Public Policy

June 19, 2009

Internet, Not Broadband, for National Policy

ipprinciples.png A national broadband policy is what you get when you put bellheads in charge. Fortunately, Scott Bradner has been on the Internet since the beginning, and explains the difference.
Broadband is not the Internet. Broadband is shorthand for a diverse class of wired and wireless digital transmission technologies. The Internet, in contrast, is a set of public protocols for inter-networking systems that specifies how data packets are structured and processed. Broadband technologies, at their essence, are high-capacity and always-on. The essence of the Internet is (a) that it carries all packets that follow its protocols regardless of what kinds of data the packets carry, (b) that it can interconnect all networks that follow those protocols, and (c) its protocols are defined via well-established public processes.

There’s risk in confusing broadband and Internet. If the National Broadband Plan starts from the premise that the U.S. needs the innovation, increased productivity, new ideas and freedoms of expression that the Internet affords, then the Plan will be shaped around the Internet. If, instead, the Plan is premised on a need for broadband, it fails to address the ARRA’s mandated objectives directly. More importantly, the premise that broadband is the primary goal entertains the remaking of the Internet in ways that could put its benefits at risk. The primary goal of the Plan should be broadband connections to the Internet.

It's a petition. Please sign it.

-jsq

PS:

Therefore, we urge that the FCC’s National Broadband Plan emphasize that broadband connection to the Internet is the primary goal. In addition, we strongly suggest that the Plan incorporate the FCC Internet Policy Statement of 2005 and extend it to (a) include consumer information that meaningfully specifies connection performance and identifies any throttling, filtering, packet inspection, data collection, et cetera, that the provider imposes upon the connection, (b) prohibit discriminatory or preferential treatment of packets based on sender, recipient or packet contents. Finally, we suggest that the Internet is such a critical infrastructure that enforcement of mandated behavior should be accompanied by penalties severe enough to deter those behaviors.
While you're at it, urge the FCC to stop talking about "consumers" and start talking about participants.

April 20, 2009

USPS Bubble Pop

Big corporations' distortion of US Postal Service rates gets noticed by The American Interest:
Just as General Motors has in effect subsidized Big Oil by continuing to build gas-guzzlers in recent years, so has the USPS continued to subsidize Big Mail by shaping its operations to encourage what it now calls, revealingly, “standard mail”—that is, advertising junk mail. Most American citizens are blissfully unaware of the degree to which USPS subsidizes U.S. businesses by means of the fees it collects from ordinary postal customers. For example, if you wish to mail someone a large envelope weighing three ounces, you’ll pay $1.17 in postage. A business can bulk-mail a three-ounce catalog of the same size for as little as $0.14.

USPS management claims that “standard” mail makes lots of money, that the USPS makes a better margin delivering a “standard” mail package for $0.14 than it does a first-class one for $1.17. Why? Supposedly because of efficiencies produced by bulk-mail, machinable, zip-plus-four and zip-plus-nine standardization schemes. If you look at the revenue stream from advertising mail, it does look impressive, and it has been growing (for perverse reasons we’ll come to in a minute). But when you juxtapose next to that revenue stream the enormous transactional costs of maintaining a riotously complex rate structure to service it, you quickly reach a different conclusion: Standard mail, the costs of which are also generally tax-deductible for businesses, does not make money. It amounts to a corporate subsidy, which helps to explain why Congress, insofar as its members understand this, typically doesn’t object to the status quo. After all, these corporations have been known to contribute to electoral campaigns.

Actually, it’s worse than that. Not only are pennies shaved off the postage affixed to grandma’s letters routed directly into the pockets of direct-mail marketers, some 20 percent of direct-mail advertising volume is comprised of credit card, mortgage and other financial offers. So yes, the USPS has contributed in a subtle yet very real way to our burst economic bubble.

And the USPS's own "standard mail" is about to pop. It's worse than you probably think. An article well worth reading.

December 24, 2008

Lessig's Herculean Holiday Present: Reboot the FCC

1990.05.0243.jpeg Here's a good test for the new U.S. Executive: to recognize that steady pragmatism means radical change, starting with the FCC:
The solution here is not tinkering. You can't fix DNA. You have to bury it. President Obama should get Congress to shut down the FCC and similar vestigial regulators, which put stability and special interests above the public good. In their place, Congress should create something we could call the Innovation Environment Protection Agency (iEPA), charged with a simple founding mission: "minimal intervention to maximize innovation." The iEPA's core purpose would be to protect innovation from its two historical enemies—excessive government favors, and excessive private monopoly power.

Reboot the FCC, We'll stifle the Skypes and YouTubes of the future if we don't demolish the regulators that oversee our digital pipelines. By Lawrence Lessig, Newsweek Web Exclusive, 23 Dec 2008

Lessig gets the connection with his old topic of intellectual property and copyright. Those are monopolies granted by the federal government, and they have been abused by the monopoly holders just like the holders of communication monopolies:

Continue reading "Lessig's Herculean Holiday Present: Reboot the FCC " »

November 15, 2008

Users Revolted: Net Neutrality to Win

The world has turned upside down:
This column is dedicated to the top managers of American business whose policies and practices helped ensure Barack Obama's victory. The mandate for change that sounded across this country is not limited to our new President and Congress. That bell also tolls for you. Obama's triumph was ignited in part by your failure to understand and respect your own consumers, customers, employees, and end users. The despair that fueled America's yearning for change and hope grew to maturity in your garden.

Millions of Americans heard President-elect Obama painfully recall his sense of frustration, powerlessness, and outrage when his mother's health insurer refused to cover her cancer treatments. Worse still, every one of them knew exactly how he felt. That long-simmering indignation is by now the defining experience of every consumer of health care, mortgages, insurance, travel, and financial services—the list goes on.

Obama's Victory: A Consumer-Citizen Revolt, The election confirms it's time for sober reappraisal and reinvention within the business community. If you don't do it, someone else will, By Shoshana Zuboff

She identifies Apple as one of the few companies that has actually gotten it about how to do business, with its iPod and iTunes. As we've previously seen, this is because Apple gets it that Porter's Five Forces model of competition breaks when open distribution channels are introduced.

It appears that Mark Anderson, Odile Richards, and William Gibson were right: "See-bare-espace... it is everting." Cyberspace just elected a president of the United States. And he knows it.

Obama has been publicly in favor of net neutrality for at least a year. And he has not backed off. He's put Susan Crawford and Kevin Werbach in charge of reviewing the FCC. Now that's cyberspace inverted indeed!

July 02, 2008

Amnesty Foes 2.0: SenatorObama-PleaseVoteAgainstFISA

obamafisa.jpg I've been waiting for this to hit the bigtime, and it has, it's been slashdotted:
ya really notes a blog posting up at Wired reporting that foes of the Telecom Amnesty Bill have mounted a campaign on Barack Obama's own website. Though the group was created only days ago, on June 25, it has grown to be the fifth largest among 7,000 such groups, just short of Women for Obama. Although it is widely known that Obama changed his stance from opposing telecom immunity to supporting it, many have not given up hope of getting him to switch once again.

Telecom Amnesty Foes On the Move, Posted by kdawson, slashdot, on Tuesday July 01, @08:02AM from the one-week-and-counting dept.

And today the group has more than 9,000 members and is #2 among all MyBO groups.

