Ebay

Skype, one of the high priests of the net neutrality movement, that preaches for Title II monopoly regulation of all the broadband providers it already rides upon for free, has been caught in the act of being blatantly unfaithful to its widely-professed net neutrality principles, by blocking interconnectivity to Fring! 

The FCC would be making a long-shot bet-the-farm gamble, if it decided to mandate the broadband public option i.e. deeming broadband to be a common-carrier-regulated service and regulating the Internet essentially for the first time. 

• It would be a classic lose lose gamble because:
  • The FCC is very likely to lose in court -- accomplishing nothing, but damaging the hard-built trust, cooperation, and commitment necessary for public-private partnerships to be able to get broadband to all Americans fastest; and
  • Everyone else would lose from the irreparable damage to private broadband investment, innovation, growth, jobs, and America's broadband ranking in the world. 

I.   Lose in Court:

Google and eBay are planning to operate non-neutral broadband ISPs, Google at 47 airports, and eBay on airplanes, that will discriminate against some content for the benefit of their preferred content -- per a story on CNNMoney.com.

This puts the FCC in a pickle concerning its proposed open Internet regulations.

• First, it shows the ease for Google and eBay to enter and compete in the broadband market; where's the supposed market failure?
• Second, two of the biggest complainers seeking mandatory net neutrality regulations of broadband providers (including wireless for the first time) because of the potential for discrimination, are actually planning to engage in the very non-neutral broadband behavior that they want banned.

The open question is will the FCC be fair and technologically neutral in preserving the open Internet? 

eBay is licking their chops at the prospect of the FCC's open Internet regulations locking in their dominance of:

• Online auctions (95% share); 
• P-2-P voiceware (via #1 Skype's ~500m users); 
• Classified ads ( #1 in revenues); and
• Online payments (via eBay's #1 PayPal).

Like Google, eBay knows that "openness" is industrial-policy-speak for:

The FCC's claims that their proposed net neutrality regulations would just "preserve" the open Internet are simply not true. The facts are clear that the FCC's  proposed regulations would:

Given that the apparent justification for new formal net neutrality rules is that fifteen-year policy has failed and that the market is unable to ensure consumer choice, the FCC will need to justify with facts that broadband providers indeed have market power to exercise anti-competitively.

What an "Open Internet" does not mean is as important as what it does mean.

• Surely an "Open Internet" is not intended to mean what it certainly can mean: un-protected, unguarded, or vulnerable to attack. 


• Thus, it is essential for the FCC to be explicit in defining what the terms -- "Open Internet," "net neutrality," and Internet non-discrimination -- don't mean, as well as what they do mean.

The word "open" has 88 different definitions per Dictionary.com and the word "open" has even more different connotations depending on the context. While the term "open" generally has a positive connotation to mean un-restricted, accessible and available, it can also have a negative or problematic connotation if it means unprotected, unguarded or vulnerable to attack.