Free Press Hypocrisy over Metering & Internet Price Controls

by on June 18, 2009 · 25 comments

In response to my essay last night about this new Free Press campaign to layer price controls on the Internet by banning metered prices via Rep. Massa’s new bill (the “Broadband Internet Fairness Act“), George Ou and Richard Bennett reminded me of some of the contradictory statements that the (Un)Free Press crew have made on this issue.  Indeed, if you look back at what Free Press and their chairman have said about the matter over just the past 18 months, they seem to be whistling two very different tunes.

For example, George Ou reminded me of what Free Press had to say in its November 2007 filing in the FCC’s Comcast-Bit Torrent proceeding:

“More importantly, if Comcast is concerned that the collective set of users running P2P applications are affecting quality of service for other users on a cable loop… they could also charge by usage.” (p. 29) [...] “Indeed, in many nations, network providers do meter, and bill their customers on the basis of amount used. So the transaction costs of doing so must not be prohibitively high. Indeed, a network provider can apparently meter cheaply because, in most networks, users’ traffic to and from the Internet passes through a single gateway, the network access server.” (p. 31)

And Richard Bennett reminded me of what Tim Wu, chairman of the Free Press, had to say about metering to the Washington Post just one year ago:

“I don’t quite see [metering] as an outrage, and in fact is probably the fairest system going — though of course the psychology of knowing that you’re paying for bandwidth may change behavior.”

So, what gives?  Will the real Free Press please stand up? Does the Free Press believe in pricing freedom or price controls for the Internet?

  • http://enigmafoundry.wordpress.com eee_eff

    The quote was:

    “More importantly, if Comcast is concerned that the collective set of users running P2P applications are affecting quality of service for other users on a cable loop… they could also charge by usage.” (p. 29)

    This quote just says IF Comcast was concerned about quality of service THEN they could charge by usage. It was said to disprove Comcast's assertion that they were attacking bittorrent to stop the degradation of service. The quote is silent on whether or not charging for usage is in fact a good or a bad thing.

    So for example, if I say:

    IF Adam wanted to get high, he should eat a mushroom.

    That does not mean that I in fact think that eating a mushroom is a good idea. (although it might be, but there is nothing in that statement that says whether or not that is a good idea)

    Another example:

    So, IF Adam wants to take logic 101, he could make a cogent argument for the libertarian ideas he apparently espouses.

  • http://bennett.com/blog Richard Bennett

    Nice deflection, EF, but I don't see how it applies to Chairman Wu's comment: “I don’t quite see [metering] as an outrage, and in fact is probably the fairest system going — though of course the psychology of knowing that you’re paying for bandwidth may change behavior.”

    Can you stuff that in a logic burrito and deep-fry it too?

  • http://srynas.blogspot.com/ Steve R.

    Talking of hypocrisy, the “Help Desk” has a series of cartoon panels illustrating the flippant shifting positions taken the those in the computer industry. The first panel is here.

    Also, what is the basis for even implying that the Free Press should have a “united” front and that the lack of a “united” front implies hypocrisy? If a concept is being publicly debated between individuals (and even corporations), there will be divergent viewpoints.

    What I also found interest from the Washington Post article, is that “But the company did not disclose its practices until public interest groups and the video-sharing site complained to the FCC, alleging that the company had set itself up to be a secret gatekeeper of content, picking and choosing which applications to favor.” Anecdotally, I wonder if the opposition to network neutrality is really about allowing companies to be opaque in their business practices so that companies are unhindered by oversight in employing abusive business practices.

  • Filby

    You changed “could” to “should”. Is it because doing so supported your contortional thinking better?

    So think that Free Press was saying something on the order of: “If Comcast wants to (further?) screw people, they could meter usage.”? Does anything support your position that this interpretation, contrary to FP's intent in every other position they hold, was what was intended? Does precedence and reason not suggest otherwise?

  • http://www.funchords.com/ Robb Topolski

    Since the Massa bill prohibits imposing metering “rates, terms and conditions that are unreasonable or discriminatory,” I don't see anything inconsistent in supporting metering that is fairly priced.

  • http://bennett.com/blog Richard Bennett

    Nice deflection, EF, but I don't see how it applies to Chairman Wu's comment: “I don’t quite see [metering] as an outrage, and in fact is probably the fairest system going — though of course the psychology of knowing that you’re paying for bandwidth may change behavior.”

