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Chapter 7 Telecommunications, the Internet, and Wireless Technology 293

ability to cope with the exploding demand for through the Xbox 360 that does not count against its
Internet and wireless traffic. U.S. Internet service broadband data cap of 250 gigabytes per month. This
lags behind many other nations in overall speed, gives Comcast’s television programming an edge over
cost, and quality of service, adding credibility to this rival streaming shows, which will consume subscrib-
argument. ers’ data allotment. Netflix and other competitors
And with enough options for Internet access, are incensed, arguing that this flies in the face of the
regulation would not be essential for promoting net concept of net neutrality and represents an anti-com-
neutrality. Dissatisfied consumers could simply switch petitive practice.
to providers who enforce net neutrality and allow In 2011, nearly every broadband provider
unlimited Internet use. instituted a cap on data, charging additional fees to
In December 2010, the FCC approved measures users that go over that limit. Many analysts have
that would allow the federal government to regu- long argued in favor of these caps, but deals like
late Internet traffic. Broadband providers would be those between Comcast and Microsoft are likely to
required to provide information regarding Internet draw the ire of the FCC going forward. Currently,
speeds and service to their subscribers, and they could the net neutrality laws on the books are riddled with
not block access to sites or products that compete loopholes. For example, they allow broadband provid-
against their own products. However, the regulations ers to allocate portions of their networks for special
did not officially safeguard net neutrality, and wireless “managed” services. Still, public sentiment in favor of
providers may block applications that use too much net neutrality is still strong.
bandwidth.
Wireless providers have already moved to develop Sources: Eduardo Porter, “Keeping the Internet Neutral,” The New
York Times, May 8, 2012; Matt Peckham, “Netflix CEO Takes Swing
tiered plans that charge heavy bandwidth users
at Comcast Xfinity over Net Neutrality,” Time Techland, April 16,
larger service fees, and online content providers have 2012; Greg Bensinger, “AT&T Ends All-You-Can-Eat,” The Wall Street
struck exclusive deals with distributors that leave Journal, March 1, 2012; John Eggerton, “Net Neutrality Rules Signed
Off On By OMB,” Broadcasting & Cable, September 13, 2011; “FCC
their competitors at a disadvantage. For example,
Approves Net Neutrality But With Concessions,” eWeek, December
in 2012, Comcast struck a deal with Microsoft to 22, 2010; and Brian Stelter, “Comcast Fee Ignites Fight Over Videos
provide streaming video via its Xfinity TV service on Internet,” The New York Times, November 30, 2010.

CASE STUDY QUESTIONS

1. What is network neutrality? Why has the Internet 3. What would be the impact on individual users,
operated under net neutrality up to this point in businesses, and government if Internet providers
time? switched to a tiered service model?
2. Who’s in favor of net neutrality? Who’s opposed? 4. Are you in favor of legislation enforcing network
Why? neutrality? Why or why not?

INTERNET SERVICES AND COMMUNICATION TOOLS
The Internet is based on client/server technology. Individuals using the
Internet control what they do through client applications on their computers,
such as Web browser software. The data, including e-mail messages and Web
pages, are stored on servers. A client uses the Internet to request information
from a particular Web server on a distant computer, and the server sends the
requested information back to the client over the Internet. Chapters 5 and 6
describe how Web servers work with application servers and database servers
to access information from an organization’s internal information systems
applications and their associated databases. Client platforms today include
not only PCs and other computers but also cell phones, small handheld digital
devices, and other information appliances.

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