First up, they discuss the issue of caps & metering, which was in the news last month.

McSlarrow doesn’t defend any model; he’s not even partial to metering, having happily lived under flat-rate plans himself for many years. He also won’t defend particular business plans, like those advanced by Time Warner Cable. But what he will defend is cable’s right to experiment.

“I’ve lived under a flat rate plan,” he said, “but I don’t assume… that’s it’s necessarily impossible to believe that you could have a different model in the future.”

That means experimentation, and lots of it, done in the most transparent well with full input from consumers. Without even doing the tests, McSlarrow says there’s simply no way to know whether certain business models will work better than others.

As usage increases over time, McSlarrow says that eventually something will have to be done to handle capacity issues.

“As demand goes in a certain direction,” he says, “someone’s going to have to build a network” to deal with “not just instantaneous peak but, more importantly, average peak usage. The whole point is to do it in a way, and to serve your customers in a way, that they have a great experience. If you fail on the network side to do that, particularly with our shared network, that’s a real problem.”

You can read the whole thing here.

Each week, C-SPAN broadcasts a show called The Communicators, which features half-hour interviews with the policy makers, opinion leaders and others who are shaping our digital future.

Making a return appearance on the program is NCTA’s President & CEO Kyle McSlarrow. According to this B&C article, he discusses the impact of the current financial crisis on the cable industry, the retransmission-consent “quiet period,” the FCC’s network management ruling, and more. He analyzes the possible telecom policy stances of both presidential candidates.

They’ve switched up the format a little and now include a guest moderator on the program. This week, it’s the Wall Street Journal‘s Amy Schatz.

The Communicators airs Saturday on C-SPAN at 6:30 p.m. ET and Monday on C-SPAN2 at 8 a.m. and 8 p.m. ET. You can also subscribe to the show’s podcast.

In his address, entitled “Cable’s Broadband Platform: Innovation for the Consumer,” he is expected to challenge the notion that there is a rivalry between innovation taking place at the edge of or in the network. In contrast, he will discuss the notion of an interactive “Internet ecosystem.” He will also discuss new developments in tru2way.

His speech will be webcast through this link [Archive available at this link for 6 months].

UPDATE: It’s also being streamed at C-SPAN’s site. The text of the speech has been posted at NCTA’s website.

He spoke of his time at an Internet start-up in the late Nineties, in a dial-up world. From his position, he said he was cheering on the cable industry to roll out broadband. He mentioned “open access,” the previous version of the network neutrality debate, which bears striking similarities to the current discussion. Over the last 14 years, as cable modems have taken off and increased the available bandwidth and over that time, McSlarrow noted, cable’s broadband service has never been regulated.

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I particularly note his remarks at 2:22, when he said:

Every single person here has a blog or a website or has content that has distribution and has enabled consumers, millions of them around this country, to [access] that content and no one is blocking it… We want as much content, we want as many applications to succeed as possible. That’s what makes our broadband service attractive to consumers. And if we ever engaged in conduct that consumers were outraged about, they do have a choice. They can go somewhere else.

He said that while we can have a discussion on what is the most appropriate method of network management, “…there is zero evidence that any operator is engaging in anticompetitive conduct.”

However, despite the paucity of evidence of such behavior, Professor Lawrence Lessig, a big proponent of net neutrality, said that some might argue that we should wait until we see discrimination before we do something about it – which strikes me as a sensible approach to legislation – but that hi-tech investments are made today based on what investors think the network will look like in the future. He says there is such extraordinary uncertainty about what the future holds that it threatens innovation. Threats about what might happen without net neutrality have been around for five years, back to Columbia Law Professor Tim Wu‘s 2003 paper Network Neutrality, Broadband Discrimination. I wouldn’t say that investors are shying away from promising broadband applications.

There was also a great deal of talk about what one person referred to as the United States’ “precipitous freefall” in terms of our global broadband ranking. I refer you back to our series on the problems with the OECD rankings, especially this post: The Truth About Japanese Broadband.

The companies are in talks to collaborate on ways to run BitTorrent’s technology more smoothly on Comcast’s broadband network, and allow Comcast to transport video files more effectively over its own network in the future, said Tony Warner, Comcast’s chief technology officer.

