Submitted by Scott Cleland on Wed, 2007-06-27 11:08
Kudos to Robert Hahn and Hal Singer for their outstanding op ed in the Washington Post "Earmarked Airwaves."
- The editorial cogently presents the fork in the road that faces any major FCC decision: to follow law, which promotes competition and market-driven outcomes, or to freelance and try and "manage" competition and pick winners and losers in advance through "spectrum earmarking."
- FCC history is littered with freelance "managed competition" failures, but two are particularly ignominious and highly relevant to this 700 MHz auction:
- the illegal UNE-P scheme to rig telecom competitive outcomes following the 1996 Telecom Act; and
- the Nextwave auction scandal that kept 30 MHz of prime spectrum fallow and tied up in court for almost a decade.
At its core a spectrum auction is the quintessential type of competition. The auction law's purpose in 1993 was to use market forces, competition, to allocate the public's asset most appropriately, largely because previous FCC spectrum allocation processes were so ineffective, unfair and prone to serious abuse and graft.
This 700 MHz auction may be shaping up to be FCC Chairman Kevin Martin's legacy moment: will it be marked by promoting competition and market-based outcomes or will it be marked by standing on the auction scales to ensure the spectrum is "earmarked" to the predetermined, chosen "winner" -- in this case former Clinton-Gore FCC Chairman Reed Hundt's Frontline Wireless company.
Submitted by Scott Cleland on Tue, 2007-06-26 18:35
Net neutrality proponents continue to fabricate problems to manipulate public policy to promote government intervention and regulation over free markets.
Fortunately net neutrality proponents have failed miserably in their efforts to date.
Submitted by Scott Cleland on Tue, 2007-06-26 13:04
Thank you Tech Daily for flagging a silly blog by MyDD calling for an organizing an "online workers union... to look out for the political interests of online workers. These interests include net neutrality, intellectual property law like DMCA..."
You can see me shaking my head in disbelief now... an online workers union for net neutrality...
Let me highlight just a few of the silly aspects of this idea.
First, organizing bloggers into a union to promote net neutrality?
Duh! It already exists!
The "online workers union" is called Moveon.org and it already has 3 million members, all they have to do is change from political donations and require mandatory union dues.
The MoveOn/FreePress folks already operate as de facto union bosses of the net neutrality movement.
And by the way doesn't MyDD know that the Consumers "Union" already supports net neutrality regulation?
Second, social media technology already allows onliners to organize around what ever idea they want whenever they want. Its a free country and a free and open Internet. Why not create:
Third, MyDD's idea for organizing eBay sellers is sort of bizarre.
Submitted by Scott Cleland on Tue, 2007-06-26 10:58
Google's naivetÃ© and cluelessness on antitrust matters continues to amaze me. While Google has ramped up its Washington lobbying presence a ton of late, it is amusing that the company-at-large still does not have a lick of political savvy or common sense.
It is almost as if Google operates having an out-of-body experience, where their leaders think they can float sanctimoniously above the playing field and see everything perfectly, but no one can see them or what they are doing.
What do I mean? Let me put Google's antitrust and political behavior into context.
- Google is ferociously going after Microsoft on antitrust matters. After they recently won a huge concession from Microsoft to make Google's desktop search work better and faster -- a concession not required by the DOJ-supervised committee that oversees Microsoft's competitive behavior -- Google is now asking for Microsoft's antitrust decree not to expire.
- This is classic, hardball, take-no-prisoners behavior that sometimes yields short-term results, but always invites long-term disaster.
- In effect, Google is taunting the antitrust-caged Microsoft tiger, imagining that they are untouchable, invincible and legally superior.
It is amazing to me that Google appears to be unaware and clueless that they have voluntarily walked into their own â€œantitrust cage" of the FTC review process for approving two of their deals, DoubleClick and FeedBurner.
Submitted by Scott Cleland on Mon, 2007-06-25 11:49
Submitted by Scott Cleland on Mon, 2007-06-25 10:59
Reuters reports that ebay will "resume Web advertising on a limited basis with Google..."
- After witholding its advertising affections from Google for 10 long days, it appears that Google was sufficiently contrite and apologetic to eBay for its bad manners in competing with eBay by hosting a party for its competing online payment product, Checkout, in the same city as eBay's big confab that highlights it dominant online payment service, PayPal.
There are a few important points to be made about Internet "competition" here.
First, there is little competition in the online auction listings. According to Jupiter Research, eBay has 95% of the online auction market, hence my "webopoly" moniker" for eBay.
Second, eBay likes to tie its leading online payment service, PayPal to its online auction listings webopoly, because it does not allow its users to use Google's Checkout service.
Third, there are some serious competitive conflicts of interest going on here between eBay and Google.
