Open Internet

Successful Internet musician, Damian Kulash wrote for the New York Times, the standard pro-net neutrality op ed -- Beware the New Thing.

• It looks like its was ghost-drafted by the FreePress/Moveon.org media machine, because it lip-synched SaveTheInternet's standard chorus -- that because the monopoly phone system was regulated as a common carrier... all internet service providers should be regulated like common carriers!

There are two big flaws in that logic.

Many have broadly swallowed Google's "spin" that Google really "won" by losing the 700Mhz auction -- without digesting the serious implications of Google's public admission.   

• So needy to convince everyone that Googlers, yet again, proved themselves to be the smartest people alive, Google hasn't realized that they have unabashedly admitted to de facto gaming and manipulating an official Government auction statutorily-created to fully reward taxpayers for commercial use of public airwaves. 
• Miguel Helft of The New York Times has the best coverage of Google's actions in the auction in his article: "An Auction That Google Was Content to Lose." 
  • “Our primary goal was to trigger the openness conditions,” said Richard Whitt, Google’s Washington telecommunications and media counsel."
  • The article goes on to explain its nonsensical bidding strategy of bidding against itself: "For much of the first week, Google gradually topped its own bids. With no competitors emerging, anxiety grew."  

So what's wrong with what Google did?  

First and foremost, Google's flagrant manipulation of the auction rules and process fleeced the American taxpayer out of at least $7 billion, by my estimate.

Surprisingly, Google continues to keep its users in the dark on the new reported cyber-security threat where cyber-crooks have infiltrated Google's searches putting them at heightened risk of identity theft and fraud.  

The San Franciso Chronicle in its article "Hackers infiltrate Google's searches" followed up on the original USA Today article "Google searchers could end up with a new kind of bug."  I blogged on the USA Today story and explained why this problem is a big deal.  

• Per the Chronicle article, "Google is working on a filter that will find and automatically block such malicious Web addresses, a spokesman said Tuesday. In the meantime, it has been contacting affected organizations to advise them on how to fix their sites' vulnerabilities."
• WHY ISN'T GOOGLE WARNING ITS USERS!  Google users are the ones that are at immediate risk of losing their identity and private information to crooks forever -- not the websites.  

Apparently, from what I have been able to gather from my sources -- Google is under the illusion that because they don't control the websites that are infected -- they don't have an obligation to warn their users.

Let's review the facts of why Google may have: a budding user trust problem, a potential PR disaster on its hands, and a potential legal contingent liability/class action lawsuit vunerability for shareholders to worry about.

It was very welcome, but not surprising news, that FCC Chairman Martin and a majority of the FCC plan to deny eBay-Skype's petition to apply 1960's "Carterfone" monopoly regulations on today's wireless competitors.

This was not a close call. Carterfone regulations were appropriate forty years ago with a monopoly and no competition. However, dusting off ancient regulations for a bygone monopoly era have no business or relevance today. 

The facts are that Americans enjoy more wireless competition than most any country in the world, enjoy the lowest or near lowest wireless prices in the world, and use about four times more wireless minutes than our european counterparts, because of the dramatically lower prices -- all per the American Consumer Institute. 

• The market is serving consumers excellently, and vastly better than regulators could ever hope to.

The Skype petition is an excellent evidence that the net neutrality movement does not believe in competition policy or a free market Internet, but believe in a government managed Internet.

• The FCC majority rightfully understands that government control and regulation of the Internet would be an unmitigated disaster for all concerned.  

USA Today broke a much under-appreciated and potentially blockbuster Internet security breach story: "Google searchers could end up with a new type of bug." Kudos to Byron Acohido and Jon Swartz, who reported it in USA Today, and also blogged on it at ZeroDayThreat.com, a site for their book "Zero Day Threat" which defines a Zero day Threat as "a threat so new that no viable protections against it exists." 