In a nice piece of timing, NCTA pretty much argued for exactly this approach on Thursday of last week, during a media briefing to address the topic of broadband network management. CNET’s Anne Broache provided coverage:

Kyle McSlarrow, president of the National Cable and Telecommunications Association, said he’s “amused” that in all the coverage of the Comcast-BitTorrent spat, no one’s talking about the cable industry’s role in getting high-speed Internet service to millions of American households and, by extension, enabling online applications and services to take off.

“One of the ironies is that most of these applications depended on cable’s rollout of residential broadband and our ongoing efforts to optimize the network to deliver the experience our customers expect,” McSlarrow said…

Kyle argued we should encourage experimentation in the issue of network management and then the marketplace and the Internet community can judge which solutions work best. You can hear the whole briefing by downloading this MP3.

Ken Ferree, President of the Progress & Freedom Foundation and former head of the Cable Services Bureau at the FCC, had this reaction to the call:

…Mr. McSlarrow added color and line to a vision of the future that is hazy shades of gray for most of us. As he pointed out, the broadband market is yet in its infancy. It is the offspring of diverse experimentation, and it shall grow only through more, and varied, experimentation. Like Walt Whitman putting the chuff of one hand on our hip and gesturing with the other to the vast unknown landscapes before us, Mr. McSlarrow rightly cautioned against taking our ease with what we know today – today’s technologies, today’s protocols, today’s data sharing applications, today’s networks or services.

For tomorrow will turn upon technologies, networks, applications, and protocols that, in 2008, are nothing more than mysterious phantoms of ideas. And the speed of innovation is, if anything, increasing. We may well, in very short order, and assuming the government doesn’t freeze technology into place with misguided regulations or unnecessary limits on innovative new business models, all interact with technologies in ways that would seem completely foreign now.

And therein lives the magic of ingenious engineering, creative marketing, and courageous entrepreneurship. The vast, unknowable landscape of tomorrow can only be discovered by leaving the market free to explore where it will. “Here are bisquits to eat and here is milk to drink, but as soon as you sleep and renew yourself in sweet clothes, I kiss you with a good-by kiss and open the gate for your egress hence.”

For more information, you can read Declan McCullagh’s Q&A with Comcast’s Joe Waz about the BitTorrent deal.

There were some interesting tidbits to be heard. For example, there are GPS systems that will search for local businesses as you travel from Point A to Point B and the #1 search is for “pizza.” The audience was polled throughout the session and most people indicated that they were not prepared to ditch their PC for a handheld device that could (supposedly) do it all.

Then Molly Wood, Executive editor, CNET.com, led a discussion with Patrick Norton of Revision3 (pictured at left), NCTA President & CEO Kyle McSlarrow (center) and George Kliavkoff of NBC Universal (on the right). Norton indicated an interest, as have others on the bleeding edge, to ditch traditional delivery methods of television and get all his viewing accomplished online through streaming and downloads. McSlarrow indicated that online content is a great complement to cable, but didn’t express concern that the cable industry should feel threatened right now. A poll of the audience confirmed that the vast majority did not intend to drop their cable or satellite service in favor on online viewing. Curiously, for what one would expect would be a tech-savvy group, about a third of the audience said they didn’t watch any online video at all.

McSlarrow acknowledged how complex the evolving business model for video is, but asked for that business to be allowed to develop without regulatory intervention. He added, “It tells you something about the economics of a la carte. There is enormous value in paying 50-60 bucks a month to watch eight hours a day, selected from hundreds of channels and large VOD libraries. Is that the right model? Let the marketplace decide.”

Kliavkoff also mentioned that NBC Universal’s new video service Hulu replicates what cable and satellite have “done well,” which is to act as an aggregator. He did say that there will be an incremental approach, due to existing contracts, but predicted that contractual issues will change over time.

Norton, formerly of TechTV, took a few shots at cable over the course of the panel and closed with a pitch for a la carte. As part of his rationale for this position, he said that he got hundreds of channels that he didn’t watch, that viewers only looked at about 20 channels over the course of a year and only really watched six of those channels regularly. Of course, as with most people who make this argument, he overlooked the fact that not everyone in a household watches the same six channels and every individual household also differs in terms of their preferences.

McSlarrow noted the attractiveness of an a la carte system, but asked if it seemed as attractive in light of abundant evidence that your new smaller package of cable channels would actually cost you more.

(I refer you to this recent column by the NY Times‘ Joe Nocera which examined the issue of a la carte and stated that “When we pay for the cable bundle we are, in effect, subsidizing those channels for everybody — including ourselves.”)