QUESTION: DOES THE AUDIENCE WANT MORE GOVERNMENT AND REGULATORY INVOLVEMENT IN PEERING AND INTERCONNECTION WORLD? Intro question by Martin Levy

WIK-Consult Final Report The open internet a platform for growth Brian Williamson David Black Thomas Punton T: +44(20) 7047 1919, www.plumconsulting.co.uk BEREC expert workshop on IP-Interconnection in cooperation with OECD A report for the BBC, Blinkbox, Channel 4, Skype and Yahoo October 2011 November 2 nd, Bloom Hotel Brussels, 9:00-17:30 The goal of the workshop is to bring experts from the IP- interconnection community in contact with experts on interconnection from national regulatory authorities and to discuss future interconnection in an all-ip world. The Internet s way of using peering and transit as the basis for commercial negotiations differs considerably from the telephony s world of Calling Party s Network Pays. As a result even when talking the two worlds seem to be speaking about different things even when using the same words. BEREC has been looking into these different approaches to interconnection in a series of papers since 2007 (ERG Report on IP-Interconnection 2007, ERG Common Statement on Regulatory Principles of IP Interconnection 2008, BEREC Common Statement on NGN future charging mechanisms, 2010). The OECD has studied Internet traffic exchange in a series of reports in 1998, 2002, 2005 and in a forthcoming paper in 2011. Furthermore, it has studied Internet traffic exchange in relation to the development of local content in cooperation with UNESCO and it has also organized a workshop on the topic in 2001 in cooperation with the German government. IP-interconnection markets are global markets crossing national borders and even continents. Therefore the OECD is singular in its analysis of trends in Internet interconnection taking a global perspective. Following the same objective of safeguarding competition, BEREC and the OECD take this workshop as a starting point hopefully to be continued in the future. The format of the 4 session is intended to allow for an extensive discussion with the audience. QUESTION: Analytical study Network operators and content providers: Who bears the cost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for submission to Google by J. Scott Marcus and Alessandro Monti This report solely reflects the views of the authors. It does not necessarily represent the views of Google, Inc. WIK-Consult GmbH Rhöndorfer Str. 68 53604 Bad Honnef Bad Honnef, 9 September 2011 ;@A*',B$>$%#C$;@A*',B Germany 0=?KLK-->L-K=>MENBBOELP9QB "#$%&&'(')*$+,-$ -*&)%5)<=%3>%2)#'+$,<?,2<@AA:BCDECFAGFH,:3%'2<(%3I.%2)#'+$,J*,5+I*#$ "#$%&&'(')*$+,-$./0121334231/456788962:;<8 L"#M'@A$4)#?N$"@$3"OOP@'()?'"@$1@&#),?#P(?P#-,$)@Q$/-#R'(-,$4"*'(N$."(PO-@?$("O]*-?$Q',]"@'X*-$,P#$%H1/$Q)@,$,"@$&"#O)?$Q^"#'A'@-$ 3"O]*-?-$Q"(PO-@?$)R)'*)X*-$"@$%H1/$'@$'?,$"#'A'@)*$&"#O)?$ Electronic copy available at: http://ssrn.com/abstract=1926768 DOES THE AUDIENCE WANT MORE GOVERNMENT AND REGULATORY INVOLVEMENT IN PEERING AND INTERCONNECTION WORLD? Intro question by Martin Levy 21 March 2012 GPF7.0 - Global Regulation Effects on Interconnection

A View of Top-Down Internet Governance Jesse Sowell MIT ESD PhD Candidate

A View of Top-Down Internet My primary research focuses on understanding how the bottom-up communities (that s you) act as a form of governance. This talk gives an idea of how some of the topdown institutions think about governance. Governance Jesse Sowell MIT ESD PhD Candidate

Overview Take-away Definitions of (Internet) Governance WGIG Academic/Operational Evolution of governance issue areas ITU and global regulation Historical telecomm treaty facilitator Aspiring global regulator Discuss 4

Take-away first ITU is renegotiating ITRs Under current ITR, Internet is exempt (Art. 9) Proposals include IPv6 Internet Registry independent of RIRs Regulation of peering arrangements Legitimacy based on WSIS-IGF but bottom-up community addresses many of the same substantive issues How should the community: Convey these positive outcomes to regulators? Construct mechanisms for engaging with top-down governance organizations? 5

Take-away first ITU is renegotiating ITRs Under current ITR, Internet is exempt (Art. 9) Proposals include IPv6 Internet Registry independent of RIRs Regulation of peering arrangements Legitimacy you based that on it isn t WSIS-IGF all that but bottom-up community addresses many of the same substantive issues How should the community: Convey these positive outcomes to regulators? Construct mechanisms for engaging with top-down governance organizations? The g word. I am going to try to convince evil and that you may be doing some of it already... 5