It's everywhere else, too, Time, WSJ, Wired, Huffington Post, TPM, DailyKos, MyDD, OpenLeft, digg, reddit, and of course facebook. Read all about it on the wiki.

(Yes, I'm a member of the group, since about the second day, and here's what I think about the issue.)

This group is a goldmine of information about which telecoms gave what money to whom.

The most significant part to me is that people are using a candidate's own organizing tools to attempt to organize the candidate. Not stopping there, either, attempting to organize allies for the candidate. Obama claims to be people-powered. Let him say that while other politicians follow money from lobbyists, he listens to the people who give him money, who are the people, and when they said think again he did, and discovered the bogus House FISA "compromise" bill is no such thing, and now he's against it. We'll see.

-jsq

June 26, 2008

Online Everyone: The Internet for Everyone, a new public/private coalition

internetforeveryone.jpg Google's Vint Cerf, ZIPcar's Robin Chase, FCC's Adelstein: Internet for Everyone, a public/private coalition for getting everyone online:
It's Google's involvement in the deal that makes the new coalition something to keep an eye on. The company has expanded its Washington DC lobbying group significantly in the past few years.

"When you have a public interest community up against a massive industrial sector like the cable and telco companies, you're going to likely fail because of the corrupted political system where money buys influence," said Silver. "However, if you can align the public interest with major industrial sectors that also have an increasing influence in Washington, then you have something formidable, then you actually can beat the cable and phone cartel, and this is going to how its going to play out."

Net Neutrality Advocates Call For Fast, Universal Access To The Net, By Sarah Lai Stirland, Wired, June 24, 2008,

Access, choice, openness, innovation: yes, those are the points (plus speed), without being weighed down by the albatross of the clunky "net neutrality" malnym.

-jsq

PS: Free Press: if you're going to put a video up front, pick a fluent public speaker such as Robin Chase or Jonathan Zittrain to show first, eh? "Collective hallucination," yes!

May 29, 2008

Not for Sale: Canadian Internet

ralpic.jpg Net neutrality has become a political issue in Canada, where a small and very polite rally occurred in Ottawa the other day.
p2pnet news | Freedom:- Today is the day Canadians are gathering in Ottawa to tell the federal government what they think about Net Neutrality and bandwidth throttling.

Bell Canada was suffering under the delusion it could choke down accounts paid for by some of its customers, wrongly claiming they’re responsible for bandwidth congestion.

Canadians rally for Net Neutrality, P2Pnet news, 27 May 2008

-jsq

May 20, 2008

Postal Hikes and Time Warner's Role Discovered by New York Review of Magazines

ben_scott_140x140.jpg The New York Review of Magazines catches up with Time Warner and the postal rate hikes it lobbied for and got. First, the bottom line:
...the true price of letting corporations shape government policy: free speech.

Going Postal, Callie Enlow, New York Review of Magazines, 2008

The NYRB gets into some of the underlying political machinations:
Even Time Warner was taken aback. Halstein Stralberg, co-creator of Time’s rate proposal, said, “There was a new chairman at the commission and there was a totally new environment, and they adopted it, to my surprise.”
The NYRM noted the sudden parachuting in of a new chairman just before the decision as unusual:
In the corporate world, The Progressive Populist would most likely be forced out of business. But should the same rules apply when the product is ideas and the conduit is a government-owned monopoly? To the current administration, the answer is yes, said Cullen. The president appoints the five commissioners that compose the Postal Regulatory Commission. Between the 2005 Time Warner complaint, when the PRC rejected the corporation’s proposed rate restructuring, and the 2006 rate hearings, when the PRC adopted the suggestions almost verbatim, two new commissioners joined the PRC. One of them, Dan G. Blair, replaced George Omas as chairman just one month before the end of the rate cases, a move that Bob Cohen described as “pretty unusual.”
However, the NYRM didn't follow up on the other chairman, the chairman of the Postal Board of Governors from January 2005 to January 2008, James C. Miller III, and his 27-year-old theory:
"...none should be favored and none benefited. Each party pays the cost of service it consumes, not less, and does not bear the cost of others’ consumption."
Curious how someone with that philosophy should be chairman just at the time the decision was made.

The NYRM does say what happened, why it was unusual, and who it affected:

Continue reading " Postal Hikes and Time Warner's Role Discovered by New York Review of Magazines " »

May 14, 2008

Fair Trade: Fixing Antitrust for the Internet

zoe_lofgren.jpg So suppose for the moment that net neutrality is an antitrust issue. Does this bill fix antitrust law enough to deal with it?
Federal lawmakers have introduced yet another network neutrality bill, but this time with a focus on fair trade issues.

This week, U.S. Rep. John Conyers, who chairs the House Judiciary Committee, has introduced legislation that addresses the issue by labeling it an antitrust matter. Conyers' H.R. 5994 would ban discriminatory network management practices by amending the Clayton Act.

The bill, labeled the Internet Freedom and Nondiscrimination Act, would require carriers to promote competition and allow people to use any device they want to on the carriers' networks. The bill makes exceptions for emergencies, criminal investigations, parental controls, marketing, and improvements to quality of service.

Under the Detroit Democrat's proposed legislation, ISPs could give preference to certain types of data, but they must give the preference regardless of the data source. It would ban ISPs from discriminating based on content, applications, or services.

Lawmakers Eye Net Neutrality As Anti-Trust Issue, The Internet Freedom and Nondiscrimination Act would require carriers to promot e competition and allow people to use any device they want to on the carriers' networks. By K.C. Jones, InformationWeek, May 9, 2008 05:42 PM

And does this fix the problems Google and Ebay complain about?

Meanwhile, a cosponsor sums it up:

U.S. Rep. Zoe Lofgren, D-Calif., has co-sponsored the legislation.

"Recent events have shown that net neutrality is more than a hypothetical concern. We need a meaningful remedy to prevent those who control the infrastructure of the Internet from controlling the content on the Internet," Lofgren said. "This legislation will help guarantee that the innovative spirit of the Internet is not trampled."

-jsq

May 13, 2008

Critics, it's Time to Stop the Quibbling: Broadband in Other Countries

bio_nate.jpg Ars technica sums it up:
One of the ironies of the current broadband situation in the US is that staunch free marketeers defend the status quo even though the result of their views has been duopoly and high prices. Meanwhile, other countries (including those with a reputation in some quarters for "socialism") have taken aggressive steps to create a robust, competitive, consumer-friendly marketplace with the help of regulation and national investment.

Critics, it's time to stop the quibbling: the data collection practices that show the US dropping year-over-year in all sorts of broadband metrics from uptake to price per megabit might not prove solid enough to trust with your life, but we're out of good reasons to doubt their general meaning.

Broadband: other countries do it better, but how? By Nate Anderson, ars technica, Published: May 11, 2008 - 07:37PM CT

That post includes a table of papers and reports on per-country broadband rankings with corresponding U.S. rankings, from 11 to 24.

Then it gets to lack of political leadership:

Despite the repeated claims of the current administration that our "broadb and policy" is working, the US act ually has no broadband policy and no aggressive and inspiring goals (t hink "moon shot"). The EDUCAUSE model suggests investing $100 billion (a third comes from the feds, a third from the states, and a third from compan ies) to roll out fiber to every home in the country. Whether the particular pro posal has merit or not, it at least has the great virtue of being an ambitious policy that recognizes the broad economic and social benefits from fast broadba nd. 

