David Dayen’s post this a.m. summarizes concerns about the apparent regulatory capture of the Federal Communications Commission, which is about to issue new rules to undermine internet open access, aka, “net neutrality.” NYT coverage is here.
I’ll leave to Tim Karr and others to describe the technical features and sell outs that have allowed the Western World’s Worst internet/broadband structure to become slower, more expensive and more discriminatory than services in other countries. Senator Al Franken gave an excellent speech, worth watching on the full range of policy issues.
It may help to have an analogous framework on how to think about what corporate capture of the internet and broadband service means, not just in terms of speed and coverage but in terms of content and pricing. It’s not just that our service is slower and we face monopoly pricing, it’s that a tiny handful of corporations are seizing control of what we’ll be allowed to watch and read.
Suppose that President Eisenhower had proposed we build an interstate highway system, but we’d allow only three or four large corporations to carve up and own all the main interconnections, determine the tolls and decide who got to drive on them during which hours. The corporations could also decide where the on/off ramps were, which communities they did or didn’t serve, where the routes went, depending on which provided better tax breaks.
And suppose these same companies owned a couple of auto companies, and they could decide whether cars and trucks made by their affiliate companies got better access, more lanes, higher speeds and lower tolls than cars/trucks sold by competitors.
Then suppose the Justice Department and the FTC did not think it their job to enforce the anti-trust laws of the United States, while the federal highway regulators did not believe they should have rules requiring open access, fair pricing, and non-discrimination.
Welcome to the forthcoming US policy on broadband/internet access.
We’re now told that the Democratic appointees on the FCC plan to develop a master plan for how this will all work. But until the Obama Administration and Congress forcefully and clearly direct the FCC to adopt and enforce rules for open, non-discriminatory access to the internet, the FCC has no framework consistent with the public interest for talking about some master plan. I doubt they’re even having a relevant conversation.
We saw an analogous battle over access to another network, the electricity transmission infrastructure. That industry spent over two decades struggling with the concepts of open access, non-discrimination, and efficient pricing. And after some failures and very bad false starts — recall California — we’ve made some progress there.
The electricity transmission system now connects the whole country, but its operation, once wholly balkanized, is now split between two types of system operators.
In over half the country, the transmission system is operated regionally by an independent, non-profit organization overseen by a federal regulator. Each independent system operator (ISO) functions under open access, non-discrimination rules. Every supplier, every generator, regardless of ownership, and every buyer/community/utility gets open access to the entire grid on non-discriminatory terms. Every technology/fuel source — wind, solar, coal, gas, nuclear, etc, can get on the grid just by connecting to the interconnected grid and agreeing to the open access rules. This system keeps the lights on in well over half the country, and the same model functions in about a dozen countries world wide.
However, in the rest of the US — mostly the deep South (think Southern Company) and the West (outside California) — the transmission system is owned and operated in a balkanized fashion by a [usually] private regional utility monopoly that has a vested interest in making sure competitors and/or non-preferred technologies are not given the same access as their own generators. If the owner’s lines are “full” or “congested,” the owners can allow their generators to serve their loads but curtail anyone else. Competitors are not allowed to connect to the grid under the same rules; buyers (e.g., municipal utilities) can’t buy from others and use the owner’s lines without negotiating special access deals and paying fees to the owner. The federal regulators tolerate this discrimination, because they can’t overcome the campaign contributions and political influence the monopolists have in Congress. Sound familiar?
Today’s FCC announcement reminds me of where the California electricity restructuring debate was in 1995, about the time Enron and its trader friends (remember “screw granny”?) were at the height of their influence and they were helping the large utilities write the rules that guaranteed discrimination and included rules that we knew would enable Enron’s gaming the system. Those of us who objected and demanded the system operators function as quasi-public entities and guarantee open access and non-discrimination were accused of being socialists plotting a government takeover, even a Soviet 5-year Plan! We’ve been here before, and what’s coming next will be ugly.