Internet Governance Internet governance is the development and application by Governments, the private sector and civil society, in their respective roles, of shared principles, norms, rules, decision-making procedures, and programmes that shape the evolution and use of the Internet. http://www.itu.int/wsis/docs2/tunis/off/6rev1.html, Art. 34 6

Internet Governance as per the WGIG Internet governance is the development and application by Governments, the private sector and civil society, in their respective roles, of shared principles, norms, rules, decision-making procedures, and programmes that shape the evolution and use of the Internet. http://www.itu.int/wsis/docs2/tunis/off/6rev1.html, Art. 34 6

Internet Governance This is the WGIG definition of Internet governance. Note the mention of respective roles. Internet governance is the development and application by Governments, the private sector and civil society, in their respective roles, of shared principles, norms, rules, decision-making procedures, and programmes that shape the evolution and use of the Internet. as per the WGIG http://www.itu.int/wsis/docs2/tunis/off/6rev1.html, Art. 34 6

Internet Governance This is the WGIG definition of Internet governance. Note the mention of respective roles. Internet governance is the development and application by Governments, the private sector and civil society, in their respective roles, of shared principles, norms, rules, decision-making procedures, and programmes that shape the evolution and use of the Internet. as per the WGIG Governments retain a privileged role (that capital G isn t a typo) http://www.itu.int/wsis/docs2/tunis/off/6rev1.html, Art. 34 6

Internet governance is the development and application by Governments, the private sector and civil society, in their respective roles, of shared principles, norms, rules, decision-making procedures, and programmes that shape the evolution and use of the Internet. Internet Governance Doesn t really mention who is doing development and application, lots of contention here on how as per the WGIG http://www.itu.int/wsis/docs2/tunis/off/6rev1.html, Art. 34 7

Internet Governance as per the WGIG Internet governance is the development and application by Governments, the private sector and civil society, in their respective roles, of shared principles, norms, rules, decision-making procedures, and programmes that shape the evolution and use of the Internet. Standard definition of a regime, but who creates these? What contributes to legitimacy and authority? We will see lots of contenders... http://www.itu.int/wsis/docs2/tunis/off/6rev1.html, Art. 34 8

Internet Governance as per the WGIG Internet governance is the development and application by Governments, the private sector and civil society, in their respective roles, of shared principles, norms, rules, decision-making procedures, and programmes that shape the evolution and use of the Internet. How? What mechanisms are effective? What evidence do we have they are effective? http://www.itu.int/wsis/docs2/tunis/off/6rev1.html, Art. 34 9

Internet Governance as per the WGIG Internet governance is the development and application by Governments, the private sector and civil society, in their respective roles, of shared principles, norms, rules, decision-making procedures, and programmes that shape the evolution and use of the Internet. This is a broad definition that tells us what, but not how. http://www.itu.int/wsis/docs2/tunis/off/6rev1.html, Art. 34 10

Governance (How) governance is the means by which a community effects its image of order O. E. Williamson, The Mechanisms of Governance. New York, NY: Oxford University Press, 1996. 11

Governance (How) Despite the abstract definition, means is interpreted as the pragmatic mechanisms a community has either implicitly or explicitly adopted governance is the means by which a community effects its image of order O. E. Williamson, The Mechanisms of Governance. New York, NY: Oxford University Press, 1996. 12

Governance (How) Despite the abstract definition, means is interpreted as the pragmatic mechanisms a community has either implicitly or explicitly adopted governance is the means by which a community effects its image of order What is it that the community has found reifies its goals? What does the community value? Given context, why are these effective? O. E. Williamson, The Mechanisms of Governance. New York, NY: Oxford University Press, 1996. 13

Governance (How) Despite the abstract definition, means is interpreted as the pragmatic mechanisms a community has either implicitly or explicitly adopted governance is the means by which a community effects its image of order What is it that the community has found reifies its goals? Waht does the community value? Given this context, why are these effective? Should read images of order, there are lots of communities, each of which operates more or less differently O. E. Williamson, The Mechanisms of Governance. New York, NY: Oxford University Press, 1996. 14

Governance (Unpacking means) governance is the means by which order is accomplished in a relation in which potential conflict threatens to undo or upset opportunities to realize mutual gains O. E. Williamson, The Mechanisms of Governance. New York, NY: Oxford University Press, 1996. 15

Governance (Mechanisms) governance is the means by which order is accomplished in a relation in which potential conflict threatens to undo or upset opportunities to realize mutual gains O. E. Williamson, The Mechanisms of Governance. New York, NY: Oxford University Press, 1996. 16

