Broadband & Neutrality Regulation

This morning on WNYC in New York City, I debated Josh Silver of the pro-Internet-regulation group Free Press. It was a healthy exchange of views, except for a few barbs and innuendos thrown by Silver, who is obviously frustrated by his group’s lack of progress in seeking a “government takeover of the Internet.” (He wanted to debate in simple, ideological terms like that, so I indulge here.)

What was most interesting to me was how unsophisticated Silver is with respect to government and regulation. Take a look at his plea:

What we’re asking for—what we need are regulatory agencies that are not captured by industry and that actually act on behalf of the American public. And that’s what they were created to do. The FCC—1934, with the advent of radio—was created to make sure that the public interest was protected. And what we’ve seen is industry capture of regulatory agencies has made those agencies fail again and again and again.

And the only thing that’s gonna work is if the Obama administration and the FCC stand up and say, “No more business as usual. We are going to protect net neutrality. We’re going to protect competition, and make sure there’s choices for consumers. And we’re going to end the status quo in Washington that has really broken our entire political system.”

The Obama administration and the FCC did stand up and say “no more business as usual,” but that’s what politicians do to seduce voters. Then, once in power, they go about business as usual. Lucy always yanks away the football, Charlie Brown.

Silver is not alone in having these sweet, sad “good government” sentiments. Many of my interlocutors, with whom I often share outcome goals, believe strongly in achieving those goals by remaking governmental and political systems so that they finally “work.” They believe so strongly in this approach that they seem to think it’s just around the corner—if only we prohibit some speech here, some petitioning of the government there. Y’know, “take the money out of politics.”

Hopefully this fantasy will never come true, because it requires reversing fundamental rights such as free speech in all its instantiations—a handover of power from people to the government and elites that run it.

In the absence of that perfected, all-powerful government—thank heavens—we must organize the society’s resources using the best machine we’ve got for discovering consumers’ interests and delivering on them: an unhampered marketplace, now energized and enhanced by the Internet.

Last week, I had the pleasure of discussing net neutrality with James Boyle, a Duke Law Professor and the co-founder of the Center for the Study of the Public Domain, and Paul Jones, the director of ibiblio, on WUNC’s The State of Things radio program. Our hour-long discussion touched on a number of important tech policy topics, and I highly recommend giving the show a listen (download the MP3 here) if you’re interested in hearing the insights of two very thoughtful scholars and critics of cyber-libertarianism.

I’m a big admirer of Boyle and Jones, who’ve both done a lot of excellent work studying copyright and public domain in the information age. While I don’t share their views on the merits of net neutrality regulation — or, perhaps, of government regulation in general — there’s much common ground between us on many issues, including intellectual property, free speech, and government surveillance.

For folks who don’t want to spend an hour listening to our discussion, I’ve typed up a brief summary of the questions we attempted to tackle in our discussion and the various arguments we raised. My apologies if I’ve mischaracterized any arguments or statements  — if you want to know what was actually said, go listen to the whole interview!

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Many of the installments of our ongoing ”Problems in Public Utility Paradise” series here at the TLF have discussed the multiple municipal wi-fi failures of the past few years. Six or so years ago, there was quixotic euphoria out there regarding the prospects for muni wi-fi in numerous cities across America — which was egged on by a cabal of utopian public policy advocates and wireless networking firms eager for a bite of a government service contract.  A veritable ‘if-you-build-it-they-will-come’ mentality motivated the movement as any suggestion that the model didn’t have legs was treated as heresy.  Indeed, as I noted here before, when I wrote a white paper back in 2005 entitled “Risky Business: Philadelphia’s Plan for Providing Wi-Fi Service,” and kicked it off with the following question: “Should taxpayers finance government entry into an increasingly competitive, but technologically volatile, business market?,” I received a shocking amount of vitriolic hate mail for such a nerdy subject.  But facts are pesky things and the experiment with muni wi-fi has proven to be even worse than many of us predicted back then.

A new piece by Christopher Mims over at MIT’s Technology Review (“Where’s All the Free Wi-Fi We Were Promised?“) notes that “no technology happens in a vacuum, and where the laws of the land abut the laws of nature, physics will carve your best-laid plans into a heap of sundered limbs every time.” He continues, “the failure of municipal WiFi is an object lesson in the dangers of techno-utopianism. It’s a failure of intuition — the sort of mistake we make when we want something to be right.”  Too true.  Mims was inspired to pen his essay after reading a new paper, “A Postmortem Look at Citywide WiFi“, by Eric M. Fraser, the Executive Director for Research at the Committee on Capital Markets Regulation.  “Almost everyone was fooled by the promise of citywide WiFi,” Fraser notes, because of the promise of a “wireless fantasy land” that would almost magically spread cheap broadband to the masses.  But, for a variety of reasons — most of which are technical in nature — muni wifi failed.  Fraser summarizes as follows: Continue reading →

Since I contributed $10 to the $23 million The Social Network grossed nationally this weekend, I see no reason not to blog some thoughts on the film.

