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Why the Verizon-Cable Agreement Increases Competition

 

Reports that the Senate Antitrust Subcommittee will hold a hearing on the Verizon Wireless-Cable agreement spotlights an old truism: What one looks for, one sees. What the Government ultimately sees here largely will depend on whether the Government looks backward through an analog competitive lens or looks forward through an Internet competitive convergence lens. In a nutshell, if they look backwards with 1996 cable-telco Silo-Vision lenses, they will see an agreement not predicted in 1996; however if they look forward with 2012 Internet-Vision lenses that see 4G LTE wireless, iPhones/Android, VoIP, DBS, video streaming, Netflix, cable modems, DSL, FIOS, Skype voice/video file-sharing, cloud-computing etc. – they will see an agreement that is not at all surprising or problematic given the competitive context of today and the future.

Where's the Market for Online Privacy?

Why are market forces so weak in protecting users’ online privacy?

The main reason is that the online marketplace is economically structured around users being a commodity, data, to be aggregated and mined, not customers to be served and protected in a competitive marketplace. That’s because the overriding economic force that created the free and open commercial Internet – the predominant Silicon Valley venture capital/IPO value creation model – was and remains largely antithetical to protecting online privacy.

The Silicon Valley venture capital/IPO driven model is laser-focused on achieving Internet audience/user scale fastest in order to gain first-mover advantage and then rapid dominance of a new product or service segment. This predominant Internet economic model is predicated on a precious few investments achieving such rapid user scale that it: warrants a buy-out at an enormous premium multiple; enables fast and exceptionally-profitable liquidity (via the new secondary derivative market for private venture shares or employee options); or broad liquidity via a public IPO.

What is the essential critical element of achieving audience/user scale fastest? Free. No direct cost to the user fuels fastest, frictionless, viral adoption. This free economic model presupposes online advertising as an eventual monetization mechanism and shuns products and services directly paid for by the user because their inherent time-to-market is too slow and their upfront sunk cost of sales and customer service is too high for this predominant value creation model.

Twitter’s Realpolitik & The Sovereign-ization of the Internet

Reports that “Twitter Can Censor by Country” is a perfect example of how the world is changing the Internet. Change is a two-way street. Conventional wisdom that only assumes the Internet is changing the world risks being blind-sided by the Internet’s underappreciated exa-trend: how the world is changing the Internet.

See my Forbes Tech Capitalist post: "Twitter Realpolitik & the Sovereignization of the Internet" to learn about Twitter's new realpolitik and how sovereign powers will increasingly be asserting themselves vis a vis the Internet.

The Google+ Antitrust Smoking Gun

Usually one of the hardest things to prove in an antitrust case is anti-competitive intent and motive, but Google’s new CEO Larry Page has made that much easier for antitrust authorities by unabashedly tying and leveraging Google’s search dominance with Google+ in a myriad of overt and covert ways.

To learn Google's "grand plan" and what the Google+ antitrust "smoking gun" is, please read my Forbes Tech Capitalist post: The Google+ Antitrust Smoking Gun.

 

Seven Ways the World is Changing the Internet

Since most people focus on how the Internet is changing the world, few focus on the reverse -- how much the world is changing the Internet.

See My Forbes Tech Capitalist blog post to learn the "Seven Ways the World is Changing the Internet."

 

SOPA Fixes Isolate Opponents, Especially Google

The House Manager’s Amendment to the pending House Stop Online Piracy Act (SOPA) fixed the major legitimate problems with the original bill, effectively isolating the small but extremely vociferous minority of SOPA opponents, especially Google.

See my Forbes Tech Capitalist post here for a political outlook of the SOPA/PIPA anti-piracy legislation, which is likely to become law in 2012.

Top Ten Flaws in FCC’s AT&T/T-Mobile Competition Analysis

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."

 

NetCompetition Statement on Verizon/Cable-SpectrumCo Transaction

FOR IMMEDIATE RELEASE

December 2, 2011

Contact: Scott Cleland

703-217-2407

Verizon/SpectrumCo Deal Reflects Metamorphosis of Communications Competition

Broadband, Internet, & Cloud Computing Technologies Creating Omni-Modal Competition

WASHINGTON D.C. – Verizon Wireless’ purchase of 20 MHz of currently unused, near-nationwide AWS spectrum from Comcast, Time Warner Cable, and Bright House Networks for $3.6b and reselling rights spotlights the extraordinary metamorphosis of communications competition being driven by broadband, Internet and cloud computing technologies.

The following quotes may be attributed to Scott Cleland, Chairman of NetCompetition.org:

Grand Theft Auto-mated! Online Ad-Economics Fuel Piracy & SOPA Opposition

 

The likely passage of online anti-piracy legislation (SOPA/PIPA) in 2012 has put a spotlight on the substantial ad-based business interests aligned with piracy and against piracy enforcement.

See my Forbes Tech Capitalist post here to learn why Grand Theft Auto-mated is such big business and so anti-piracy enforcement.

Grand Theft Auto-mated! Online Ad-Economics Fuel Piracy & SOPA Opposition

 

SOPA Opponents' Bogus Net Neutrality Comparisons

The only thing proponents of Net neutrality regulation and opponents of online piracy legislation appear to have in common is the boy-crying-wolf "censorship" rhetoric of FreePress' Save The Internet activists.

See my Forbes Tech Capitalist post here, "SOPA Opponents' Bogus Net Neutrality Comparisons."

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Q&A One Pager Debunking Net Neutrality Myths