Governance (Mechanisms) This is one way to describe (very abstractly) what the operator communities do. It is informal, but there are well-known norms governance is the means by which order is accomplished in a relation in which potential conflict threatens to undo or upset opportunities to realize mutual gains As we walk through the ways UN bodies have framed governance, please consider how compare. Re conflict, there s also a nice conversation about dispute resolution in our future... O. E. Williamson, The Mechanisms of Governance. New York, NY: Oxford University Press, 1996. 16

Brief WSIS-IGF Timeline Millennium Development Goals WSIS Geneva Principles WGIG Map principles to implementation options WSIS Tunis Ratify elements of WGIG Report Create IGF ITU s aspirations, based on WSIS-IGF consensus 17

Brief WSIS-IGF Timeline Millennium Development Goals WSIS Geneva Principles This is where we got the fun top-down definition WGIG Map principles to implementation options WSIS Tunis Ratify elements of WGIG Report Create IGF ITU s aspirations, based on WSIS-IGF consensus 17

WSIS Principles Origins Millennium Development Goals (2000) Peace, security, disarmament Development and poverty eradication Protecting our common environment Human rights, democracy and good governance Protecting the vulnerable Meeting the special needs of Africa Strengthening the United Nations http://www.un.org/millennium/declaration/ares552e.pdf 18

WSIS Principles Origins Millenium Development Goals (2000) Peace, security, disarmament Development and poverty eradication ICT infrastructure -> economic development -> better quality of life Protecting our common environment Human rights, democracy and good governance ICT infrastructure -> e-government -> more efficient and efficacious governance ICT infrastructure -> greater mechanisms for expression -> democracy Protecting the vulnerable Meeting the special needs of Africa ICT infrastructure -> e-government -> more efficient and efficacious governance ICT infrastructure -> economic development -> better quality of life Strengthening the United Nations ITU gets more authority -> ITU remains relevant http://www.un.org/millennium/declaration/ares552e.pdf, descriptions interpretation of author 19

WSIS Principles (2003) Multi-stakeholder Development of ICT foundation Access to information and knowledge Capacity building Building confidence and security in the use of ICTs Enabling environment (for e-government, economy) ICT enabling empowerment Cultural diversity and local content Media Ethical dimensions International and regional cooperation Drawn from: 20 The community is already doing some of this. How can these efforts be conveyed to actors attempting to develop new processes? D. MacLean, ed., Internet Governance: A Grand Collaboration. New York, NY: The United Nations Information and Communications Technologies Task Force, 2004. and http://www.itu.int/wsis/docs/geneva/official/dop.html

WGIG Issue Areas Administration of DNS (root zone and servers) IP addressing (IPv6 deployment) Interconnection costs Internet stability, security, and cybercrime Spam Freedom of expression Meaningful participation in global policy development Data protection and privacy rights Consumer rights Multilingualism Drawn from: D. MacLean, ed., Internet Governance: A Grand Collaboration. New York, NY: The United Nations Information and Communications Technologies Task Force, 2004. 21

WGIG Issue Areas Administration of DNS (root zone and servers) IP addressing (IPv6 deployment) Interconnection costs Internet stability, security, and cybercrime Spam Freedom of expression Meaningful participation in global policy development Data protection and privacy rights Consumer rights Multilingualism Drawn from: D. MacLean, ed., Internet Governance: A Grand Collaboration. New York, NY: The United Nations Information and Communications Technologies Task Force, 2004. Interpretation as per the author. 22

WGIG Issue Areas Administration of DNS (root zone and servers) IP addressing (IPv6 deployment) Interconnection costs Internet stability, security, and cybercrime Spam Freedom of expression Meaningful participation in global policy development Data protection and privacy rights Consumer rights Multilingualism 22 institutional responsibilities...to guarantee continuity of a stable and secure functioning of the root server system of the DNS Drawn from: D. MacLean, ed., Internet Governance: A Grand Collaboration. New York, NY: The United Nations Information and Communications Technologies Task Force, 2004. Interpretation as per the author.

WGIG Issue Areas Administration of DNS (root zone and servers) IP addressing (IPv6 deployment) Interconnection costs Internet stability, security, and cybercrime Spam Freedom of expression Meaningful participation in global policy development Data protection and privacy rights Consumer rights Multilingualism 22 institutional responsibilities...to guarantee continuity of a stable and secure equitable functioning access to address of the root resources, server back system to this of later the DNS Drawn from: D. MacLean, ed., Internet Governance: A Grand Collaboration. New York, NY: The United Nations Information and Communications Technologies Task Force, 2004. Interpretation as per the author.

