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Submitted by Scott Cleland on Tue, 2015-02-24 08:49
Please don’t miss my latest Daily Caller op-ed – “The FCC’s Predictable Fiasco of Internet Utility Regulation.”
This Internet policy foundation U-turn predictably will set in motion a chaotic cascade of other supporting policy U-turns over time.
FCC Open Internet Order Series
Part 1: The Many Vulnerabilities of an Open Internet [9-24-09]
Bitcoin's Quixotic Search for Legality -- My Daily Caller Op-ed -- Part 10 Algorithmic Markets SeriesSubmitted by Scott Cleland on Thu, 2013-10-10 16:44
Algorithmic Markets Research Series
Part 1: Who's Looking Out for Investors? [6-14-01]
Submitted by Scott Cleland on Wed, 2012-05-09 18:45
Apparently Netflix is angling to become Silicon Valley's king of corporate welfare. We learn from a New York Times economics column advocating for an Internet industrial policy that "Netflix is trying to build a coalition of businesses to make the case for… net neutrality." And that the "online video powerhouse Netflix started a political action committee to complement a budding lobbying effort in support of the idea that all content must be allowed to travel through the Internet on equal terms" -- translation: always at no cost to Netflix.
But Netflix isn't in need of public assistance; it is America's video subscription leader with 23 million subscribers. Netflix has $3.3b in annual revenues, $1.2b in gross profits, $800m in cash, a 34% return on equity, and a market valuation multiple over twice the market's. And Netflix flexed its exceptional pricing power last year in raising its prices 60% without losing many subscribers.
Submitted by Scott Cleland on Tue, 2012-04-10 10:54
T-Mobile demanded last week that the FCC deny the Verizon-Cable spectrum license transfer, apparently so Deutsche Telecom/T-Mobile could get it at a deep FCC managed-market discount.
The FCC is not Deutsche Telecom/T-Mobile's personal do-over button that they can push and magically reset the marketplace to an earlier time more to their liking. All other players have made market-driven decisions and have to live with them, and so should Deutsche Telecom/T-Mobile. That's the essence of free-market competition, companies move forward or backward based on their own market-driven choices. It's not competition or a market, if those who don't like the outcome of their own market decisions, run to government for a do over and quasi-international bail-out.
Let's review how T-Mobile got to this point.
For years T-Mobile has been a seller of its spectrum; because its parent Deutsche Telecom has long wanted to exit the U.S. market because it requires more capital investment than they are willing or financially able to expend.
Submitted by Scott Cleland on Tue, 2012-04-03 14:39
FreePress' latest net neutrality folly and political agitation is pushing the SEC to make shareholders from AT&T, Verizon and Sprint vote on inappropriate, ill-advised, and unwarranted proposed shareholder resolutions in favor of wireless net neutrality in the weeks ahead.
Let me count the ways this is a waste of time and abuse of process.
First, it inappropriately and destructively attempts to politicize non-political entities, by trying to force a public political position from non-political corporate entities, whose contractual and fiduciary responsibility to shareholders is to economically/financially grow the value and profitability of the corporation.
Second, the appropriate place to have political votes is in legitimate political processes, elections or representative votes or decisions by elected officials at the appropriate local, state, and Federal level, which enjoy the constitutional, political, and relevant authority and legitimacy to decide political issues in a meaningful, substantive and productive way.
Third, the operative authority here for shareholders, the companies' shareholder agreements, corporate charter, and bylaws, are legally grounded on a contractual agreement between the company and shareholder to protect and grow the shareholders investment in the company, not to promote extra-political positions that actually could endanger the underlying purpose of the shareholders agreements.
Submitted by Scott Cleland on Wed, 2012-02-29 11:50
In anticipation of Google formally closing its "transformative" Motorola acquisition, investors soon will have to figure out the appropriate new valuation model/multiple for GOOG-MMI. Arguably, few major companies have undermined or confused their valuation model/multiple more for investors than Google, which acquired a major company that is it's investment, financial, operational, and cultural opposite.
Submitted by Scott Cleland on Tue, 2012-02-07 10:22
There are huge fiscal problems with the FCC's position, given our nation's severe fiscal situation: a trillion dollar Federal budget deficit and a ballooning multi-trillion dollar public debt.
First, the real world effect of the FCC's gambit here is to try and get revenue-raising legislation to not raise many billions of dollars.
Submitted by Scott Cleland on Tue, 2012-01-17 10:23
At CES, the FCC signaled that it opposed any effort by Congress to give the FCC policy direction or to establish any checks and balances on the FCC in authorizing incentive auctions of prime TV broadcast spectrum.
See my Forbes Tech Capitalist post "FCC Seeks Unbounded Spectrum Auction Authority" to see why the the FCC's lack of regulatory humility here is so stunning.
Submitted by Scott Cleland on Tue, 2011-12-06 15:16
The out-of-the-box thinking that led to Comcast, Time Warner Cable and Bright House to sell $3.6b of AWS spectrum to competitor Verizon is a watershed competitive development which ultimately will flush out the real FCC.
Submitted by Scott Cleland on Mon, 2011-12-05 18:24
The unprecedented release of a FCC draft staff analysis opposing the the proposed AT&T/T-Mobile transaction could backfire legally, undermining its intent to backstop the DOJ's pending lawsuit against the merger.
See my Forbes Tech Capitalist post here on the "Top Ten Flaws in the FCC's AT&T/T-Mobile Competition Analysis."