It’s blindingly obvious that “citizens” like AT&T, Verizon and Comcast, the nation’s largest cable provider, should never be allowed to write the rules for the internet and broadband access. Nor should their captured regulators ever sanction discrimination and anti-competitive mergers that allow Comcast to gobble up NBC.
John Chandley



32 Comments

Thanks for writing this! The world needs good analogies to understand complex policies like this.
Here is the Writers Guild of America, East statement
http://ow.ly/3sH2r
“A compromise means the parties to a dispute reach agreement. Here, no one has agreed to anything. These tepid rules will be challenged in court and in Congress, and they fail in the most fundamental ways – permitting paid prioritization and all manner of discrimination in wireless.
Our members write most of what people watch on television and in the movie theaters and increasingly, online. Today’s FCC vote will diminish our members’ ability to create and distribute innovative content and audiences’ ability to watch the content of their choice.”
The Writers Guild of America, East, AFL-CIO, is a labor union representing writers in motion pictures, television, cable, digital media, and broadcast news. The WGAE conducts programs, seminars, and events on issues of interest to, and on behalf of, writers. In addition, it represents writers’ interests on the legislative level. For more information on the Writers Guild of America, East, visit http://www.wgaeast.org.
Amen thanks for the analogy; helped so much in better understanding the crisis. What are the potential remedies for this travesty? Who would have standing to contest in court? Who could fund such a legal campaign?
I’ve been following the “censoring” actions by Rayne as moderator in criticizing some of the more “radical” writers here at the Lake. Is it true that the Lake owners/managers/writers are really so paranoid? Has there been an internal debate on what lines must not be crossed in order to protect the Lake’s very existence?
I read a headline the other day on HuffPost that someone who had been critical of Obama had been arrested (?) Given the massive spying on Americans, I can appreciate the effort to contain and soften criticisms of the powers that be, the hypocrisies and lies of their behaviors.
I’ve often thought about doing an “open letter” to Obama, et. al. castigating some of the policies and practices I’ve come to know about in recent months that have disgusted and enraged me. Once upon a time, I thought that any protests from my mouth would be overlooked and I would not be jeopardizing my freedom while attempting to maintain my integrity; afterall, who am I that the
long arms of the FBI or any other instrument of institutionalized terrorizing should attack little old me.
But more and more, I see more and more reasons to be afraid for America.
Say it ain’t so, Scarecrow John!
Christmas blessings to all,
Thanks for the statement, Elana.
Well, how is that any different from letting Liz Fowler write the Health Care bill?
http://fdlaction.firedoglake.com/2010/03/29/baucus-thanks-wellpoint-vp-liz-fowler-for-writing-health-care-bill/
It’s really spelled Amerika.
Thanks Scarecrow, I guess this one way of contolling those dirty hippie bloggers. I got run out the door.
Hah! AT&T DOES respond to pressure.
Link: http://news.cnet.com/8301-17852_3-20026118-71.html#ixzz18mY4dYfW
Please try to confirm (or disconfirm) this, if you can, and post the link! We need to know whether or not this is true. This would be an important step in the evolution of the USA into a police state (which is already well underway).
Man, these sons of bitches just won’t let up for a moment, will they? I guess it’s going to take a good nut-punch to get their attention.
I saw a comment elsewhere about this and a computer geek said that technology already exists and will bypass this stuff quickly and render this whole pile of crappola moot. I hope he/she is right.
Continued Corporate Sodomy……
No shit.
Interesting quote from Lu, via Will Wilkinson at the Economist, via Brad Delong . . .
