Category Archives: Regulation

Consolidation Flood: What Will Really Stifle Internet Innovation

monopolist.jpg Advocates of the “exabyte flood” political campaign against net neutrality claim they are for innovation and that the coming flood of Internet usage will stifle innovation unless they get their way.

What will really stifle innovation on the Internet is this:

The Federal Communications Commission, at the urging of Chair Kevin Martin, voted 3-2 on Tuesday to relax longstanding rules that block corporations from owning a broadcast TV station and a newspaper in the same city.

— Uproar Over FCC Vote on Media-Ownership Rules, By Frederick Lane, Top Tech News, December 19, 2007 10:14AM

No, not specifically newspaper and television consolidation. Further consolidation of media and information distribution in the hands of a tiny number of companies. This December the FCC lets newspapers and TV stations consolidate. Last December it let SBC buy Bellsouth. Internet access is already in the hands of a tiny number of companies (typically at most two in any given area) that are increasingly moving to control the information they carry on behalf of a small number of companies including themselves and movie and music content producers.

The exaflood politics isn’t really about how much infrastructure the duopoly has to build out. It’s about maintaining the duopoly and extending its control of information, to the duopoly’s short-term profit and the long-term detriment of of us all, including the duopoly.

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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 →

China: Unlocked iPhones

iphone_cn_settings.jpg Can’t get an unlocked iPhone inthe U.S.? Try China:
The iPhone is readily available in computer superstores in most large Chinese cities. In Beijing’s Zhong Guancun, a 15-story mall filled with technology vendors, almost all the stalls are stocked. Two weeks ago, the blogger of Too Many Resources for the iPhone asked several of these vendors whether they could sell him 100 iPhones. They all answered “No problem.”

— China’s New ‘Love Craze’ — Black Market iPhones, By Aventurina King, Wired, 11.19.07 | 7:00 PM

These are unauthorized uninsured iPhones. Apparently they aren’t copies: they’re the real thing. The iPhone is manufactured in China, and these ones are shipped out and back through Hong Kong or eBay.

Meanwhile, back in the U.S. of A., you’re stuck with an iPhone that works only on AT&T’s network, while the FCC finagles a spectrum auction so lockin will continue and plans further media consolidation so you won’t know anything better.

Bruce Sterling sums it up:

(((China is the New America because, not only do they have sexy movies, they have iPhones that actually work and aren’t choked to death with legalistic BS IP consumer lock-in.)))

— China: The New America (part II), By Bruce Sterling, Beyond the Beyond, November 20, 2007 | 7:44:11 AM

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FT on FCC: SOP

apparatchik.jpg From London, it appears the emperor’s apparatchik has no clothes:
The commission, under Mr Martin, has turned US media policy into mere political theatre, while technology marches on apace, revolutionising media markets without any serious input from the regulators in the public debate about the implications.

Big Media control of the airwaves is simply not the threat to democracy and choice that it once was (in the days before cable or, for that matter, bloggers and MySpace). This is yesterday’s battle. It is time to move on to the tougher challenge: how to ensure that quality news survives the YouTube era.

— New rules for yesterday’s problem, Editorial, Financial Times, Published: November 14 2007 19:15 | Last updated: November 14 2007 19:15

Well, the first step would be to ensure that people get to look at it, for example that they are able to view the Financial Times. Economic models would be good, too. Some traditional news media seem to be developing those.
But it is not clear how one troubled industry (newspapers) can be helped by grafting it on to another one (the broadcast media), when both have essentially the same problem: the internet is stealing their advertising revenues.
Well, the New York Times has discovered can make more money by advertising if they don’t charge for articles. And that didn’t involve merging with a TV station. With real ISP competition, somebody would also develop a real first-mile ISP business plan.

