Category Archives: Regulation

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

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

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 →

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 →

Shills By Comcast at FCC Hearing

comcasttrolls08.jpg This appears to be the week for Comcast to really make a fool of itself.
Comcast acknowledges that it hired people to take up room at an F.C.C. hearing into its practices.

— Grassroots Support? Or Astroturf? by Sam Gustin, Portfolio.com, Feb 26 2008

Some reports said the shills were Comcast employees, but it turns out many of them were hired off the street. They were given yellow highlighters to put in their shirt pockets so they could identify themselves to each other.

Comcast, the company that claims to understand the Internet so well it thinks faking TCP Resets is good network management (which is what that FCC meeting was about), apparently thought in this day of cell phone cameras and blog posts that nobody would notice….

-jsq

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 →

Canadian Net Neutrality

cd.gif In Canada, an ISP has even gotten up to blocking striking employees’ website:
During the Telus strike in 2005, the corporation blocked access to a website run by striking Telus employees called “Voices for Change” (and at least 766 other websites). Those familiar with network-control issues in Canada also accuse Rogers and Bell of limiting peer-to-peer (P2P) applications, which people use to share audio, video and other digital data with one another. So, here we have ISPs blocking or at least limiting the use of what is likely the most innovative, creative and participatory use of the Internet. In response to customer concerns, Bell recently admitted that they “are now using Internet Traffic Management to restrict accounts that are using a large portion of bandwidth during peak hours. Some of the applications that are included are the following: BitTorrent, Gnutella, LimeWire, Kazaa….”

— The Fight for the Open Internet, Steve Anderson, Canadian Dimension magazine, January/February 2008 issue

The rest sounds very familiar: Continue reading →

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 →

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

FCC: Shocked to Hear There’s Gambling Going On!

captain_renault.jpg The dateline is ironic:
LAS VEGAS (AP) — The Federal Communications Commission will investigate complaints that Comcast Corp. actively interferes with Internet traffic as its subscribers try to share files online, FCC Chairman Kevin Martin said Tuesday.

A coalition of consumer groups and legal scholars asked the agency in November to stop Comcast from discriminating against certain types of data. Two groups also asked the FCC to fine the nation’s No. 2 Internet provider $195,000 for every affected subscriber.

“Sure, we’re going to investigate and make sure that no consumer is going to be blocked,” Martin told an audience at the International Consumer Electronics Show.

—FCC to Probe Comcast Data Discrimination, By PETER SVENSSON, AP, 8 Jan 2008

In other news, Las Vegas Board of Realtors announces investigation of gambling! Sorry; I made that up.

Note that Martin is not only chair of the FCC that continues to enable telecom and media consolidation, he also continues to refer to ISP customers and participants as “consumers”, as in the old broadcast model where the broadcasters produce and you the customer are expected to consume whatever they give you.

The organization doing the most investigating of stifling, blocking, etc. by Comcast, Cox, et al., has been the Associated Press, which also originated this story. Interestingly, the AP is not owned by any of the usual five companies that own most of the media in the U.S. The AP is a non-profit cooperative owned by its contributing newspapers. So one of the few national news organizations in the U.S. that has not been consolidated is the one that has been investigating stifling by ISPs.

-jsq

PS:

“I’m shocked, shocked to find that gambling is going on in here!”

—Captain Renault, Casablanca, 1942