April 2010

Interesting upcoming event on April 21st at Georgetown University about “Digital Power and Its Discontents.” It’s described as: “A one-day conference exploring the ways digital technologies disrupt the balance of power between and among states, their citizens and the private sector.” Evgeny Morozov of Georgetown’s Institute for the Study of Diplomacy, which is organizing the event, was kind enough to invite me to participate on the first panel of the day. And I see that my fellow TLF blogger Jerry Brito of the Mercatus Center will be on another panel. Other panelists include: John Morris of CDT, Micah Sifry of the Personal Democracy Forum, Mark MacCarthy of Georgetown Univ., Rebecca MacKinnon, Joel Reidenberg of Fordham Law, Amb. Philip Verveer, and several others.

The event will be held on Wednesday, April 21, 2010 from 10:30 a.m. to 4:30 p.m. at the Georgetown University Mortara Center for International Affairs. (3600 N Street, N.W.) Go to the website to RSVP. You’ll find the complete agenda down below. It sounds like a terrific event. RSVP here.
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In the latest PFF TechCast, I discuss the issues considered in the second essay in our ongoing series, “The Wrong Way to Reinvent Media.”  In this 6-minute podcast, PFF’s press director Mike Wendy chats with me about proposals to impose taxes on broadcast spectrum licenses to funnel money to public media or “public interest” content.  In my paper and this podcast, I make the case again socially engineering media choices and outcomes through the tax code.

MP3 file: PFF TechCast #2 – Saving the Media Through Broadcast Spectrum Taxes (4/5/2010)

As I mentioned before, I’ve been actively seeking a replacement in my role as President of The Progress & Freedom Foundation.  I’ve already grown tired of managerial duties, fundraising responsibilities, and so on.  More importantly, it is slowly but surely destroying my ability to be a full-time policy wonk and focus all my energies on making the case for free minds, free markets, and free speech. I’m quite ready and willing to hand over the keys to someone else so I can spend all my time fighting the good fight. I just need to find the right person.

So, if you know of someone who would make a great leader, has strong free-market credentials, and extensive experience in the field of high-tech policy and media/communications law, please let me know.  They can contact me at: athierer[at]pff.org  or call PFF at 202-289-8928

The city of Bellingham, Washington lies close to the Canadian border. It is a sleep town of 70,000 or so with a decent sized University, a pleasant waterfront and charming downtown. (Full disclosure, the author attended said University a decade ago)

The town’s motto is, “the city of subdued excitement,” something that probably better fits a description of this author than the town, but whatever.

I did, however, get a kick out of the video that city leaders spent $5K putting together to accompany the Google fiber rollout project application. I love a good broadband connection as much as the next guy, but the video, while done in a very professional manner, made my hair stand up on end. For one thing, Bellingham has good broadband networks, including Clear’s WiMax, numerous coffee shops with complimentary WiFi, a networked university system, etc. We’re not dealing with backwood hicks here or stone-cobbled streets.

But I suppose a video looks less desperate than changing the name of your city.

Google Fiber: Put the G in Bellingham

Ed Roberts, designer of the first commercially successful personal computer, died yesterday in Georgia at the age of 68.

Roberts founded the MITS company in 1970 and in 1975 developed the first personal computer, the Altair 8800.  Soon Bill Gates and Paul Allen came calling, and later sold their first commercial software to Roberts.  The Altair also served as the catalyst for the Homebrew Computer Club whose members included Apple Computer co-founders Steve Jobs and Steve Wozniak.

Roberts took a risk on an untested market and launched the PC revolution.  He was a true entrepreneur and will continue to be a hero to geeks like me.

Harry McCracken at PC World has posted some very kind words about Roberts.  Bill Gates and Paul Allen have also posted a statement at thegatesnotes.com.

This is a hot topic in the Valley at the moment, and for good reason.  Here’s an excerpt from my column on the issue:

Silicon Valley is known for innovative ideas in technology, and now some of the area’s greatest minds have come up with a new way to solve one of their biggest operational problems: securing foreign talent. It’s called the “startup visa” and it’s getting a lot of attention in both California and D.C., because it would help create new jobs.

The idea is to issue a work visa to foreign entrepreneurs who start a company in the U.S., provided that they raise at least US$250,000 from qualified U.S. investors. Then, within two years, the startup must create five new jobs, raise at least $1 million, or generate at least $1 million in revenue. If one of those goals is achieved, the founder gets a green card. If not, the entrepreneur must leave the country. Anyone who knows what it’s like to be an immigrant understands that such a scenario would provide a serious incentive to work hard at making the new company grow.

For years, the tech industry has struggled with caps on H-1B visas, but this new idea has sparked hope for a better reception. Far from “stealing jobs” from Americans, the visas would require the creation of new jobs that stimulate the economy.

