Great op/ed in The Washington Post today:
BY THE Federal Communications Commission’s own account, broadband use in the United States has exploded over the past decade: “Fueled primarily by private sector investment and innovation, the American broadband ecosystem has evolved rapidly. The number of Americans who have broadband at home has grown from eight million in 2000 to nearly 200 million last year.”
So it is curious that the FCC’s newly released National Broadband Plan faults the market for failing to “bring the power and promise of broadband to us all” — in reality, some 7 million households unable to get broadband because it is not offered in their areas. Such an assessment — and the call for government intervention to subsidize service for rural or poor communities — is premature, at best
Read the rest here or check out Adam’s appearance on C-SPAN’s Washington Journal or on the Diane Rehm Show.
My central lament in everything I have said so far about the Federal Communications Commission’s ambitious new National Broadband Plan is that, well, it’s just too ambitious! The agency has taken an everything-plus-the-kitchen-sink approach to the issue and the sheer scope of their imperial ambitions is breathtaking. I’ve likened it to an industrial policy for the Internet because the agency is essentially trying to centrally plan and engineer from above virtually every aspect of America’s broadband future despite its proclamation that, “Technologies, costs and consumer preferences are changing too quickly in this dynamic part of the economy to make accurate predictions.” But very little humility seems to be on display throughout the 376-page blueprint, which includes dissertations on everything from privacy to child safety issues to set-top box regulation.
And then there’s Chapter 15 on “civic engagement,” which calls for a wide variety of things to “strengthen the citizenry and its government,” and to “build a robust digital media ecosystem.” Although some of the ideas floated in the chapter are harmless enough–and some, like the call for more open and transparent government, would actually be beneficial–for the life of me I don’t understand why any of this needs to be in a plan about broadband deployment and diffusion. Particularly bizarre is the call here for Congress to create “a trust fund for digital public media,” which would fund the “production, distribution, and archiving of digital public media.” It would apparently be funded by “the revenues from a voluntary auction of spectrum licensed to public television.” (see pgs. 303-4)
Look, if the FCC wants Congress to create the equivalent of the PBS on Steroids, fine. Let’s have that debate. (In fact, I thought it was a debate that the FCC was already considering as part of its “Future of Media” effort). But why, again, is this in broadband plan? It’s a serious stretch to claim that this is somehow crucial to the task of getting more broadband out to the masses. Moreover, should our government really be in charge of “building a robust digital media ecosystem”? Here are a few reasons we might want to avoid having the government in the driver’s seat when it comes to charting the future course of America’s media sector.
Here’s a brief audio clip that PFF’s new press director Mike Wendy helped me put together in which I outline some of my reservations with the Federal Communications Commission’s (FCC) just-released National Broadband Plan. It’s just 4 minutes. Just click the play button below.
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Just FYI.. Tomorrow morning’s “Washington Journal” program on C-SPAN will be devoted to a discussion of the Federal Communications Commission’s new National Broadband Plan. I’ve been invited to appear on the show and I’ll be up against Art Brodsky of Public Knowledge. The program starts around 8:30 am EST.
Also, here’s the link to the audio (click “Listen” in upper left hand corner of that page) from today’s Diane Rehm Show on NPR featuring a debate between me and Ben Scott of Free Press on the FCC’s plan. It featured call-ins and among the callers were Rep. Cliff Sterns and frequent TLF commenter Brett Glass. They both expressed some reservations about the FCC plan.
I’ve just read through the National Broadband Plan‘s (NBP) section on online privacy (pp. 52-57). I share the FCC’s goal of increasing consumer control over their digital profiles, and applaud the FCC’s call for promoting the development of trusted identity providers and for increased education about identity theft. But I’m disappointed to see that the FCC is focused on regulatory solutions instead of less restrictive alternatives like consumer education, technological empowerment, increased enforcement of existing laws, or limiting government access to data collected by the private sector.
Given the nature of bureaucracies and the FCC’s sweeping assertions of its own authority in recent years, I suppose we shouldn’t be surprised that the FCC’s primary suggestion is that it should be given a key role in crafting privacy regulations for online services. But the FCC clearly lacks any statutory authority over the “computing cloud” and Congress has not asked the agency for suggestions on expanding its jurisdiction.
The FCC deserves credit for recognizing something I’ve stressed: the manifold benefits of online data collection and use, especially that targeted advertising can significantly increase funding for “free” ad-supported content and services:
These data are giving rise to something akin to a “digital identity,” which is a major source of potential innovation and opens up many possibilities for better customization of services and increased opportunities for monetization. The value of a targeted advertisement based on personal data can be several times higher than the value of an advertisement aimed at a broad audience. For example, the going rate for some targeted advertising products can be several times the rate for a generic one because consumers can be six times more likely to “click through” a targeted banner advertisement than a non-targeted one. This differential will likely increase as targeting becomes more refined and more capable of predicting preferences, intentions and behaviors.
