The smell of high-tech regulation is increasingly in the air these days and many lawmakers and some activist groups now have the mobile marketplace in their regulatory cross-hairs. Critics make a variety of claims about the wireless market supposedly lacking competition, choice, innovation, or reasonable pricing. Consequently, they want to wrap America’s wireless sector in a sea of red tape. Two important new studies thoroughly debunk these assertions and set the record straight regarding the state of wireless competition and innovation in the U.S. today. These reports are must-reading for Washington policymakers and FCC officials who are currently contemplating regulatory action.
First, Gerald Faulhaber and Dave Farber have a new report out entitled “Innovation in the Wireless Ecosystem: A Customer-Centric Framework.” Here’s what Faulhaber and Farber find:
the three segments of the wireless marketplace (applications, devices, and core network) have exhibited very substantial innovation and investment since its inception. Perhaps more interesting, innovation in each segment is highly dependent upon innovation in the other segments. For example, new applications depend upon both advances in device hardware capabilities and advances in spectral efficiency of the core network to provide the network capacity to serve those applications. Further, we find that the three segments of the industry are also highly competitive. There are many players in each segment, each of which aggressively seeks out customers through new technology and new business methods. The results of this competition are manifest: (i) firms are driven to innovate and invest in order to win in the competitive marketplace; (ii) new business models have emerged that give customers more choice; and (iii) firms have opened new areas such as wireless broadband and laptop wireless in order to expand their strategic options.
They continue on to address the policy issues in play here and discuss the “consumer-centric” approach they recommend that the FCC adopt: Continue reading →
Interesting piece here from Slate’s Farhad Manjoo on why AT&T should dump unlimited data plans and end what he calls the “iPhone all-you-can-eat buffet.” He notes that: “The typical smartphone customer consumes about 40 to 80 megabytes of wireless capacity a month. The typical iPhone customer uses 400 MB a month. AT&T’s network is getting crushed by that demand.” Because “some iPhone owners are hogging the network” and causing “a slowed-down wireless network,” Manjoo recommends a congestion pricing model as a method of balancing supply and demand:
How would my plan work? I propose charging $10 a month for each 100 MB you upload or download on your phone, with a maximum of $40 per month. In other words, people who use 400 MB or more per month will pay $40 for their plan, or $10 more than they pay now. Everybody else will pay their current rate—or less, as little as $10 a month. To summarize: If you don’t use your iPhone very much, your current monthly rates will go down; if you use it a lot, your rates will increase. (Of course, only your usage of AT&T’s cellular network would count toward your plan; what you do on Wi-Fi wouldn’t matter.)
To understand the advantages of tiered pricing, let’s look at AT&T’s current strategy of spending billions to build more network space. Why won’t this work? For the same reason building more roads doesn’t reduce traffic—more capacity increases the attractiveness of driving, which brings a lot more cars to the road, which leads to more gridlock.
Congestion pricing and metering is something I’ve written quite a bit about here in the context of wireline broadband (1, 2, 3), but Manjoo is equally correct that it could be applied for wireless data plans. It has the added value of taking pressure off lawmakers to impose Net neutrality regulation since pricing of the pipe becomes an effective substitute for most other forms of network management. In other words, price, don’t block bandwidth-hogging customers and applications. The problem, Manjoo explains: Continue reading →
Louis XVI
Americans often quote, or allude to, the French expression ”
Le Roi est mort, vive le Roi!” But few realize that this apparent paradox was meant quite literally by the French:From its first official proclamation in 1422 upon the coronation of Charles VII to 1774, when Louis XV finally died, the term expressed the abstract constitutional concept that sovereignty transfered from the old king (the first “Le Roi“) to the new king (the second “Le Roi“) the very instant the old king died. Thus, France was literally never without a king until until the monarchy was finally dis-established in early 1793. When Louis XVI was guillotined later that year, his death was acclaimed simply with “Le Roi est mort!“
Tomorrow, September 30, ICANN’s Joint Project Agreement with the Department of Commerce finally terminates. “
Le JPA est mort!” But a new agreement (the “Affirmation”) will take its place, apparently providing more accountability than the JPA ever did. Vive l’Affirmation! There may come a day when, like Louis XVI, ICANN’s JPA-like agreement with Commerce terminates and nothing is there to replace it, but that day has not yet come.
Grant Gross has a great piece on this new agreement. Grant extensively quotes my PFF Adjunct Fellow (my ICANN mentor and former ICANN board member) Mike Palage, who explained that the JPA’s successor (JPA II?):
will tell [ICANN] what it should do, but it can’t legally bind them [much like past agreements]… It gives the appearance in the global community that the U.S. government has recognized that ICANN has done what is was supposed to do. What it’s also doing is … it’s putting in some accountability mechanisms.”
