The Progress & Freedom Foundation has just launched the new Center for Internet Freedom. CIF offers an alternative to the proliferation of advocacy groups calling for government intervention online by offering timely analyses and critiques of proposals that diminish the vital role of free markets, free speech and property rights. We aim to drive the Internet policy debate in new directions by emphasizing a layered approach of technological innovation, user education, user self-help, industry self-regulation, and the enforcement of existing laws consistent with the First Amendment. Such an approach is a less restrictive—and generally more effective—alternative to increased regulation.
Here are some of the issues I’ll be working on as CIF’s Director in conjunction with my esteemed colleagues Adam Thierer, Adam Marcus, and adjunct fellows:
- Defending online advertising as the lifeblood of online content & services, especially in the “Long Tail”;
- Emphasizing market solutions to problems of privacy protection, especially regarding the use of cookies and packet inspection data;
- Protecting online speech and expression both in the U.S. and abroad;
- Defending Section 230 immunity for Internet intermediaries;
- Opposing online taxation and legal barriers to e-commerce and digital payments, especially at the state and local levels; and
- Ensuring that Internet governance remains transparent and accountable without hampering the evolution of the Internet.
Congress has very wisely cancelled the National Reconnaissance Office’s proposed Broad Area Space-Based Imagery Collection (BASIC) satellite system. The proposal to build two new imaging satellites at a cost to taxpayers of $1.7 billion would have represented a major break from what is possibly the U.S. government’s most successful effort to promote space commercialization to date: buying the imagery it needs from commercial providers, who can also sell imagery to other buyers.
Five years ago, the idea that Internet users could pull up a satellite image of just about any location on the planet at a whim would have seemed ludicrous. Yet that’s precisely what websites like Google Maps and Microsoft’s Live Search offer today—for free! Desktop applications like Microsoft’s Virtual Earth and Google Earth offer even more advanced geospatial tools—again, for free. But of course this library of incredibly rich imagery didn’t just “fall out of the sky,” as they say. It was collected by a handful of expensive commercial remote sensing satellites whose construction was made possible by the National Geospatial-Intelligence Agency‘s (Wikipedia) extraordinarily successful “Nextview” program implemented under the Commercial Remote Sensing Policy of 2003. Rather than having the Federal government build its own satellites—and pay for the entire cost of the satatellites—the NGA very wisely chose to buy imagery from commercial providers in two ~$500 million, 4-year contracts with U.S. satellite imagery companies: DigitalGlobe in 2003 and OrbImage (now GeoEye) in 2004.
These long-term purchase agreements essentially made the U.S. Government the “anchor tenant” in a new class of remote sensing satellites, providing the initial funding for both companies to build and operate their satellites. But because the companies sell roughly half of imagery to foreign governments and commercial buyers like Google and Microsoft, these deals have saved U.S taxpayers money for the purchase of imagery for a wide variety of needs, ranging from agricultural monitoring to military intelligence. At the same time, the Nextview contracts have given birth to a vibrant geospatial industry whose immediate benefits should be obvious to anyone who’s ever pulled up a satellite map online and whose macroeconomic impact is potentially enormous.
So why mess with success? Continue reading →
Major speed enhancements are rumored to be coming soon from Comcast, which has been spending serious cash to upgrade its network to the DOCSIS 3.0 standard. Customers in many markets who now pay $42.95 a month for 6mbps/1mbps service will be upgraded to 12/2 — a doubling of both upstream and downstream speeds — with no corresponding price increase. This follows Comcast’s pattern of enhancing speeds without hiking prices. And the price point of the standard tier has remained unchanged in nominal terms for several years, so when you factor in inflation, it’s fair to say Comcast has actually been dropping prices.
It’s amazing to consider how broadband speeds have evolved in a relatively short perio
d of time. Comcast’s highest tier was a mere 4mbps/384kbps just four years ago, when DSL speeds typically topped out at 3/768. For consumers who live in a competitive ISP market, DSL now offers 20/1, Fiber offers 30/5, and Cable will soon offer 22/5. All of these tiers are priced under $100 per month.
Though we may not be amidst a “price war” among ISPs per se, as Mike Masnick recently argued, there is simply no denying that price per megabit is declining rapidly. This is all thanks to competition, of course, which has pushed providers to invest in newer technologies that allow for faster broadband connectivity.
Market skeptics will assuredly respond to my optimism by pointing out that so long as Comcast sticks with its 250GB monthly usage cap, consumers are really just getting the same service with shinier packaging. Yet that fact hardly means we should scoff at Comcast’s new performance tiers.
As I’ve discussed on several
occasions, I churn through a lot of file transfers each month, so I’m all for Comcast raising its cap (or, alternatively, implementing reasonable overage fees). But even with Comcast’s fairly generous limits, who isn’t ecstatic about being able to download any file in half as much time as before? Caps will surely evolve over time as demand for 1080p content delivered over the Internet grows, but for now, speed is a bigger concern than usage for most consumers.
So, if Tim Wu’s thesis is correct that the broadband marketplace is “a cartel,” should we be reading headlines in today’s Wall Street Journal and CNET News.com like this: “Price War Erupts For High-Speed Internet Service” and “Broadband Price War Brews“? From the WSJ story:
The battle between cable and phone companies to sign up new customers for high-speed Internet service is heating up, creating fresh opportunities for consumers to cut their bills. […] While the most generous offers are coming from the phone companies, some analysts expect cable companies will also become more aggressive in their own promotions as they compete to retain customers.
Geez, if that’s a cartel, give me more of them!
Verizon’s Tom Tauke and NCTA’s Kyle McSlarrow take to fisticuffs in their comments (well worth reading and remarkably… candid) on the Verizon Policy Blog after Tom asked “Will Cable and FCC Thwart Consumer Choice?” In case you missed it, Verizon has been feuding with cable providers before the FCC about Verizon’s practice of calling customers who ask to cancel their telephone service and offering them incentives to stay with Verizon rather than switch to a cable VoIP service.
Adam Thierer very capably addressed this subject several months ago:
there are two issues here: (1) Is Verizon technically violating any existing FCC regulations; and (2) do those rules make any sense?
I’ll leave it to the legal beagles to sort out the answer to question #1. From my perspective, the more important question is, regardless of what the regs say, what’s the impact of all this is on consumers and competition? On that point, it’s hard for me to see how those old number portability regulations make sense if they limit the ability of incumbents to play hard-ball in an attempt to retain customers. After all, that’s what we should want more of in the marketplace: good ol’ fashion head-to-head, facilities-based competition….
Bottom line: the FCC should be careful about regulating customer inducements by incumbents whether those offers happen before or after the porting process. The better approach would be to make sure that the incumbents can offer whatever inducements they want but then also make sure that rivals have a clear opportunity to respond and beat the offer.
Amen!
The Technology Liberation Front is the tech policy blog dedicated to keeping politicians' hands off the 'net and everything else related to technology.