The federal government’s role in radio and television from the 1920s through the 1960s, for instance, was nothing short of a disgrace. In the service of chain broadcasting, it wrecked a vibrant, decentralizes AM marketplace. At the behest of the ascendant radio industry, it blocked the arrival and prospetcs of FM, and then it put the brakes on television, reserving it for the NBC-CBS duopoly. Finally, from the 1950s through the 1960s, it did everything in its power to prevent cable television from challenging the primacy of the networks. … Time and again [the government] has stood beside concentrated power against the underdog at the expense of economic dynamism. Governments’ tendency to protect large market players amounts to an illegitimate complicity, whether by reason of the firm’s involvement in important government concerns…, or a general sense of obligation to protect big industries irrespective of their having become uncompetitive.
http://www.economist.com/blogs/democracyinamerica/2010/12/prevalence_corporatism
I guess the past 4 years of petitioning and calling reps meant absolutely nothing regarding net nutrality. It looks like nuetering to me.
Home run, John. Folks, please go viral with this.
Interesting take, but just further evidence of “Government” is not a stand-alone entity erected to act a a bulwark against unregulated industry. On the contrary, “Government” is simply the enforcement arm of the big industries, with the interests of the members of Congress indistinguishable from the interests of the shareholders of those industries.
How many ways can we prove that Washington is not listening?
There goes the neighborhood. No more small biz on the next site.
And we all know how well that turned out.
We The People were a few $10 mil checks short.
If Americans put the tel-sat-cos on pay go they *will* notice. Otherwise they will continue to treat Americans like the dumb cash cows. Do things like get off contracts (you have to figure out what you are willing to do if you dump them at the penalty if you haven’t already sunset the account). Discontinue pre-paying and direct account access mechanisms as they just hate that on their cash flow. Consider boycotting or simply no longer participating in huge tel-sat-co sponsored, zero valued-added media events like American Idol (AT&T) and instead support your local live musician in local venues. They hate this too as they can’t get a cut of the artist’s revenue stream (they think of the artist as their captured commodity called a “content maker”). Get with your nearest Open Source geek, analyze your voice and data service needs (please consider adjusting your life and work patterns to be more ethical supply chain oriented), look over the options and go generic, low cost and pay go as you possibly can. The day Google Voice went “live,” 1 million free phone calls were place in the US and some to Canada (link: http://www.pcmag.com/article2/0,2817,2368379,00.asp).
Once again an Obama appointee sold out and in this case went against a specific Obama promise to maintain net neutrality. If McCain had been president I believe the democrats would at least have fought this as they would have fought partially defunding social security by reducing social security taxes. Loyal Obama supporters accept anything that comes from Obama more than Catholics accept edicts from the Pope. Will Obama ever be held accountable for his betrayals?
They learned the plutocrats’ lesson well. Rockefeller owned the pipelines and not the oil fields… at first.
It is no different at all. Obama, with a few exceptions, seems to still have the idolized love of his base despite the fact that in many fundamental ways this is the third Bush administration in policy. I sometimes wonder if we would have been better off with McCain and at least been suspicious of stuff like this instead of uncritically accepting “Trojan Horses” from Obama.
“Otherwise they will continue to treat Americans like the dumb cash cows.”
Sums it up perfectly! Americans treated as a “means” to corporate profit. Americans, expendable, in the lust for endless profit, economically leveraged by “corporate cash cows.” Essentially, raping a nation…………
Since you liked that, how about this call to come to one’s senses and take appropriate action? JP Morgue-n (link: http://maxkeiser.com/2010/12/21/keiser-report-jp-morgue )
Notice how the big boys didn’t want to control the net until the masses developed all kinds of hubs and formulas for its use. Also, college kids , etc. will not be able to develop ideas like YouTube and FaceBook either because they won’t have the money to launch it.
Not to mention that the net is an infinite web of the creative efforts of millions , many creative and innovative people spending hundreds of thousands of hours developing intellectual properties that they would have had to pay people to invent had they not stole this technology up front. Instead they wait until after it began to blossom in full as the tool of the century.
To put it simply, it is like a person wanting to be in the cake business but instead of buying staples and baking a cake. They wait for someone to bake it and decorate it and then they just claim they own the platter the cake is on and take it.
We are being robbed and all this intellectual property and people access that is the result of genius and serious effort is being just usurped.
