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Rapid innovation and change on the Internet

By George Ou 2 March 2010 No Comment

John Markoff of the New York Times has penned an interesting piece on the changing nature and decentralization of the Internet.  It reiterates the point I made in yesterday’s post on The fundamental shift to Internet video delivery which is the driving technical and economic force behind these profound changes to the Internet.  Markoff talked extensively about the migration to the edge of the network where content providers and broadband networks like Comcast directly connect to each other over private peering agreements and bypass traditional Tier 1 Internet core providers like AT&T and Level 3 Communications.

Markoff briefly touched on the issue of “Network Neutrality” which advocates all data types and sites getting equal treatment, but pointed out that networks are increasingly being prioritized differently.  I would further point out that the Internet has always treated sites differently based on what the site pays for connectivity.  The problem with Network Neutrality is that it’s fundamental premise – that everything and everyone be treated equally regardless of need or economic means – is completely unrealistic and will lead to some very onerous regulations.

One of the most disturbing aspects of Net Neutrality regulation is the effort to discredit and ban paid peering agreements which are one of the key drivers of innovation and change on the Internet.  If these direct commercial peering agreements are made illegal by Network Neutrality, then only the largest companies that have the leverage to negotiate free peering agreements and thrive while smaller businesses will be forced to purchase indirect connectivity through expensive middlemen.

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