Arik Hesseldahl has an interesting piece in Business Week about Apple’s control of the iPhone App approval process in which he asks: “Is a smartphone gatekeeper needed?” Plenty of people don’t think so and have raised a stink about Apple trying to play that role for the iPhone. It certainly could be true, as some critics suggest, that Apple is being too heavy-handed on occasion when rejecting apps, but it’s always easy for those of us on the outside of the process to think that.  Hesseldahl notes that:

it’s tempting to consider the implications of a less hands-on approach, as is the case with Macs, Microsoft (MSFT) Windows PCs, or other smartphones, including those running the Google (GOOG)-backed Android operating system. The software market for personal computing has existed in this way for nearly three decades, and while there have certainly been some problems along the way, I’d argue that overall we’re better off without Microsoft or Apple or some other organization approving software applications before they’re released to the market. PC users have learned to be careful about what they put on their computers through unhappy trial and error.

But he also notes that there is another side to the story: Continue reading →

Bob Barr, the four term Republican Georgia congressman turned ACLU activist and 2008 Libertarian Presidential candidate, has denounced Rep. Linda Sánchez‘s (D-CA) “Megan Meier Cyber Bullying Prevention Act” (H.R. 1966) in particularly harsh terms:

This legislation represents an exercise in overcriminalization and poor draftsmanship not often seen, even in the Congress.  A term as broad and as vague as “intent  to .  .  .  cause substantial emotional distress to a person” invites constitutional challenge as being violative of the Fifth Amendment due process guarantee, as well as the First Amendment’s language protecting speech (including political and news media speech).   Sending an e-mail or a blog, or even posting a Twitter message that might be particularly insensitive or even downright mean about another person, including perhaps a candidate for office or an incumbent, could land you in jail if Rep. Sanchez’ bill were to become law.

Barr touches on many of the key points Adam Thierer and I raised in the written testimony we submitted to House Judiciary Committee’s hearing on this subject back in September—summarized here. At the hearing, Sanchez declared her intention to revise the bill to incorporate constitutional criticisms. Stay tuned for an update on that front…

But as we noted in our testimony, the constitutional problems with criminalization cannot beeasily  remedied, especially since Sanchez seems unwilling to limit her bill to cyberharassment of children by adults (such as allegedly happened in the Megan Meier case)—relying instead on existing cyberstalking laws (a much more narrowly defined crime involving “true threats”) to govern conduct among adults, and educational and counseling-based approaches to govern true cyberbullying among children.

Why we haven’t heard the last of Sanchez’s bill, the more serious threat is likely to be efforts to deputize online intermediaries to “deal with the problem” by chipping away at the broad immunity under Section 230 that has allowed the great flourishing of online content and services involving user generated content and participation. As we noted: Continue reading →

It’s truly amazing how fast mobile broadband demand is expanding. A couple of things caught my eye yesterday that really drove that home.  First, I was reading Bernstein Research’s weekly (subscription-only) newsletter and Craig Moffett, one of America’s top media and communications analysts, summarized the growing mobile bandwidth crunch as follows:

To fully grasp the challenge facing wireless providers as we make the transition from wireless voice to wireless data, it is helpful to put some ballpark numbers around current usage levels. Today, the average voice-only customer consumes something like 50 megabytes of data every month. For that, they pay about $40, or about $0.80 per megabyte. That’s 70% of wireless industry revenues. Text messaging generates another $10 per month for a minuscule amount of data (in fact, arguably no throughput at all, since text messaging travels in a signaling band rather than in the carrier band itself). Let’s call it $1,000 per megabyte. That’s another 15% of industry revenues. On a blended basis, then, that’s $1.00 per megabyte for 85% of industry revenues.

And then there’s the iPhone. By some estimates, the average iPhone user consumes as much as 800 megabytes per month. Take out their 50 Mb for voice and you’re looking at 750 Mb of data… for an additional $30. For the mathematically challenged, that’s a princely sum of… wait for it… four cents per megabyte. Worse, we noted that the FCC’s wireless net neutrality policies posed the risk of “bandwidth arbitrage,” where low bandwidth services (at $1.00 per megabyte) would be replaced with free or almost free applications that ride on $0.04 per megabyte data plans, and where carriers’ hands would be tied to prevent it. Taking a business that is currently getting $1.00 per megabyte down to just $0.04 per megabyte is, well, hard. And lest anyone think that this threat is idle fear-mongering, Google’s acquisition last week of Gizmo5, a wireless VoIP specialist, should give one pause.

Those are stunning numbers. And then I saw this new filing by CTIA listing some other statistics about growing mobile broadband demand:

Continue reading →

This morning, the Technology Committee of the New York City Council convened a large hearing on a resolution urging Congress to pass a robust Net Neutrality law. I was supposed to testify, but our narrowband transportation system prevented me from getting to New York. Here, however, is the testimony I prepared. It focuses on investment, innovation, and the impact Net Neutrality would have on both.

