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Excellent ACI study proves how net neutrality harms consumers

Kudos to Steve Pociask of the American Consumer Institute on his excellent paper on: "Net Neutrality and the Effects on Consumers."

  • It should be required reading for all consumer groups.
  • It exposes how net neutrality does not benefit the average American consumer, but benefits special interests like high-volume Internet users... like consumer "groups."   

Steve's clear, insightful, and easy-to-read paper explains how net neutrality would harm consumers by:

The Economist's global digital rankings differ from OECD's rankings

If you care about the reality of American competitiveness and innovation be sure to check out the recent Economist Intelligence Unit (EIU) global digital rankings.

  • "The EIU e-readiness rankings for 2007 ranked 69 countries in terms of six criteria. In order of importance, these are: consumer and business adoption; connectivity and technology infrastructure; business environment, social and cultural environment, government policy and vision; and legal and policy environment."

What's most interesting, is that this objective ranking by the respected Economist, does not show the negative broadband outlook or assessment of the US that the OECD ranking does

  • In this EIU overall ranking, the United States ranks #2, not 12th or 15th like in the OECD rankings.
  • The EIU full report also has North America ranked higher than Western Europe in broadband affordability!
  • Listen to this quote from the full report:
    • "The US, with its heavily entrepreneurial culture, penchant for innovation and highly IT-literate workforce and student population, stands clear at the top of the group." 
  • Concerning "Consumer and business adoption: The report says:
    • "In the sheer scale of individual and business Internet use, the US certainly dwarfs all other countries."
    • "There is some concern that the great weight of the US in online activity makes it a sponge for the world's available digital resources, including talent and funding."

So why is this EIU report important? 

Schwartz' brings adult supervision to Wu's sophomoric NN analysis

It is always a joy to read clear thinking rigorous analysis. I have known and respected Marius Schwartz's mind and work for several years, and I am delighted that he brought the heft of his intellect and  DOJ experience to the question of "wireless net neutrality" in his white paper:

For anyone who cares about the merits or substance of net neutrality as a proposed public policy, it would be hard to find a better debunking of Columbia Law Professor Tim Wu's sophomoric and vacuous work on wireless net neutrality than Marius'.

listen to Larry Irving's podcast on America's broadband challenges

I recommend listening to Larry Irving's, (President of the Internet Innovation Alliance) keynote at the Killer App expo that can be heard by podcast.

  •  On one point near to my heart, not taxing the Internet, Irving asked, "Why is telecommunications such a highly taxed product (3rd behind alcohol and gambling) when it's such an important tool for growth and competition?" Two of those products can hurt people, but better communications access can only help the economy.

He makes a great point. It makes no sense to tax an engine of economic growth as mucha s we do.  

Great study debunking Wu's Wireless net neutrality scam

I recommend a strong academic paper that debunks the sloppy thinking and analysis behind Columbia Professor Tim Wu's call for wireless net neutrality -- its by: Robert Hahn and Robert Litan of AEI/Brookings and Hal Singer of Criterion Economics.

  • It is an important rebuttal that concludes that the costs of wireless net neutrality would exceed any benefits.

What I like most about the study is that it is a systematic evisceration of the logic and evidence behind Mr. wu's call for wireless net neutrality.

Google has an "Open Net Coalition" Problem... already!

I always love to juxtapose a couple of stories to point out irony.

Yesterday, I blogged that Tech Daily reported that the Google gang, AKA ItsOurNet ... will be relaunched in May as the "Open" Net coalition.

Well today I laughed out loud when I read in Tech Daily, that Wikipedia cofounder Jimmy Wales is promoting a new collaborative search process like the wiki online encyclopedia.

  • Wales said: "I believe Internet search is currently broken and the way to fix it is to build a community whose mission is to develop a search platform that is open and totally transparent."   

Seems like those who really know "open" don't think Google is worthy of its self annointed name of the "Open" Net Coalition.

The "Open Net Coalition" -- "ItsOurNet" Part II -- They're back!

The ItsOurNet coalition is relaunching under a new name the "Open Internet Coalition" in May according to Todays' National Journal's Tech Daily .

