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Summary Lecture 8

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Lecture of the LL.M. Master course Global E-commerce and Internet Liability

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Lecture 8 - Net neutrality

Functioning of the internet

Nobody owns all the connections to all the end points in the world but instead it is a collection of
network that are interconnected together: network of networks. Many actors that work together is
needed: network access providers are the ones that offer internet services to customers, at the last
part of the chain. The connection goes over pipes under the sea and crossing borders. It’s a network
built over various layers on by many actors. It works thanks to a particular protocol used by the
internet: the TCP/IP protocol.

TCP/IP can be compared to a language that interfaces (computers/devices) can use to communicate
over a network. You apply it over existing networks. You use existing infrastructure and on top of
that you make a virtual network with help of TCP/IP: this is what the internet is. Since you could use
existing infrastructure and didn’t have to make new cables it is so fast. Another way is the way it
handles data over the network. Before, you had an actual physical connection between two
telephones and you needed it for the whole phone call. Someone else couldn’t call you because the
line was already busy.

We changed from the old system to a package switch system. The TCP/IP chunks data up into small
packages and sends it over the network. You no longer have one application at the time but multiple
and when they arrive at their destination, the system unpacks it and puts it together again. This
meant that devices are no longer dependent on the operator and to some extent you’re not longer
dependent on the company owning the network since you don’t need their permission to send
anything over the internet. As long as it’s in the TCP/IP protocol, you can do whatever you want.

This means that the functionality is no longer in the operator’s hands but it moves to the edge of the
network (they mean the computers), so anything you want to do, you can do it yourself. This was a
profound difference with old telephony network: what we reached with the existing infrastructure
and a new virtual network is very big step forward and a complete new economy has arisen thanks to
the TCP/IP protocol. Functionality at the edge of the network is very important for innovation and
applications on the internet. The last-mile infrastructure is very important as well; it’s the final
connection to the home, the network that companies need to build to houses; putting cables to
connect to the internet. Usually only one last-mile infrastructure is built because it’s very, very
expensive. Therefore, there are natural monopolies in telephone companies/cable companies. If
there are ten of them serving the same amount of people, this doesn’t work out since there would
only be a small percentage of people using your network. You only need one service provider, so it’s
too expensive for that. So, there is quite some issue with regards to competition. The EU solved it by
legislation regulating telecommunication companies that need to give access to other companies to
their infrastructure so they can deliver services. This is why you have at least some competition is an
important part of net neutrality and competition is important in net neutrality. In the US, you only
have the option between one or two.

Net neutrality

The idea is that in accordance with the TCP/IP, nobody has really control over the internet. The
functionality is at the core of the network; this is where all important decisions get made by the
devices connected to the internet. Nobody from which permission is needed. One idea of net
neutrality is to ensure that it stays it this way, innovation can thrive without any hindering. Without
the providers that own the last mile network, determine what you can or cannot access. Or make
one application more expensive to access than the other.
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