New IP proposal collides with market-driven tech shifts

The New IP push and why it feels out of step

The International Telecommunication Union proposed a “New IP” framework last year, aiming to give networks more control over applications. The draft suggests operators police traffic, limit app capabilities, and treat the Internet like a regulated utility. This approach envisions network-managed control of application behavior, with a focus on fair sharing of bandwidth.

However, this plan seems at odds with current market trends. The Internet has evolved through consumer demand and market-based solutions. For instance, when users wanted video streaming, CDN providers emerged. When they sought encrypted messaging, end-to-end protocols developed. The New IP framework assumes a command-economy model, which no longer applies. A Hacker News comment noted that “communications services are no longer a command economy; these days, the sector operates as a conventional market-based economy.”

The Internet’s shift towards a market-driven model can be attributed to its early adoption and the open nature of its core protocols. This allowed a diverse ecosystem of companies and individuals to innovate and provide services without needing approval from a central authority. The success of this model is evident in the sheer variety of services and applications available today.

5G, cooperative networking, and the rise of LEO

The industry is moving toward cooperative networking. A shift away from the classic base-station model is expected with 5G and beyond, where devices can act as mini-base stations. This vision aligns with the rapid deployment of low-Earth-orbit satellite constellations, which will provide seamless connectivity. These trends are driven by commercial incentives, such as higher spectrum efficiency and lower latency, rather than prescriptive protocol stacks.

The move towards cooperative networking is driven by the need for more efficient use of resources. By allowing devices to act as mini-base stations, the network can dynamically adapt to changing conditions, such as the number of users in a given area. This approach also enables new services, such as device-to-device communication, which can be used for applications like file sharing and video streaming.

The economics of cooperative networking

The economics of cooperative networking are also driving the adoption of new technologies. For example, the cost of deploying and maintaining traditional base stations can be prohibitively expensive, especially in rural or hard-to-reach areas. Cooperative networking allows for a more cost-effective approach, as devices can be used to provide coverage in areas where traditional infrastructure is not feasible.

Market logic in biotech

The same market logic applies to biotech. A WIRED report highlighted a surge in Chinese peptide laboratories financed by cryptocurrency investors. These labs are developing experimental therapeutics, driven by the promise of high returns. No regulatory body dictates their research agenda; capital flows where it sees potential. This illustrates how financing can outpace policy.

The rise of crypto-funded biotech labs in China is a prime example of how market forces can drive innovation. These labs are able to operate freely, without the burden of regulatory oversight, and are able to attract funding from investors looking for high returns. This has led to a proliferation of new and innovative treatments, which may not have been possible through traditional funding channels.

Why top-down proposals miss the point

The ITU’s focus on controlling application behavior seems like a relic of the mainframe era. Modern networks are designed to be adaptable, not to enforce static policies. The push for cooperative 5G and LEO integration shows that flexibility wins. The crypto-funded labs demonstrate that capital can bypass bureaucratic gatekeepers.

The ITU’s New IP framework is an attempt to impose a top-down approach on a market that has already moved on. The framework’s focus on controlling application behavior is at odds with the market-driven approach that has driven the Internet’s success. By trying to impose a rigid structure on a dynamic market, the ITU risks stifling innovation and limiting the potential of new technologies.

History of Internet governance

The debate over Internet governance is not new. There have been several attempts over the years to rethink the basic architecture of the Internet’s technology. For example, the “Clean Slate” efforts in the US research community a decade or so ago. However, these efforts have often been met with resistance from the market, which has instead driven innovation through a bottom-up approach.

Technical mechanics of cooperative networking

Cooperative networking relies on a number of technical advancements, including software-defined networking (SDN) and network functions virtualization (NFV). These technologies allow for the creation of virtual networks that can be dynamically configured and managed. This enables a more flexible and adaptable approach to networking, which is better suited to the needs of modern applications.

Downstream implications

The implications of the ITU’s New IP framework are far-reaching. If implemented, it could limit the ability of companies to innovate and provide new services. It could also stifle competition, as incumbents would have more control over the market. On the other hand, the market-driven approach has led to a proliferation of new services and applications, which have driven innovation and economic growth.

What to watch next

Monitor the ITU’s next meeting for any adjustments to the New IP language. Track deployments of cooperative 5G pilots in dense urban areas and the rollout schedules of LEO constellations. Follow crypto-linked biotech funding rounds for signs of regulatory pushback or market correction. These signals will reveal whether market forces continue to outrun top-down control.

As the debate over Internet governance continues, it will be important to watch for signs of how the market responds to the ITU’s New IP framework. Will companies and investors continue to drive innovation through a market-driven approach, or will the ITU’s efforts to impose a top-down approach succeed? The outcome will have significant implications for the future of the Internet and the services that it provides.

In conclusion, the ITU’s New IP framework is at odds with the market-driven approach that has driven the Internet’s success. The push for cooperative 5G and LEO integration shows that flexibility wins, and the crypto-funded labs demonstrate that capital can bypass bureaucratic gatekeepers. As the debate over Internet governance continues, it will be important to watch for signs of how the market responds to the ITU’s efforts to impose a top-down approach.