  • The article intimates that the new incarnation of the online giant coalition may not include Microsoft.
    • Since ItsOurNet formed last year Google was much more radical and hyper-regulatory than Microsoft was comfortable with.
    • After coming out swinging the antitrust bat when Google outbid Microsoft, it will be very surprising if Microsoft rejoins Google's gang after parting ways with ItsOurNet last fall.

I must say I am sad to see the ItsOurNet name fall by the wayside, it was a glorious pinata of a concept.

  • I needled ItsOurNet when they announced their name that it was a tad bit greedy for the online giants to claim in their name that they "owned" the Internet.
  • I suggested it would have been a little wiser and fit with their "democratic" message to have called it "ItsEveryonesNet" or "ItsEverybodysNet".
  • But no, they apparently are calling it the "Open Net coalition" or "OpenNetCoalition.com."
  • Not bad but for grins, quickly checkout an Internet artifact before they pull it down: opennetcoalition.org.

It also will be interesting to see if they have retooled the substance of their message and if they will abandon Moveon.org and the Dorgan-Snowe bill to try and appear more reasonable and practical.

Reading between the lines of the article it seems Moveon is "on" the defensive so to speak.

lastly it will be interesting to see if:

Net neutrality is embarassingly absent from Democrat's tech policy agenda

Declan McCullagh of CNET has a very insightful piece called: "Missing : Politicians who take a clear stand on tech" where he spotlights that net neutrality is not on either the Democrat or Republican tech policy agendas.

  • It is not at all surprising that the Congressional Republican agenda does not have Net neutrality on its agenda, since Republicans almost universally see net neutrality for what it is: an unnecessary and dangerous back door attempt to regulate the Internet for the first time.
  • However, it is suprising and downright embarassing that Moveon.org and Google, eBay, Amazon, Yahoo, and IAC could not manage to get net neutrality on the Congressional Democratic tech policy agenda.

Takeaways from SaveTheInternet's "first anniversary" conference call

I listened in to SaveTheInternet's conference call with reporters in celebration of their one year anniversary.

  • It was an illuminating "window" into the nature and status of the current Net neutrality "movement."

Senator Dorgan (D-ND) author of the pending Dorgan-Snowe Bill was the keynote and star.  

  • He framed net neutrality as  "Internet freedom" and "open architecture" and breathlessly stated that "the future of the Internet is at stake." 
  • He announced that he was seeking a hearing on his legislation with the goal of moving it to the Senate floor implying he had the votes to pass it.
  • He also anticipated and asked himself the core question of "why is the legislation needed?"
    • His only answer was to read the December 2005 Business Week quote by then SBC Chairman Ed Whitacre about how it was "nuts" for Google to use its pipes for free.
    • I was stunned that he as the keynote and the name author of the legislation that he could not come up with a more recent or better piece of "evidence" or at least come up with a real world example of a problem or instance he is concerned about.
      • This is obviously all politics; they have no substance or they would present it.

Craig Newmark was second to speak and he asserted everyone he knew was for NN. (I guess we should give up now.)

JeffersonNet...EdisonNet... How about NoRegulationNet?

Curt Monash in his blog suggests a "third way" for net neutrality to go -- applying regulation to the "JeffersonNet" or "bandwidth-light" parts of the Internet while not applying it to the "EdisonNet," the more "communications-rich" applications where regulation would be an impediment.

  • Others have picked up on this thread, Slashdot, and Computerworld, intrigued with the middle way or third way thinking.
  • Before people get carried away that there is merit in this wishful thinking thread of discussion -- lets add a dose of reality.

With all due respect, the "middle way" thinking is seriously flawed because it assumes a compromise between views with equal merit.

  • Fast forwarding to a compromise of what or how much the Internet is regulated assumes the case has been made for any new regulation of the Internet.
    • That case has not been made at all.
    • Net neutrality is a pathetic ragtag collection of buzzword-blackmail assertions, unsubstantiated allegations and bogus claims.
  • Sure the net neutrality side would like to compromise because they have lost in every official and legal forum they have raised the issue.
    • Sure they would like to compromise because that would give desperately-needed validation to a bankrupt idea that is on the ropes.
    • Sure they would like to get the proverbial "camels nose under the tent."

In order to talk net neutrality compromise, net neutrality proponents have to make the case that they have legitimate concerns to begin with.

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