Digital DestinyWho Defines It

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Digital DestinyWho Defines It?

• Nicholas Miller

July 7, 2004 ACM 2004 International Conference
and Tradeshow Tampa, Florida
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Overview

• Some History
• Current Developments
• Future Prospects

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History of Public Interest in Communications
Telcos

• Universal availability at reasonable price
• Regulated quality of service, absent competition
• Open access to monopoly infrastructure
• -non-discriminatory terms and conditions
• -open interconnection

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History of Public Interest in Communications
Broadcasting

• Substantial percentage of programming to
  address
• Localism - community needs and interests
• Children
• Political Access
• Non-profit spectrum set-aside

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History of Public Interest in Communications CATV

• Address Community Needs and Interests in Exchange
  for Privileged use of Public Right of Way
• PEG capacity and capital support
• I-nets
• Rent for use of Public Right-of-Way
• Rate regulation for local channels/PEG

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S. 150/Triennial Review/Cable Modem NPRM -- What
Public Interest?

• Free Corporate Use of Public Resources
• No regulatory requirements for pricing
• No obligation to serve local community interests
• No public interest set-asides
• Walled gardens

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Kennard/Powell FCC -- the providers have rights,
not the speakers

• No resale obligation
• No open access obligation
• Cable modem/DSL is interstate information
  service
• i.e., no local or state or federal regulation
• Commr Copps speaks out

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Brand X 9th Circuit

• FCC wrong
• Cable modem telecommunications service
  information service
• Information and conduit are separable
• Petition for Cert to US S.Ct.
• Decision stayed pending appeal

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Summary of the Problem

• Only the money economy has status
• Classic monopoly pricing policy
• resource available to highest payer,
• price unrelated to cost of resource
• artificial restraints on resource
• Dollar value of information controls content
• Consumer locked into a Walled Garden

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Whats a Walled Garden?

• Telco or Cable Op chooses
• the user
• the content available
• the nature of the use
• DoCoMo/Fujitsu

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The Problem Illustrated

• Only wealthy speakers with acceptable message
  have access to media
• 1 1 vote. i.e., Economic value of product
  rather than social value of product
• Fahrenheit 9/11
• Political Campaign Costs Driven by TV Ads
• No Access to Broadband Distribution for
  Independent Producers

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Whats at Stake?

• Remember 2003 and Howard Deans flash in the
  pan?
• Right to interconnect at what price?
• Carrier chooses the service provider
• Right to nondiscrimination and privacy
• Comcast spy-ware
• Right to reuse without constraint

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Bandwidth and Digital Capacity should be a public
good -- a basic utility

• Cable/telcos want to restrain access and limit
  amount of bandwidth to protect pricing structure
• No voice for the voiceless today
• Low incremental cost of bandwidth should be
  available for community issues

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Needed Digital Platform Policy

• Non-discriminatory access
• Cost based pricing
• Interconnection and Interoperability between
  transmission platforms
• Competition where possible, content-neutral
  regulation where necessary
• Capacity set-asides for non-commercial use/users
• Reasonable compensation for use of public
  resources

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The Forums for Advocacy

• UNE-P Implementation
• Fl PSC
• Cable Renewals
• FCC NPRM on VoIP
• Federal legislation?

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Renewals Future Needs and Past Non-compliance

• Empower local and state officials to speak to
  community interests
• Achieve remedies beyond Capital Grants
• Demonstrate the Need for community set-asides
• e.g. U of W in King County, WA

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Renewals The Federal Landscape

• Fed limits franchise authority re
• technology requirements
• service requirements
• Fed permits enforcement of
• facilities and equipment promises
• PEG capacity/rules requirements
• PEG capital needs

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The Overall Federal Landscape

• FCC trying to preempt public interest
  requirements
• FCC trying to preempt competitive access to
  underlying monopoly infrastructure
• Cable Act Privacy rules inadequate

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Conclusion Digital Transmission Platforms are
Public Utilities

• Look to PROW contract language to fill the gaps
• Regulate access/interconnection where no
  effective competition
• Set-asides of digital bandwidth, storage,
  transmission for non-commercial speakers

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Contact Information
Nicholas Miller nmiller_at_millervaneaton.com Miller
Van Eaton, P.L.L.C. 1155 Connecticut Avenue,
N.W. Suite 1000 Washington, D.C.
20036-4301 phone [phone] fax [phone] www
.millervaneaton.com