Here's hoping that the next president, whoever he (or, possibly, she) is, g ives us something more effective—and inspiring—than this. It's telling that the current administration's official page on the President's tech p olicy hasn't had a new speech or press release added since... 2004.

$100 billion may sound like a lot, but the federal government alone spends that much a year on the unnecessary Iraq war. The U.S. needs better priorities.

-jsq

May 12, 2008

Sensing History: Yoo Re Cherry

tortoise_and_hare.jpg Dave Farber posted a response by Chris Yoo to Barb Cherry's post about myths and historical errors. Here's Chris's reponse in full. To me, it seems that he is conceding that she's right about the history, that antitrust says nothing about ISP competition, and that a few ISPs control most of the Internet in the U.S. But read it for yourself:
From: Christopher S. Yoo [mailto:csyoo@law.upenn.edu]

I don't pretend to be an expert on the history of common carriage regulation. Barbara has spent far more time thinking about this than I have, so I always appreciate hearing her reactions and learn from reading her work. That said, here are a few thoughts.

It is true that common carriage long predates both the Granger Movement and the Interstate Commerce Act of 1887. That said, one of the central problems is that the historic justifications for common carriage have not aged very well. Often times the common carriage obligations were regarded as a quid pro quo for a government grant of some economic privilege. Other times they were justified because the industry was "affected with a public interest," a concept that is usually traced to the landmark Supreme Court case Munn v. Illinois (1876). The Supreme Court struggled to imbue that standard with content (along with a number of early treatises trying to make sense of the concept) and would ultimately abandon it as analytically empty in Nebbia v. New York (1934). Legal scholars, such as Thomas Nachbar and James Speta in addition to Barbara, have attempted to recover lessons from this era. I have never spoken to Barbara about this in particular, but both Tom and Jim have noted the difficulty in extracting any useful lessons from the history.

The rest after the jump.

Continue reading "Sensing History: Yoo Re Cherry " »

Social Welfare: Reed Asks Yoo

DPRPhotoSmall.jpg David P. Reed asks a question and Christopher S. Yoo responds on Farber's Interesting People list. I'm posting both in full here, with my thoughts at the end; basically, law isn't a science, and anecdotes can turn into legal cases; some have already regarding net neutrality.
From: David P. Reed [dpreed@reed.com]
Sent: Saturday, May 10, 2008 11:50 AM
To: David Farber
Cc: ip
Subject: Re: [IP] re-distribution of op-ed on Net Neutrality -- a reaction and a reply from one of the authors

I read through the long comment by Chris Yoo below, and as a non-lawyer interested in policy, I ask the following simple question:

Is there a well-regarded (one might ask for scientifically reasoned) argument that antitrust law as currently interpreted and practiced has a substantial impact measured in some currency like $ on social welfare?

Otherwise this entire argument is about nothing more than vaporware proceeding from a faith that competition (however loosely defined) creates social welfare best. AFAIK, this is largely an article of faith, just as the "End of History" was a grand article of faith posited by many of the same people as "truth".

It is just not fair to imply that the core of "today's settled antitrust law" carries even the level of weight as Darwin's Theory of Evolution. There have been no replicable studies of its practice.

Law professors and lawyers who don't challenge its truthiness squarely are merely behaving as dogmatic mandarins always do - asserting authority of professional status, rather than rigor of reasoning, experiment, or argument.

I say this not as FOX News or Hillary Clinton would call an elitist, but as a person who genuinely is unconvinced by magical faith in authorities.

That's Reed's question. Yoo's response, and my thoughts, after the jump.

Continue reading "Social Welfare: Reed Asks Yoo " »

Novel Point of View: Dr. Chris Yoo's Opinion of Dr. Barbara Cherry's Antitrust Opinion

csyoo.jpg I previously posted a pointer to Barbara Cherry's examination of antitrust history in response to Dave Farber's posting of an op-ed against net neutrality. Dave responds:

( INDEED I AM NOT A LAWYER AND SO I ASKED PROF. YOO, ON THE FACULTY OF PENN LAW AND ONE OF THE AUTHORS OF THE EDITORIAL, TO REPLY TO THIS NOT -- IN PARTICULAR PROF. CHERRY'S COMMENTS. DAVE FARBER)

re-distribution of op-ed on Net Neutrality -- a reaction and a reply from one of the authors, David Farber, Interesting People, Fri, 9 May 2008 15:23:10 -0400

Here's Prof. Yoo's response:

From: "Christopher S. Yoo" <csyoo@law.upenn.edu>
Date: May 9, 2008 2:51:40 PM EDT
To: "David Farber" <dave@farber.net>
Cc: "Faulhaber, Gerald" <faulhabe@wharton.upenn.edu>

Dave Farber forwarded me a recent e-mail asking for a lawyer's reaction to Barbara Cherry's recent presentation and paper questioning whether antitrust law can protect against the harms envisioned by network neutrality proponents. As the only lawyer among the co-authors of the op-ed that Dave, Michael Katz, Gerry Faulhaber, and I worked up for the Washington Post, I am happy to offer a few thoughts. (Those interested in a different take on the relationship between network neutrality and antitrust law may want to look here: http://ssrn.com/abstract=992837.)

Barbara's work is based on a theory advanced by Neil Averitt and Robert Lande that would place consumer choice at the center of antitrust policy. As Averitt and Lande explicitly recognize, their theory would represent a fairly significant break (they would call it a paradigm shift) away from current antitrust law, which focuses on maximizing economic (and particularly consumer) welfare.

Interestingly, antitrust law once was quite friendly toward the consumer choice perspective that Barbara favors. (I review these developments in vol. 94 of the Georgetown Law Journal at pages 1885-87, http://ssrn.com/abstract=825669.) Early cases like FTC v. Brown Shoe (1966) and Times-Picayune Publishing v. United States (1953) invalidated exclusive dealing and tying contracts (which are among the types of antitrust practices most similar to network nonneutrality) because they infringed on unfettered consumer choice.

The rest of Dr. Yoo's response after the jump, and my response in a following post.

Continue reading "Novel Point of View: Dr. Chris Yoo's Opinion of Dr. Barbara Cherry's Antitrust Opinion " »

March 25, 2008

Arbitrary and Capricious: FCC (says Fox)

mbatonybj.jpg The FCC seems to have no friends these days:
Fox Television said it won't pay its part of a $91,000 indecency fine levied recently by the Federal Communications Commission for a 2003 episode of a reality TV show that featured strippers and whipped cream.

Fox said in a statement that it won't pay the fine imposed against five of its stations because it believes the FCC's decision that the show in question was indecent was "arbitrary and capricious, inconsistent with precedent, and patently unconstitutional." The network said it will appeal the FCC's decision and proposed fine on behalf of 13 stations....

Fox TV Refuses to Pay Indecency Fine by FCC, By Amy Schatz, Wall Street Journal, 24 March 2008

Fox lifted the wording from a 2007 court ruling, apparently about a different show. Oh, right: that one.

Maybe if the FCC would get back to actually dealing impartially with real matters of public policy, it might garner public and Congressional support.

