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    UN Internet Meeting About Who Pays, Not Who Rules

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    Tuesday November 27, 2012
    Should the Internet be treated like traditional phone services when it comes to regulation and pricing? That is the contentious question as the International Telecommunications Union, a United Nations agency with roots dating back to 1865 and the interconnection of telegraph services, meets in Dubai next week for the World Conference on International Telecommunications (WCIT).  The WCIT is a treaty-writing event that has attracted growing attention given fears that the ITU and countries such as Russia plan to use it to press for greater control over the Internet.

    My weekly technology column (Toronto Star version, homepage version) notes that there are certainly legitimate reasons for WCIT suspicion since the ITU lacks transparency and largely excludes public participation. For months, the ITU proposals scheduled for debate (known as International Telecommunications Regulations or ITRs) were shrouded in secrecy and the organization itself offered only limited opportunity for public participation. Moreover, some countries view the WCIT as an opportunity to increase their leverage over the Internet by proposing regulations that would increase governmental controls.

    While these issues are cause for concern, proposals aimed at seizing control of Internet governance are unlikely to succeed and the reality is that governments already flex their regulatory muscles within the current U.S.-backed Internet governance framework.

    The focus on a UN takeover of the Internet has obscured the real concern with the WCIT, namely efforts by telecom companies to find new sources of revenue by changing the way we pay for the Internet.

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    UN Internet Meeting About Who Pays, Not Who Rules

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    Tuesday November 27, 2012
    Appeared in the Toronto Star on November 27, 2012 as UN Internet Meeting About Who Pays, Not Who Rules

    Should the Internet be treated like traditional phone services when it comes to regulation and pricing? That is the contentious question as the International Telecommunications Union, a United Nations agency with roots dating back to 1865 and the interconnection of telegraph services, meets in Dubai next week for the World Conference on International Telecommunications (WCIT).  The WCIT is a treaty-writing event that has attracted growing attention given fears that the ITU and countries such as Russia plan to use it to press for greater control over the Internet.

    There are certainly legitimate reasons for WCIT suspicion since the ITU lacks transparency and largely excludes public participation. For months, the ITU proposals scheduled for debate (known as International Telecommunications Regulations or ITRs) were shrouded in secrecy and the organization itself offered only limited opportunity for public participation. Moreover, some countries view the WCIT as an opportunity to increase their leverage over the Internet by proposing regulations that would increase governmental controls.

    While these issues are cause for concern, proposals aimed at seizing control of Internet governance are unlikely to succeed and the reality is that governments already flex their regulatory muscles within the current U.S.-backed Internet governance framework.

    The focus on a UN takeover of the Internet has obscured the real concern with the WCIT, namely efforts by telecom companies to find new sources of revenue by changing the way we pay for the Internet.

    Before the emergence of the Internet, telecom companies often enjoyed monopolies within their own countries and were able to extract enormous fees for long distance calling and other services. Those revenues have diminished in recent years as the Internet enables consumers to shift from expensive telecom services to cheaper, more flexible, and less regulated Internet-based alternatives such as Internet telephony, instant messaging, and over-the-top video services.

    Some telecom companies and developing countries with government-backed monopoly providers now view the WCIT as an opportunity to bring the traditional telecom model to the Internet. For example, the European Telecommunications Network Operators Association (ETNO), a consortium of 41 telecom companies, has proposed a new sender pay model for Internet traffic so that its members receive "fair compensation."

    The interconnection of Internet traffic is generally managed through "peering" arrangements in which Internet providers exchange traffic without metering or further charges. The system means that sending Internet traffic to another provider is effectively free with revenues generated through a receiver pay model (ie. consumer and business monthly Internet access subscription fees). Internet providers face costs in building and maintaining their networks, but peering arrangements ensure that there are few additional costs in transmitting the data.

    The ETNO has proposed replacing the current peering model with a "sending network party pays" model, which would create enormous new costs for major content providers such as Google or Netflix. The long-term impact would be to either shift significant new costs to consumers or lead to a global digital divide in which the large content companies stop sending traffic to uneconomic countries where the financial return from sending traffic is outweighed by the new transmission costs.

    Not only is ETNO seeking a new payment model for Internet traffic, but it also wants new "quality of service" rules for the Internet that are reminiscent of older telecom models and which would threaten net neutrality principles that ensure that all Internet traffic is treated equally.

    Many countries, Internet companies, and even North American telecom companies are on record as opposing ETNO's plans. Some have gone further by asking whether Internet services belong in a telecom discussion and expressing doubts about the need for ITRs in a marketplace that is largely deregulated and has relied on private contracts to address network traffic management. As the telecom world gathers in Dubai, it is these issues that bear watching, not over-the-top claims about a United Nations takeover of the Internet.

