Senior Fellow in Technology & Innovation at the R Street Institute in Washington, DC. Formerly a senior research fellow at the Mercatus Center at George Mason University, President of the Progress & Freedom Foundation, Director of Telecommunications Studies at the Cato Institute, and a Fellow in Economic Policy at the Heritage Foundation.
How many times can FCC Commissioner Michael Copps declare the Internet dead? Like a fire-and-brimstone preacher bombastically bellowing sermons warning of the impending End Times, Commissioner Copps has made a hobby out of declaring the Internet dead and buried unless drastic steps are taken right now to save cyberspace! The problem is, he’s being saying this for the past decade and yet, despite generally laissez-faire policy in this arena, the Internet is still very much alive and well.
His biggest beef, of course, is Net Neutrality regulation—or the current lack thereof. He fears that without such a “Mother, May I” regulatory regime in place, the whole cyber-world is heading for eternal damnation. Echoing the fears of other Internet hyper-pessimists, Copps concocts grand conspiracy stories of nefarious corporate schemers hell-bent on quashing our digital liberties and foreclosing all Internet freedom.
Way back in 2003, for example, Comm. Copps delivered a doozy of a sermon at the New America Foundation entitled, “The Beginning of the End of the Internet.” In the speech, Copps lamented that the “Internet may be dying” and only immediate action by regulators can save the day. Copps laid on the sky-is-falling rhetoric fairly thick: “I think we are teetering on a precipice . . . we could be on the cusp of inflicting terrible damage on the Internet. If we embrace closed networks, if we turn a blind eye to discrimination, if we abandon the end-to-end principle and decide to empower only a few, we will have inflicted upon one of history’s most dynamic and potentially liberating technologies shackles that make a mockery of all the good things that might have been.”
But that’s hardly the only such fire-and-brimstone sermon that Rev. Comm. Copps has delivered about the death of the Internet. Continue reading →
[I am currently helping Berin Szoka edit a collection of essays from various Internet policy scholars for a new PFF book called “The Next Digital Decade: Essays about the Internet’s Future.” I plan on including two chapters of my own in the book responding to the two distinct flavors of Internet pessimism that I increasingly find are dominating discussions about Internet policy. Below you will see how the first of these two chapters begins. I welcome input as I refine this draft. ]
Surveying the prevailing mood surrounding cyberlaw and Internet policy circa 2010, one is struck by the overwhelming sense of pessimism about our long-term prospects for a better future. “Internet pessimism,” however, comes in two very distinct flavors:
Net Skeptics, Pessimistic about the Internet Improving the Lot of Mankind: The first variant of Internet pessimism is rooted in general skepticism regarding the supposed benefits of cyberspace, digital technologies, and information abundance. The proponents of this pessimistic view often wax nostalgic about some supposed “good ‘ol days” when life was much better (although they can’t seem to agree when those were). At a minimum, they want us to slow down and think twice about life in the Information Age and how it is personally affecting each of us. Other times, however, their pessimism borders on neo-Ludditism, with proponents recommending steps be taken to curtail what they feel is the destructive impact of the Net or digital technologies on culture or the economy. Leading proponents of this variant of Internet pessimism include: Neil Postman (Technopoly: The Surrender of Culture to Technology), Andrew Keen, (The Cult of the Amateur: How Today’s Internet is Killing our Culture), Lee Siegel, (Against the Machine: Being Human in the Age of the Electronic Mob), Mark Helprin, (Digital Barbarism) and, to a lesser degree, Jaron Lanier (You Are Not a Gadget) and Nicholas Carr (The Big Switchand The Shallows).
Net Lovers, Pessimistic about the Future of Openness: A different type of Internet pessimism is on display in the work of many leading cyberlaw scholars today. Noted academics such as Lawrence Lessig, (Code and Other Laws of Cyberspace), Jonathan Zittrain (The Future of the Internet & How to Stop It), and Tim Wu (The Master SwitchThe Rise and Fall of Information Empires), embrace the Internet and digital technologies, but argue that they are “dying” due to a lack of sufficient care or collective oversight. In particular, they fear that the “open” Internet and “generative” digital systems are giving way to closed, proprietary systems, typically run by villainous corporations out to erect walled gardens and quash our digital liberties. Thus, they are pessimistic about the long-term survival of the wondrous Internet that we currently know and love.