-jsq

March 10, 2008

Jettisoned: 8 Centuries of Common Carriage Law

puzzle-grey-data-header.jpg Someone at CAIDA (presumably kc Claffy by the writing style), went to
an invitation-only intensely interactive workshop on the topic of Internet infrastructure economics. participants included economists, network engineers, infrastructure providers, network service providers, regulatory experts, investment analysts, application designers, academic researchers/professors, entrepreneurs/inventors, biologists, oceanographers. almost everyone in more than one category.

internet infrastructure economics: top ten things i have learned so far, by webmaster, according to the best available data, October 7th, 2007

and wrote up a report including this summary of the political situation:
...and it turns out that in the last 5 years the United States — home of the creativity, inspiration and enlightened government forces (across several different agencies) that gave rise to the Internet in the first place — has thoroughly jettisoned 8 centuries of common carriage law that we critically relied on to guide public policy in equitably provisioning this kind of good in society, including jurisprudence and experience in determining ‘unreasonable discrimination’.

and our justification for this abandonment of eight centuries of common law is that our “government” — and it turns out most of our underinformed population (see (1) above) — believes that market forces will create an open network on their own. which is a particularly suspicious prediction given how the Internet got to where it is today:in the 1960s the US government funded people like vint cerf and steve crocker to build an open network architected around the ‘end to end principle’, the primary intended use of which was CPU and file sharing among government funded researchers. [yes, the U.S. government fully intended to design, build, and maintain a peer-to-peer file-sharing network!]

That's right folks: "resource sharing" was the buzzword back then, and every node was supposed to be potentially a peer to every other.

Continue reading "Jettisoned: 8 Centuries of Common Carriage Law" »

February 19, 2008

Internet Freedom Policy Act

markey-photo.jpg Rep. Ed Markey (D-MA) and Rep. Chip Pickering (R-MS) have introduced the Internet Freedom Preservation Act of 2008, which will amend Title I of the Communications Act of 1934 to say Internet freedom, commerce, innovation, participation, and speech are the policy of the United States. It's interesting what this bill does not say. It doesn't specify any regulations, so that those who oppose net neutrality don't have a leg to stand on when they say net neutrality is all about regulation. It doesn't say "net neutrality": it says "freedom", "marketplace", "innovation", and other positive benefits. (I think I'll take a cue from Commissioner Copps and start referring to Internet freedom.) It doesn't say "consumers" except a few times, including once where that word is immediately qualified by
(i) access, use, send, receive, or offer lawful content, applications, or services over broadband networks, including the Internet;
Let's see, if "consumers" can send their own content, applications, and service, they're not really consumers in the traditional sense, now are they?

This is all very nice, in that Markey and Pickering apparently get it about what Internet freedom is about. However, why does this bill have no teeth, unlike Markey's bill of last year or the Snowe-Durgan bill before that?

Continue reading "Internet Freedom Policy Act" »

February 12, 2008

Pathetic NTIA Broadband Report: Inflated ZIP Codes and BPL

bpl.gif U.S. Commerce Secretary hails "dramatic growth of broadband" in the U.S., citing a report from National Telecommunications and Information Administration (NTIA). That report not only uses the U.S. tinyband definition of 256Kbps as "broadband", it still uses ancient metrics such as this:
By December 2006, 91.5 percent of ZIP codes had three or more competing service providers and more than 50 percent of the nation's ZIP codes had six or more competitors.

Gutierrez Hails Dramatic U.S. Broadband Growth, Government Technology, Feb 1, 2008, News Report

So any provider that has service available to at least one user in a ZIP code is counted as a "competitor".

Meanwhile, the ARRL says the NTIA report inflates broadband over powerline (BPL) figures:

Continue reading "Pathetic NTIA Broadband Report: Inflated ZIP Codes and BPL" »

February 07, 2008

Verizon Does Something Right: No Hollywood Policing

tauke.190.jpg Verizon talks sense:
We see substantial increases in the volume of traffic. Generally we see that as a good thing. We have more customers paying for more services we provide.

—Tom Tauke, executive vice president for public affairs, Verizon, quoted in Verizon Rejects Hollywood’s Call to Aid Piracy Fight, By Saul Hansell, Bits, New York Times, February 5, 2008, 3:56 pm

He's specifically responding to requests from Hollywood to police copyright. Tauke lists at least three good reasons not to:
  1. Slippery slope. What else? Pornography? Gambling?
  2. Liability. Especially for a deep-pockets company like Verizon.
  3. Privacy:
    Anything we do has to balance the need of copyright protection with the desire of customers for privacy.
A telco concerned with its customers' privacy? I'd call that a good thing!

There is, nonetheless, a downside.

Continue reading "Verizon Does Something Right: No Hollywood Policing" »

January 21, 2008

Settling for Slow: Duopoly or Competition

CIR638.gif This is what the duopoly doesn't want:
In France, for example, the regulator forced France Télécom to rent out its lines. One small start-up firm benefited from this opportunity and then installed technology that was much faster than any of its rivals'. It won so many customers that other operators had to follow suit. In Canada, too, the regulator mandated line-sharing, and provinces subsidised trunk lines from which smaller operators could lease capacity to provide service.

Open up those highways, The Economist print edition, Jan 17th 2008

The duopoly will settle for the U.S. being slow and expensive as long as they get to collect the rents.

Here's how other countries do it:

Continue reading "Settling for Slow: Duopoly or Competition" »

January 14, 2008

Forensic FCC Oversight

JDD_Headshot_2004.jpg Preventive Congressional oversight had no effect on the FCC. We'll see if forensic oversight does any better:
Bipartisan leaders of the House Energy and Commerce Committee launched an investigation of the Federal Communications Commission on Tuesday, three weeks after the agency's controversial vote to ease media ownership restrictions.

In a letter sent to FCC Chairman Kevin Martin, the committee asked that all electronic records and personal e-mails related to FCC work be saved.

The committee has "initiated a formal investigation into FCC regulatory procedures to determine if they are being conducted in a fair, open, efficient, and transparent manner," said the letter written by Chairman John Dingell, a Michigan Democrat, and ranking Republican Joe Barton of Texas.

"This investigation will also address a growing number of allegations received by the committee relating to management practices that may adversely affect the agency's operation," the letter said.

House panel launches probe of FCC practices, Reuters, Tue Jan 8, 2008 4:15pm EST

Maybe Congress will slap the FCC with another stern letter. I'm sure Kevin Martin is quaking in his boots.

-jsq

December 07, 2007

Moderate? Comcast Stifling Isn't

MagrittePipe.jpg Promising unlimited access, not delivering, and refusing to admit it is managing a network for the good of the many above the activities of the few? Pete Abel thinks so:
Earlier this month, Comcast — the nation’s largest cable broadband company — was caught doing what any good Internet Service Provider (ISP) should do, i.e., manage its network to ensure that the online activities of the few don’t interfere with the online activities of the many,

Fair vs. Foul in Net Neutrality Debate, By Pete Abel, The Moderate Voice, 24 November 2007

The problem with Comcast stifling BitTorrent by faking reset packets from a participant is not that Comcast is trying to manage its network: it's that Comcast used a technique that if it came from anyone other than an ISP would be considered malicious denial of service, that Comcast still hasn't admitted doing it, and that Comcast bypassed numerous other methods of legitimate network management, such as those used by PlusNet. Comcast could even use the Australian model and sell access plans that state usage limits and throttle or charge or both for usage above those limits. What Comcast is doing it seems to me is much closer to the false advertising of unlimited access that got Verizon slapped down for wrongful account termination.

The biggest problem with what Comcast (and Cox, and AT&T, and Verizon) are doing is that their typical customer has at most one or two choices, which in practice means that if your local cable company and your local telephone company choose to stifle, throttle, block, or terminate, you have no recourse, because there's nowhere to go. Competition would fix that.