WGIG Issue Areas Administration of DNS (root zone and servers) IP addressing (IPv6 deployment) Interconnection costs Internet stability, security, and cybercrime Spam Freedom of expression Data protection and privacy rights Meaningful participation in global policy development Consumer rights Multilingualism 22 institutional responsibilities...to guarantee continuity of a stable and secure functioning of the root server system of the DNS equitable access to address resources, back to this later studies by international agencies, development of regional and local access points, financing IXPs, building on current international agreements Drawn from: D. MacLean, ed., Internet Governance: A Grand Collaboration. New York, NY: The United Nations Information and Communications Technologies Task Force, 2004. Interpretation as per the author.

WGIG Issue Areas Administration of DNS (root zone and servers) IP addressing (IPv6 deployment) Interconnection costs Internet stability, security, and cybercrime Spam agreements Freedom of expression Data protection and privacy rights Consumer rights Meaningful participation in global policy development Multilingualism 22 institutional responsibilities...to guarantee continuity of a stable and secure functioning of the root server system of the DNS equitable access to address resources, back to this later studies by international agencies, development of regional and local access coordination points, financing with IXPs, LEAs over building protection on current of international networks and technological assets Drawn from: D. MacLean, ed., Internet Governance: A Grand Collaboration. New York, NY: The United Nations Information and Communications Technologies Task Force, 2004. Interpretation as per the author.

WGIG Issue Areas Administration of DNS (root zone and servers) IP addressing (IPv6 deployment) Interconnection costs Internet stability, security, and cybercrime Spam agreements Freedom of expression Data protection and privacy rights Consumer rights Meaningful participation in global policy development Multilingualism 22 institutional responsibilities...to guarantee continuity of a stable and secure functioning of the root server system of the DNS equitable access to address resources, back to this later studies by international agencies, development of regional and local access coordination points, financing with IXPs, LEAs over building protection on current of international networks and technological assets opportunity for all, especially developing countries, to participate Drawn from: D. MacLean, ed., Internet Governance: A Grand Collaboration. New York, NY: The United Nations Information and Communications Technologies Task Force, 2004. Interpretation as per the author.

WSIS Tunis Agenda Refined respective roles Policy authority...is the sovereign right of States. Private sector...important role in development..in the technical and economic fields Civil society as important role in community IGOs have a role as: facilitators and coordinators of Internet-related public policy issues role in the development of technical standards and relevant policies Development National, sub-regional, and regional IXPs Encouraging fair and balanced interconnectivity costs Created the Internet Governance Forum... http://www.itu.int/wsis/docs2/tunis/off/6rev1.html, Art. 35, 50, 72. 23

WSIS Tunis Agenda Refined respective roles Policy authority...is the sovereign right of States. Private sector...important role in development..in the technical and economic fields Civil society as important role in community IGOs have a role as: facilitators and coordinators of Internet-related public policy issues role in the development of technical standards and relevant policies Development National, sub-regional, and regional IXPs Encouraging fair and balanced interconnectivity costs Created the Internet Governance Forum... 23 Government with a capital G http://www.itu.int/wsis/docs2/tunis/off/6rev1.html, Art. 35, 50, 72.

IGF as Mandated Governance characteristics Lightweight, decentralized structure Transparent, democratic, and multilateral Mandate Discuss policy issues Foster discourse Interface between institutions Exchange of information and best practices Advise stakeholders on Internet development Identify emerging issues Contribute to capacity building Promote and assess WSIS principles http://www.itu.int/wsis/docs2/tunis/off/6rev1.html, Art. 72. 24

IGF as Mandated Governance characteristics Lightweight, decentralized structure Transparent, democratic, and multilateral Mandate Discuss policy issues Recently, there has been a push for more than just a Foster discourse discussion forum, (re)enter the ITU Interface between institutions Exchange of information and best practices Advise stakeholders on Internet development Identify emerging issues Contribute to capacity building Promote and assess WSIS principles http://www.itu.int/wsis/docs2/tunis/off/6rev1.html, Art. 72. 24

ITU Originally International Telegraph Union Created 1865, oldest IGO Primary telecomm standards and coordination body until early 1990 s Organization ITU-R: allocates radio spectrum and satellite orbits ITU-T: technical standards and telecomm interconnection ITU-D: telecomm access and ops for developing regions Facilitates telecomm treaties such as the International Telecommunications Regulations 25 http://www.itu.int/net/about/

