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* U.S. rallies substantial opposition to ITU treaty

* Big Internet companies, activists see victory for openness

* Global network could fracture as nations set their own rules

By Joseph Menn

SAN FRANCISCO, Dec 16 (Reuters) – The world’s major Internet companies,

backed by U.S. policymakers, got much of what they wanted last week when many

nations refused to sign a global telecommunications treaty that opponents feared

could lead to greater government control over online content and communications.

In rejecting even mild Internet language in the updated International

Telecommunications Union treaty and persuading dozens of other countries to

refuse their signatures, the U.S. made a powerful statement in support of the

open Internet, U.S. officials and industry leaders said.

But both technologists and politicians fear the Internet remains in imminent

danger of new controls imposed by various countries, and some said the rift that

only widened during the 12-day ITU conference in Dubai could wind up hastening

the end of the Net as we know it.

“If the international community can’t agree on what is actually quite a

simple text on telecommunications, then there is a risk that the consensus that

has mostly held today around Internet governance within (Web-address overseer)

ICANN and the multi-stakeholder model just falls apart over time,” a European

delegate told Reuters. “Some countries clearly think it is time to rethink that

whole system, and the fights over that could prove irresolvable.”

An increasing number of nations are alarmed about Internet-based warfare,

international cybercrime or internal dissidents’ use of so-called “over-the-top”

services such as Twitter and Facebook that are outside the control of

domestic telecom authorities. Many hoped that the ITU would prove the right

forum to set standards or at least exchange views on how to handle their

problems.

But the United States’ refusal to sign the treaty even after all mention of

the Internet had been relegated to a side resolution may have convinced other

countries that they have to go it alone, delegates said.

“This could lead to a balkanization of the Internet, because each country

will have its own view on how to deal with over-the-top players and will

regulate the Internet in a different way,” said another European delegate, who

would speak only on condition anonymity.

Without U.S. and European cooperation, “maybe in the future we could come to

a fragmented Internet,” said Andrey Mukhanov, international chief at Russia’s

Ministry of Telecom and Mass Communications.

HARD LINE IN NEGOTIATIONS

Spurred on by search giant Google and others, the Americans took a

hard line against an alliance of countries that wanted the right to know more

about the routing of Internet traffic or identities of Web users, including

Russia, and developing countries that wanted content providers to pay at least

some of the costs of transmission.

The West was able to rally more countries against the ITU having any

Internet role than agency officials had expected, leaving just 89 of 144

attending nations willing to sign the treaty immediately. They also endorse a

nonbinding resolution that the ITU should play a future role guiding Internet

standards, along with private industry and national governments.

Some delegates charged that the Americans had planned on rejecting any

treaty and so were negotiating under false pretenses. “The U.S. had a plan to

try and water down as much of the treaty as it could and then not sign,” the

second European said.

Other allied delegates and a U.S. spokesman hotly disputed the claim. “The

U.S. was consistent and unwavering in its positions,” he said. “In the end-and

only in the end-was it apparent that the proposed treaty would not meet that

standard.”

But the suspicion underscores the unease greeting the United States on the

issue. Some in Russia, China and other nations suspect the U.S. of using the Net

to sow discontent and launch spying and military attacks.

Ror many technology companies, and for activists who are helping dissidents,

the worst-case scenario now would be a split in the structural underpinnings of

the Internet. In theory, the electronic packets that make up an email or Web

session could be intercepted and monitored near their origin, or traffic could

be subjected to massive firewalls along national boundaries, as is the case in

China.

Most technologists view the former scenario as unlikely, at least for many

years: the existing Internet protocol is too deeply entrenched, said Milton

Mueller, a Syracuse University professor who studies Net governance.

“People who want to `secede’ from that global connectivity will have to

introduce costly technical exceptions to do so,” Mueller said.

A more immediate prospect is stricter national regulations requiring

Internet service providers and others to help monitor, report and censor

content, a trend that has already accelerated since the Arab Spring revolts.

Jonathan Zittrain, co-founder of Harvard University’s Berkman Center for

Internet Society, also predicted more fragmentation at the application level,

with countries like China encouraging controllable homegrown alternatives to the

likes of Facebook and Twitter.

Zittrain, Mueller and other experts said fans of the open Net have much work

to do in Dubai’s wake.

They say government and industry officials should not only preach the merits

of the existing system, in which various industry-led non-profit organizations

organize the core Internet protocols and procedures, but strive to articulate a

better way forward.

“The position we’re in now isn’t tenable,” said James Lewis, a cybersecurity

advisor to the White House based at the Center for Strategic and International

Studies. “For us to say ‘No, it’s got be an ad hoc arrangement of

non-governmental entities and a nonprofit corporation … maybe we could get

away with that 10 years ago, but it’s going to be increasingly hard.”

Lewis said the United States needed to concede a greater role for national

sovereignty and the U.N., while Mueller said the goal should be a “more

globalized, transnational notion of communications governance” that will take

decades to achieve.

In the meantime, activists concerned about new regulation can assist by

spreading virtual private network technology, which can national controls,

Zittrain said.

Backup hosting and distribution could also be key, he said. “We can devise

systems for keeping content up amidst filtering or denial-of-service attacks, so

that a platform like Twitter can be a genuine choice for someone in China.”