In a Cato@Liberty post, “Cell Phones and Ingratitude,” David Boaz reproaches the New America Foundation for today’s complaint-fest, “Can You Hear Me Now? Why Your Cell Phone is So Terrible”:

This is an old story. Markets, property rights, and the rule of law provide a framework in which technology and prosperity soar, and some people can only complain. I was reading some of Deirdre McCloskey’s forthcoming book Bourgeois Dignity this week. She points out that the average person lived on the equivalent of $3 a day in 1800. Today there are six and a half times as many people, but the average person earns and consumes 10 times as much, far more than that in the most capitalist countries. And yet some people, most leftist intellectuals, continue to ignore what McCloskey calls “the gigantic gains from bourgeois dignity and liberty” and to denounce the markets, economic liberalization, and globalization that have liberated billions of people from eons of back-breaking labor.

This is an event I’m not going to attend. I mean, like, they’re not even serving food!

As the Wall Street Journal is already reporting, today eBay sustained an important win in its long-running dispute with Tiffany over counterfeit goods sold through its marketplace.  (The full opinion is available here.)

I wrote about this case as my leading example of the legal problems that appear at the border between physical life and digital life, both in “The Laws of Disruption” and a 2008 article for CIO Insight.

To avoid burying the lede, here’s the key point:  for an online marketplace to operate, the burden has to be on manufacturers to police their brands, not the market operator.  Any other decision, regardless of what the law says or does not say, would effectively mean the end of eBay and sites like it.

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From our bulletin board at home:

April Fool's Cartoon About Freedom to Innovate

This cartoon takes its inspiration from a conversation—a real gut-buster!—that I had with my kids. April would have foolishness enough, given that dread date smack in its middle, without April Fool’s Day. You can thus take this joke seriously.

[Crossposted at Agoraphilia, TechLiberation Front.]

Broadband Baselines

by on April 1, 2010 · 0 comments

The national broadband plan drafted by Federal Communications Commission staff has a lot of goals in it. Goals for broadband infrastructure deployment include:

  1. Make broadband with 4 Mbps download speeds available to every American
  2. Over the long term, have broadband with 100 Mbps download and 50 Mbps upload speeds available to 100 million American homes, with 50 Mbps downloads available to 100 million homes by 2015
  3. Have the fastest and most extensive wireless broadband networks in the world
  4. Ensure that no state lags significantly behind in 3G wireless coverage
  5. Ensure that every community has access to 1 Gbps broadband service in institutions like schools, libraries, and hospitals

The plan also outlines a number of policy steps that the FCC and other federal agencies could take to help accomplish these goals.

So far, so good. But to truly hold federal agencies accountable for achieving these objectives, we need more than goals, measures, and a list of policy proposals. We also need a realistic baseline that tells us how the market is likely to progress toward these goals in the absence of new federal action, and some way to determine how much the specific policy initiatives affect the amount of the goal achieved.

Here’s what will happen in the absence of a well-defined baseline and analysis that shows how much improvement in the goals is actually caused by federal policies: The broadband plan announces goals. The government will take some actions. Measurement will show that broadband deployment improved, moving the nation closer to achieving the goals. The FCC and other decisionmakers will then claim that their chosen policies have succeeded, because broadband deployment improved.

But in the absence of proof that the policies cause a measurable change in outcomes, this is like the rooster claiming that his crowing makes the sun rise. Scientists call this the “post hoc, ergo propter hoc” fallacy: “B happened after A, therefore A must have caused B.” (Brush up on your Latin a little more, and you’ll even find out what Mercatus means. But I digress.)

Enough abstractions. Let me give a few examples.

The first goal listed above is to ensure that all Americans have access to broadband with 4 Mbps download speeds. In his second comment on my March 17 “Broadband Funding Gap” post, James Riso notes that the plan acknowledges that 5 out of the 7 million households that currently lack access to 4 Mbps broadband will soon be covered by 4th generation wireless. That means coverage for 83 percent of the households that lack 4 Mbps broadband is already “baked into the cake.” 

Accurate accountability must avoid giving future policy changes credit for this increase in deployment, because it was going to happen anyway.  (Of course, policymakers need to avoid taking steps that would discourage this deployment, such as levying the 15 percent universal service fee on 4th generation wireless.) The relevant question for evaluating future policy changes is, “How do they affect deployment to the remaining 2 million households?”

Similarly, the goal of 50 Mbps to 100 million households by 2015 seems to have been chosen because cable and fiber broadband providers indicate that they plan to cover more than that many homes by 2013 with broadband capable of delivering those speeds (pp. 21-22). Future policy initiatives should get zero credit for contributing toward this goal unless analysis demonstrates that the initiatives increased deployment of very high speed broadband over and above what the companies were already planning.

If you think this point is so basic that it’s not worth mentioning, you haven’t read enough government reports. Post hoc, ergo propter hoc is endemic, and not just on technology-related topics. For example, both sides regularly display this fallacy whenever the unemployment figures get released: “Unemployment increased after Obama’s election, therefore his administration caused the unemployment.” “The recession started when Bush was president, therefore his administration caused the unemployment.” These are at best hypotheses whose truth, untruth, and quantititive significance needs to be established by analysis that controls for other factors affecting the results.

Just take this as an advance warning on reporting results of the national broadband plan: Tone down the triumphalism.  

Note: For those of you who just can’t get enough discussion of the national broadband plan, Jerry Brito and I will have a dialog on other aspects of the plan in a future podcast that will be available here on Surprisingilyfree.com.