Going Mobile: Technology and Policy Issues in the Mobile Internet Richard Bennett Information Technology and Innovation Foundation Going Mobile: Technology and Policy Issues in the Mobile Internet Richard Bennett March 2010 THE INFORMAtiON TECHNOLOGY & INNOVAtiON FOUNDAtiON Table of Contents I. Executive Summary ............................................................................................ 1 II. Introduction ......................................................................................................... 7 A. Advent of Broadband ............................................................................. 7 B. Rise of the Cell Phone ............................................................................ 8 B. Convergence ............................................................................................. 8 C. Reader’s Guide to the Report ................................................................ 8 III. Issues in Internet Design and Operation ........................................................ 8 A. Brief History ............................................................................................ 9 B. Modularity ................................................................................................. 9 C. Efficiency ................................................................................................11 D. Manageability .........................................................................................11 E. Innovation ..............................................................................................12 F. Subsidies .................................................................................................13 G. Specific Example: Inter-Domain Quality of Service .......................15 H. Why the Internet Works ......................................................................16 IV. Issues in Mobile Network Design and Operation .......................................18 A. Brief History ..........................................................................................18 B. Modularity ...............................................................................................19 C. Efficiency ................................................................................................20 D. Manageability .........................................................................................20 E. Innovation ..............................................................................................23 F. Specific Example: Voice over LTE .....................................................25 G. Status of Internet Design and Wireless Networks ..........................26 V. The Mobile Network Infrastructure ................................................................26 THE INFORMATION TECHNOLOGY & INNOVATION FOUNDATION | SEPTEMBER 2009 PAGE II THE INFORMAtiON TECHNOLOGY & INNOVAtiON FOUNDAtiON A. Essential Parts of the Mobile Network .............................................26 B. Spectrum .................................................................................................27 1. Licenses ...........................................................................................27 2. Efficient Use ...................................................................................28 3. Roaming ..........................................................................................28 4. Coordination ...................................................................................28 C. Base Station Siting .................................................................................29 D. Backhaul ...................................................................................................30 1. Technologies ...................................................................................31 2. Specific Examples: GigaBeam and Ceragon .............................31 3. Backhaul Bottom Line ..................................................................32 VI. Emerging Mobile Internet Applications .......................................................32 A. Content Delivery ...................................................................................32 1. Example: Kindle ............................................................................33 2. Benefits of Ubiquity ......................................................................33 3. Innovation from Differentiation .................................................33 B. Wireless VoIP ........................................................................................34 1. Example: Skype on the 3 Network .............................................35 2. Example: Other Ways to Skype ...................................................35 3. Economic Implications of Skype ...............................................36 C. Wireless Video Streaming .....................................................................36 1. Example: Video Streaming System: MediaFLO .......................37 2. Example Video Streaming: MobiTV ..........................................37 D. Mobile Augmented Reality ...................................................................38 1. Example: Layar Platform ..............................................................38 E. Internet of Things.................................................................................38 VI. Mobile Internet Policy Issues ..........................................................................39 A. Net Neutrality ........................................................................................39 1. Transparency-based Net Neutrality Lite ....................................39 2. Transparency ...................................................................................40 THE INFORMATION TECHNOLOGY & INNOVATION FOUNDATION | SEPTEMBER 2009 PAGE II THE INFORMAtiON TECHNOLOGY & INNOVAtiON FOUNDAtiON 3. Content Freedom ...........................................................................40 4. Application Freedom ....................................................................40 5. Reasonable Limits on “Device Freedom” .................................41 6. Managed Services ..........................................................................42 7. Enabling Innovation ......................................................................42 8. Specific Example: EU Telecoms Package ..................................43 9. Services-Oriented Framework .....................................................43 C. Spectrum Policy .....................................................................................44 1. The Value of Open Spectrum .....................................................44 2. The Limits of Open Spectrum ....................................................45 3. What Licensed Spectrum Does Well ..........................................46 4. Spectrum Inventory and Review .................................................46 5. Reassigning Spectrum ...................................................................47 6. Future Proofing the Spectrum .....................................................48 VIII. Policy Recommendations ..............................................................................49 A. Stick with Light-touch Regulation ......................................................49 B. Enact a Sensible Transparency Rule ...................................................50 C. Legitimize Enhanced Transport Services ..........................................50 D. Define Reasonable Network Management ........................................50 E. Preserve Engineering and Operations Freedom ..............................50 F. Review Existing Spectrum Licenses ...................................................51 G. Eliminate Redundant and Archaic Licenses......................................51 H. Protect Spectrum Subleasing ................................................................51 I. Cautiously Enable Secondary Uses ......................................................51 J. Allow the Experiment to Continue ......................................................52 THE INFORMATION TECHNOLOGY & INNOVATION FOUNDATION | SEPTEMBER 2009 PAGE II THE INFORMAtiON TECHNOLOGY & INNOVAtiON FOUNDAtiON List of Figures Figure 1: Classical Internet Protocol Version 4 Header .......................................... 9 Figure 2: Hot Potato Routing ....................................................................................13 Figure 3: Mobile Technology Summary ..................................................................17 Figure 4: Carrier-sensing overhead in an IEEE 802.11g Contention System ... 21 Figure 5: Carrier-sensing overhead in an IEEE 802.11n Contention System. .. 21 Figure 6: Deering’s Hourglass ...................................................................................23 Figure 7: Internal Architecture of the RACS Model .............................................24 Figure 8: Cell tower disguised in cross by Larson Camoflage ..............................28 Figure 9: Internet is a Virtual Network Composed of Physical Networks ....... 29 Figure 10: Cergagon FibeAir ® IP-10 Switch. .......................................................30 Figure 11: GigaBeam installation providing backhaul for Google’s Mountain View Wi-Fi Network .............................................................................31 Figure 12: Amazon Kindle. .......................................................................................32