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Innovation

Verizon-Cable: The Foundation of a Fifth National Wireless Competitor (Part 10 of a series)

Are the FCC and DOJ paying attention? They say they want more wireless competition. Well the foundations of an economically-viable fifth national wireless broadband network are staring them in the face in the pending Verizon-Cable spectrum transaction, if only they would get on with approving it.

Critics and skeptics of the transaction have an obsolete and myopic view that competition must develop in the way that Congress first envisioned it seventeen years ago in the 1996 Telecom Act -- before the commercial Internet, residential WiFi, broadband wireless, smart phones or tablet computers ever existed. Critics are blind to the technology innovations, competitive developments and hybrid-business models that now are enabling the cable industry to transform into a potentially disruptive fifth national wireless broadband competitor long term.

FreePress' and Public Knowledge's desperate campaign to: discredit competition policy, twist any competitive development into anti-competitive behavior, and block the Verizon-Cable transaction -- can't overcome the obvious facts that this Verizon-Cable transaction is exceptionally pro-competitive.

Google-EU Antitrust: Ten Conclusions

This week the EU issued a formal antitrust ultimatum to Google: recommend acceptable remedies or face prosecution for abusing monopoly power. This action has sweeping ramifications and enables one to make several educated conclusions.


I. Ten Conclusions Summary

1. EU has called Google's bluff on being cooperative.

2. Google is busted.

3. "Preferential treatment" is 99% of this EU-Google fight.

4. "Preferential treatment" is Google's business strategy.

5. As a self-declared publisher, Google competes with the web.

The FCC's Public Interest Test Problem - My Daily Caller Op-ed (Part 2 in a series)

Please read my latest Daily Caller Op-ed: "The FCC's Public Interest Test Problem" here.

Part 1 of my Obsolete Communications Law series: "Obsolete communications law stifles innovation, hurts consumers" -- is here.

Google Has No Free Speech Right to Break the Law

Google's latest claimed antitrust get-out-of-jail-free-card is that Google is effectively immune from antitrust prosecution because it has a constitutional free speech right to free speech to rank and present its search results any way it wants, per a new Google-sponsored white paper by UCLA Law Professor Eugene Volokh. This effort is much more of a political argument and PR wish than a legal or antitrust argument, because neither the right to free speech nor any other right in the Constitution's Bill of Rights confers immunity from the rule of law foundation on which the rest of the U.S. Constitution rests. There are many reasons to be skeptical of Google's blanket claims of antitrust immunity via its free speech rights.

First, anybody that considers the many forms of illegal speech that are unprotected by the First Amendment: perjury, libel, slander, misrepresentation, lying under oath, fraud, deceptive practices, falsifying documents, collusion, conspiracy, impersonating a police officer, stealing, vandalism, graffiti, inciting a riot, etc., will take Google's imagined blanket immunity from antitrust laws on free speech grounds with a grain of salt. Google exaggerates its "free speech" rights to protection from antitrust, just like it exaggerates its "fair use" rights to take others' property without permission.

NetCompetition Release: Alliance for Broadband Competition Really Seeks Broadband Regulation

 

FOR IMMEDIATE RELEASE

May 14, 2012

Contact: Scott Cleland 703-217-2407

Alliance for Broadband Competition Really Seeks Broadband Regulation

Verizon-Cable spectrum transaction promotes competition & the public interest

WASHINGTON D.C. – In response to the new "Alliance for Broadband Competition" opposition to the Verizon-Cable spectrum transaction, the following quotes may be attributed to Scott Cleland, Chairman of NetCompetition.org:

Netflix' Net Neutrality Corporate Welfare Plan (Part 10 of a Series)

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.

Verizon-Cable Opponents Goading FCC to Overreach its Authority Again -- Part 9 of Series

Opponents urging the FCC to block the Verizon-Cable secondary market spectrum transaction are pushing the FCC into dangerous institutional territory, effectively goading it to: overreach its statutory authority; ignore FCC precedent, evidence, and facts; and game its own spectrum-screen process. The same FreePress radical fringe -- that goaded the FCC to flout the D.C. Appeals Court decision and pass the Open Internet Order and Data-Roaming Order -- are at it again.

The FreePress radical fringe who care not for the rule of law, are again goading the FCC to trump up some new public interest rationale and statutory theory to allow the FCC to transmogrify its limited public interest authority into unbounded authority that disregards the law, FCC precedent, or the facts. This radical manipulation of the process may be good for forwarding FreePress' anti-business, Internet commons goals, but it is not good for the institution of the FCC, which is a creature of Congress and subject to the rule of law. And nor is it good for the American public.

Obsolete Communications Law Stifles Innovation & Hurts Consumers -- My Daily Caller Op-ed

My Daily Caller op-ed: "Obsolete Communications Law Stifles Innovation, Hurts Consumers," puts a spotlight on how America's century-old communications law and regulatory framework is obsolete and strangles America's innovation potential.

"Leaf" Vision & Broadband Usage Caps (Part 6 in a Series)

Near hysterical opponents of broadband data usage caps need to breathe slowly, drop their magnifying glass, look up and take in the big world all around them. They are not just missing the forest for the trees, they are missing the leaves, stems, branches, trees, forest and sky, because they can't take their magnifying glass off of the leaf with which they are myopically obsessed.

Broadband data usage caps are a very small, normal, and essential part of a healthy and economically-sustainable Internet ecosystem. Pricing is the central mechanism for any marketplace to balance supply and demand and to create economic incentives and disincentives for behavior that can drive costs. There is nothing wrong with pricing caps, tiers, and other pricing mechanisms that are used to manage networks, avoid network congestion, achieve a return on investment, manage a business model, differentiate a business, and/or earn a profit.

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Q&A One Pager Debunking Net Neutrality Myths