• In a nutshell, the article and blog post explain how cybercrook hackers have figured out how to use and leverage Google's search engine results "to spread spam, and carry out scams. Typically it also lets the attacker embed a keystroke logger, which collects and transmits your passwords and any other sensitive data you type online."
• This new cyber scam ring is expected to spread rapidly, increasing from a "few dozen major websites" today, to  "hundreds of high-profile websites" in the next few weeks.
• "...in March alone... security researchers found several hundred thousand corrupted Web pages returned in common Google search queries."

Why this is a big deal:

Despite Japan having some of the fastest and cheapest broadband in the world, they still have to worry about network congestion and need to manage their networks and shape traffic, according to Adam Peake, a fellow at the International University of Japan who spoke yesterday at the Freedom to Connect Conference.

The takeaway here is that many in the net neutrality movement maintain that there is no need to manage the network if providers would just add more capacity.

• The Japan experience is powerful evidence of the fallacy of that argument.
• Experience shows that usage can often fill whatever capacity is made available.

Peake also explained that there is a pernicious p-2-p program called Winny, which is a major culprit in the network congestion and which is near universally reviled because it is one of those pernicious p-2-p programs that give all p-2-p a bad name because the protocol routinely makes the private content on users' hard drives available for identity theives and fraudsters.

I am attending David Isenberg's Freedom to Connect Conference today as a very very small minority of broadband industry folks.

In listening to a panel on politics and the web, my ears perked up when Donna Edwards, who defeated Rep. Al Wynn (MD) in a democratic primary, admitted that only one citizen of the thousands she met going door to door during the campaign -- actually asked her about net neutrality.  Very interesting.

All the bragging by Matt Stoller of Open Left and other net roots suggested that Edwards win was a win for net neutrality at the net roots.

The reality is now shared from the candidate that net neutrality was not at all on the minds of voters in Maryland.

• Once again, the net roots have overstated their power and impact to look more powerful than they really are.  

Two leading proponents of net neutrality, believe the push for net neutrality is akin to FDR's pushing for the "New Deal," which was the penultimate Big Government, wealth redistribution effort in U.S. history.   

We learn this candid admission of true beliefs from the Washington Post, which today lionized Ben Scott, the amiable leader of activist organization Free Press, in an article entitled: "Net Neutrality's Quiet Crusader."  

• "Scott's kindred spirit at the FCC might be Democratic commissioner Michael J. Copps, also a student of history who recently read a biography on Franklin Delano Roosevelt. Scott and Copps recently bonded over the book, drawing comparisons between the New Deal and net neutrality."

• ""There have been policy moments in the past when the market has been shaped by decisions made in Washington -- radio in the 1930s, television in the 1950s and cable in the 1980s. That moment is now for the Internet," said Scott..."

Let's review the history here that Mr. Scott waxes nostalgically about. Radio in 1930's, TV in the 1950's, and cable in the 1980's -- was about Washington "shaping them market" by regulating these technologies and businesses much more than they were before. 

In my previous blog post I flagged a Reuters article that highlighted that Google asked its shareholders to oppose a shareholder vote that Google should abide by net neutrality itself, even though it is the single biggest proponent of mandating net neutrality for all its competitors -- on the planet.

Today I came across a quote in Investors Business Daily's section on quotes, "Wisdom to Live By" and found one that the radically-liberal founders of Google should ponder:

• "Its not fair to ask others to do what you are unwilling to do yourself."  Eleanor Roosevelt, former First Lady to the ultimate uber-liberal Franklin Delano Roosevelt.

Alas, I don't hold out much hope that Google will ever see this as a double standard because they are so committed to Google's Motto: "Don't be evil" and because they like to insinuate that most every other corporation is evil...

If you think I am being "unfair" in labeling Google's founders radically-liberal, check out The Burning Man Festival gathering that Google's founders avidly and regularly have attended.

Per Reuters, Google's board is recommending that its investors vote against a shareholder proposal from the New York City Employee Retirement System that asks Google to commit to abiding by Net Neutrality.