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Owner30815
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Owner30815,
User Rank: Light Beer
5/29/2015 | 11:54:17 PM
Net Neutrality or a Closed Rent-Seeking Window?
The notion that ISPs have an incentive, based on relative bargaining power, to degrade interconnection quality (or raise prices for interconnection facilities) has been theorized since the beginning of the commercial Internet--though it has never been demonstrated, even given wide disparities in relative market share. 

In the only instance the theory went to court (a Cogent complaint against France Telecom), the court agreed with the French competition authority, and held that there was no quality distinction between direct interconnection and Internet transit. Thus, the idea that any on party holds "market power" with respect to interconnection has been impossible to reconcile with the way the Internet really works.  Today, I wrote this blog looking for the historical evidence of dominant ISP interconnection discrimination.  http://bit.ly/1FkphXM

Instead of the threat of Net Neutrality complaints, I suspect you are seeing the recognition by the parties seeking regulatory advantage (unsuccessfully, so far) that the opportunities for the FCC to replace the Internet dynamic of mutually-beneficial, negotiated, terms with regulation are dwindling.  Thus, if regulatory rent-seeking has ceased to be a possible outcome, then the "usual suspects" will make do with good faith negotiation (the process followed by every other ISP/CDN/Transit Provider on the Internet).  Here's a discussion: http://bit.ly/1FtoQN4

 
marjsdad
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marjsdad,
User Rank: Lightning
5/29/2015 | 2:18:39 PM
Interconnect Deals Bear Net Neutrality's Stamp
Very interesting that some who have complained loudly about having to pay interconnection fees are apparently not at all interested in having their own practices come to light, which they surely would if the issue were brought before the FCC through a Title II complaint.
Duh!
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Duh!,
User Rank: Blogger
5/29/2015 | 10:22:08 AM
Market failure
The core of the problem is that the interconnection market is completely opaque.  Neither competitors, regulators nor the public have visibility into pricing, terms and conditions.  We have no way to know whether an interconnect deal is 'just and reasonable', save for self-serving assertions in press releases. 

A transparent market is an efficient market.  The FCC should open an NOI on interconnection practices, ultimately leading to new disclosure rules. 


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