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Submitted by Scott Cleland on Thu, 2012-05-03 17:55
Opponents urging the FCC to block the Verizon-Cable secondary market spectrum transaction are pushing the FCC into dangerous institutional territory, effectively goading it to: overreach its statutory authority; ignore FCC precedent, evidence, and facts; and game its own spectrum-screen process. The same FreePress radical fringe -- that goaded the FCC to flout the D.C. Appeals Court decision and pass the Open Internet Order and Data-Roaming Order -- are at it again.
The FreePress radical fringe who care not for the rule of law, are again goading the FCC to trump up some new public interest rationale and statutory theory to allow the FCC to transmogrify its limited public interest authority into unbounded authority that disregards the law, FCC precedent, or the facts. This radical manipulation of the process may be good for forwarding FreePress' anti-business, Internet commons goals, but it is not good for the institution of the FCC, which is a creature of Congress and subject to the rule of law. And nor is it good for the American public.
Submitted by Scott Cleland on Fri, 2012-04-27 15:30
Near hysterical opponents of broadband data usage caps need to breathe slowly, drop their magnifying glass, look up and take in the big world all around them. They are not just missing the forest for the trees, they are missing the leaves, stems, branches, trees, forest and sky, because they can't take their magnifying glass off of the leaf with which they are myopically obsessed.
Broadband data usage caps are a very small, normal, and essential part of a healthy and economically-sustainable Internet ecosystem. Pricing is the central mechanism for any marketplace to balance supply and demand and to create economic incentives and disincentives for behavior that can drive costs. There is nothing wrong with pricing caps, tiers, and other pricing mechanisms that are used to manage networks, avoid network congestion, achieve a return on investment, manage a business model, differentiate a business, and/or earn a profit.
Submitted by Scott Cleland on Wed, 2012-04-25 15:52
Consumer groups by definition are supposed to be protecting consumers' interests -- not be pushing a special interest political agenda under the guise of the "public interest." Let's spotlight a recent and blatant hypocrisy whereby consumer groups near-completely ignored an instance of obvious widespread consumer harm (the FCC's proposed fine of Google for obstructing its Street View wiretapping investigation), while in another contemporaneous issue, consumer groups gang-pummeled a non-issue to push a political Internet commons agenda (strongly objecting to Comcast's new market offering where XBox usage does not apply to a user's 250 Gig monthly data cap.)
Google Street View Wiretapping: Why is Google obstructing a Federal wiretapping investigation affecting the privacy of literally tens of millions of American households' -- not a consumer protection issue? How come consumer groups routinely and loudly call for FCC investigations of broadband companies' legal marketplace actions, but are silent on the obvious obstruction of a Federal investigation into Google allegedly being involved in potentially the largest wiretapping and mass invasion of citizens' privacy by a corporation in U.S. history? How is it in consumers' interest for the government to not be able to determine if Google actually violated Federal law or not?
Submitted by Scott Cleland on Tue, 2012-04-17 18:52
Reading through The American Antitrust Institute's white paper on Verizon-Cable, it is striking how little analysis is relevant to antitrust/market-competition and how it is basically a thinly-veiled tacit pitch for the DOJ and the FCC to pursue an aggressive industrial policy for the wireless industry.
The white paper presumes that because the DOJ blocked the AT&T/T-Mobile merger to preserve T-Mobile as a disruptive fourth wireless competitor, and because T-Mobile now claims it needs more spectrum, that the government should intervene somehow to effectively redirect the spectrum to T-Mobile and away from Verizon.
The huge flaw in the AAI's analysis is its central presumption, which is contrary to longstanding spectrum auction law, that the government, not market forces, should allocate spectrum. The analysis ignores that the law of the land allocates spectrum via property rights and auctions enabling the spectrum to find the party that most economically values it and has the most economic incentive to put it to productive use. The AAI's analysis appears biased against existing law in assuming that the only or primary reason that the largest wireless providers would want more spectrum would be to anti-competitively keep it from its smaller competitors, and not the obvious and real reason that they want to provide better, faster, more reliable mobile broadband service to more people in more of the country to make more money.