Continue reading →
Forbes.com has just published an editorial that Berin Szoka and I penned about yesterday’s net neutrality announcement from the FCC.
by Adam Thierer & Berin Szoka
There was a time, not so long ago, when the term “Internet Freedom” actually meant what it implied: a cyberspace free from over-zealous legislators and bureaucrats. For a few brief, beautiful moments in the Internet’s history (from the mid-90s to the early 2000s), a majority of Netizens and cyber-policy pundits alike all rallied around the flag of “Hands Off the Net!” From censorship efforts, encryption controls, online taxes, privacy mandates and infrastructure regulations, there was a general consensus as to how much authority government should have over cyber-life and our cyber-liberties. Simply put, there was a “presumption of liberty” in all cyber-matters.
Those days are now gone; the presumption of online liberty is giving way to a presumption of regulation. A massive assault on real Internet freedom has been gathering steam for years and has finally come to a head. Ironically, victory for those who carry the banner of “Internet Freedom” would mean nothing less than the death of that freedom.
We refer to the gradual but certain movement to have the federal government impose “neutrality” regulation for all Internet actors and activities—and in particular, to yesterday’s announcement by Federal Communications Commission (FCC) Chairman Julius Genachowski that new rules will be floated shortly. “But wait,” you say, “You’re mixing things up! All that’s being talked about right now is the application of ‘simple net neutrality,’ regulations for the infrastructure layer of the net.” You might even claim regulations are not really regulation but pro-freedom principles to keep the net “free and open.”
Such thinking is terribly short-sighted. Here is the reality: Because of the steps being taken in Washington right now, real Internet Freedom—for all Internet operators and consumers, and for economic and speech rights alike—is about to start dying a death by a thousand regulatory cuts. Policymakers and activists groups are ramping up the FCC’s regulatory machine for a massive assault on cyber-liberty. This assault rests on the supposed superiority of common carriage regulation and “public interest” mandates over not just free markets and property rights, but over general individual liberties and freedom of speech in particular. Stated differently, cyber-collectivism is back in vogue—and it’s coming very soon to a computer near you! Continue reading →
“Schools in Beijing are quietly removing the Green Dam filter, which was required for all school computers in July, due to complaints over problems with the software,” notes this Reuters report. Even though China backed down on their earlier requirement to have the Green Dam filter installed on all computers, according to Reuters “schools were still ordered by the Ministry of Industry and Information Technology to install the web filter, which Chinese officials said would block pornography and other unhealthy content.” The Reuters article mentions a notice carried on the home page of one Beijing high school that reads: “We will remove all Green Dam software from computers in the school as it has strong conflicts with teaching software we need for normal work.” The article also cites a school technology director, who confirmed that the software had been taken off most computers, as saying “It has seriously influenced our normal work.”
Ironically, many educators and librarians in the United States can sympathize since they currently live under similar requirements. Under the Children’s Internet Protection Act (CIPA) of 2000, publicly funded schools and libraries must implement a mandatory filtering scheme or run the risk of losing their funding. As the Federal Communications Commission summarizes:
[CIPA] imposes certain types of requirements on any school or library that receives funding for Internet access or internal connections from the E-rate program… Schools and libraries subject to CIPA may not receive the discounts offered by the E-rate program unless they certify that they have an Internet safety policy and technology protection measures in place. An Internet safety policy must include technology protection measures to block or filter Internet access to pictures that are: (a) are obscene, (b) child pornography, or (c) harmful to minors (for computers that are accessed by minors).
Of course, nobody wants kids viewing porn in schools, but CIPA has been know the block far more than that and has become a real pain for many educators, librarians, and school administrators who have to occasionally get around these filters to teach their students about legitimate subjects. Anyway, I just find it ironic that some American lawmakers have been making a beef about mandatory Internet filtering by the Chinese when we have our own mandatory filtering regime right here in the states. For example, Continue reading →
Today I was invited to the Federal Communications Commission (FCC) to testify at one of the agency’s Broadband Working Group workshops. This particular workshop was on “Broadband Consumer Context,” which focused on “a range of challenges and opportunities as the internet becomes a focal point for commercial transactions, social networking, and a host of activities pertaining to information gathering and exchange.”
I was asked to address the issue of whether there is a relationship between online safety concerns and broadband uptake. In my testimony, I noted that, in my 15 years of research in this area, I have never unearthed any substantive empirical evidence suggesting a correlation between parental concerns about online activity and overall household broadband uptake. I have seen occasional anecdotal news stories discussing the concerns some parents have had about their kids online that led them to reject online connectivity, but these stories have been exceedingly rare (and I haven’t seen any in recent memory).
I also argued that I did not think it at all surprising that such anecdotes are harder to find, or that empirical evidence on this front seems non-existent. I argued that there were four logical explanations for why parental concerns about online safety haven’t “moved the broadband needle” much in the negative direction:
- Not every home has children present
- Parents use a variety of household media rules to control media & Internet usage
- A vibrant marketplace of parental control technologies exists
- Likely that most parents believe that the benefits of broadband outweigh the potential downsides
For all the details on each of those, read my entire testimony or check out the presentation embedded below that I made to the FCC today. Continue reading →
Interesting piece from Jeff Jarvis about “Google Bigotry,” or his belief that “media people are going after Google’s success for no good reason other than their own jealousy.” Jarvis argues that reporters penning hard-nosed stories about Google are, in reality, just a bunch of envious cry-babies:
newspaper people will use their last drops of ink to complain about Google’s success and try to blame it for their own failures rather than changing their own businesses. .. It’s not just that they dislike the competition – and they do, for it is a new experience for too many of them. If they were smart, they’d use Google to get more audience and make more money but they don’t know how to (or rather, they’d prefer not to change). No, the problem is that Google represents change and a new world they’ve refused to understand.
