Moving forward under weaker US net neutrality rules

Moving Forward Under Weaker
US Net Neutrality Rules
Kevin Goldsmith
Chief Technology Officer

@kevingoldsmith #AvvoNetNeutrality
“Net Neutrality” issues aren’t new,
but the landscape has evolved.

ISPs / Telcos are looking for new revenue
models, and are not just looking to suppress
disruptive competition or decrease costs.

Assuming December 14th results in a partial or
complete repeal of the common carrier
classification on broadband providers what should
companies do?

A quick primer on how the
internet works

Comcast

Comcast Level3

Comcast Level3
Shortest Path

Comcast Level3
Border Gateway Protocol

Comcast Level3
Peering with Multi-Protocol Label Switching

Comcast
Direct Peering

Why do bandwidth providers
want to end Net Neutrality?

• Increase profitability / reduce costs of existing services
• New revenue opportunities
• Decrease competition for provider-owned services
Bandwidth provider motivations

• “Fast lane” vs “slow lane”
• Peering/interconnect agreements
• Throttling non-partner sites
• “Toll road” vs “free road”
• Zero-rating of specific services
• Charging users extra for unlimited bandwidth on bundles of sites
Tactics (so far)

There will be new models

Options

• Stay under the radar
• Hopefully grow fast enough that by the time bandwidth providers
notice you, you are too big to throttle (a la Netflix)
Cross your fingers

• Add projected bandwidth/peering costs to business plan
• Raise more money
• Pass costs to users
Pony up

• Find other startups
• Negotiate as a group for peering / zero rating agreements
• Opportunity for attorneys that work with startups to offer as a
service to their clients!
Band together

• Public Cloud / Content Distribution Networks offer peering / fast
lane / ISP bundles as an add-on service offering
• Could be subject to spats between hosting providers and bandwidth
providers
Service providers to the rescue

New Product Strategies

• Video Streaming (especially 4K & VR)
• Audio Streaming
• Large downloads
• Games
Avoid bandwidth-dependent user experiences

• VOIP and Video solutions that compete with telco ISPs business
may be throttled
• Cord-cutting or video streaming products that compete with cable
ISPs may be throttled
Avoid competing with ISP core businesses

• If your solution will be disruptive to the bandwidth providers or their
partners, focus on innovation and look for acquisition opportunities
to mediate the costs of providing a good user experience.
• The bandwidth providers themselves may be good acquiring entities
for this effort.
If you must compete, look for acquisition

• Launch your product in the EU first
• The EU has reconfirmed its commitment to NN
• Grow and scale in that environment and then move to the US when
you can use consumer demand or revenue to get good user
experience.
Build and grow in a NN environment

A tip

• With or without explicit agreements with bandwidth providers, you will
need to be vigilant in monitoring user experience in as many locations
as possible.
• With an agreement in place
• Validate that you are getting expected bandwidth
• Without an agreement
• Look for changes at ISPs that affect the bandwidth your product is
getting
Monitor for changes in user experience

Questions?

• https://www.theverge.com/2017/3/20/14960154/netflix-net-
neutrality-stances-timeline
• https://www.sandvine.com/trends/global-internet-phenomena/
• https://bdtechtalks.com/2017/01/11/this-is-why-the-internet-is-
broken-a-technical-perspective-on-net-neutrality/
References

Moving forward under weaker US net neutrality rules

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Moving forward under weaker US net neutrality rules