FUROR ERUPTS OVER NET NEUTRALITY RULES

Original Story:  USAToday.com

A battle has erupted over the Federal Communications Commission chairman's new proposal for net neutrality rules that would allow content providers to pay for Internet express lanes.

In the first formal step toward reinstating net neutrality, FCC Chairman Tom Wheeler presented a draft of the revised rules to his fellow commissioners Thursday. The rules would prevent Internet service providers from blocking or discriminating against lawful content.

But the proposal allows fast lanes to consumers' homes, the so-called "last mile," that content providers such as Netflix can purchase as long as the same opportunities are available to others on "commercially reasonable" terms. The new rules give the FCC the authority to review such arrangements to ensure that they don't harm consumers and competition.

Critics of the new approach immediately asserted that fast lanes are a form of discrimination that could leave small businesses and entrepreneurs at a disadvantage. The FCC should include specific language to prevent such deals, or ISPs should be classified as public utilities that can be regulated more strictly, they say.

"Net neutrality prevents that overcharge, which gets passed along to consumers and stifles innovation," says Gabe Rottman of the American Civil Liberties Union.

Net neutrality proponents were also concerned that the new rules do not address traffic over the back-end Internet pipes used by content providers to send data to ISPs' front doors.

Netflix caused an industry furor earlier this year when it agreed, albeit reluctantly, to pay Comcast for a more direct connection between its servers and Comcast's network to provide faster delivery. "Where they are headed with this is down the wrong path, as ISPs get explicit legal permission to do deals with Internet companies," says Netflix spokesman Joris Evers.

The FCC's Open Internet rules were enacted in 2010 to ensure that Internet providers do not discriminate against lawful content. Following an industry challenge, a federal appeals court invalidated the rules earlier this year but allowed the FCC to recast them.

Wheeler said his goal is to enact rules similar to the earlier ones that pass muster with the court. The commission will vote on them at the agency's May 15 meeting. If they are approved, public comment will be taken before the rules go into effect, which Wheeler hopes will be by the end of the year.

IBM May Quit Technology Standards Bodies

International Business Machines Corp. will review its membership in the bodies that set common standards for the technology industry and may withdraw from some, potentially undermining the system that makes electronic equipment and software interoperable world-wide.

The Armonk, N.Y.-based computer maker is expected to announce the review Tuesday, according to company officials. IBM has become frustrated by what it considers opaque processes and poor decision-making at some of the hundreds of bodies that set technical standards for everything from data-storage systems to programming languages, those officials said.

A recent battle over the selection as an international standard of the file format used in Microsoft Corp.'s Office software suite appears to have influenced IBM's decision. Microsoft, of Redmond, Wash., won that contest in April when its Open XML format was approved by the Geneva-based International Organization for Standardization, or ISO.

Standards are key to the tech industry, where they provide a common foundation for products from different manufacturers. Internet standards and SEO best practices allow millions of computers to display a Web page the same way. IBM controls a vast cache of intellectual property in the high-tech field. As a result, its contributions and agreement are often critical to forming a standard.

IBM and open-source groups that support collaborative software development said Microsoft had stacked the national committees that make up the ISO with employees and sympathetic voters. They also said Open XML is so complicated and obscure that only Microsoft could fully exploit it, cementing the software company's already-considerable lead in office-document software. IBM backed a rival format called Open Document that was already certified as an ISO standard.

A Microsoft spokesman said standards bodies are "invaluable" because they provide "an even and predictable playing field" to the industry. Their decisions reflect the views of a preponderance of members, "not the interests of any single party," he said.

"There are lots of issues" with standards groups beyond the office-documents arena, said Bob Sutor, an IBM vice president who is the company's top standards official. He cited high membership fees that deter small players, complicated intellectual-property policies and opaque procedures.

In an interview, Mr. Sutor singled out for particular criticism Ecma International, a Geneva-based group of which IBM was a founding member more than 45 years ago. Ecma certified the Open XML standard over IBM's objection and submitted it to ISO for broader approval.

Getting a company-backed product approved as a standard can be a boon: In Microsoft's case, Open XML's certification eased hesitations by some government purchasing agents, who were reluctant to buy nonstandard software.

Istvan Sebestyen, Ecma's secretary-general, said he was "really amazed" at Mr. Sutor's contention that Ecma certification can be bought, and added he hadn't heard formally from IBM about any intention to withdraw. "Ecma didn't get one single dime more" from the Open XML approval, he said.

By: Charles Forelle