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5 BIG Implications from Court Signals on Net Neutrality – A Special Report -- Part 34 FCC Open Internet Order Series

Economic rationality, competition, and broadband pricing freedom are the big winners, and common carrier-like net neutrality was the big loser, if the Appeals Court panel decides Verizon v. FCC as expected.

Monday’s intense tag-team grilling of the FCC’s lawyer by Judges Tatel and Silberman left most observers thinking the Court will decide it is illegal for the FCC to impose common-carrier-like regulation on broadband providers -- regardless of what else they decide.  

NetCompetition Press Release on Verizon v. FCC Court Oral Arguments

FOR IMMEDIATE RELEASE                                           

September 9, 2013

Contact:  Scott Cleland                                                 

703-217-2407

 

 

“A Very Good Day for Broadband Pricing Freedom”

FYI – New Online Research Library of Precursor’s Top Research Series

Please find the new Precursor online Research Library -- here -- which will be kept up-to-date going forward.

  • It presently catalogues links to ~270 pieces of Precursor research in ~20 ongoing research series.

This should make it much easier to scan and find particular research of interest by subject and theme.

  • An outline of subjects and themes are below.

Thank you.

Scott Cleland

Precursor LLCProven Thought Leadership

 

Why FCC won’t pass Appeals Court’s oral exam – Part 33 Open Internet Order research series

September 9th looks to be a challenging day for the FCC.

For many good reasons, the FCC will face a skeptical D.C. Circuit Court of Appeals panel Monday in oral arguments for Verizon vs. FCC. The FCC will be defending its Open Internet order which mandated neutrality.

Overall the court will be skeptical because the FCC largely ignored the law, Congress, the facts, and the Constitution. Essentially, the FCC made up an industry problem that does not exist in order to repurpose itself for the Internet age. Simply, the FCC is not asking for slack from the court (i.e. Chevron Deference), it’s basically asking for carte blanche to grant itself unbounded authority going forward.

Verizon enjoys the advantage in this case because it need prevail in only one of its several strong challenges to the FCC’s order, while the FCC must convince the court to completely reject all of Verizon’s arguments.

Specifically, why will this court be skeptical here?

Uneconomical vs. Economical Net Neutrality at the U.N. -- Part 11 Uneconomics vs. Economics Series

Information may want to be free, but physical networks are costly.

Few proponents of net neutrality appreciate the trillions of dollars of investment it has taken to build and upgrade the Internet’s vast and varied infrastructure that we all enjoy today. Simply, the Internet is not free of cost.

Economical policies have made the Internet universal and have enabled users to access the content, apps, and devices of their choice – what net neutrality is supposedly all about. On the other hand, uneconomical policies that discourage economic growth, return-on-investment, or respect for property can have unintended consequences and can threaten the proverbial goose that lays the golden eggs.      

Capricious Net Neutrality Charges – Part 32 FCC Open Internet Order series

Net neutrality is in the eye of the beholder.

It’s rapidly devolved into a gotcha game -- where if someone doesn’t like something or someone, they cry “net neutrality violation!” and call for an FCC investigation -- under the FCC’s self-asserted, all-powerful Open Internet order.  

Senators and Representatives are now writing the FCC urging it to investigate CBS.com for an alleged net neutrality violation over a contract dispute over how much Time Warner Cable pays for retransmitting CBS programming. The FCC could have a role in this retransmission dispute under obsolete 1992 law, but not legitimately under the FCC’s Open Internet order.

The fact that U.S. senators and representatives imagine that a billing dispute among companies could be considered a net neutrality violation illustrates how arbitrary and capricious net neutrality politics and the FCC’s Open Internet order have become.

Apparently there is no objective, reasonable or predictable standard of what net neutrality is or what a violation of “it” is. That net neutrality has transmogrified into a political-catch-all for anything affecting consumers is powerful proof of how capriciously this issue has been abused.

Why has net neutrality become so capricious?

A la Carte TV Uneconomics

Please see my latest Daily Caller Op-ed on proposed A la carte TV Legislation -- here

  • It is Part 11 of my Defending First Principles Series.

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Defending First Principles Series

Part 1: Debasing Free Speech as No-Cost Speech

Google-Spy

Google is the spy tool of choice, the one stop-shop for spying, and the spymaster’s dream.

Google Chairman Eric Schmidt’s famously quipped: “if you have something you don’t want anyone to know, maybe you shouldn’t be doing it.” Given recent spying revelations, what Mr. Schmidt apparently means is: “if you don’t want to be spied upon, don’t use Google’s products and services.”

Why is that true? Let’s examine the top ten reasons.  

Summary

Arbitrary Spectrum Policy – My Daily Caller Op-ed & Part 11—Government Spectrum Waste Fraud & Abuse Series

Please see my latest Daily Caller op-ed: "Arbitrary Spectrum Policy” -- here.

  • It spotlights the FCC’s arbitrary treatment of its spectrum screen policy in approving Softbank-Sprint.
  • It is also Part 11 of my Government Spectrum Waste, Fraud & Abuse Research Series.

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Government Spectrum Waste Fraud and Abuse Research Series

A 600 MHz “UNE-P-like” Wireless Auction? Part 10 Government Spectrum Waste Fraud & Abuse Series

Just when the pending 600 MHz “incentive” FCC auction looks like it could not get more unworkably complex than a reverse, “incentive,” auction with looming FCC bidder limits, T-Mobile proposes to add a “dynamic” twist where the rules would then change as the auction goes along depending on how much bidders bid relative to a government-estimate that may or may not have any basis in economic reality. 

To use a diving metaphor, this is like a synchronized diving event with unknown dozens of divers that first must do a “reverse” back flip to “incentivize” another set of divers right behind them to then do a front flip, but only if the particular diver before them does a reverse back flip that individually gets a good enough score to make a follow-on dive possible, and then if that happens for some of the diver teams, any follow-on dives would then be scored “dynamically” depending on a random target score of the previous dive, which would then determine if said diver can dive again or not.

That’s essentially the latest T-Mobile “dynamic spectrum rules” proposal for the 600 MHz auction that T-Mobile just proposed and released to reporters.

It can and does get worse.

The economist behind the T-Mobile proposal was Deputy FCC Economist when the FCC was nano-implementing the 1996 Telecom Act and came up with TELRIC pricing and UNE-P. UNE-P was an elaborate FCC ruse to get around the plain language of the Telecom Act and get a 50-60% resale discount for all telecom services (a platform) for CLECs, rather than the ~20% platform resale discount methodology in law.

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Q&A One Pager Debunking Net Neutrality Myths