The mature auction webopoly, EBay apparently was successful in teaching aspiring search webopoly, Google, a thing or to about competition on the web.
The message was "don't mess with my webopoly, go dominate another corner of the Internet.
Fourth, it appears Google got the message and realized it is in their profit maximizing interest to not fully compete with eBay, but focus its efforts on further dominating its access to content "corner" of the Internet by buying up DoubleClick and Feedburner.
Submitted by Scott Cleland on Fri, 2007-06-22 10:41
While I was very glad to hear that eBay continues to support extending the Internet Tax Moratorium, which expires in November, I found eBay's Brian Bieron's rationale for it very hypocritical given their stance on net neutrality.
National Journal's Tech Daily yesterday reported that:
If "the Internet has been working well" why propose to hyper-regulate it with new net neutrality legislation for the first time?
If "it would be a mistake to change any of the underpinnings to how it currently operates", why don't you think new net neutrality regulation would not change the underpinnings of how the Internet operates -- from free market to government "managed competition"?
Bottomline: Net neutrality proponents cannot win on the merits and the facts of the issue, so they must systematically fabricate a problem, and misrepresent the context of the legislation as status quo.
Submitted by Scott Cleland on Thu, 2007-06-21 14:29
Maine's Governor signed Maine's non-binding resolution on net neutrality today calling for a "study" of the issue due next year and also stated that net neutrality is a Federal issue, not a state issue, due to the interstate nature of the Internet.
Nevertheless, I am sure the net neutrality movement will try and make a proverbial silk purse out of this sow's ear.
If they continue spinning the media like they have this past couple of weeks, they will continue to badly misrepresent what Maine actually did.
- Misrepresentation and bogus claims is the standard MO of the net neutrality movement.
- They manufactured an issue in net neutrality, basically by fabricating a problem that does not exist, and then hammering bogus allegations.
- Like "chicken little" they scream that the Internet is in grave danger and will fall out of the sky, but they can provide no evidence of a real problem. And the sky clearly has not fallen.
- When confronted with this evidence, they trump up another bogus claim, saying that if they were not making it an issue there would be a net neutrality problem.
Net neutrality is a bogus issue. I fully expect the net neutrality movement to make the bogus claim that they won in Maine when truth be told the Snowe-Dorgan-like bill they asked for went nowhere.
- Folks that will manufacture a bogus issue have no problem claiming a bogus victory.
Submitted by Scott Cleland on Thu, 2007-06-21 12:10
I have been watching with some amusement all of the SaveTheInternet-launched blogilantes ranting about the prospect of Internet backbone networks like AT&T or others, becoming a filtering technology solution to Hollywood's problem of rampant content piracy on the Internet.
Why am I amused?
- Because net neutrality proponents are so predictably knee jerk in their reaction to anything that they see as a threat to their datatopian ideal of a net free of any broadband competition, differentiation or diversity of choice.
- Net neutrality proponents have such a bad case of "myneutralopia" that they can't see the proverbial forest for the trees.
- Over the last year, net neutrality proponents have had to make an increasing number of big concessions about what "bit discrimination" is acceptable in order to remain credible on Capitol Hill.
- They have had to concede and support network management "discrimination" of bits:
- To filter out viruses, filtering which is essential to protect the Internet and users from Net blackouts or shutdowns;
- To filter out illegal spam, so the Internet and email remains unclogged and useful; and
- To allow for law enforcement under CALEA, the ability to surveil criminal and terrorist activity on the Internet.
- If all that network managment "discrimination of bits" is OK,
- Then why isn't it OK for these same network managers to filter traffic for pirated content, i.e. trafficking in stolen goods?
- In other words, if it is OK to filter the Internet for the misdemeanors and felonies of spreading viruses and spam, and it is longstanding law for the Goverment to be able to surveil the Internet to detect criminal behavior, how is new network filtering for illegal pirated content any different or any less necessary?
Once again, the net neutrality crowd's kneejerk reaction is to side with lawbreakers rather than with every day citizens and users of the Internet who are all ultimately harmed by allowing Internet-enabled crimes to go undetected and unnpunished.
Submitted by Scott Cleland on Thu, 2007-06-21 10:51
I was surprised in yesterday's news splashes on the potential swap of MySpace to Yahoo for roughly a quarter of Yahoo.
I am blogging on this because the news follow-up does not appear to have connected the dots about how bizarre this combination sounds economically and competitively.
While on the surface it seems logical because Yahoo was reportedly in talks to buy MySpace before NewsCorp did.
What makes this bizarre is what has transpired since.
- NewsCorp took the no revenue MySpace exploding growth audience and did a deal with Google which guaranteed MySpace a minimum of $900m in ad revenue over four years.