WE MUST FIGHT AND THE FIRST THING IS FOR EVERYONE TO DUMP COMCAST. If they need more money then why have they been giving away free and dirt cheap plans. They been getting rich all along and now they want to steal the net for the OnePercent that never have enough and give us FoxNet.
WE must fight the evil takeover of the onepercent controlling this nation as a spoiled toxic Aristocracy that think the resources of this nation are their personal toy complete with disposable work force and toy soldiers.
This is also a FREEDOM of speech issue.
The Supreme court said money is speech and now “they” are making sure it is the only form of speech
It’s Obama’s FCC what do you expect……the same as GWBush.
First a fake economic stimulus, then fake HCR, then fake financial reform, then a fake jobs stimulus tax cut for wealthy assbags with fake unemploymment extensions, and now fake net neutrality. It all makes sense living in a fake democracy with a fake Democratic President.
It seems nothing the people want means anything. End WArs , prosecute war criminals, single payer, no tax cuts for the mega wealthy, no estate taxes so Blanche Lincoln can inherit a 200 hundred year old cotton plantation in a town that was a slave hub for Arkansas aka the Cotton Belt that basically just collects government subsidy now.
No, the people have no representation. The Goldman Sachs white House has no use for idiot voters when they own all avenues of communication. Obama was a financial elite Trojan Horse. Democracy is nothing more than a footnote on a history page.
“Hah! AT&T DOES respond to pressure.” (link: http://my.firedoglake.com/scarecrow/2010/12/21/fake-net-neutrality-what-does-corporate-capture-look-like/#comment-266724 )
It’s a delay tactic and is the oldest biz trick in the world so the customer stays on the financial hook and the cash keeps a comin’. Please see who you’re doing business with by reading “BAE Systems, AT&T, Sprint-Nextel, Verizon Ink DoD Contracts” (link: http://www.govconwire.com/2010/08/bae-systems-att-sprint-nextel-verizon-ink-dod-contracts ). If you keep giving them the cash on their terms, they will continue to reward you with war in Afghanistan and killing the Toobz using their legion of lobbyists puppet-ing our corporate-captured government. Please consider stronger measures (link: http://my.firedoglake.com/scarecrow/2010/12/21/fake-net-neutrality-what-does-corporate-capture-look-like/#comment-266737 ) that include moving your money to a locally-owned credit union (or building society) and dealing more stringently with the credit card companies.
THE REVOLUTION STARTS HERE. LET THEM CUT US OFF FROM EACH OTHER AND ACCESS TO WORLD INFORMATION OR TAKE A STAND. SAY NO TO FOXNET.
I hate to say it but Obama’s WH will do nothing but cripple people at all junctures for the fleecing by multinational corporations held by the OnePercent. That is who he has PROVEN himself to be. He has shown this one hundred percent of the time and he has shown a complete indifference and palate for the riff raff that he lied to get elected.
It’s heartbreaking but like the old poker players say, “Read um and weep.”
However, Im not saying that we should allow this to happen because they are too powerful. We can fight back. First thing is everybody needs to cancel with Comcast. If you are under contract mark you calendar and cancel on the absolute first day clear. They sucked people in on cheap give away plans and got rich and now , boo hoo, they need to just own everything because they have used this wealth to monopolize etc.
This is just another theft of the rich.
Sorry, Sebastos, but I probably can’t confirm or totally disavow the headline or article I thought I saw, but I’ll see what I can find.
I printed up a recent (Nov. 19) article at Alternet that I that I’ve been wanting to reference for some time; this may not be the right thread to do it on, but here goes:
“Replacing Our Failed Economy is Long Overdue and We Have the Power to Change It” by David Korten, Barrett-Koehler Publishers. The article was an excerpt from the introduction of the 2nd ediction of Korten’s Agenda for a New Economy (B-k, 2010). You can find the article at:
http://www.alternet.org/story/148917.
