Universal Broadband

I was shaking my head in disbelief when I read Comm Daily on Reed Hundt's interview on CSPAN's The Communicators series. 

Key quotes:

• "Hundt is vice chmn. of Frontline Wireless and he used his C-span appearance to challenge the FCC to set rules that will allow Frontline to carry out its business plan."
• "The wireless industry, which largely grew from auctions held while Hundt was Chairman, has become too consolidated, he said: "Monopolies don't work that hard to compete." Competition is necessary for innovation."

Excuse me? wireless monopolies?

I wanted to be sure folks saw what Greg Moore, Executive Director of the National NAACP Voter Fund said recently on net neutrality in a commentary piece in the Asbury Park Press: 

• "Given the proven impact of broadband prices on its adoption, policies that increase the cost to users should be forbidden. Now, some well-intentioned online activists are pushing regulations called "net neutrality," which would keep costs low for the large Internet content companies but shift the costs of network expansion mostly to consumers."
• "The effects could be disastrous for low-income and minority communities, pricing them out of the broadband market by guaranteeing a free ride to companies such as Google and eBay while shifting costs for broadband expansion back to consumers. Although net neutrality activists claim to be protecting free speech, net neutrality regulations would effectively silence many minority voices, as low-income communities drop off the online landscape because they can't afford the price of admission."

Extremely well said!

Watch out when Big Government advocates call for a "national" anything!

• House Telecom Chairman Ed Markey is calling for a "national broadband map."
• Senator Rockefeller (WV) and others are calling for a "national broadband plan."  

Egads! 

A "national broadband plan" is a codeword for a 1970's-style government "industrial policy" where the government decides what technologies consumers get and which companies will succeed of fail. 

• Industrial policies proved economically disastrous -- and thankfully were abandoned in the US -- allowing our economy to flourish.
• Look no further than the mess of the current French economy, which is the world's petri dish for "national" industrial policies. 
• Their economy and employment situation is one of the leading basketcases of Europe.

My first big problem with this "national" thinking is that there is no national broadband problem.

• The US has more facilites-based broadband deployment, investment and competition nationally than any other country -- by a wide margin.
• Is deployment perfect nationwide? of course not.
• If there is a broadband problem it is in some isolated rural areas.
• We may have a "rural" broadband problem but not a "national" broadband problem!

My second big problem is Senator Rockefeller's call for a new "national" goal of 10Mbps broadband by 2010 and 100 Mbps by 2015.

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:

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? 

Listening to the House and Senate Democrats in yesterday's congressional hearings say "there can be no debate" "or dispute" that the U.S. is falling behind in broadband, when House and Senate Republicans, expert witnesses and the Administration were debating the validity of that very point directly before them, indicates that this "debatable point" is the exact type of "assessment of the facts" for which the Congress created the GAO to sort out.

Congressional Democrats appear to be embracing the findings of the OECD on broadband as gospel when the OECD has obvious competitive motive to put EU countries in the best light and the U.S. in the worst light.

Moveon.org's SaveTheInternet blog is touting Democratic Presidential Candidate John Edwards' recent comments supporting net neutrality.

• So why am I bringing attention to this win by the other side?
• Well first I think its always important to genuflect to Moveon.org's prowess when they get people to lip synch their talking points "song."

We all know politics is often driven by fear and by creating boogeymen where none really exist -- and at that, Moveon.org is a master.  

Only 40% of European Union homes have Internet access and only 16% have broadband, according to EC Consumer Protection Commissioner Meglena Kuneva who spoke yesterday at the Digital World Conference in Berlin.

• Those lagging numbers are in stark contrast to America's performance where 70+% of American homes have Internet access and 45+% have broadband according to FCC data.

NN proponents have tried to manufacture that there is a broadband crisis in the U.S. and that we are falling behind the rest of the world. It just isn't true.

• That's why I wrote the commentary "America's Unique Internet success" in the Washington Times a couple of weeks ago, in order to debunk this fabrication designed to create a reason for the Government to intervene in the broadband marketplace.
• America has a great broadband policy and strategy -- its called competition and deregulation!
• And it works!
• The Internet is the single greatest deregulation success of all time.
• And the U.S. has substantially more facilities-based broadband competition than any other nation in the world.

Be sure to read my commentary today in the Washington Times "America's Unique Internet Success."

• It is particularly timely today given that House Telecom Subcommittee Chairman Markey is starting his series of net regulation hearings today by hearing from the inventor of the World Wide Web, a leading supporter of NN.
• It is also timely because CPAC, the Conservative Political Action Conference starts today in Washington DC; I will be speaking on their Internet panel on Saturday morning.

The purpose of this commentary is to challenge head on Congressional Democrats' attempt to revise Internet history for political purposes and manufacture a "broadband crisis" where none exists.

As expected proponents of net neutrality ignore facts that don't push their anti-business, big government point of view. When the FCC broadband report is replete with powerful evidence that broadband competition and penetration are increasing impressively, NN proponents don't like the message so they shoot the messenger.

Comm Daily today quoted a Public Knowledge spokesperson who said:  the FCC numbers were "invalid" and that he wouldn't even "go there" what trends or developments the group sees in the report because it is "measuring a world that does not comport with reality."