Abel tries to back up his peculiar interpretation of network management with revisionist history:

Continue reading "Moderate? Comcast Stifling Isn't" »

November 09, 2007

Normative net neutrality: Milton Mueller on free association and free trade

milton-mueller-1.jpg Free as in free speech, free association, and free trade: Milton Mueller drafts an Internet governance paper using net neutrality as its central principle.
... as a normative guide to policy, network neutrality transcends domestic politics. The network neutrality debate addresses the right of Internet users to access content, services and applications on the Internet without interference from network operators or overbearing governments. It also encompasses the right of network operators to be reasonably free of liability for transmitting content and applications deemed illegal or undesirable by third parties. Those aspects of net neutrality are relevant in a growing number of countries and situations, as both public and private actors attempt to subject the Internet to more control. Because Internet connectivity does not conform to national borders, net neutrality is really a globally applicable principle that can guide Internet governance.

Net Neutrality as Global Principle for Internet Governance, Milton Mueller, Internet Governance Forum, 5 November, 2007

Basically, instead of getting mired in discussions of bandwidth or technical methods of stifling, throttling, or censorship, let's get back to deriving net neutrality from general political and economic principles, which turns out to make net neutrality a convenient lens by which to view those principles and to apply them to the Internet.

Continue reading "Normative net neutrality: Milton Mueller on free association and free trade" »

November 02, 2007

U.S. Broadband Competitiveness: Let's Study It To Death

countries.gif Let's study it to death:
The United States is starting to look like a slowpoke on the Internet. Examples abound of countries that have faster and cheaper broadband connections, and more of their population connected to them.

What's less clear is how badly the country that gave birth to the Internet is doing, and whether the government needs to step in and do something about it. The Bush administration has tried to foster broadband adoption with a hands-off approach. If that's seen as a failure by the next administration, the policy may change.

In a move to get a clearer picture of where the U.S. stands, the House Energy and Commerce Committee on Tuesday approved legislation that would develop an annual inventory of existing broadband services -- including the types, advertised speeds and actual number of subscribers -- available to households and businesses across the nation.

U.S. sees some countries overtake it in broadband speeds, but is there a problem? Associated Press, 30 Oct 2007

On the one hand, this sounds like a popular approach to global warming by its deniers: now let's ask some scientists to study it. After all, the Okefenokee and surrounds burned more acres than in living memory, western wildfires have increased fourfold since 1970, 30 million people in half a dozen southwest states may run out of water in the next decade or so, and 12 million people in the Atlanta metro area are less than 3 months from having no water. And hundreds of climate scientists have already turned in their verdict. But, hey, now let's ask some scientists to study it.

On the other hand, this is Ed Markey's committee, and he has seemed serious about doing something, so maybe he's just cojmpiling a case. Sure, he's probably reacting to people like this who are taking the same tack as outlined above:

Continue reading "U.S. Broadband Competitiveness: Let's Study It To Death" »

October 24, 2007

Christian Coalition Joins Naral Against Telco Censorship

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Verizon's blocking of NARAL has led to some strange bedfellows:
Today, the presidents of NARAL Pro-Choice America and the Christian Coalition co-authored a Washington Post op-ed calling on Congress to address the censorship policies of phone companies like Verizon and AT&T. Last month, Verizon arbitrarily banned text messages from NARAL, deeming the lawful political speech too "controversial and unsavory" to send.

"We are on opposite sides of almost every issue," wrote NARAL President Nancy Keenan and Christian Coalition President Roberta Combs. "But when it comes to the fundamental right of citizens to participate in the political process, we're united -- and very worried. Whatever your political views -- conservative or liberal, Republican or Democrat, pro-choice or pro-life -- it shouldn't be up to Verizon to determine whether you receive the information you requested."

Groups Fight Cell Censorship, Unstrung, 17 October 2007

Most of the U.S. political spectrum seems to be against censorship by telcos and cablecos. The next question is whether this opposition will have any effect, or will the telcos get the FCC to lay off anyway, or will telco and cableco political contributions and lobbying convince Congress to turn a blind eye.

-jsq

October 23, 2007

Japanese Broadband Growth: FTTH Pulls Up

jpgrowth.gif Japanese broadband uptake as of March 2007:
14.013 millionaDSL
8.803 millionFTTH
3.609 millionCable
11 thousandWireless
More impressive than raw numbers is the graph, which shows aDSL growing rapidly from 2001 to 2003, after which FTTH suddenly becomes the new growth broadband connection.

As of March 2007, merely 95% of all Japanese households had broadband, and 84% had ultra-highspeed broadband. Japanese government goals for 2010 are 100% and 90%, respectively. Ultra-highspeed seems to be defined as both up and down over 30Mbps.

Until now, FTTH has been the mainstream in terms of ultra-highspeed broadband, with upload and download speeds of over 30Mbps, but other wired and wireless technologies are aiming for technologies that will match if not overtake FTTH, and there will be a need for ongoing developments in broadband technology in terms of higher speed and larger volume to meet user needs.

Study Group Report: Moving towards Establishing a Usage Environment for Next-Generation Broadband Technology, Ministry of Internal Affairs and Communications (MIC), MIC Communications News, Vol. 18, No.13, 12 October 2007

Higher speed services in testing now include speeds faster than 1 Gbps, which would be around 300 times faster than what passes for broadband in the U.S.

Continue reading "Japanese Broadband Growth: FTTH Pulls Up" »

October 15, 2007

Revive OTA?

OTA_seal.png Just last week I was talking to somebody who used to work for the Office for Technology Assessment, which was a bipartisan Congressional research group that brought in various outside experts to help out. She recognized me from various times I showed up.

Serendipitously, Susan Crawford says "OTA: You Are Missed".

Nearly a decade ago, Congress closed its Office of Technology Assessment. The president of the Federation of American Scientists, a former OTA employee, called the closing the “equivalent of a self-inflicted lobotomy.” Between 1974 and 1995 OTA produced 750 thorough reports about a wealth of scientific and technical studies.

Since then, the Congressional Research Service (thanks, CDT!) has been providing Congress with quick summaries of issues, but CRS doesn't have the deep technical expertise that OTA did, or the resources to do sustained studies. The National Academies have the time and the resources, but they take too long and they have too many constituents to serve.

In re-writing the Telecom Act and jumping into having the FCC regulate the internet, it would be good to have a neutral, expert, bipartisan group advising Congress about the consequences of their actions.

For example, such a group might have told Congress that current antitrust law isn't well positioned to deal with problems of lack of competition since broadband was wrenched from one legal regime into another.

-jsq

September 17, 2007

When I invented the Web, I didn't have to ask anyone's permission.

timbi.jpg One sentence sums it up:
When I invented the Web, I didn't have to ask anyone's permission.

&mdash: Net Neutrality: This is serious by timbl (Tim Berners-Lee), DiG, Wed, 2006-06-21 16:35

That's Internet freedom. That's why we need net neutrality.

What is net neutrality?

If I pay to connect to the Net with a certain quality of service, and you pay to connect with that or greater quality of service, then we can communicate at that level.
Where you and I are any pair of participants on the Internet.