“If change comes, the leadership will come from below through citizen action that originates from outside of the institutions that are failing us on so many fronts. Change from below can succeed only when a large number of people have a shared understanding of the roots of the problem and share a vision of the path to its resolution.
As a society, we cannot create a future that we cannot see in our collective mind. One of the most important tasks of the moment is to definie a vision of the life-serving New Economy it is ours to create and to build popular commitments to its realization.”
I found the remainder of the article very helpful in partially defining part of the task at hand regarding the more appropriate questions and answers that must be foundational for constructing “real change” possibilities.
But what struck me otherwise, RE the first paragraph was a clear description of what and how the Tea Party came to be (with the understanding that the consensus vision was fleshed out and funded by well-established powers above who built upon the TP folks’ angers and resentments.)
While there is a lot of consensus in these pages of what the problems were and are, how they come about, and what institutional change must come about, I’ve not seen any significant work being attempted to create an alternative vision
beyond political terms and avenues (such as calls and petitions to Congress as one respondent noted above). But I’ve not seen images, much less systemic prescriptions for how we’d transform the economy, beyond some vague statements of the opposite of what we find despicable. (I say this with the understanding that I am only an infrequent reader and even less infrequent commenter.)
Korten enumerates several questions that approach the broader and foundational issues that must be addressed and then says:
“I believe that honest, accurate answers to these questions support the conclusion that rather than repair and restrain the institutions responsible for the crash, the need is to replace them with a system of institutions appropriate to the needs and realities of the 21st century…….Wall Street must be dismantled slowly and only as alternative institutions are in place to fulfill its necessary and useful functions.”
God knows I don’t know how to get there, but I’m convinced that we can’t reach the “promised land” only via political machinations. I believe there are several very lucid and what I would call “positive values/compassionate” economists here at the Lake that I’ve grown to respect. I don’t know if they’re theoreticians, but I’d love to see some work on creating “models”
(non-statistical, of course) for the economic side of the resolution frameworks.
I remember taking a philosophy class at UT Austin some 45 years ago when it occurred to me that what I most wanted to study toward was the capacity to write a new social/political/economy “philosophy” that was radically committed to “compassionate justice” for lack of a better term. I quickly realized that was far beyond me. Still is, of course, but I realized at that young age that analyses and visions must be wholistic in their framework and intent; pieces won’t help much unless they are part of over-arching and liberating systemic models.
For whatever it’s worth……
Christmas Blessings to all
It appears the whole damn tech community is wondering the SAME thing about the SAME passage in the SAME FCC document our Eli
http://my.firedoglake.com/eli/2010/12/21/the-fccs-totally-convincing-explanation-for-leaving-wireless-out-of-sham-net-neutrality-compromise/
…was wondering about. [Good catch, Eli :)]
“Engadget dug up the FCC’s release [PDF] and found the following nugget buried in the all-important section “Measured Steps for Mobile Broadband”:
Further, we recognize that there have been meaningful recent moves toward openness, including the introduction of open operating systems like Android. In addition, we anticipate soon seeing the effects on the market of the openness conditions we imposed on mobile providers that operate on upper 700 MHz C-Block spectrum, which includes Verizon Wireless, one of the largest mobile wireless carriers in the U.S.
In light of these considerations, we conclude it is appropriate to take measured steps at this time to protect the openness of the Internet when accessed through mobile broadband
While that may read like it’s a statement from Google or Verizon — actually, the entire section reads a lot like their joint proposal — it’s actually the FCC’s statement. Yes, that’s the FCC citing Android’s openness as a reason why they don’t need to impose net neutrality rules for mobile broadband.
Except wait. What the hell does an open operating system have anything to do with network access? Nilay Patel wonders this. John Gruber wonders this. Everyone should wonder this. It really does almost read as if they just copied what Google and Verizon laid out and forgot to remove the self-promotion….”
http://techcrunch.com/2010/12/21/verizon-google-fcc-net-neutrality/