrepreneurs should take note, and be concerned. After all, few technological advancements or tools have expanded opportunity for entrepreneurs, small businesses and their employees more so than the Internet. Any move to international governance and regulation will only serve to reduce those opportunities - and drastically so. The Obama administration needs to make clear that UN regulation of the Internet is not an option, and it should be building an international coalition to protect Internet freedom and opportunity.

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Raymond J. Keating is chief economist for the Small Business & Entrepreneurship Council. His new book is "Chuck" vs. the Business World: Business Tips on TV.

Monday, October 19, 2009

How About Government-Run Internet?

Small business owners can urge the Federal Communications Commission (FCC) to not intervene in the workings of the Internet. The FCC is putting the final touches on proposed rules that will heavily regulate the Internet.

Such unnecessary meddling will only discourage innovation and investment at a time when our country needs to encourage a robust climate for both. You can visit the FCC’s blog -- www.openinternet.gov -- click on the "Join the Discussion" link, and express your views about so called “net neutrality” rules.

Please make your views known by Thursday, October 22nd. Of course, supporters of extreme internet regulation are flooding the site, so please take some time to express your views as a small business owner.

Here are some of SBE Council’s concerns about a government-run internet:

- Small business wireless consumers can currently access a broad range of innovative services and devices. At every turn, new innovative services are devices are improving the competitiveness and productivity of America’s entrepreneurs. Why is the government intervening in a market that is working beautifully? The argument has not been made (not even close to it) that the market has failed.

- Competition for wireless and broadband customers is fierce. The market is working for small business consumers. Don't disrupt it with harmful regulations.

- One of the goals of the Obama administration is to provide every American access to broadband. The FCC’s net-regulation rules work against this important goal in that they will discourage private sector investment in building out broadband infrastructure. Many small businesses still need access to broadband. The FCC is undercutting this important initiative to bring new tools to individuals and small business owners at a time that they need this support the most.

- Our economy is still struggling. The FCC is punishing the telecommunications industry at a time when we need to leverage their investment capacity to keep and create new jobs. Thousands of small businesses serve as suppliers to the industry, and placing new roadblocks to its growth and success will ultimately hurt small firms and their workforce.

Let your voice be heard!

Karen Kerrigan, President & CEO

Monday, September 28, 2009

Broadband Deployment and Internet Regulation

Nearly everyone seems to be in agreement that broadband deployment has been and will continue to be a huge plus for consumers, entrepreneurs, business and the economy.

Before and after taking office, President Obama has spoken of broadband deployment as a priority.

FCC Chairman Julius Genachowski has declared: "Broadband is our generation's infrastructure challenge. It is as important as electricity and highways were for past generations."

But is more regulation then the best way to accelerate broadband deployment?

On September 21, Genachowski proposed "net neutrality" rules on all Internet service providers, including wireless firms. While "net neutrality" sounds nice; it's really all about government regulating how providers operate their networks.

ISPs have every incentive to provide the best service to both content providers and consumers. And that includes managing and prioritizing traffic, especially given the vast expansion in bandwidth-gobbling applications, such as video downloads.

And complaints against network operators in terms of traffic flow issues have been practically nonexistent, as one would expect. Again, why would ISPs go out of their way to stir up consumer, media and political opposition? Meanwhile, competition and choice have expanded and continue to expand, especially given the wireless revolution.

So, it's bewildering as to why the FCC is going down this path at all - especially given the risks that come with unwarranted government dictates and interference in such a dynamic and innovative market.

A September 22 Wall Street Journal warned about potential lawsuits, given that Congress has never passed a law providing the FCC with "net neutrality enforcement powers." The article also pointed out that "telecom firms ... recently paid a premium at auction for what was advertised as unencumbered radio spectrum."

Strangely, this is being billed in the media as a loss for ISPs, but a win for content providers. However, both would wind up losing if the FCC regulates how networks are managed. Why? Incentives for innovation, differentiation and investment in broadband would suffer, which means both content providers and consumers would suffer as well. And most certainly among those listed in the negative column will be entrepreneurs who use the Internet to build and run their businesses, and the entrepreneurial firms involved in building broadband networks.

In fact, in the end, more government regulation of the Internet would only be a plus for the political class. Both politicians and regulators seeking more power would acquire it, with little regard for the restraints they are placing on competition, investment, innovation and technological change actually geared towards serving consumers and businesses in the marketplace.

Raymond Keating, Chief Economist
Small Business & Entrepreneurship Council

Wednesday, September 23, 2009

Does the Internet Need to be Micromanaged by Government?

FCC "Net Regulation" Initiative Will Harm Broadband Innovation and Deployment
...small firms and investment will suffer


If Federal Communication (FCC) Chairman Julius Genachowski advances new Internet regulations, such an initiative will negatively impact private sector investment and economic recovery. The FCC is also working on a plan to reach full deployment of broadband in the U.S., but these new Internet regulations work against encouraging the large-scale private sector investment that is needed to achieve their "broadband for all" goal.

Small businesses will invariably suffer under this intrusive regulatory regime as an investment chill will leave many small firms without broadband -- that includes the breakthrough innovations that lead to improved efficiency, productivity and expanded market access.

"Entrepreneurs who use the Internet - and those who do not yet have access to broadband - as well small businesses that are helping to build and enhance the Internet will be the hardest hit by a regulatory climate that stifles investment," as I said in response to the FCC "net neutrality" announcement.

Genachowski announced new principles to govern the Internet, and said he would initiate a "public discussion" that is "fair, transparent, fact-based and data-drive" before implementing new rules. If the Chairman sticks by his statement regarding the type of proceedings and metrics the FCC plans to use, he should ultimately conclude that the Internet does not need the type of government intervention he proposes.

The fact that the telecommunications industry is so critical to U.S. economic competitiveness and health, should make regulators wary of interference. Yet, incredibly, we see policymakers developing proposals that only fuel the flames of uncertainty. This is an astonishing move that will have unintended consequences.

SBE Council believes that the FCC should stick with the congressionally-mandated priority to fully deploy broadband. This important effort is better aligned with economic conditions and will bring hurting Americans greater opportunity. Regulating the Internet remains a lousy idea in good economic times and bad.

Karen Kerrigan, President & CEO