Despite their different concerns, two things unite these two schools of techno-pessimism. Continue reading →
[Fellow members of the Society for the Prevention of Vice, I urge you to take immediate action to continue our crusade to clean up America’s media marketplace by ridding it of the scourge of media hyper-violence. A clip has come to our attention that merits particular concern and I hope you will agree something must be done by our government before such filth gets widespread dissemination. So, please join me in signing this petition to the FCC to take action now—for the children—before such unspeakable acts of violence are mimicked by millions of youth across America.]
____________
TO: Julius Genachowski, Chairman, Federal Communications Commission
FROM: Adam Thierer, President, Society for the Prevention of Vice (formerly known as the Society for Soft Pillow Fights)
RE: Another example of unspeakable media violence that must be stopped
Dear Chairman Genachowski:
A video has come to our attention that displays, once again, the media industry’s utter disregard for human decency and the dignity of life, and we hope you will agree something must be done to stop its dissemination before it is too late. In this video:
A man’s nose is seemingly twisted off his face (as he screams in agony) and then his face is forced onto a grinding machine while sparks fly off his burning flesh (he again screams in agony);
A shoe with an extended spike is inserted into a man’s head and then his eyeball and then his ear lobe (he screams in agony each time);
The man who was impaled with said shoe spike then bites the offender’s foot (he, too, screams in agony);
A blow-torch is used to light a man’s buttocks afire (he screams in agony);
A man climbs a pole, plays with live electrical wires, is then is electrocuted after chewing on said wires, and then falls to the ground still shaking from the voltage running through his body (he screams in agony);
A wrench is dropped on a man’s head (he screams in agony) and he then uses said wrench to hit another man over the head and violently twist his nose with it (he screams in agony); and
Finally, the electrocuted man has a light bulb inserted into one ear and a screwdriver into the other (he screams in agony and then, bizarrely, he laughs to end the clip — as if he is mocking the depravity of what we have just witnessed!)
I have attached a clip of this unspeakably evil carnival of pain, but I warn you that it could forever darken your soul. Can you imagine, sir, if earlier generations of American youth had seen this? Could America have produced “The Greatest Generation” if the youth of the World War II era had grown up watching such filth? We now know from several psychological studies that children will mimic whatever they see on the screen. If they see such depictions of violence in media, they will reenact it themselves in the real world. In other words, “monkey see-monkey do.” Please, on behalf of all those signing this petition, and for the sake of our children, I beg you to help us put a stop to this moral outrage before our great civilization decays and withers away in a sea of media hyper-violence such as this: Continue reading →
The biggest changes in the wireless industry since 2000 have been consolidation among wireless carriers and increased use of wireless services by consumers. Industry consolidation has made it more difficult for small and regional carriers to be competitive. Difficulties for these carriers include securing subscribers, making network investments, and offering the latest wireless phones necessary to compete in this dynamic industry. Nevertheless, consumers have also seen benefits, such as generally lower prices, which are approximately 50 percent less than 1999 prices, and better coverage.
Now, if you are a self-described “consumer advocate,” I would hope the bottom line here is pretty straightforward and refreshing: Prices fell by 50% in 10 years. That alone is an amazing success story. But that’s not the end of the story. The more important fact is that prices fell by that much while innovation in this sector was also flourishing. Do you remember the phone you carried in your pocket — if you could fit it in your pocket at all — ten years ago? It was a pretty rudimentary device. It made calls and… well… it made calls. Now, think about the mini-computer that sits in your pocket right now. Stunning little piece of kit. It can text. It can do email. It can get Internet access. You can Twitter on it. Oh, and you can still make calls on it (but who wants to do that anymore!)
The point is, this is a great American capitalist success story that everyone — especially “consumer advocates”— should be celebrating. So, what does Public Knowledge president Gigi Sohn have to say?
“These trends do not bode well for consumers, despite any benefits of the moment,” she told Ars Technica.
As a cyber-libertarian, I’ve been lucky enough to work with people of all ideological stripes in pursuit of various public policy objectives. I’ve made selective alliances with people on the Right on economic policy issues (like opposing Net Neutrality regulation, Internet taxes, etc) and also worked closely with folks on the Left on speech and culture issues (content controls, anonymity, online safety concerns, etc).