“Net Neutrality’s Impact on Internet Innovation” – by Bret Swanson – 11.20.09

Federal Cloud CommissionHmmm… What am I missing? I cannot lay my finger on a single line in the Communications Act of 1934, the Telecommunications Act of 1996, or any statute in between that gives the Federal Communications Commission (FCC) the authority to regulate cloud computing.  And yet, like any good stickler for jurisdictional authority, my PFF colleague Barbara Esbin keeps bringing to my attention little FCC chirps here and there which suggest that the agency is slowly positioning itself to become the Federal Cloud Commission. For example, back in September, Barbara brought to my attention this passage in the Commission’s recent Wireless Innovation and Investment Notice of Inquiry, (paragraph 60, pg. 21):

As other approaches, such as cloud computing, evolve, will established standards or de facto standards become more important to the applications development process? For example, can a dominant cloud computing position raise the same competitive issues that are now being discussed in the context of network neutrality? Will it be necessary to modify the existing balance between regulatory and market forces to promote further innovation in the development and deployment of new applications and services?

In my earlier essay about this, I noted that these questions should serve as a wake-up call for Google and other cloud-based providers who think that “neutrality” mandates will end at the infrastructure layer of the Net.  As Berin Szoka and I argued in our paper on “high-tech mutually assured destruction,” regulatory regimes grow but almost never contract.  And I’m even less optimistic about the FCC limiting its regulatory aspirations after the latest thing Barbara Esbin brought to my attention.

Today, as part of the Commission’s ongoing effort to develop a National Broadband Plan, the FCC released a request for information “on data portability and its relationship to broadband.”  (NBP Public Notice #21) “The Commission seeks tailored comment on broadband and portability of data and their relation to cloud computing, transparency, identity, and privacy,” the notice says.  Here was the second item on the list of things the Commission said it was investigating: Continue reading →

The American Consumer Institute has released a collection of essays addressing the likely consequences of “‘Net Neutrality” regulation for investment in broadband and for consumer welfare. These are important things to consider, in case it needs saying.

My colleague (and boss) Adam Thierer had a great post last week about how “fart apps” are a great example of the generative nature of the mobile phone application marketplace. But Fart apps are just one type of “soundboard” application. A typical soundboard app has a bunch of buttons, and each time you press a button a sound is played. Most soundboards play catchphrases from popular movies and TV shows. According to AndroidZoom.com, there are 319 applications in the Android Market with “soundboard” in the title or description. Most (280) of them are free.

Almost all the free soundboards I tried include advertising from Google. The three main developers of soundboard apps for Android are Androidz , aspidoff, and Raz Corp. Androidz has ads from DoubleClick and aspidoff and Raz Corp (who’s apps seem exactly the same) both have ads from AdMob (which Google recently acquired). I’m all in favor of ad-supported content, but I suspect that the sound clips used in these soundboards are not licensed.
Continue reading →

My March 2008 paper, Franz Kafka’s Solution to Illegal Immigration, detailed the problems with electronic employment verification systems. The paper concludes that successful “internal enforcement” of immigration law requires a national ID—and ultimately a cradle-to-grave biometric tracking system.

The Department of Homeland Security has started a program called the “I E-Verify” campaign for businesses that use the federal background check system on its employees. If you see businesses with “I E-Verify” decorations or insignia, they at least indirectly support a national ID system in the United States. This can help you decide whether or not you want to spend your dollars with them.

Yo people, help me build this list of the best Internet and digital technology (“Info-Tech”) policy reporters on Twitter:

http://twitter.com/AdamThierer/infotech-policy-reporters/members

I’m trying to make sure I’m following the best reporters out there who cover public policy developments related to the Internet, cyberlaw, digital media, and so on. I’ve got just under 50 reporters on there currently, but I’m sure I’m missing some.  I would love to get some other suggestions about who is missing from my list, and I encourage others to follow my list if they find it a useful way to keep track of some of the best reporters on this beat.

Incidentally, I do understand it is hard to define exactly who counts as a “reporter” these days, but my general rule of thumb here is that (I think) almost everybody on my list actually gets paid to write about these issues.  In other words, I kept tech policy bloggers off this list. There’s just too many of them to count.

I was just digging through some old files and came across a quote that I found entertaining. Back in 2003, when he was still president and chief operating officer of Viacom, Mel Karmazin said with reference to Microsoft, AOL-Time Warner, and Comcast:  “I can’t imagine being a competitor with any of these guys.”  At the time, some media worrywarts made great hay of Mel’s quip and claimed, as Gene Kimmelman of Consumers Union argued at the time, that it proved how “Media moguls themselves admit their desire to avoid real competition within their industry.”

Utter rubbish. In fact, just six years after Karmazin spoke those words, Microsoft finds itself in a heated war with Google on all fronts, AOL-Time Warner has crumbled (even Time Warner Cable and Time Warner Entertainment got divorced!), and Comcast is now squaring off against telco and online video competitors that were unfathomable at the time (not to mention traditional satellite TV competitors.)  In the meanwhile, Karmazin abandoned Viacom and today, as CEO of Sirius XM, is struggling to find a way to make the satellite radio universe survive the ongoing digital music bloodbath thanks to unforeseen competition from online music services and a little thing called the iPod!

It’s proof positive that media markets and digital technologies always evolve faster than most people — even smart industry titans like Karmazin — anticipate.