Continue reading "When I invented the Web, I didn't have to ask anyone's permission." »

September 12, 2007

Twaddle v. a Wonder of the World

goldengate.jpg It's good to see a newspaper not mince words:
A free-for-all web (after normal monthly broadband charges have been paid) is one of the wonders of the world and a binding force for all communities.

...

The Federal Communications Commission has just been advised by the US department of justice, under heavy lobbying from the operators who stand to gain from higher data charges, that a neutral net might "prevent, rather than promote" investment and innovation. This is twaddle. An open-access net has produced one of the greatest surges of innovation ever recorded and has given an opportunity for people all over the world to communicate with each other and share knowledge on equal terms. Long may it continue to be so.

In praise of... a freely available internet, Leader, The Guardian, Tuesday September 11, 2007

The Guardian brings up a related point:

It has only become an issue because the US Congress is scrutinising the question of "net neutrality", though why the US authorities - rather than an international body - should deem themselves to have jurisdiction over the internet is not clear.
The usual answer to that is that a properly constituted international body would do even worse. Although nowadays, it seems the otherwise unlateralist U.S. government is toeing the (pseudo-)capitalist international party line.

-jsq

September 04, 2007

Intended vs. Legal

richard-m-nixon-sized.jpg Shortly after a high level U.S. official acknowledged that telephone companies have helped the government in illegal spying, this comes out:
WASHINGTON — The Bush administration wants the power to grant legal immunity to telecommunications companies that are slapped with privacy suits for cooperating with the White House's controversial warrantless eavesdropping program.

The authority would effectively shut down dozens of lawsuits filed against telecommunications companies accused of helping set up the program.

The vaguely worded proposal would shield any person who allegedly provided information, infrastructure or "any other form of assistance" to the intelligence agencies after the Sept. 11, 2001 terror attacks. It covers any classified communications activity intended to protect the country from terrorism.

Bush Seeks Legal Immunity for Telecoms, By KATHERINE SHRADER, Associated Press Writer, August 31, 2007 - 5:02 p.m. EDT

Let's let President Nixon sum it up:

Well, when the president does it that means that it is not illegal.

Richard M. Nixon interviewed by David Frost, 19 May 1977.

Yet the same administration can't be proactive about effective regulation of first-mile Internet access for effective competition.

-jsq

September 03, 2007

The Amazon Channel

packages.gif It's all very well to talk about net neutrality or Internet freedom and how it affects 700Mhz spectrum sales or freedom of the press. But what does all this have to do with the average Internet user?

Suppose the telcos and cablecos get everything they want.

To buy a BBQ grill on eBay, you'll have to pay for the eBay channel. This is above whatever you pay the seller for the grill or eBay for your membership. You'll have to pay your local Internet access company just to let you get to eBay to participate in the auction. Oh, maybe you'll be able to get there anyway, but your access may be so slow that you'll pay for the eBay channel out of frustration.

If you want to buy a book from Amazon, you'll have to pay for the Amazon channel. For search you'll need the Yahoo channel or the ask.com channel or the google channel. Assuming your favorite search engine is even offered as a channel. Many smaller services probably won't be.

Maybe it won't be quite this bad.

Continue reading "The Amazon Channel" »

August 31, 2007

Broadband Speed by Country

broadbandspeedchart.jpg Letting a picture tell the story of how Japan, Korea, France, Poland, Portugal, and other countries have faster broadband than the U.S., here's a graphical illustration of average broadband speeds per country. Finland, Sweden, Norway, and Iceland I would expect, since they've long been fast. But Poland?

There seem to be two tiers. Japan and Korea are the top tier. Then Finland, Sweden, and France. Then a third tier starting with the Netherlands. The U.S. is either in that third tier or in a fourth tier, depending on how you look at it.

The source report, Assessing Broadband in America: OECD and ITIF Broadband Rankings, By Daniel K. Correa, Information Technology and Innovation Foundation, April 2007, also examines broadband uptake, in which the U.S. is also fifteenth in these OECD rankings.

Maybe it's time for a change. A change in public policy and the addition of competition.

-jsq

August 30, 2007

Warp Speed From Behind

JBrbop02.jpg As we've mentioned before Japan has Internet connections much faster than those in the U.S. This point is getting more mainstream media play:
Broadband service here is eight to 30 times as fast as in the United States -- and considerably cheaper. Japan has the world's fastest Internet connections, delivering more data at a lower cost than anywhere else, recent studies show.

Accelerating broadband speed in this country -- as well as in South Korea and much of Europe -- is pushing open doors to Internet innovation that are likely to remain closed for years to come in much of the United States.

The speed advantage allows the Japanese to watch broadcast-quality, full-screen television over the Internet, an experience that mocks the grainy, wallet-size images Americans endure.

Japan's Warp-Speed Ride to Internet Future, By Blaine Harden, Washington Post Foreign Service, Wednesday, August 29, 2007; Page A01

So is it just for video? If so, maybe we'd better let the telcos have their way.

Continue reading "Warp Speed From Behind" »

August 23, 2007

Achille's Dark Heel

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Raymond Kelly

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John Arquilla

"The Internet is the new Afghanistan," [New York police commissioner Raymond] Kelly said, as he released a New York Police Department (NYPD) report on the home-grown threat of attacks by Islamist extremists. "It is the de facto training ground. It's an area of concern."

The report found that the challenge for Western authorities was to identify, pre-empt and prevent home-grown threats, which was difficult because many of those who might undertake an attack often commit no crimes along the path to extremism.

The report identified the four stages to radicalization as pre-radicalization, self-identification, indoctrination, and jihadization, and said the Internet drove and enabled the process.

Internet is "the new Afghanistan": NY police commissioner, By Michelle Nichols and Edith Honan, Reuters, Wed Aug 15, 3:51 PM ET

Nevermind that this makes about as much sense as saying "the telephone is the new Afghanistan" or "talking is the new Afghanistan". Of course the Internet enables that process! The Internet enables every communication process.

Let's look beyond communication and information to what people think they know because of those things:

As the information age deepens, a globe–circling realm of the mind is being created — the “noosphere” that Pierre Teilhard de Chardin identified 80 years ago. This will increasingly affect the nature of grand strategy and diplomacy. Traditional realpolitik, which ultimately relies on hard (principally military) power, will give way to the rise of noöpolitik (or noöspolitik), which relies on soft (principally ideational) power. This paper reiterates the authors’ views as initially stated in 1999, then adds an update for inclusion in a forthcoming handbook on public diplomacy. One key finding is that non–state actors — unfortunately, especially Al Qaeda and its affiliates — are using the Internet and other new media to practice noöpolitik more effectively than are state actors, such as the U.S. government. Whose story wins — the essence of noöpolitik — is at stake in the worldwide war of ideas.

The promise of noöpolitik, by David Ronfeldt and John Arquilla, First Monday, volume 12, number 8 (August 2007)

This sounds almost like what the NYPD is saying.

Continue reading "Achille's Dark Heel" »

August 22, 2007

Malamud Court Gadfly

gadfly.jpg Carl Malamud is at it again. After getting patents and SEC filings and Congressional subcommittee hearings available online, now he's going for court case law.
Last week, Mr. Malamud began using advanced computer scanning technology to copy decisions, which have been available only in law libraries or via subscription from the Thomson West unit of the Canadian publishing conglomerate Thomson, and LexisNexis, a division of Reed Elsevier, based in London.

The two companies control the bulk of the nearly $5 billion legal publishing market. (A third, but niche, player is the Commerce Clearing House division of Wolters Kluwer).