First of all, the movie, which purports to be a history of the founding of Facebook, succeeds wildly as entertainment. As you may have heard by now, the film basically posits that if its founder, Harvard student Mark Zuckerberg, had not been dumped by his girlfriend for questioning the academic credibility of her school, Boston University, Facebook may never have existed at all.

Whether or not the film’s facts are straight on this is another matter. Nonetheless, it is not my purpose to comment extensively on either the film or its veracity, other than to recommend it highly as long as you ingest the story and characters with the copious grains of salt.

But some facts the film depicts are undeniable. The most significant for my purposes here is that the idea that became Facebook was germinated in the fall of 2003, just six years ago, and, as a website, was launched on the Harvard campus in February 2004.

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Faux Urgency

by on October 4, 2010 · 0 comments

Tech policy polemicist Scott Cleland has hit home with today’s “FreePress’ Faux Urgency on Net Neutrality.”

FreePress’ problem is that people have wised up to their repeated hysterical calls to “Save the Internet” from a problem that has never materialized as they recklessly warned. FreePress has failed miserably in finding or defining any real-world problem that needs radical intervention to fix.

Cleland is meaner to the folks at Free Press than I would be, but he’s right to note that the problems net neutrality regulation might fix haven’t materialized over a long period of, yes, faux urgency.

Clear’s coverage map shows service in many cities and plans to expand to many more. Competition is rendering moot the call for public utility-style regulation of Internet service in the name of ‘net neutrality. I expect to hear soon about how unsatisfactory competition is under triopoly conditions.

My article for CNET News.com this morning analyzes the “leaked” net neutrality bill from Rep. Henry Waxman, chair of the House Energy and Commerce Committee.  I put leaked in quotes because so many sources came up with this document yesterday that its escape from the secrecy of the legislative process hardly seems dramatic.  Reporters with sources inside Waxman’s office, including The Hill and The Washington Post, expect Waxman to introduce the bill sometime this week.

The CNET article goes through the bill in some detail, and I won’t duplicate the analysis here.  It is a relatively short piece of legislation that makes limited changes to Title I of the Communications Act, giving the FCC only the authority it needs to implement “core” regulations that would allow the agency to enforce violations of the open Internet principles. Continue reading →

Competition

by on September 15, 2010 · 0 comments

I’m in front of a non-TiVo-enabled television this evening, which has permitted me to see ads for a search site called YP.com. It’s a rebranded YellowPages.com, affiliated with AT&T, and it’s organized to be a search engine for the things in your life—dining, travel nightlife—distinguished from Google’s utilitarian-tech web search. Meanwhile Microsoft’s Bing has overtaken Yahoo! as the number two search engine. I was surprised to learn that “undisputed search king” Google has only 65 percent of the search market. Google is doing well, of course, but it can’t be comfortable with all these well-funded rivals circling it.

This is good news for consumers. These competitors are driving Google to improve, and they can pull consumers away from Google by serving search niches such as lifestyle search (as YP does), more privacy protective search, and so on. Competitors will threaten and cut into Google’s advertising profits, too.

Television ads also remind us that HughesNet is offering broadband Internet via satellite. It’s mostly aimed at moving rural Internet users off of dial-up, but it’s an outlet for consumers anywhere who are unsatisfied with cable or DSL service. Critics will point out that it’s not very fast, kind of expensive, and includes daily usage caps. But this doesn’t deny HughesNet’s role as competition for cable and DSL.

Internet service provided badly enough by the major ISPs would make satellite broadband a viable competitor. If HughesNet’s investors were confident that they could sign up enough customers, they would make the investments that bring satellite broadband to the economy of scale it needs to be price-, speed-, and usage-competitive.

The spur of competition does not have to pierce the horse’s belly to have its effect.

On the podcast this week, Timothy B. Lee, PhD candidate in computer science at Princeton University and fellow at Princeton’s Center for Information Technology Policy, discusses a variety of issues.  Lee parses new net neutrality nuances, addressing recent debate over prioritization of internet services.  He also discusses wireless spectrum policy, comparing and contrasting a strict property rights model to a commons one.  Lee concludes by weighing in on potential software patent reform, referencing Paul Allen’s wide-ranging patent-infringement lawsuits and the Oracle-Google tiff over Java patents.

Related Readings

Do check out the interview, and consider subscribing to the show on iTunes. Past guests have included Clay Shirky on cognitive surplus, Nick Carr on what the internet is doing to our brains, Gina Trapani and Anil Dash on crowdsourcing, James Grimmelman on online harassment and the Google Books case, Michael Geist on ACTA, Tom Hazlett on spectrum reform, and Tyler Cowen on just about everything.

So what are you waiting for? Subscribe!

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 Iregulatory 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 →