    Can you stuff that in a logic burrito and deep-fry it too?

  • Ryan Radia

    Fair according to whom? If consumers are willing to pay for a service, then isn't it fair by definition, given the (reasonable) assumption that rational actors do not voluntarily engage in transactions that make themselves worse off? Of course, if I were a Time Warner subscriber I'd be pissed. I'm mad whenever a good or service I want is priced higher than I think it should be. But this is just a fact of life. In a marketplace, prices are set through a decentralized discovery process. Things can get a bit rough at times, but price discovery is the best way to ensure that resources are allocated as efficiently as possible. No lawmaker or regulatory body can determine what is and isn't a “fair” price.

  • http://www.funchords.com/ Robb Topolski

    TWC doesn't operate in a marketplace. If it did, then the much better natural process that you mention would work.

    This is not a new problem — there are hundreds of years of history in trying to avoid unreasonable rates and terms in areas where vibrant marketplaces fail to exist. (Examples: railroads, utilities)

    I suppose the fact that someone is willing to pay it probably can be brought as evidence that something is fair. On the contrary, the purpose of getting a public sign-off on such schemes is so that a lot of evidence can be brought in and considered.

  • http://www.ForMortals.com/ George Ou

    Actually it does operate in a marketplace and close to 90% of the population can switch to their telecom provider if they don't like what Time Warner is offering. We don't have two sets of railroads or two sets of electric power coming into our homes but close to all of us have two wired broadband providers in addition to wireless broadband providers.

  • http://www.funchords.com/ Robb Topolski

    Wireless is an option, but it's comparable to the question, “Do I get there by plane or bus?” The number of wireless providers offering tiers greater than 10 GB/mo. is zero, all the ones I know about turn on the punishment pricing at 5 GB.

    And sticking with that example for a moment, do two companies make a healthy market that efficiently sets the right bargain price (or however economists properly phrase that question)? How many airlines service your nearest major airport?

  • http://www.ForMortals.com/ George Ou

    You just changed the subject Robb. You were comparing wired broadband to the monopoly of utilities and I pointed out you were wrong about that. Practically all consumers have a choice to switch from their cable provider to DSL, FTTN “U-verse”, or FTTH “FiOS”.

  • http://www.ForMortals.com/ George Ou

    Actually it does operate in a marketplace and close to 90% of the population can switch to their telecom provider if they don't like what Time Warner is offering. We don't have two sets of railroads or two sets of electric power coming into our homes but close to all of us have two wired broadband providers in addition to wireless broadband providers.

  • http://www.funchords.com/ Robb Topolski

    Wireless is an option, but it's comparable to the question, “Do I get there by plane or bus?” The number of wireless providers offering tiers greater than 10 GB/mo. is zero, all the ones I know about turn on the punishment pricing at 5 GB.

    And sticking with that example for a moment, do two companies make a healthy market that efficiently sets the right bargain price (or however economists properly phrase that question)? How many airlines service your nearest major airport?

  • http://www.ForMortals.com/ George Ou

    You just changed the subject Robb. You were comparing wired broadband to the monopoly of utilities and I pointed out you were wrong about that. Practically all consumers have a choice to switch from their cable provider to DSL, FTTN “U-verse”, or FTTH “FiOS”.

  • http://www.ForMortals.com/ George Ou

    Actually it does operate in a marketplace and close to 90% of the population can switch to their telecom provider if they don't like what Time Warner is offering. We don't have two sets of railroads or two sets of electric power coming into our homes but close to all of us have two wired broadband providers in addition to wireless broadband providers.

  • http://www.funchords.com/ Robb Topolski

    Wireless is an option, but it's comparable to the question, “Do I get there by plane or bus?” The number of wireless providers offering tiers greater than 10 GB/mo. is zero, all the ones I know about turn on the punishment pricing at 5 GB.

    And sticking with that example for a moment, do two companies make a healthy market that efficiently sets the right bargain price (or however economists properly phrase that question)? How many airlines service your nearest major airport?

  • http://www.ForMortals.com/ George Ou

    You just changed the subject Robb. You were comparing wired broadband to the monopoly of utilities and I pointed out you were wrong about that. Practically all consumers have a choice to switch from their cable provider to DSL, FTTN “U-verse”, or FTTH “FiOS”.

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