Category Archives: Broadband

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

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 →

Myths and Historical Errors: Cherry Re Yoo

cherry.jpg Dr. Barbara Cherry sent me a response to Dr. Chris Yoo’s “novel” opinion of her antitrust theory. Dave Farber posted Barb’s comments on his Interesting People list, although without her postscript with the pointer to her articles and book. Farber appended a response from Chris, which I’ll post separately.
From: “Cherry, Barbara” <cherryb at indiana.edu>
Date: Fri, 9 May 2008 18:28:04 -0400
Subject: Re: Prof. Yoo responds for Prof. Farber

John,

Christopher Yoo’s response unfortunately contains several historical analytical errors that I’ve repeatedly discussed in my writings. It is unlikely that he actually read my TPRC paper to which you provided a link in our blog, as he would have readily discovered some of them.

Perhaps the fundamental problem is that many economists and legal scholars commenting on the network neutrality debate DO NOT understand the history of common carriage. Under the common law, common carriage obligations were TORT obligations imposed on carriers (in their relationship with customers) simply by virtue of their status of engaging in the business. In other words, the obligations are STATUS-BASED and unrelated to the industry’s market structure. Attributing the imposition of common carriage obligations to natural monopoly is a MYTH, unfortunately so often erroneously repeated in the secondary literature that it is believed to be true.

The rest after the jump. Continue reading →

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 →

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 →

Anti-Trust Still Not Appropriate for Net Neutrality

farber-10.jpg I admire Dave Farber; he’s done a lot for computing and the Internet. But sometimes I can’t agree with him:
Antitrust law generally takes a case-by-case approach under which private parties or public agencies can challenge business practices and the courts require proof of harm to competition before declaring a practice illegal. This is a sound approach that has served our economy well.

— Hold Off On Net Neutrality, By David Farber and Michael Katz, Interesting People, Friday, January 19, 2007; A19,

In an op-ed he’s recently reposted on his Interesting People list, he’s recommending antitrust instead of legislation to deal with net neutrality. So far as I know, Farber is no lawyer. In this case, I tend to go more by lawyers who have actually studied the problem, for example Prof. Barbara Cherry, who used to work for the FCC and has examined the history of common, statutory and administrative law in the U.S., as well as the way Internet provision has been wrenched out of one legal regime into another by the FCC, and how the FCC has also stripped broadband of its common carriage status. Those who say that we shouldn’t regulate because we don’t know what will happen and anti-trust will catch problems if they occur are not taking into account that anti-trust doesn’t automatically apply to or address problems in the new legal regime into which broadband has been thrust.

-jsq

Back to the Future: 10Mbps by 2012, or, What Japan Had Years Ago

marketshare.gif Creeping ahead:
A study from Texas-based research firm Parks Associates predicts that 33 million US households will have broadband connections of 10Mbps or faster by 2012. As of the end of 2007, that figure stood at 5.7 million, which means that a lot of change will have to occur in the US market for that 33 million figure to become a reality.

— Report: 10Mbps broadband in 33 million homes by 2012, By Eric Bangeman, ars technica, Published: March 04, 2008 – 10:20PM CT

Meanwhile, Japan is already doing 100Mbps. But in Japan there is real ISP competition. Unlike in the U.S., where, as shown in the pie chart by Park Associates (via DSL Reports), each of Comcast and AT&T have a fifth of the broadband market, followed by Verizon and Time Warner each with 13%, plus Cox with 7%, and that’s 3/4 of the total market served by only five companies, of whom most people have a choice of only two in any given locality. That’s not competition.

-jsq

WSJ Fears Innovation: Net Neutrality As Internet Wrecking Ball

andy_kessler_color_headshot_small.jpg Apparently this WSJ opinion writer couldn’t actually argue with Ed Markey’s net neutrality bill, so he made up a straw man:
Imagine a town that has all sorts of gasoline pipelines running by it but only one gas pump. Rationing is inevitable. So are price controls.

Everyone gets equal amounts, except of course first responders like police and ambulances, which should get all the gas they want. And, well, so should the mayor. And if you can make a good business case that you work 60 miles away, you can file paperwork and perhaps pull some strings for more gas. How about those kids hot-rodding around town who can’t drive 55? They get last dibs, and maybe we can sneak in some gas thinner to slow down their engines and not waste gas.

— Internet Wrecking Ball, By Andy Kessler, Wall Street Journal, February 25, 2008; Page A15

What’s especially amusing about this strawman is that it’s what the duopoly is planning as they do away with net neutrality, except it’s not first responders or governments that will get favored bandwidth: it’s Hollywood. Meanwhile, Markey’s bill doesn’t say any of that. It doesn’t include any regulation at all.

Kessler invokes Orwell:

This is the essence of the Ed Markey’s (D., Mass.) Orwellian-named Internet Freedom Preservation Act of 2008, which would foist network neutrality on the wild and woolly Internet.
Kessler maybe wasn’t around in the earlier days of the Internet, or he would know that net neutrality is what we used to have, until it got chipped away starting in about the year 2000, as the FCC failed to enforce the Unbundled Network Elements (UNE) of the Telecommunications Act of 1996, and reclassified cable modem access as an information service in August 2002, wireline broadband in August 2005, and wireless broadband in March 2007. The FCC stripped common carriage status from Internet provision, something never done before in the U.S. So what Markey’s bill is actually trying to do is to preserve the freedom the Internet used to have before the present administration and the duopoly systematically tried to do away with it. That’s the opposite of Orwellian: that’s the plain truth.

If Kessler did know Internet history, or had been around when we were making it, he would know not to write things like this: Continue reading →

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 →

Shades of NSFNet: EDUCAUSE Proposes 100Mbps Nationwide Broadband

fibre.gif Shades of NSF:
EDUCAUSE, the association whose mission is to advance higher education by promoting the intelligent use of information technology, today proposed bringing the federal government, state governments, and the private sector together as part of a new approach to making high-speed Internet services available across the country.

The group, whose membership includes information technology officials from more than 2,200 colleges, universities, and other educational organizations, said that a new “universal broadband fund” would be necessary so that “Big Broadband” — services of 100 mbps — could be made widely available.

— EDUCAUSE Proposes New Approach to Broadband Development, Wendy Wigen, Peter B. Deblois, EDUCAUSE, 29 Jan 2008

Back in the 1980s, in the time of standalone dialup Bulletin Board Systems (BBSes), the National Science Foundation (NSF) deployed a nationwide backbone network called NSFNet that eventually ran at the blazing fast for the times speed of 1.55Mbps. NSF also promoted development of NSFNet regional networks, many of which eventually figured in the commercialization of Internet that took off in 1991 when former dialup network UUNET started selling Internet connectivity and former personnel of an NSFNet regional formed PSINet and also started selling Internet connectivity.

Nowadays, when the fastest most people can get as so-called broadband is 1-3Mbps DSL from telcos or maybe 3-5Mbps from cablecos, maybe it’s time to do it again. Is this a plan that would work? Continue reading →