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Decreasing Competition: Teletruth Documents FCC Harm to Wireline

Here are the main points:
  • 56% Drop in Competitive Local Exchange Carrier Lines: Loss of 10 Million Competitive Lines Since 2004 — and Falling.
  • Lack of Competitive Choices Led to Massive Local and Long Distance Price Increases; Billions in Investor Losses.
  • FCC’s Deregulation Picked Winners and Losers — The Duopoly — Creating Economic Harms to Wireline-Competition, Favoring Cable Companies.
…

DROP 10,330,000 lines -56%

Only 7.1% competitive lines.

— Part One: Harm to Wireline Competition: Harm to Customers and Investors. TeleTruth, 15 November 2007

Many details are in the report. The bottom line is that there is no effective competition in wireline POTS in the U.S.

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Obama Catches up with Edwards on Net Neutrality

obamamtv.jpg Back in June, John Edwards wrote a letter to the FCC back in June about the 700Mhz auction, in which he got it about the Internet and participation and opportunity.

Now Barack Obama answers a question from a former AT&T engineer, Joe Niederberger, that made it to the top of a video contest:

Would you make it a priority in your first year of office to re-instate Net Neutrality as the law of the land? And would you pledge to only appoint FCC commissioners that support open Internet principles like Net Neutrality?”

— Net Neutrality becomes issue in presidential race, Extra Technology News, 29 October 2007

Part of Obama’s answer:
Facebook, MySpace and Google might not have been started if you did not have a level playing field for whoever has the best idea. And I want to maintain that basic principle in how the Internet functions. As president I’m going to make sure that [net neutrality] is the principle that my FCC commissioners are applying as we move forward.
Here’s the question and answer on video.

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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 →

FCC: Trick or Treat! Media Consolidation

kevin_martin.jpg Today is November First, which is the deadline for comments on the FCC’s media consolidation move. There’s still no notice on the FCC web pages of a hearing on November 2.

Oh, wait! Kevin Martin held a hearing two days earlier, on Halloween instead! Without ever announcing it on the FCC web pages.

Dissident commissioners Michael Copps and Jonathan Adelstein appeared at a rally outside the FCC’s office in Washington to object to Martin’s chicanery. “Neither we nor the public received any confirmation that the hearing would occur until … just 5 business days before the event,” the commissioners said before entering the building for the hearing. “This is unacceptable and unfair to the public.”

Joining Copps and Adelstein were political, labor and community leaders who condemned Martin’s assault not merely on media diversity but on the basic standards for making regulatory shifts.

— No Treats for FCC Chair and Media Monopolists, John Nichols, The Nation, Wed Oct 31, 6:03 PM ET

Jesse Jackson, National Organization of Women, United Church of Christ, Future of the Media Caucus in the U.S. House of Representatives; they all protested.

Martin even has the Parents Television Council against him.

Notice of a meeting only five days before to the other commissioners, and apparently none to the public? You’d think Martin didn’t know how to talk to the press. Yet just a few days ago he was chatting with the New York Times about ending cable monopolies to apartments.

I wonder if he told the telcos about that Halloween meeting more than five days before? Nah, that would be corruption.

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FCC To End Cable Exclusive Deals for Apartments

LarryTheCableGuy_350.jpg Regulation by PR?
Why wait for a boring FCC meeting that no one will watch to announce a major policy, when you can talk to a New York Times reporter instead? Days before the official FCC meeting at which the issue will be discussed, FCC Chairman Kevin Martin has just told the newspaper that his agency is ready to strike down the exclusive contracts that cable operators have signed with apartment managers and homeowners’ associations across the country.

— FCC to strike down exclusive apartment complex cable deals, By Nate Anderson, ars technica, October 29, 2007 – 01:45PM CT

Ars technica indicates that Martin sounds like he’s serious on this one. Of course, Martin sounded serious about open access rules for 700Mhz spectrum, too, yet watered them down until they don’t mean much. However, ars technica points out the biggest backers of this apartment rule change are telcos, so maybe he really means it this time. Hm, and I wonder who will sue this time? Continue reading →

Christian Coalition Joins Naral Against Telco Censorship

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hp_naral_logo.gif
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.

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