Category Archives: Internet Access

Social Welfare: Reed Asks Yoo

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

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 →

Freedom v. Market Mythology

Here’s a question that answers itself:

…what is it about individual freedom that “conservatives” like the Spectator and Armey don’t like?
To be fair, the debate is larger than the Spectator and Armey. Most congressional Republicans oppose the idea of giving consumers freedom on the Internet. They take shelter in their anti-government, anti-regulation rhetoric, preferring to allow Internet freedom to apply to the corporations which own the networks connecting the Internet to consumers, rather than to consumers themselves. There could, of course, be a larger discussion about the meaning of “conservative” and Republican, and whether the two are synonymous.
(To be fairer still, it’s not only Republicans. Many a Democrat also speaks out against Internet freedom. They don’t have the fig-leaf of misbegotten ideology to hide behind, as they largely back worthwhile government action in many other areas. They are simply servants of corporate and/or union interests. The question applies equally: What about freedom don’t they like?)
— Why The ‘Right’ Gets Net Neutrality Wrong, Art Brodsky, HuffingtonPost, Posted May 5, 2008 | 10:21 AM (EST)

The clue is “servants of corporate … interests”. (Unions occasionally get into this act; corporations much more frequently.) And it’s not simple greed for corporate lobbyist money or kickbacks or the revolving door: many politicians and people really believe the “free market” will solve all problems. That’s the origin of the doctrine of “market failure” that has pervaded all U.S. federal departments and agencies. Nevermind that when it’s a major airline or automobile manufacturer or, even worse, a financial institution such as Citibank, these same people support all sorts of governmental market manipulations and bailouts. We’re talking mythology here, kind of like the “rational actor” myth of economics.

Brodsky digs into the misconceptions behind this myth:

[Peter] Suderman’s analysis: “In fact, not only were all of these companies [eBay and Google] born in an era with no mandated net neutrality, it’s utterly unclear that a lack of neutrality would’ve impeded them in any way whatsoever.”

That is not how it happened. This is how it happened: Continue reading →

Novelty Used Against Net Neutrality by Duopoly

A musician warns us about novelty being used to subvert participation, and comes up with a clever analogy:

We hate when things are taken from us (so we rage at censorship), but we also love to get new things. And the providers are chomping at the bit to offer them to us: new high-bandwidth treats like superfast high-definition video and quick movie downloads. They can make it sound great: newer, bigger, faster, better! But the new fast lanes they propose will be theirs to control and exploit and sell access to, without the level playing field that common carriage built into today’s network.
They won’t be blocking anything per se — we’ll never know what we’re not getting — they’ll just be leapfrogging today’s technology with a new, higher-bandwidth network where they get to be the gatekeepers and toll collectors. The superlative new video on offer will be available from (surprise, surprise) them, or companies who’ve paid them for the privilege of access to their customers. If this model sounds familiar, that’s because it is. It’s how cable TV operates.
— Beware the New New Thing, By DAMIAN KULASH Jr., Op-Ed Contributor, New York Times, Published: April 5, 2008

Yep, and the cablecos and telcos have not been shy about saying that’s what they want to do.

Here’s the new analogy: Continue reading →

Game on: ECA for net neutrality

Good news:

Gamers are, by nature, a more web-savvy lot than the average Internet consumer. As a result, complicated-sounding concepts like “Net Neutrality” tend to be a pretty easy sell to those individuals whose primary means of entertainment is heavily dependent on fast and unfettered Internet access.
Yesterday the Entertainment Consumers’ Association unveiled another new venture into the realm of gamer activism. Following on the success of political action programs such as the Video Game Voters Network, the ECA is hoping to apply a similar formula to the complicated issue of Net Neutrality. The new initiative is called Gamers for Net Neutrality, and its purpose is to provide gamers with the tools necessary to fight the encroaching threat of a micro-monetized and heavily controlled online space.
— ECA Launches Gamers for Net Neutrality, New initiative empowers gamers to help keep online traffic regulation-free. By Mark Whiting, 1up.com, 04/02/2008

This is what it will take to win. We need the FCC to enforce net neutrality. And that will only happen when there’s an administration that will make it do so. And that will only happen if the people vote it in. We need more ISP competitors. And that will only happen as customers demand it. This is the path to net neutrality and Internet freedom.

-jsq

PS:

“The Revolution was effected before the war commenced.
The Revolution was in the minds and hearts of the people…
This radical change in the principles, opinions, sentiments,
and affections of the people was the real American Revolution.”
— John Adams, 1818

Google Wins by Losing 700Mhz Wireless Spectrum Auction

This interpretation seems good:

The real winner here is Google precisely because it lost. Google committed to bidding the minimum $4.6 billion that would trigger open device and open application rules that it had lobbied for, but nobody seriously thought it actually wanted to win the auction. Building out and operating a wireless network is a much lower-margin business than search advertising, and even leasing out the spectrum would have been a distraction. But by putting its $4.6 billion on the table early, it was able to dictate the new rules of the game. Rules that Verizon is now stuck with. All Google really wants are broadband wireless networks that cannot discriminate against Google mobile apps or Android phones no matter who operates them.
— Breaking: FCC Confirms that Big Winner in Spectrum Auction is Verizon. So Why I s Google Smiling? Erick Schonfeld, TechCrunch, 20 March 2008

The new rules aren’t as good as one might have hoped, and now somebody has to make the FCC enforce them, but at least they’re better than the old rules.

-jsq

Internet Freedom Policy Act

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 →

Pathetic NTIA Broadband Report: Inflated ZIP Codes and BPL

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

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 →

AT&T Filtering: Has Tim Wu Not Been Paying Attention?

Katharine Graham
by Diana Walker

Tim Wu asks in Slate: Has AT&T Lost Its Mind? It seems he’s discovered that:

Chances are that as you read this article, it is passing over part of AT&T’s network. That matters, because last week AT&T announced that it is seriously considering plans to examine all the traffic it carries for potential violations of U.S. intellectual property laws. The prospect of AT&T, already accused of spying on our telephone calls, now scanning every e-mail and download for outlawed content is way too totalitarian for my tastes. But the bizarre twist is that the proposal is such a bad idea that it would be not just a disservice to the public but probably a disaster for AT&T itself. If I were a shareholder, I’d want to know one thing: Has AT&T, after 122 years in business, simply lost its mind?
No one knows exactly what AT&T is proposing to build. But if the company means what it says, we’re looking at the beginnings of a private police state. That may sound like hyperbole, but what else do you call a system designed to monitor millions of people’s Internet consumption? That’s not just Orwellian; that’s Orwell.
— Has AT&T Lost Its Mind?A baffling proposal to filter the Internet. By Tim Wu, Slate, Posted Wednesday, Jan. 16, 2008, at 10:15 AM ET

Come now; what did you think they were up to? Continue reading →

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