    Michael Geist holds the Canada Research Chair in Internet and E-commerce Law at the University of Ottawa, Faculty of Law. He can reached at mgeist@uottawa.ca or online at www.michaelgeist.ca.
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    Internet Governance World Meets in Toronto Amid New Domains Controversy

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    Tuesday October 16, 2012
    The Internet governance world gathers in Toronto this week as the Internet Corporation for Assigned Names and Numbers (ICANN), the California-based non-profit corporation charged with the principal responsibility for maintaining the Internet's domain name system, holds one of its meetings in Canada for only the third time. My weekly technology law column (Toronto Star version, homepage version) notes the Toronto ICANN meeting comes at a particularly tumultuous time for the organization with mounting criticism over its process for creating new domain name extensions that could reshape the Internet.

    After years of debate and discussion, ICANN last year unveiled a policy that opened the door to hundreds of new domain name extensions. While most Internet users are accustomed to the current generic (dot-com, dot-net, and dot-org) and country-code (dot-ca in Canada) extensions, ICANN's plans will radically change the domain name landscape by creating hundreds of new extensions linked to brand names, geographic regions, and even generic words.


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    Internet Governance World Meets in Toronto Amid New Domains Controversy

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    Tuesday October 16, 2012
    Appeared in the Toronto Star on October 14, 2012 as Internet Governance World Meets in Toronto Amid New Domains Controversy

    The Internet governance world gathers in Toronto this week as the Internet Corporation for Assigned Names and Numbers (ICANN), the California-based non-profit corporation charged with the principal responsibility for maintaining the Internet's domain name system, holds one of its meetings in Canada for only the third time. The Toronto ICANN meeting comes at a particularly tumultuous time for the organization with mounting criticism over its process for creating new domain name extensions that could reshape the Internet.

    After years of debate and discussion, ICANN last year unveiled a policy that opened the door to hundreds of new domain name extensions. While most Internet users are accustomed to the current generic (dot-com, dot-net, and dot-org) and country-code (dot-ca in Canada) extensions, ICANN's plans will radically change the domain name landscape by creating hundreds of new extensions linked to brand names, geographic regions, and even generic words.

    The domain name extension allocation process began with an open process that attracted nearly 2,000 applications for new domain name extensions.  Several Canadian organizations jumped at the chance for new extensions, including Rogers Communications (which applied for dot-rogers, dot-fido, and dot-chatr) and the Canadian Real Estate Association (dot-mls).

    Once the applications were published, the next stage of the process invited comments on the proposals. The 105-day comment period generated more than 10,000 responses, with many applications facing considerable criticism.

    Targets included even the most innocuous proposals. For example, Johnson & Johnson, the manufacturer of well-known baby products including baby powder and bath oil, applied for a dot-baby domain name extension. The Saudi Arabian government responded by warning that "many individuals and societies may find this string offensive on religious and/or cultural grounds."  It added that there is a risk that the domain extension could be used for pornography, much like dot-xxx domains.

    Many other proposals attracted demands for heightened regulation of domain name registrations. The movie and music industry responded to the proposed creation of a dot-music domain name extension by calling for "enhanced security measures". These include the ability to reject potential registrants and requirements for detailed personal information on registration that would be made widely accessible. The groups justify the need for these measures on the basis that new extensions focused on the content industries have "the exceptional potential to cause harm to consumers."

    These complaints may border on the bizarre, but the biggest outcry has arisen over proposals from Internet giants Amazon and Google to register hundreds of generic words, such as dot-book and dot-blog. While few have a problem with the creation of these new generic extensions, Amazon and Google surprised the Internet community by proposing to keep the domains private with no public registrations.

    Private domain name extensions were expected - many popular brand names submitted applications to extend their trademarks to new domain name extensions without plans to offer the public access - but the use of generic terms for private purposes has rubbed many people the wrong way as there is a sense of a virtual land grab.

    With criticism of these proposals mounting, ICANN finds itself sandwiched between unhappy governments, lobby groups, registrars, consumer associations, and Internet users. If the organization caves to the pressure, its legitimacy as a community-based consensus driven body will be damaged. On the other hand, doing nothing runs the risk of lawsuits and criticism that a decade-long policy process has failed. As ICANN meets in Toronto, addressing the new domain name extension issue will have significant implications not only for the Internet, but for the organization itself.

    Michael Geist holds the Canada Research Chair in Internet and E-commerce Law at the University of Ottawa, Faculty of Law. He can reached at mgeist@uottawa.ca or online at www.michaelgeist.ca.


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