Tim Wu, a professor at Columbia Law School, the chair of media reform group Free Press, and a writer for Slate, discusses his new book, The Master Switch: The Rise and Fall of Information Empires. Wu’s book documents the history of media industries in the United States and speculates on what that history teaches us about the future. On the podcast, he discusses Austrian economist Joseph Schumpeter’s theory of innovation, cycles of open and closed competition within industries, the history of government-backed monopolies in telephone and radio, and his thoughts on the future of information empires, the internet, and regulation.
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A coalition of online travel sites, including Kayak, Expedia, and Travelocity, has recently formed in opposition to Google’s purchase of travel search services firm ITA, according to the WSJ. The group is “launching a lobbying blitz on Capitol Hill, making the case to members of Congress that the deal would allow Google to dominate the online air-travel market by giving it control over the software that powers many of its rivals in the travel search business.” Microsoft also opposes the deal, noting that its Bing search engine relies on ITA information. Alas, I don’t think we’ll ever see an end to corporations trying to use the antitrust laws to protect themselves with no benefit to consumers.
Let’s be clear about what exactly ITA is, which is a search company. Airlines publish their flights, inventory, prices, and fare rules to computer reservation systems like Worldspan, Sabre, and Apollo. What ITA brings to the table is search technology that lets users sift through that information to find the best flights to suit their needs. They have developed industry-leading algorithms that look at the fare rules and pricing and show you what different flights can be combined to offer the best fare. ITA does not sell anything to consumers. Instead, they license their search technology to companies like Kayak and Orbitz. Unbeknownst to consumers, they use the ITA search engine on those sites and book there.
*ITA does not control any necessary input. There is no barrier to entry for new competing travel search services firms. They just need to get the flight data from airlines or computer reservation systems. In fact, there are several other competing firms. ITA just happens to be the best one. And there is no guarantee that it always will be. A day after Google acquires the company, some small developer in a garage may unveil a competing algorithm that blows ITA out of the water. That is what is so wonderful about the internet. So what incentive will innovators have if they know that if they become too successful, their clients will incite the state to prevent them from cashing in on their hard work? What incentive will the Bings of the world ever have to innovate or acquire better travel search technology if they can get the government to guarantee them access to the best?
Congress, don’t fall for it.
William Powers, a writer who has been a columnist and media critic for such publications as The Washington Post, The New Republic, and National Journal, discusses his new book, Hamlet’s BlackBerry: A Practical Philosophy for Building a Good Life in the Digital Age. In the book, Powers writes, “You can allow yourself to be led around by technology, or you can take control of your consciousness and thereby your life.” On the podcast, he discusses historical philosophers’ ideas that can offer shelter from our present deluge of connectedness, how to create gaps that allow for currently elusive depth and inward reflection, and strategies that help him and his family regain control over their technology.
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In the current issue of Foreign Affairs, Deputy Defense Secretary William J. Lynn III, has one of the more sober arguments for government involvement in cybersecurity. Naturally, his focus is on military security and the Pentagon’s efforts to protect the .mil domain and military networks. He does, however, raise the question of whether and how much the military should be involved in protecting civilian networks.
One thing that struck me about Lynn’s article is the wholesale rejection of a Cold War metaphor for cybersecurity. “[The United States] must also recognize that traditional Cold War deterrence models of assured retaliation do not apply to cyberspace, where it is difficult and time consuming to identify an attack’s perpetrator,” he writes. Given the fact that attribution is nearly impossible on the internet, he suggests that the better strategy would be “denying any benefits to attackers [rather] than imposing costs through retaliation.”
What’s interesting about this is that it is in utter contrast to the recommendations of cybersecurity enthusiasts like former NSA chief Michael McConnell, who wrote earlier this year in a 1,400-word op-ed in the Washington Post:
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It’s wonderful to see that the FCC is putting spectrum front and center on its agenda. Yesterday it held a spectrum “summit” at which it released several papers looking at the challenges and opportunities mobile broadband faces, and it was announced that at its November meeting, the chairman will introduce several items related to spectrum reallocation. NTIA is keeping pace, identifying over 100 MHz now in federal hands (mostly DoD) to be moved over for commercial use.
The consensus that has led us to this happy time is that there is a spectrum “shortage” or spectrum “crunch,” as many said yesterday. Here’s how Chairman Genachowski explained it:
The explosive growth in mobile communications is outpacing our ability to keep up. If we don’t act to update our spectrum policies for the 21st century, we’re going to run into a wall—a spectrum crunch—that will stifle American innovation and economic growth and cost us the opportunity to lead the world in mobile communications.
Spectrum is finite. Demand will soon outpace the supply available for mobile broadband.
Every natural resource is finite, however. So how exactly did we end up with this “spectrum crunch”? Continue reading →
As we enter day 5 of the standoff between Cablevision and News Corp. over the retransmission of local Fox stations, the controversy over a supposed net neutrality violation has died down, but pressure on the FCC to interfere with the parties’ negotiations is mounting. Sen. Kerry has also released a draft bill [PDF] that would reform the Cable Act’s retransmission consent rules to force TV stations to accept FCC mediation and allow carriage of their signals during a contract dispute.
