NET NEUTRALITY OUTLINE

1. Abstract

2. Introduction
What is net neutrality? (Brief intro to it)
Intentions of paper: lay out the two sides of the argument about net neutrally, and a
hypothetical Google ISP/mobile network.

3. What is net neutrality?
The idea that there should not be any discrimination in the access or speed in which
legal content can be delivered to end users over the internet.
Rules laid out by the FCC
These rules only apply to wireless ISP not mobile networks, as these are still in their
infancy. This is the next frontier in the net neutrality debate.
Money spent on lobbying the issue.

3a. Status of current net neutrality rules from FCC and current challenges to it.

4. Proponents of net neutrality.
Many major Internet companies, Tim Berners-Lee, Yahoo, Democrats.
Believe that net neutrality. Is necessary to allow for competition in the Internet
landscape.
Companies would restrict access to certain websites that are direct competitors with
their properties online.
Also, they would charge websites huge premiums to get their content delivered to the
user, otherwise their sites will be either slow or not load at all.

5. Against net neutrality
Most major ISPs, hardware companies and Republicans are against the net neutrality
rules that are laid out.
Feel that the market should be allowed to charge what they think is appropriate for
their level of service
Bandwidth needs to be better managed and would be limited if not able to be expanded
Say they won't block sites that compete against them.
Comcast was found to have been blocking access to download files using bittorrent (?)

6. Where does Google fit into this?
On website they are in the net neutrality corner (quote their page)
2007 spectrum sale of the 700 MHz, Google's deal that they could get a 4.6 billion min
bid as long as net neutrality requirements were met.
They had entered into a tentative deal with Verizon about net neutrality
Flesh this out more

7. Google's new ISP
G has always tried huge idea before (e.g. Motorola deal, android, YouTube)
While search is their first and main source of revenue is search, they have long
searched (that's a terrible pun) for a second major revenue stream (opposed to
their "moats" find that article)
They have already begun to roll out experimental 1 gbps landline internet in Stanford
and Kansas city
The one externality to this would be the threat of monopolistic activity

8. What would this look like?
Using historical costs of spectrum, as well as the comparability to major telecoms like
Verizon, Comcast, et al to build the expenses of a hypothetical company.
Google won't have enough cash on hand so will have to offer bonds to raise capital.
Slightly more risk, so an increase in the basis points on the bonds.
Revenue estimates for x number of subscribers at a price.
Create balance sheet, income statement, sore as Google telecom operating as separate
reporting entity in Google.

9. Conclude