Well, yes and no. I don’t believe that
every story penned about Google by a mainstream media reporter is rooted in envy, and certainly not the one that Jarvis alludes to as prompting him to pen this piece. Jarvis apparently received an inquiry from a French journalist at Le Monde asking for comment about “an article about Google facing a rising tide of discontent concerning privacy and monopoly.” That doesn’t necessarily sound like an unreasonable journalistic inquiry to me. So, I’m not sure it’s fair to accuse every journalist who calls with a hard-nosed question about privacy and antitrust as being guilty of “Google bigotry.”
That being said,
some journalists are likely feeling a bit miffed about Google’s recent success, thinking it comes at their expense, and, therefore, their envy might be prompting some of them to pen attack stories on the company. I think Jarvis in on stronger ground, however, in asserting that most privacy and antitrust complaints about Google are unfounded, and also based on envy. Indeed, Berin Szoka and I have have been cataloging the complaints that we believe are driven by an irrational form of corporate envy we call “Googlephobia.” And in prior years we saw a similar form of Microsoft-bashing at work that we still have with us today. That’s why I think Jarvis is on to something when he notes that Google-bashing represents a broader sociological phenomenon: Continue reading →
Meetup.com founder Scott Heiferman explains how Meetup is all about “The Pursuit of Community” in the New York Times.
A Meetup is about the simple idea of using the Internet to get people off the Internet. People feel a need to commiserate or get together and talk about what’s important to them. Our biggest categories are moms, small business, health support and fitness.
When we were designing the site, we were wrong about almost everything we thought people would want to use it for. I thought it would be a niche lifestyle venture, perhaps for fan clubs. I had no idea that people would form new types of P.T.A.’s, chambers of commerce or health support groups. And we weren’t thinking that anyone would want to meet about politics, but there are thousands of these Meetups.
People have organized more than 200,000 monthly Meetups in more than 100 countries.
There’s nothing more powerful than a community coming together around a purpose. We spend increasingly more time in front of screens. We’re more connected technologically, but we’re less connected physically.
Heiferman’s vision of technology bringing people together in pursuit of shared interests,passions and causes, from the political to the charitable to the trivial, would have delighted Alexis de Tocqueville, whose 1835 classic Democracy in America identified voluntary association as the unique genius of the American character.
Tocqueville concluded that representative democracy had flourished in America, rather than leading to murderous despotism as it had in Tocqueville’s revolutionary France, because, among other things, Americans built a rich civic society interposed between the atomized individual and the state. Rather than suppressing political associations as factions dangerous to the health of the state, Americans embraced political associations (parties and causes), which served as “large free schools, where all the members of the community go to learn the general theory of association.” Americans would apply that art in every other walk of life, from today’s AIDS Walks or PTA meetings to groups of rock climber enthusiasts: “The art of association then becomes… the mother of action, studied and applied by all.” Tocqueville concludes: Continue reading →
Berin has already done a fine job tearing apart this latest effort by 10 activist groups to break the Internet by imposing burdensome regulation or punishing legal liability on Internet operators for the crime of trying to deliver relevant advertising to users that can actually pay for the content and services given away to users for free. To that, I would add my deep disappointment that the Electronic Freedom Foundation (EFF) choose to join this cabal. After all, the other members of the coalition are frequently heard calling for regulation of one variety or another. But EFF always prides itself on supposedly avoiding online regulatory schemes. That’s what makes it so surprising that they chose to jump on this bandwagon for an Internet industrial policy in the name of “protecting privacy.”
EFF’s embrace of regulation is particularly inconsistent given their excellent filing in the FCC’s “Child Safe Viewing Act” proceeding this summer. As I’ve previously noted, this proceeding raises the specter of “convergence-era content regulation” with Congress authorizing the FCC to look into “advanced blocking controls” for “wired, wireless, and Internet” platforms. EFF’s comments rightly stressed dangers of expanded content controls or Internet regulation, and noted the many “less-restrictive means” available to the public that provide compelling alternatives to government regulation: “Blocking technologies are widely available in the market and do not require further government support.” And EFF has been instrumental throughout the years of making the case in courts for applying the less-restrictive means test and strict scrutiny when it comes to government efforts to regulate speech.
Why, then, does EFF take the diametrically opposite position when privacy concerns enter the picture? Continue reading →
The Technology Liberation Front is the tech policy blog dedicated to keeping politicians' hands off the 'net and everything else related to technology.