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Net Neutrality

The Metamorphosis of Communications Competition -- A New Framework

For those seeking to better understand how communications competition has evolved, expanded, and accelerated to cloud communications competition, don't miss my new six-chart powerpoint presentation: "The Metamorphosis of Communications Competition," here.

My bottom line conclusion: The transformation of communications competition requires a transformation in communications law.

  • Specifically, the world has changed with technology, but obsolete technology-specific laws have not.
  • Communications policy obsolescence undermines infrastructure's utility and value and renders property less attractive and competitive.

I presented this new easy-to-understand framework for understanding exploding communications competition at a NetCompetition event today on Capitol Hill, which also featured excellent presentations by Jeff Eisenach, Managing Director of Navigant Economics, and Ev Ehrlich, President of ESC Company.

Don't Miss Phil Kerpen's Net Neutrality Op-ed

Phil Kerpen, of Americans for Prosperity, has a new must-read op-ed in the Washington Examiner entitled: "Will Congress Stop FCC's Internet Takeover?"

  • It is an excerpt of his very important new book, "Democracy Denied," which exposes how the radical fringe systematically abuses the regulatory process to bypass Congress and subvert democracy, because they know their elitist-oriented policy ideas like net neutrality can not withstand the scrutiny of a true "free and open" democracy based on America's Constitution and separation of powers.

You can find out more about Phil's very important book at DemocracyDenied.org and you can buy it on Amazon here.

Implications of DC Circuit Hearing Net Neutrality Appeal

Since the D.C. Circuit Court of Appeals was selected to hear appeals of the FCC's Open Internet Order -- it is now even more likely that the FCC's net neutrality regulations will be overturned in court as unlawful and/or unconstitutional.

 

  • Regardless of which Appeals Court heard this case, Verizon was highly likely to win in its appeal against the FCC rules on the merits.
  • Now Verizon's chances increase further given that the most knowledgeable, expert, and experienced Circuit Court of Appeals is hearing this case.
    • (See analysis here for why the FCC is highly likely to lose this case.)

 

The D.C. Circuit is the Appeals Court that traditionally hears cases involving independent regulatory agencies like the FCC, so the D.C. Circuit Judges are very familiar with both the limits of the FCC's statutory authority and the FCC's proven penchant for trying to overreach their statutory authority.

In a nutshell, the FCC's legal case stands on two very slippery assumptions.

 

Why Europe is Falling Behind U.S. in Broadband

The EU's penchant for price regulation is a big reason why the EU is falling behind the US in broadband.

See my Forbes Tech Capitalist post here: "Why the EU is Falling Behind the US in Broadband."

Why FCC Net Neutrality Regs Are So Vulnerable

See my Forbes Tech Capitalist post on net neutrality here, entitled: Why FCC Net Neutrality Regs Are so Vulnerable.

Netflix Crushes its Own Momentum

See my Forbes post: "Netflix Crushes Its Own Momentum" here.

  • "...Netflix has crushed its own growth stock momentum -- and it won’t be coming back – that pixie dust is gone forever. Netflix will never be the same...."

Opposing "The Verge" of Socialism -- My latest Forbes Tech Capitalist post

Please see my Forbes Tech Capitalist blog "Opposing "The Verge" of Socialism" here, which rebuts Joshua Topolsky's Washington Post column: "Want better wireless service in America? Socialize it."

Netflix' Uneconomics

Netflix' continues to exhibit serious difficulties grasping basic economics, competition and value.

First, Netflix is lowering its value to customers.

  • Netflix now charges its subscribers' 60% more in September in return for lots less premium content available for subscribers in February, as Netflix just lost Starz,its top premium content provider, which supplies 22 of Netflix' top 100 movies.

 

Second, Netflix is shifting its costs to its customers.

  • Netflix used its abrupt and controversial 60% price hike to force many of its core users away from the DVD model that many prefer and have the viewing technology for (but costs Netflix more), to the streaming model, (which Netflix prefers because it costs them less) even if it costs many of their DVD customers to spend lots more to upgrade their viewing technology to view the streamed content in the way they can currently view DVDs.

 

Third, Netflix is chasing away the premium content its subscribers demand.

FreePress' Dumb Pipe Internet Commons Fantasy

FreePress and its allies continue to harass the FCC for not supporting its radical Luddite vision of rolling back the Internet to its pre-1994 days when it was Government-owned and operated, and used only by a small elite, before it was privatized by the Clinton-Gore Administration an became a worldwide phenomenon enjoyed by most everyone most everywhere.

FreePress, Public Knowledge and their allies continue to fantasize about turning the Internet into an information commons and a "dumb pipe" network.

FreePress criticized the FCC Chairman in TR Daily for his common sense mainstream view that broadband providers can and should emply usage-based pricing.

  • "While the rest of the world is moving away from this type of price gouging, it is puzzling why the FCC chairman would endorse a practice that in the long run will relegate the United States to an Internet backwater.”


FreePress Cries Wolf -- Yet Again

FreePress with its "all complaints all the time" approach to advocacy has been caught once again "crying wolf" when there was no real problem or threat.

A new FCC study that shows ISPs are effectively delivering on the broadband speeds they advertise, exposes FreePress for crying wolf -- yet again.

  • FreePress has to acknowledge Verizon's FIOs far exceeds advertised speeds, Comcast and Charter exceed advertised speeds, and other ISPs are more than close enough to advertised speeds to show that there is not a problem here for the FCC to be concerned about.

FreePress also continues to cry wolf about its spurious tethering" complaint against Verizon because users are prevented from unauthorized tethering of additional devices trying to bypass users' terms of service agreement.

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Q&A One Pager Debunking Net Neutrality Myths