While engaging with with people on both sides of the political fence, I’m often struck by some of their internal inconsistencies. Conservatives, for example, talk about a big game about personal responsibility on some issues, but quickly abandon that notion when they claim media content or online speech should be regulated by the State (typically “for the children.”) In this essay, I’d like to discuss interesting inconsistencies on the political Left, especially among advocates of strong privacy regulation (most of whom tend to be Left-leaning in their worldview). In particular, here are the two things I find most interesting about modern privacy advocates:
(1) Most privacy advocates are vociferous First Amendment supporters, yet they abandon their free speech values and corresponding constitutional tests when it comes to privacy regulation. When it comes to proposals to regulate media content or online speech, most folks on the Left have a very principled, clear-cut position: people (or parents) should take responsibility for unwanted information flows in their lives (or the lives of their children). In particular, they rightly argue that the many user empowerment tools on the market (filters, monitoring software, other parental control technologies) constitute a so-called “less-restrictive means” of controlling content when compared to government regulation.
Advocacy groups that I have a great deal of respect for and work with quite closely on these issues–such as EFF, CDT and ACLU—all take this position. Generally speaking, they argue that, when it comes to speech regulation, “household standards” (user-level controls) should trump “community standards” (government regulation). And in Court—where I frequently file joint amicus briefs with them—they repeatedly employ the “less-restrictive means” test to counter government efforts to regulate information flows.
But when it comes to privacy, they throw all this out the window! Continue reading →
Two articles of interest in today’s Wall Street Journal with indirect impact on the debate over the future of Internet policy. First, there’s a front-page story (“Facing Budget Gaps, Cities Sell Parking, Airports, Zoo“) documenting how many cities are privatizing various services — including some considered “public utilities” — in order to help balance budgets. The article worries about “fire-sale” prices and the loss of long-term revenue because of the privatizations. But the author correctly notes that the more important rationale for privatization is that, “In many cases, the private takeover of government-controlled industry or services can result in more efficient and profitable operations.” Moreover, any concern about “fire-sale” prices and long-term revenue losses have to be stacked again the massive inefficiencies / costs associated with ongoing government management of resources /networks.
Of course, what’s so ironic about this latest privatization wave is that it comes at a time when some regulatory activists are clamoring for more regulation of the Internet and calling for broadband to be converted into a plain-vanilla public utility. For example, Free Press founder Robert McChesney has argued that “What we want to have in the U.S. and in every society is an Internet that is not private property, but a public utility.” That certainly doesn’t seem wise in light of the track record of past experiments with government-owned or regulated utilities. And the fact that we are talking about something as complex and fast-moving as the Internet and digital networks makes the task even more daunting.
Government mismanagement of complex technology projects was on display in a second article in today’s Journal (“U.S. Reviews Tech Spending.”) Amy Schatz notes that “Obama administration officials are considering overhauling 26 troubled federal technology projects valued at as much as $30 billion as part of a broader effort by White House budget officials to cut spending. Projects on the list are either over budget, haven’t worked as expected or both, say Office of Management and Budget officials.” I’m pleased to hear that the Administration is taking steps to rectify such waste and mismanagement, but let’s not lose sight of the fact that this is the same government that the Free Press folks want to run the Internet. Not smart.
I’ve noted here before that Gordon Crovitz is my favorite technology policy columnist and that everything he pens for his “Information Age” column for The Wall Street Journal is well worth reading. His latest might be his best ever. It touches upon the great debate between Internet optimists and pessimists regarding the impact of digital technology on our culture and economy. His title is just perfect: “Is Technology Good or Bad? Yes.” His point is that you can find evidence that technological change has both beneficial and detrimental impacts, and plenty of people on both sides of the debate to cite it for you.
This is a subject I’ve spent a lot of time noodling over here through the years and, most recently, I compiled all my random thoughts into a mega-post asking, “Are You an Internet Optimist or Pessimist?” That post tracks all the leading texts on both sides of this debate. I was tickled, therefore, when Gordon contacted me and asked for comment for his story after seeing my piece. [See, people really do still read blogs!] Continue reading →
I continue to be mystified by the contention of some Net neutrality advocates that it is not a form of economic regulation. The reality, of course, is that Net neutrality would ban business models and necessitate price controls. If that ain’t regulation, I don’t know what is. As Robert Litan and Hal Singer note in their new Harvard Business Review essay, “Why Business Should Oppose Net Neutrality,” “Non-discrimination under the FCC’s net neutrality proposal means that ISPs cannot offer enhanced services beyond the plain-vanilla access service to content providers at any price.” Thus, any type of service prioritization or price discrimination would be prohibited under the FCC’s Net neutrality regulatory regime.
