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.
I’ve been re-reading Nicholas Negroponte’s brilliant and extraordinarily prescient 1995 book Being Digital this week, and I just came to the famous section in Chapter 12 about “The Daily Me.” It’s his visionary discussion of a future of personalized filters for all things digital to perfectly tune news and entertainment to your personal preferences. Here’s the key passage (again, remember that he wrote this in 1995, long before most of the digital things we take for granted today existed):
Imagine a future in which your interface agent can read every newswire and newspaper and catch every TV and radio broadcast on the planet, and then construct a personalized summary. This kind of newspaper is printed in an edition of one. […]
Imagine a computer display of news stories with a knob that, like a volume control, allows you to crank personalization up or down. You could have many of these controls, including a slider that moves both literally and politically from left to right to modify stories about public affairs.
These cotnrols change your window onto the news, both in terms of size and its editorial tone. In the distant future, interface agents will read, listen to, and look at each story in its entirety. In the near future, the filtering process will happen by using headers, those bits about bits.
Well, that future came about sooner than even Negroponte could have predicted. We all have a “Daily Me” now; it’s called our RSS feed. And there are other components to the “Daily Me,” such as iGoogle and Google Alerts, which provide automated search results served up instantaneously. And there are many other digital tools and services out there today that help us personalize our media experience.
You really gotta hand it to Negroponte for being way ahead of the curve in foreseeing all of this at a time when most of us where still using Trumpet Winsock and 14.4 modems. Hell, Al Gore hadn’t even built the Internet yet!
Back in the mid- and even late 1990s, I was engaged in a lot of dreadfully boring telecom policy debates in which the proponents of regulation flatly refused to accept the argument that the hegemony of wireline communications systems would ever be seriously challenged by wireless networks. Well, we all know how that story is playing out today. People are increasingly “cutting the cord” and opting to live a wireless-only existence. For example, this recent Nielsen Mobile study on wireless substitution reports that, although only 4.2% of homes were wireless-only at the end of 2003…
At the end of 2007, 16.4 percent of U.S. households had abandoned their landline phone for their wireless phone, but by the end of June 2008, just 6 months later, that number had increased to 17.1 percent. Overall, this percentage has grown by 3-4 percentage points per year, and the trend doesn’t seem to be slowing. In fact, a Q4 2007 study by Nielsen Mobile showed that an additional 5 percent of households indicated that they were “likely” to disconnect their landline service in the next 12 months, potentially increasing the overall percentage of wireless-only households to nearly 1 in 5 by year’s end.
And one wonders about how many homes are like mine — we just keep the landline for emergency purposes or to redirect phone spam to that number instead of giving out our mobile numbers. Beyond that, my wife and I are pretty much wireless-only people and I’m sure there’s a lot of others like us out there.
Anyway, I’ve been having a strange feeling of deva vu lately as I’ve been engaging in policy debates about the future of the video marketplace. Like those old telecom debates of the last decade, we are now witnessing a similar debate — and set of denials — playing out in the video arena. Many lawmakers and regulatory advocates (and even some industry folks) are acting as if the old ways of doing business are the only ways that still count. In reality, things are changing rapidly as video content continues to migrate online.
I was reminded of that again this weekend when I was reading Nick Wingfield’s brilliant piece in the
Wall Street Journal entitled “Turn On, Tune Out, Click Here.” It is must-reading for anyone following development in this field. As Wingfield notes:
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The New York Times, that dinosaur of old media, is currently live-blogging the most important Congressional debate since that epochal, thoughtful discussion back in October 2002 as to whether Iraq posed a clear and present danger to the United States justifying a declaration of war—I mean, total non-debate that preceded Congress’s decision to issue President a blank checkthat has proved nearly as expensive as the blank check currently before the Congress.
The highlight of the debate thus far:
11:39 a.m. | No socialism!: After Jeb Hensarling, a Republican representative from Texas, affirmed that he was voting against the bill because it smacks of socialism and might represent limits on liberty, Barney Frank, a Democratic representative from Massachusetts, said that he is “ever mindful” that George Bush might “lead us down the road to socialism,” and so Congress would monitor the bailout closely.
Wow. When Barney Frank, just about the closest thing to an avowed socialist in Congress after Bernie Sanders, warns about the dangers of a Republican president and supposed “free market” champion leading us down the “Road to (socialist) Serfdom,” we should all feel a terrible chill. To paraphrase the over-paraphrased Yeats:
Surely some revelation is at hand
Surely the Second Coming is at hand!
… what rough beast, its hour come round at last,
Slouches towards [Washington] to be born?
Yesterday, the Senate passed S. 602, “The Child Safe Viewing Act of 2007,” which was introduced by Sen. Mark Pryor (D-AR) in February 2007. The bill requires the Federal Communications Commission (FCC) to study the market for “advance blocking technologies” (i.e., parental controls and rating systems) that parents can use to protect their kids from inappropriate content from various sources and platforms. On the surface, the measure seems harmless enough, but in practice, it could have some troubling long-term free speech implications if it leads to more government meddling with parental controls and ratings systems.
The measure requires the FCC to initiate a notice of inquiry to consider measures to examine:
- the existence and availability of advanced blocking technologies that are compatible with various communications devices or platforms;
- methods of encouraging the development, deployment, and use of such technology by parents that do not affect the packaging or pricing of a content provider’s offering; and
- the existence, availability, and use of parental empowerment tools and initiatives already in the market.
