some interestiing thoughts (please do not re-distribute to com-priv etc) .

[David Farber <farber () central cis upenn edu>]

I awoke Saturday  am on the 25 Sept and checked my email. There was a note
from a friend  asking me to call. The person asked several questions and
posed a problem. 


"If you were the Data Czar, what would be the top 5 future policy and
regulatory problems would want start to solve now" (slightly paraphrased I
suspect). 


After thinking for 1/2 hour, he was in a rush, I came up with the following
thoughts. (by the way I left clipper out of this since we both knew how we
felt on that one and I left intellectual property out since I believe we
are not yet ready for regulations and laws). 


Problem 1 -- assuring modularity and interoperability of the broadband
operating system, including settops, video servers, and, generally
speaking, all API's 


Microsoft proposes the creation of a possibly default standard which will
restrict and limit access to most likely one layer and one model. Suggested
fix -- convene an industry wide "standards" body of the potential players
(like HDTV) and fight it out before the defacto standard is in place. 


Problem 2 Spectrum management. 


The allocation of major blocks of spectrum will limit the ability to
efficiently and rationally utilize the space. It will create, as it has in
the past, economic incentives to waste spectrum space and create artificial
shortages. Converting the current entitlements to a more rational and more
modern structure, while hard, will potentially enable the wireless data use
to blossom. 


Problem 3. Third party access to networking infrastructure. 


Already we see data carriers refusing to grant access to third party
networking companies because they will complete with the carrier in
specific markets. That leaves the third party potential network suppliers
with only extremely expensive routes to servicing their customers. What is
needed to evolve a new concept in common carriage that would minimize
regulation yet disallow anti-competitive behavior on the part of existing
carriers. This is clearly an issue with the cable companies as they enter
data services and with the current packet carriers. A broad re-examination
is called for. 


Problem 4 == Electronic Commerce and money. 


The financial viability of future networking will depend on the ability of
people to buy goods and services over the network. While "credit card"
mechanisms are there, the creation of electronic money may be a better or
at least alternative route. Right now the laws and policy on the creation
and use of such money is confused. The modification of banking laws etc. to
allow the controlled creation of such money and to examine it's implication
on the nation, it's taxes etc. is a prime non technical task. 


Problem 5. Privacy 


Not much more has to be said except the lack of believable privacy and the
lack of adequate laws on the use of transactions and information obtained
via network usage and monitoring will, I believe, restrict the use of the
network to "games" and make it less useful for commerce and business. Many
of the laws do not obviously map to network commerce or do not cover new
problems that the network creates -- like the analysis on transactions or
netnews reading behavior. 


Problem 6. Entitlements to network use. 


This is not a regulatory issues but a political hot potato. More and more
there are voices calling for network access for minorities, dis-advantaged,
inner city, etc. as a right. While each if not all of these are defensible,
the cost to be carried by either the government or the public through rates
is potentially high. A rational examination of the costs/benefits would be
well worthwhile before it becomes a major headache. Actually I doubt that
such a rational examination can be made due to the enormous sensitivities
of the parties but.. 


Idea 1. While I was thinking of the above,  I had an evil thought. How does
on fund the infrastructure in a reasonable way. The idea of a VAT tax
imposed on network services and goods seems like a way of creating a cash
flow that could be used to pay for research, entitlements etc. Just an
idea. 


Dave Farber