ITU Originally International Telegraph Union Member states are Created 1865, oldest IGO Primary telecomm standards states and appoint coordination delegations body until early 1990 s Organization ultimate decision makers; that have technical members, but voting is done by state representative ITU-R: allocates radio spectrum and satellite orbits ITU-T: technical standards and telecomm interconnection ITU-D: telecomm access and ops for developing regions Facilitates telecomm treaties such as the International Telecommunications Regulations 25 http://www.itu.int/net/about/

ITU Originally International Telegraph Union Member states are Created 1865, oldest IGO Primary telecomm standards states and appoint coordination delegations body until early 1990 s Organization ultimate decision makers; that have technical members, but voting is done by state representative ITU-R: allocates radio spectrum and satellite orbits...and if you don t tow the party line, you may very likely be sent home ITU-T: technical standards and telecomm interconnection ITU-D: telecomm access and ops for developing regions Facilitates telecomm treaties such as the International Telecommunications Regulations 25 http://www.itu.int/net/about/

ITU Originally International Telegraph Union Member states are Created 1865, oldest IGO Primary telecomm standards states and appoint coordination delegations body until early 1990 s Organization ultimate decision makers; that have technical members, but voting is done by state representative ITU-R: allocates radio spectrum and satellite orbits...and if you don t tow the party line, you may very likely be sent home ITU-T: technical standards and telecomm interconnection ITU-D: telecomm access and ops for developing regions Facilitates telecomm treaties such as the International Telecommunications Regulations At the moment the ITU does not have regulatory power but that may change 25 http://www.itu.int/net/about/

ITRs in a Nutshell ITR is a treaty, signed by ITU member states Baseline definitions international telecommunication international route Operational issues safety of life and priority of telecommunications calculation of charges and accounting binding of ITU-T recommendations Currently Article 9 special arrangements exempts Internet communication http://www.itu.int/oth/t3f01000001, Art. 2, 5, 6, 9, App. 1, Res. No. 3, Rec. No. 3. 26

ITRs in a Nutshell ITR is a treaty, signed by ITU member states Baseline definitions international telecommunication international route over any communication media Operational issues safety of life and priority of telecommunications calculation of charges and accounting binding of ITU-T recommendations Currently Article 9 special arrangements exempts Internet communication http://www.itu.int/oth/t3f01000001, Art. 2, 5, 6, 9, App. 1, Res. No. 3, Rec. No. 3. 26

ITRs in a Nutshell ITR is a treaty, signed by ITU member states Baseline definitions international telecommunication international route over any communication media Operational issues safety of life and priority of telecommunications calculation of charges and accounting binding of ITU-T recommendations Currently Article 9 special arrangements exempts Internet communication 26 historically includes standards and cost structures http://www.itu.int/oth/t3f01000001, Art. 2, 5, 6, 9, App. 1, Res. No. 3, Rec. No. 3.

A Dig at Bottom-up The most powerful actors are able to exercise a significant degree of policy and regulatory control from the bottom up by pursuing national and regional interests across a wide range of forums, while the most powerful private actors are able to exercise an equally significant degree of market control by coordinating their activities through private forums, or through the exercise of raw market power. But what is often missing are opportunities for the less powerful to be engaged in discussion of global governance issues, to participate in decision-making processes, to understand the consequences of these decisions, and to adapt their policies, regulations, and practices accordingly. D. MacLean, Herding Schrödinger s Cats: Some Conceptual Tools for Thinking About Internet Governance, in Workshop on Internet Governance, (Geneva), ITU, February 2004. Attributed to MacLean et. al. s work Louder Voices. 27

ITU Perspective Quotes from ITU Secretary General Hamadoun Touré [w]e need updated ITRs because without them we risk the collapse of the ICT networks which underpin all communications technologies, including the internet. thinking of recent regulatory failures in finance and banking, Touré is looking for a framework that will avoid any catastrophe http://www.whoswholegal.com/news/features/article/29378/the 28

ITU Perspective Quotes from ITU Secretary General Hamadoun Touré [w]e need updated ITRs because without them we risk the collapse of the ICT networks which underpin all communications technologies, including the internet. thinking of recent regulatory failures in finance and banking, Touré is looking for a framework that will avoid any catastrophe Enter new proposals for the ITRs, coming in December 2012 http://www.whoswholegal.com/news/features/article/29378/the 28

ITR Proposals Mandated application of ITU-T recommendations Countermeasures against spam and malware Dispute settlement Interconnection Peering arrangements Impact of costs of international traffic Misuse of numbering, naming, addressing and subscriber identification Cybersecurity (signaling, traffic, and billing info) Appropriate use of billing models New technologies regulation Address allocation/distribution http://www.internetsociety.org/background-international-telecommunication-regulations 29

Comments or request for presentation references: jsowell@mit.edu 31