The Jeff Pulver Blog: The Domino Effect: Preserving the Unregulated Nature of Internet Video

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April 18, 2007

The Domino Effect: Preserving the Unregulated Nature of Internet Video

Yesterday, while Jonathan Askin was in Washington advocating on behalf of Internet video, a few people asked a few similar questions:

(1) Why did you guys submit a petition to the FCC asking that Internet video not be regulated like cable or broadcast tv? (http://pulverblog.pulver.com/archives/network2/Network2%20Petition.pdf)

(2) Why did you guys start the Video on the Net Alliance? (http://www.videoonthenet.org)

The questioners (apparent allies) all seemed to believe the self-evident proposition that Internet video is qualitatively different from cable and broadcast tv. Internet video does not require use of limited public resources and implicate substantial barriers to entry that resulted in the pervasive regulation of broadcasters and cable operators who serve as stewards of scarce public resources. Surely, any rational policymaker would recognize this truism and have no inclination to regulate Internet video. Or would they? Well, I think these folks have no memory of the ten-year ordeal we've been living through to try to keep Internet-delivered voice free of unnecessary government interference. Eleven years ago, when I started the VON Coalition, some were skeptical of the need for an advocacy organization to protect the unregulated nature of Internet communications (even in the midst of a petition by long distance resellers trying to protect their guaranteed revenue streams by otlawing Internet "telephony". Sure enough, after ten years of incessant fighting, VoIP, to varying degrees, is regulated like telephony, in America and in many nations around the world. And, to a large extent, these regulations have stifled VoIP and slowed the Internet communications revolution. I have no doubt that, ultimately, VoIP will emerge as the primary mode of voice communication and become an integral part of the unified Internet communications, media and entertainment future. But, short-sighted, regulatory obstacles have slowed our progress.

We must not let the same fate beset the emerging Internet video industry.

And, guess what, the dominos are already beginning to fall. And they might fall faster than any of us realize. We have to be prepared and mobilized to protect the emerging industry.

Why do I say this? First, we got indications from the UK and the EU that the distinctions between Internet video on the one side and cable and broadcast tv on the other side are too subtle for regulators to distinguish among and that one-size-fits-all regulation might become the law of the land. Like the guy who has one tool - a hammer - the nascent Internet video industry might be struck hard with the cable/broadcast regulatory hammer.

And now it looks like Canada is embarking on a proceeding to figure out the proper regulatory structure for Internet video. http://www.cbc.ca/technology/story/2007/04/13/crtc-review.html So far, Canada's CRTC has impressed me with its foresight by issuing an order exempting video on the Internet from regulation. And, candidly, Canada also surprised me (positively) with regard to VoIP. Jonathan and I testified in Canada a couple years ago out of concern that Canada would apply backward-looking policies to VoIP. It turns out, Canada actually seems to have established a more progressive approach to VoIP than the United States. But these are not reasons for us to become complacent. A lot can happen during the course of a regulatory proceeding when the lobbyists pull out all the stops. I intend to participate in Canada's proceeding to make sure that the Internet video entrepreneurs, innovators and enthusiasts are allowed to advance Internet video in the most positive and timely manner.

Finally, I would hate to see America become a wallflower at the Internet video revolution. For that reason, Jonathan and I have submitted our petition with the FCC asking that Internet video not be regulated like cable or broadcast tv. We think we might have to roll out similar petitions with regulatory bodies around the world at least as an educational tool and to stave off potential, misguided and backward-looking regulation of Internet video.

And, for this reason, we have also launched the Video on the Net Alliance, because the price of advancing Internet video is eternal vigilance.

Tags: von, Video on the Net Alliance, Internet TV, Jonathan Askin, voip, CRTC, public policy, FCC, Jeff Pulver