As I explained in this earlier essay and in the video below, this would be a disaster for investment, innovation, and consumer welfare. Differentiated and prioritized services and pricing are part of almost every industrial sector in a capitalistic economy, and there’s no reason things should it be any different for broadband. As Litan and Singer note, “The concept of premium services and upgrades should be second-nature to businesses. From next-day delivery of packages to airport lounges, businesses value the option of upgrading when necessary. That one customer chooses to purchase the upgrade while the next opts out would never be considered ‘discriminatory.'”
And let’s not forget, something has to pay for Internet access and investment in new facilities. Differentiated services can help by allowing carriers to price more intensive or specialized users and uses to ensure that carriers don’t have to hit everyone – including average household users – with the same bill for service. Why would we want to make that illegal through Net neutrality regulation and the misguided price control schemes of a bygone regulatory era?
Wall Street Journal columnist Holman Jenkins has a terrific, wide-ranging interview with Google CEO Eric Schmidt in today’s paper that is well worth reading. One thing worth highlighting is Schmidt’s comments on the “economic disaster that is the American newspaper.” He argues that, “The only way the problem [of insufficient revenue for news gathering] is going to be solved is by increasing monetization, and the only way I know of to increase monetization is through targeted ads.”
The reason for the indispensability of advertising is simple: Information (including news and other forms of “content”) has “public good” characteristics that make it is very difficult (and occasionally impossible) for information-publishers to recoup their investments. Simply put, they quite literally lack pricing power: Whatever they charge, someone else will charge less for a close substitute, inevitably leading to “free” distribution of the content, even though the content is anything but free to produce. Advertising is the one business model that has traditionally saved the day by rewarding publishers for attracting the attention of an audience.
Thus an attack on advertising is an attack on media / news itself. And yet Washington is currently engaged in an all-out assault on advertising, marketing, and data collection efforts / business models.
Incidentally, Google recentlysubmitted comments with the Federal Trade Commission in reaction to its Staff Discussion Draft about the future of journalism and laid out their views on many of these issues. More importantly, as summarized on pg. 30 (of the pdf) of this Newspaper Association of America filing to the FTC, Google has proposed an interesting monetization model that utilizes Google Search, Google Checkout and DoubleClick ad server, “to build a premium content system for newspapers.” Worth checking out. Kudos to Google for taking these steps and to Schmidt for again stressing the importance of targeted advertising for the future of media.
The folks at the Pew Research Center’s Internet & American Life Project came out with another installment of their “Home Broadband” survey yesterday. This one, Home Broadband 2010, finds that “adoption of broadband Internet access slowed dramatically over the last year.” “Most demographic groups experienced flat-to-modest broadband adoption growth over the last year,” it reports, although there was 22% growth in broadband adoption by African-Americans. But the takeaway from the survey that is getting the most attention is the finding that:
By a 53%-41% margin, Americans say they do not believe that the spread of affordable broadband should be a major government priority. Contrary to what some might suspect, non-internet users are less likely than current users to say the government should place a high priority on the spread of high-speed connections.
This has a number of Washington tech policy pundits scratching their heads since it seems to cut against the conventional wisdom. Cecilia Kang of The Washington Post penned a story about this today (“Support for Broadband Loses Speed as Nationwide Growth Slows“) and was kind enough to call me for comment about what might be going on here.
I suggested that there might be a number of reasons that respondents downplayed the importance of government actions to spur broadband diffusion, including that: (1) many folks are quite content with the Internet service they get today; (2) others might get their online fix at work or other places and not feel the need for it at home; and (3) some may not care two bits (excuse the pun) about broadband at all. More generally, I noted that, with all the other issues out there to consider, broadband policy just isn’t that important to most folks in the larger scheme of things. As I told Kang, “Let’s face it, when the average family of four is sitting around the dinner table, to the extent they talk about U.S. politics, broadband is not on the list of topics.” Continue reading →
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