He has placed the first batch of 1,000 pages of court decisions from the 1880s online at the public.resource.org site. He obtained the documents from a used Thomson microfiche, he said.

A Quest to Get More Court Rulings Online, and Free, By JOHN MARKOFF, New York Times, Published: August 20, 2007

Markoff refers to Malamud as a gadfly. Hey, Socrates was a gadfly, too. Not bad company.

Now what happens if the Internet first mile access duopoly decides to give Thomson and LexisNexis and Wolters Kluwer high-speed high-quality transit and deprioritizes the Internet Archive?

-jsq

August 16, 2007

Yet Less Spectrum

m2z.jpg Not being content with squelching competition in the 700Mhz auction:
The Federal Communications Commission is seeking to shut the door on a plan by a group of Silicon Valley entrepreneurs to offer free wireless broadband Internet service everywhere in the U.S., the chief executive of the group said Wednesday.

M2Z Networks Inc. issued a statement Wednesday in which it said it would take the FCC to court in an attempt to force the agency to conduct a thorough analysis of the plan before it determined whether it would back it or not.

The company has proposed taking 25 megahertz of spectrum that is currently vacant and using it to build a wireless broadband Internet network to provide free service to 95% of Americans within a decade.

UPDATE: FCC Opposes Silicon Valley VCs' Free-Broadband Plan, (Updates with comment from Rep. Anna Eshoo, D-Cal., in the fifth paragraph.) By Corey Boles, Dow Jones, August 15, 2007: 05:14 PM EST

Why would the FCC object to that?

Continue reading "Yet Less Spectrum" »

August 14, 2007

700Mhz: Duopoly As Usual

710_1_1a_CARRIE_ANN_BAADE_The_Devil_is_In_the_Details,10_x_17..jpg Susan Crawford reads the 700Mhz auction rules and confirms the worst:
1. Those Carterfone protections don't mean too much. The no-locking, no-blocking requirements are hedged in by substantial limitations: the winning licensee will be able to lock and block devices and applications as long as they can show that their actions are related to "reasonable network management and protection," or "compliance with applicable regulatory requirements." In other words, as long as the discrimination can be shown to be connected (however indirectly) to some vision of "network management," it will be permitted. (Discrimination "solely" for discrimination's sake is prohibited, but that's not too difficult to avoid.)

Many, many devils in the details: 700 MHz rules, by Susan, from Susan Crawford blog, 13 Aug 2007

So it's ILECs vs. CLECs, round two. Guess who'll win?

And even supposedly Cmr. Copps "grudgingly accepted" these rules. Seems to me we need a whole new FCC, so we can get some real rules of the road.

And what we really need is some real competition.

-jsq

August 09, 2007

Russian Roulette

michael_copps.jpg FCC Commissioner Michael Copps has a way with words. Last year he said we should be talking about Internet freedom rather than net neutrality. And now he says we're
playing Russian roulette with broadband and Internet and more traditional media

FCC Commissioner: US playing "Russian roulette with broadband and Internet" By Nate Anderson, ars technica, August 03, 2007 - 09:20AM CT

And the Russians are winning.

Continue reading "Russian Roulette" »

August 01, 2007

FCC's Martin Wireless Auction Plan

rmm.jpg The Post has some interesting analysis of which FCC commissioners said what when they approved Chairman Kevin Martin's 700Mhz wireless auction plan:
The "open-access" provision was endorsed last month by FCC Chairman Kevin J. Martin, a Republican, and gained support from the two Democratic commissioners, Jonathan S. Adelstein and Michael J. Copps. Deborah Taylor Tate, a Republican commissioner, also voted in favor of the deal. Martin said he hoped the proposal would encourage a new entrant to compete with the cable and phone companies that provide broadband service.

Republican Commissioner Robert M. McDowell voted against the proposal, arguing that placing any conditions on the sale of airwaves would hurt smaller carriers by making smaller licenses without any requirements appealing to larger bidders.

"Smaller players, especially rural companies, will be unable to match the higher bids of the well-funded giants," he said.

FCC Approves Airwave Use For All Phones, Wireless Network Opened To Options if Not Firms, By Kim Hart, Washington Post Staff Writer, Wednesday, August 1, 2007; Page D01

It's not clear to me where the bigger players will find enough smaller licenses without any requirements to be worth their while. Unless those licenses are also attractive because of the Universal Service Fund.

What did the corporate players say?

Continue reading "FCC's Martin Wireless Auction Plan" »

July 27, 2007

Crack Google?

robberbarons.jpg Cringely gets anxious over Google's floor bid for 700Mhz. After pointing out that Verizon and AT&T coming around to Kevin Martin's leaked counterproposal of watered down "open access" rules, he says:
Look who Google is up against -- all the largest Internet service providers in the U.S. Google will not win this even if they win the auction, because the telcos and cable companies are far more skilled and cunning when it comes to lobbying and controlling politicians than Google can ever hope to be. The telcos have spent more than a century at this game and Google hasn't even been in it for a decade. And Google's pockets are no deeper than those of the other potential bidders.

Is Google on Crack?: Eric Schmidt bets the ranch on wireless spectrum, Robert X. Cringely, Pulpit, 27 July 2007

Cringely is missing the point about who Google is up against. These outfits have not been the largest ISPs for more than a century. They've been telephone companies for more than a century. And being around for a long time isn't necessarily a sure win. Look at the Vatican; it's been around for two thousand years, and it's managed to lose most of its traditional heartland of Europe. Sure, Google is fragile, in some senses even more fragile than Microsoft, as Cringely points out. But even Microsoft is losing market share from IE to an open source browser, Firefox. Google, as a proponent of open source that actually understands it, has a fair chance here. The incumbent duopoly telcos aren't really in the Internet business; Google is.

Maybe Cringely's right that Google alone couldn't win the auction. But Google and Sprint possibly could. Sure, Sprint is a phone company, too. But that doesn't mean it's going to side with the rest if it scents profit. Maybe with a little help from Apple.

Let's hope that's what Google is really up to, rather than expecting to get Martin to change the rules and then wait for AT&T to deliver another striped bass.

I also don't think Cringely is taking into account the stakes here.

Continue reading "Crack Google?" »

July 26, 2007

Internet Robber Barons

krugman_paul.jpg Paul Krugman examines how far behind the U.S. is in every metric of Internet speed and broadband uptake, and why:
What happened to America’s Internet lead? Bad policy. Specifically, the United States made the same mistake in Internet policy that California made in energy policy: it forgot — or was persuaded by special interests to ignore — the reality that sometimes you can’t have effective market competition without effective regulation.

You see, the world may look flat once you’re in cyberspace — but to get there you need to go through a narrow passageway, down your phone line or down your TV cable. And if the companies controlling these passageways can behave like the robber barons of yore, levying whatever tolls they like on those who pass by, commerce suffers.

The French Connections, Paul Krugman, New York Times, 22 July 2007

Krugman reminds us that as recently as 2001 the U.S. was far ahead. And then he gets specific.

Continue reading "Internet Robber Barons" »

July 11, 2007

AT&T's Striped Bass

ph_striped_bass.jpg You may recall that the FCC at the last minute in 2006, after the elections and before the electees took office, agreed to some conditions on the merger of Bellsouth with AT&T. Among them was a $10/month DSL plan.
The merger commitment specifies that the plan had to be offered. That means to me that it has to be put forth as an option!!! (If there's a fifty pound striped bass somewhere out there in the ocean, that's not an offer of fish!)