That all sounds harmless enough. Indeed, such a study could produce some useful information about the state of the parental controls marketplace. (Of course, I could save them some taxpayer dollars and just send copies of my big
Parental Controls & Online Child Safety report to all FCC officials!)
But it’s what comes next in the bill that causes me some heartburn. As part of the review mandated by the bill, S. 602 commands the FCC to “consider advanced blocking technologies that”:
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Register
here for what looks like a very interesting event:
In 1995, Internet entrpreneur Craig Newmark started Craigslist — an online community featuring free classified ads. Thirteen years later, Craigslist serves 567 cities in 55 countries and is a good example of how the power, reach and openness of the Internet can help turn a simple idea into a global phenomenon.
As part of the ongoing “Google D.C. Talks” series, Craig — who still helps users in a customer service role at Craigslist — will speak about the founding of the future of Craigslist, the future direction of the Internet, and what public policy makers can do to keep the Internet and American democracy free, open and vibrant. For anyone who’s ever bought or sold a used piece of furniture or concert tickets on Craigslist, you won’t want to miss hearing from the man who started it all.
Speaker:
Craig Newmark, Customer Service Rep & Founder, craigslist
Moderator:
Alan Davidson, Director, Public Policy and Government Affairs, Google
By Berin Szoka & Adam Thierer
Progress Snapshot 4.19 (PDF)
Since the fall of 2008, a debate has raged in Washington over “targeted online advertising,” an ominous-sounding shorthand for the customization of Internet ads to match the interests of users. Not only are these ads more relevant and therefore less annoying to Internet users than untargeted ads, they are more cost-effective to advertisers and more profitable to websites that sell ad space. While such “smarter” online advertising scares some—prompting comparisons to a corporate “Big Brother” spying on Internet users—it is also expected to fuel the rapid growth of Internet advertising revenues from $21.7 billion in 2007 to $50.3 billion in 2011-an annual growth rate of more than 24%. Since this growing revenue stream ultimately funds the free content and services that Internet users increasingly take for granted, policymakers should think very carefully about what’s really best for consumers before rushing to regulate an industry that has thrived for over a decade under a layered approach that combines technological “self-help” by privacy-wary consumers, consumer education, industry self-regulation, existing state privacy tort laws, and Federal Trade Commission (FTC) enforcement of corporate privacy policies.
In an upcoming PFF
Special Report, we will address the many technical, economic, and legal aspects of this complicated policy issue-especially the possibility that regulation may unintentionally thwart market responses to the growing phenomenon of users blocking online ads.
We will also issue a three-part challenge to those who call for regulation of online advertising practices:
- Identify the harm or market failure that requires government intervention.
- Prove that there is no less restrictive alternative to regulation.
- Explain how the benefits of regulation outweigh its costs.
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Variations on a theme:
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“The net regards
censorship as a failure, and routes around it.” — John Gilmore, SUN Microsystems & EFF co-founder.
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“The net regards
hierarchy as a failure, and routes around it.” — Mark Pesce, Writer, consultant, Sydney, Australia
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“The web regards
centralization as a failure, and routes around it… by moving to the edge.” — Stowe Boyd, /Message blog
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“The net regards
the middleman as a failure, and routes around it.” — Terry Heaton, PoMo Blog
Anybody have any others to add?
The FCC last Friday may have jumped with both feet into the business of regulating the Internet, but someone forgot to tell the folks that run the Commission’s website. “The FCC Does Not Regulate the Internet or Internet Service Providers (ISP)” the “consumer publications” page of FCC.gov is still proudly telling visitors, referring them over to their state consumer protection office or to the Federal Trade Commission as the proper agencies for such things.
In the past, I’ve been critical of the shambolic way in which the FCC’s website is run. But in this case, the problem isn’t with the web folks – they have the policy exactly right. It’s the FCC, not FCC.gov, that’s bungled the job.
Someone at the Commission will eventually tell the website folks to fix the error. But who will get the Commissioners to fix theirs?
Google’s Chief Internet Evangelist Vint Cerf, one of the fathers of the Net, has a very thoughtful post up on the Google Public Policy Blog today asking “What’s a Reasonable Approach for Managing Broadband Networks?” He runs through a variety of theoretical approaches to network load management. There’s much there to ponder, but I just wanted to comment briefly on the very last thing he says in the piece:
Over the past few months, I have been talking with engineers at Comcast about some of these network management issues. I’ve been pleased so far with the tone and substance of these conversations, which have helped me to better understand the underlying motivation and rationale for the network management decisions facing Comcast, and the unique characteristics of cable broadband architecture. And as we said a few weeks ago, their commitment to a protocol-agnostic approach to network management is a step in the right direction.
I found this of great interest because for the last few months I have been wondering: (a) why isn’t there more of that sort of inter- and intra-industry dialogue going on, and (b) what could be done to encourage more of it? With the exception of those folks at the extreme fringe of the Net neutrality movement, most rational people involved in this debate accept the fact that there will be legitimate network management issues that industry must deal with from time to time. So, how can we get people in industry — from all quarters of it — to sit down at a negotiating table and hammer things out voluntarily before calling in the regulators to impose ham-handed, inflexible solutions? What we are talking about here is the need for a technical dispute resolution process that doesn’t involve the FCC.
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