It’s almost ironic that some would call for more FCC interference to solve a problem that is at least partly caused by FCC regulation. Cablevision is in New York, and what it wants is to carry Fox programming. The local Fox stations, owned and operated by News Corp., are demanding what Cablevision considers too high a price. So why wouldn’t Cablevision just turn to a Fox affiliate in Michigan for the content? The answer is that FCC regulations authorized by the Cable Act take that excellent bargaining chip away from video providers. Continue reading →
I’ve been looking into the cybersecurity issue lately, and I finally took the time to do an in-depth read of the Securing Cyberspace for the 44th Presidency report, which is frequently cited as one of the soundest analyses of the issue. It was written by something of a self-appointed presidential transition commission called the “Commission on Cybersecurity for the 44th President,” chaired by two congressmen and with a membership of notables from the IT industry, defense contractors, and academia, and sponsored by CSIS.
What I was struck by is the complete lack of any verifiable evidence to support the report’s claim that “cybersecurity is now a major national security problem for the United states[.]” While it offers many assertions about the sorry state of security in government and private networks, the report advances no reviewable evidence to explain the scope or probability of the supposed threat. The implication seems to be that the authors are working from classified sources, but the “if you only knew what we know” argument from authority didn’t work out for us in the run up to the Iraq war, and we should be wary of it now.
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I’d like to draw your attention to a recently released GAO report analyzing the challenge of implementing the 200+ recommendations included in the FCC’s Broadband Plan and comparing the U.S. to broadband efforts in other countries. Turns out things are not as dire as the FCC and the Administration would have us believe. Some highlights:
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Broadband internet is available to 95 percent of American households. This is comparable to other developed nations despite the U.S.’s larger geographic size and population.
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“[T]he United States has more subscribers than any other OECD country—81 million, or more than twice as many as Japan, which has 31 million, the second highest number of subscribers.”
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The U.S. broadband adoption rate is 26.4 subscriber lines per 100 inhabitants, which is higher than the 23.3 average for developed countries.
So we have more subscribers than any other developed nation by more than double, and almost all households have access to broadband. I know it’s not fashionable to say, but it looks like we’re doing pretty damn well.
This might explain the results of a Pew Internet and American Life survey released last month that found that “A majority of Americans (53%) do not believe that increasing the availability of affordable high-speed internet connections should be a federal government priority.” Interestingly, Americans who do not use the Internet are the least interested in seeing government spending on broadband—presumably for them. “Fully 45% of non-users say the government should not attempt to make affordable broadband available to everyone, just 5% say access should be a top priority.”
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On the podcast this week, Kevin Kelly, a founding editor of Wired magazine, a former editor and publisher of the Whole Earth Catalog, and one of the most compelling thinkers about technology today, talks about his new book, What Technology Wants. Make no mistake: the singularity is near. Kelly discusses the technium–a broad term that encompasses all of technology and culture–and its characteristics, including its autonomy and sense of bias, its interdependency, and how it evolves and self-replicates. He also talks about humans as the first domesticated animals; extropy and rising order; the inevitability of humans and complex technologies; the Amish as technology testers, selecters, and slow-adopters; the sentient technium; and technology as wilderness.
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Today’s hot topic is that thousands of Cablevision customers in New York were faced with blacked out News Corp. channels, including Fox, when the two companies were not able to come to an agreement on fees. As a result, Cablevision did not carry the Giants-Lions game and may not carry the next game against the Cowboys. Glee on Tuesday is certainly threatened, and I feel for Cablevision because I wouldn’t wish a spurned Glee fan’s wrath on anyone.
The beautiful thing about this event is that the FCC has put out a Consumer Advisory enumerating all the various choices available to consumers. They can switch to a different pay service, and the FCC counts five: “AT&T, DIRECTV, DISH Network, RCN (limited areas of Brooklyn), and Verizon FIOS.” They can also tune in via over-the-air (rabbit ears) broadcast.
This hasn’t stopped Congress or “consumer advocates” from going apoplectic over American’s god-given right to the Simpsons. And, since it seems News Corp. cut access to Fox shows on Hulu.com and Fox.com for Cablevision internet service subscribers, they fear this is terrible violation of net neutrality.
Let’s put aside for a moment whether it’s a net neutrality violation or not since it’s difficult to tell what that means. (Notice that in this case is not big telecom carriers blocking access to content they don’t like, it’s a content provider blocking an ISP.) What exactly is the problem here?
Given that the FCC has helpfully pointed out all the options available to Consumers, there’s little chance that a consumer who wants to get Fox content won’t be able to do so. If Cablevision and News Corp. don’t come to an agreement, and Cablevision doesn’t carry Fox, consumers who value Fox will switch to a different service. The same goes for Internet service. The important issue here is not a universal human right to content or a net neutrality principle, but choice.
As long as there is market competition and consumer choice, we don’t need the FCC or Ed Markey to ensure that the we’ll get the Giants and the Cowboys in HD and Glee on Fox.com.
The Technology Liberation Front is the tech policy blog dedicated to keeping politicians' hands off the 'net and everything else related to technology.