So I don't think AT&T is honoring its $10/month commitment.

Is AT&T Honoring its Merger Commitments? David Isenberg, isen.blog, Friday, July 06, 2007

This is the same $10/month service USA Today announced AT&T was developing back in January. Maybe they'll just keep "developing" it until the 48 month time limit expires, or make it available to a few people and claim they've honored their commitment.This is what SBC used to do: claim availability if one person per ZIP code could get a service, and the FCC let them get away with that.

Isenberg asks:

Do you think the FCC will investigate?

Continue reading "AT&T's Striped Bass" »

July 09, 2007

Market Failure?

bruegel_babel2_grt.jpg Here's an interesting directive from the White House:
The order requires federal officials to show that private companies, people or institutions failed to address a problem before agencies can write regulations to tackle it. It also gives political appointees greater authority over how the regulations are written.

House Balks at Bush Order for New Powers, By Jim Abrams, The Associated Press Tuesday, July 3, 2007; 8:16 PM

How does this work?

Continue reading "Market Failure?" »

July 06, 2007

Franchise Reform?

shutesbury.jpg In the previous post, I quoted a paper as saying competition would promote lower prices. Here's what the authors recommend to produce that competition:
Federal reform and additional state-specific reforms have focused on reforming "video franchising" laws to reduce barriers to entry and investment by new service providers. We commend such policies as likely to contribute to investment and competition in broadband services.

The Effects of Broadband Deployment on Output and Employment: A Cross-sectional Analysis of U.S. Data, By Robert Crandall, William Lehr and Robert Litan, Brookings Institution, 2007

Here's what some affected parties think about that:
Two years ago we profiled the rural Massachusetts towns of Shutesbury and Leverett, who have long been trying to get broadband from anyone -- but aren't deemed profitable to serve by Comcast or Verizon. While towns as close as 300 feet get service, these two towns are still waiting, though some have concocted home brew solutions. Locals tell us they were insulted when approached by Verizon to support "franchise reform," which all but seals their fate by eliminating build out requirements.

Broadband Black Holes: FiOS? We've never been able to get DSL, by Karl, BroadbandReports.com, 10:42AM Thursday Jul 05 2007

It seems "franchise reform" may be one of those newspeak phrases like "tax relief" which is used to persuade those who will suffer to support something that will benefit those who propose it.

It's enough to make you nostalgic for FDR and the REA.

-jsq

Broadband Produces Employment

crandall.jpg
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Many have assumed that broadband is good for the economy; now here's a study with rivets:
More specifically, for every one percentage point increase in broadband penetration in a state, employment is projected to increase by 0.2 to 0.3 percent per year.

The Effects of Broadband Deployment on Output and Employment: A Cross-sectional Analysis of U.S. Data, By Robert Crandall, William Lehr and Robert Litan, Brookings Institution, 2007

Of course, this is like saying every state in medieval Germany that had a printing press produced employment in the printing industry. There are economic and social effects far beyond mere employment. What should be done?

The paper has a few recommendations:

The surest route to lower prices is provided by increasing competition in the delivery of broadband services.

Continue reading "Broadband Produces Employment" »

July 05, 2007

Broadband in Two Countries

BBArussfig1070702.gif Broadband growth is slowing in the U.S.:
Price reductions and other factors led to 40 percent growth in adoption from March 2005 to March 2006. Over the following year, growth was a more modest 12 percent, the Pew Internet and American Life Project said in a report Tuesday.

"The low-hanging fruit was picked ... so you saw a slowdown understandably going to 2007," said John Horrigan, Pew's associate director for research.

Study: Broadband Growth Slowing in U.S. By Anick Jesdanun, AP Internet Writer, 3 July 2007

Meanwhile, back in the USSR Russia:
The broadband market in Russia, particularly in Moscow, is growing quickly. The Ministry of IT and Communications reports that the fixed broadband market grew 42% and wireless broadband market showed a 61% annual growth rate in 2006.

FTTx and DSL in tussle for Moscow market share, PointTopic, 3 July 2007

And in Russia it's mostly fiber to the home, enabling even faster future speeds.

-jsq

June 29, 2007

FTC: What, Me Worry?

majoras.jpg The U.S. Federal Trade Commission (FTC) says there's no need for net neutrality:
FTC Chairwoman Deborah Platt Majoras said that without evidence of "market failure or demonstrated consumer harm, policy makers should be particularly hesitant to enact new regulation in this area."
So in a "market" where the average customer has at most two choices, we're supposed to wait for a market failure?

Continue reading "FTC: What, Me Worry?" »

June 22, 2007

A Googley Way

andrewmclaughlin.jpg Google blogs policy:
We're seeking to do public policy advocacy in a Googley way. Yes, we're a multinational corporation that argues for our positions before officials, legislators, and opinion leaders. At the same time, we want our users to be part of the effort, to know what we're saying and why, and to help us refine and improve our policy positions and advocacy strategies. With input and ideas from our users, we'll surely do a better job of fighting for our common interests.

Taking the Wraps Off Google's Public Policy Blog, by Andrew McLaughlin, Director of Public Policy and Government Affairs, Google, Monday, June 18, 2007 at 7:09 AM

I'm all for participation, so that caught my eye. What are they getting googley about?

Continue reading "A Googley Way" »

June 19, 2007

Internet Deconstructs Spin?

joe_trippi.jpg Joe Trippi thinks the Internet changes politics from spin to something better:
Internet activism is spelling the end for the age of spin, the online campaign guru Joe Trippi will warned two British politicians, suggesting that the rules for dealing with "old media" no longer apply.

...

"Command and control ... [is] a disaster in the peer-to-peer social network world."

Does the Internet Spell the End of Political Spin? By Tania Branigan, The Guardian. Posted June 15, 2007.

Dave Weinberger suggests more or less the same thing, somewhat less optimistically,

Continue reading "Internet Deconstructs Spin?" »

June 12, 2007

None Should Be Favored

What's the theory behind the recent postal rate changes? The Chairman of the Postal Board of Governors spelled it out 27 years ago:
"...none should be favored and none benefited. Each party pays the cost of service it consumes, not less, and does not bear the cost of others’ consumption."

James C. Miller III and Roger Sherman, “Has the 1970 Act Been Fair to Mailers?” in Roger Sherman, ed., Perspectives on Postal Service Issues 63 (1980).

And the Postal Regulatory Commission is following that theory.

Continue reading "None Should Be Favored" »

June 11, 2007

Postal Radio?

forever_stamp.jpg What's the point of a free press if it can't be delivered?
To the surprise of many independent publishers, in February the Postal Regulatory Commission (PRC), the body in charge of determining postal rates, rejected a rate-hike plan that was submitted by the U.S. Postal Service, the people in the business of delivering the mail for the past 215 years. This plan was widely understood to call for an approximate 12 percent increase that would have hit all publications more or less equally.

Instead the PRC adopted a revised version of an extremely complicated proposal submitted by media conglomerate Time Warner that included a number of possible discounts favoring the largest publishers.

Postal Rates = Free Press, Rate hike pushed by media conglomerate Time Warner threaten small and medium-circulation publications, By Robert W. McChesney, In These Times May 17, 2007

Why Time Warner?

Continue reading "Postal Radio?" »

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