Firms’ ability to collect, aggregate, analyze and monetize personal data has already spurred new business models, products and services, and many of these have benefited consumers. For example, many online content providers monetize their audience through targeted advertising. Whole new categories of Internet applications and services, including search, social networks, blogs and user-generated content sites, have emerged and continue to operate in part because of the potential value of targeted online advertising.
Unfortunately, the FCC doesn’t acknowledge that these benefits are a critical part of the trade-off inherent in increased regulation of how online service providers collect and use data. Continue reading →
Beyond the fact that the Federal Communications Commission (FCC) decided to release the executive summary of its long awaited National Broadband Plan via a PDF of a scanned printed copy, there are other reasons to be concerned about the agency’s ability to centrally plan one of the most important, fast-moving sectors of our economy. In this video clip, I discussed some of my general reservations with the idea of a gargantuan government industrial policy for the broadband sector, and in this essay I noted how, from what we’ve see of the plan thus far [Executive Summary], the FCC appears to be engaged in some creative accounting techniques to fund the scheme.
Not everything in The Plan troubles me, however, and I hope to touch on some of the more sensible elements in a future post. But, as I was reading through it, I flagged 5 regulatory hot potatoes in the plan that threaten to derail the entire thing. In this regard, the parallels between the National Broadband Plan and the debate over health care “reform” are really quite striking. Indeed, it appears the Administration has once again settled upon a “go for broke” (potentially quite literally!) strategy. In both cases, they appear hell-bent and trying to do it all in the form of One Big Plan. Now, I won’t lie to you; such everything-plus-the-kitchen-sink public policy gambits make me nervous based simply on the sheer scale of the undertaking. When Washington tries to regulate massive chunks of the economy using bloated bills and bureaucracies inside the Beltway, it troubles me greatly. But even if the sound of Big Government on Steroids doesn’t raise your blood pressure, one would hope that the prospect of political gridlock and litigation hell would force advocates to scale back their ambitions a tad bit. After all, what good is a plan that can never pass or be implemented?
That’s why I was rather surprised to see these 5 regulatory initiatives teed up in the National Broadband Plan:
(1) Return of the Forced Access Regulatory Nightmare? The Plan says the FCC will, “Undertake a comprehensive review of wholesale competition rules to help ensure competition in fixed and mobile broadband services.” As my friend Randy May of the Free State Foundation notes: Continue reading →
Just FYI.. Tomorrow’s “Diane Rehm Show” on NPRs local affiliate station (WAMU 88.5FM) will feature a debate about the Federal Communications Commission’s (FCC) National Broadband Plan, which is due out tomorrow. [Here’s the executive summary.] The show airs at 10:00 locally, but you can listen to the show here online, and I’ll repost a link or embedded audio file once it becomes available.
I’ve been invited to be on the show alongside
Ben Scott, policy director at Free Press, Dennis Wharton, spokesperson for the National Association of Broadcasters (NAB), and a few other guests who haven’t been announced just yet. (Here are some of my early musings on the plan: 1, 2.)
What struck me most about the executive summary of the FCC’s “National Broadband Plan” is that they published it in one of the most opaque formats going: It’s a PDF scan of a printed document.
This means you can’t cut and paste the bullet point that says:
Increase civic engagement by making government more open and transparent, creating a robust public media ecosystem and modernizing the democratic process.
This and other observations/snark in my recent Cato@Liberty post join Adam’s early comment on the FCC’s incredible cost claims. Undoubtedly, there will be more here at TLF.
After working my way through the Executive Summary of the Federal Communications Commission’s (FCC) National Broadband Plan, there are a number of things I find troubling that I will get to in a subsequent post. But here’s the thing about “The Plan” that I found most surprising — even audacious — in its arrogance: The FCC wants us to believe the whole scheme is costless. The agency bases this astonishing claim on the following assumptions:
Given the plan’s goal of freeing 500 megahertz of spectrum, future wireless auctions mean the overall plan will be revenue neutral, if not revenue positive. The vast majority of recommendations do not require new government funding; rather, they seek to drive improvements in the government efficiency, streamline processes and encourage private activity to promote consumer welfare and national priorities. The funding requests relate to public safety, deployment to unserved areas and adoption efforts. If the spectrum auction recommendations are implemented, the plan is likely to offset the potential costs.
Let me translate: ”
Pay no attention to all the bills we are racking up, because spectrum revenues shall set us free!”
Perhaps that logic works in the reality-free zone we call the Beltway, but back in the real world this simply doesn’t add up. Regardless of how well-intentioned any of these goals and proposals may be, it should be equally clear that there is no free lunch, even with spectrum auction proceeds fueling the high-tech gravy train. The proposals and programs the FCC sets forth will impose serious economic costs that shouldn’t be so casually dismissed, especially using the weak reasoning that “improvements in the government efficiency” will magically manifest themselves thanks to massive new government intervention in the field. (If you think you’ve heard this one before, you have. See: The current health care debate.)
Moreover, if everything really does hang on the promise of spectrum auction revenues covering the broadband spending binge, well, bad news: The agency is
never going to bring in enough to cover what they’ve proposed here. The reason is simple: Most of the spectrum they want to grab is currently occupied by someone else! Continue reading →
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