Submitted by Scott Cleland on Fri, 2012-04-13 17:38
The Washington Post's lead story today, "Landline Rules Frustrate Telecoms," puts a needed spotlight on obsolete communications law that: falsely assumes the telecom marketplace is still a monopoly with no consumer choice; and still mandates telecom companies subsidize below-cost, copper-line telephone service to households as if it were still a government-sanctioned monopoly.
A bit of history is warranted here. This century-old political arrangement -- the 1913 Kingsbury Commitment between the Federal Government and AT&T -- effectively established a government-sanctioned monopoly in return for universal telephone service to all Americans and utility rate of return regulation. In 1996, Congress reformed Federal communications policy by ending monopoly and promoting competition. Today, despite copper telephone networks losing half of their customer base to cable, wireless, VoIP, broadband and other Internet competitors (and losing most of their most profitable landline customers) many legacy telecom legal requirements, like subsidized below-cost telephone service, live on despite being obsolete. This means that in today's fiercely competitive voice service marketplace, mandating that only one provider must provide subsidized below-cost, copper-line service to potentially millions of households, is a classic un-funded mandate and a hidden, unfair, investment-distorting business tax on only one competitor.
Submitted by Scott Cleland on Tue, 2012-04-03 14:39
FreePress' latest net neutrality folly and political agitation is pushing the SEC to make shareholders from AT&T, Verizon and Sprint vote on inappropriate, ill-advised, and unwarranted proposed shareholder resolutions in favor of wireless net neutrality in the weeks ahead.
Let me count the ways this is a waste of time and abuse of process.
First, it inappropriately and destructively attempts to politicize non-political entities, by trying to force a public political position from non-political corporate entities, whose contractual and fiduciary responsibility to shareholders is to economically/financially grow the value and profitability of the corporation.
Second, the appropriate place to have political votes is in legitimate political processes, elections or representative votes or decisions by elected officials at the appropriate local, state, and Federal level, which enjoy the constitutional, political, and relevant authority and legitimacy to decide political issues in a meaningful, substantive and productive way.
Third, the operative authority here for shareholders, the companies' shareholder agreements, corporate charter, and bylaws, are legally grounded on a contractual agreement between the company and shareholder to protect and grow the shareholders investment in the company, not to promote extra-political positions that actually could endanger the underlying purpose of the shareholders agreements.
Submitted by Scott Cleland on Wed, 2012-03-21 19:41
The Senate Judiciary Subcommittee hearing on the proposed Verizon-Cable spectrum sale flushed out the opposition's best arguments and evidence and they proved surprisingly weak and sparse.
Behind the façade of FreePress' trademark bumper-sticker bluster of "a competition crisis," "a creeping duopoly," and "spectrum warehousing," there was very little substance to back up their pejorative assertions.
FreePress' bogus duopoly deception is the core weakness of the opposition to this commercial agreement. To believe there is a Verizon-AT&T wireless duopoly, one has to:
Submitted by Scott Cleland on Mon, 2012-03-19 18:54
Hopefully, the March 21st Senate Judiciary Subcommittee oversight hearing on the Verizon-Cable spectrum transaction will be a fair hearing based on the competitive facts and the law, and is not allowed to be hijacked politically by FreePress' signature gamesmanship.
I. FreePress Fiction
It is disturbing that two of the three hearing witnesses opposing the Verizon-Cable agreement are from FreePress: Joel Kelsey, FreePress' Policy Advisor and Tim Wu, who was FreePress' Chairman just thirteen months ago and has been a longtime FreePress board member.
It is curious and troubling that the Senate Subcommittee specializing in "competition policy" would seek testimony from two anti-profit, anti-property-rights adherents who don't believe competition policy can work.
Submitted by Scott Cleland on Tue, 2012-03-13 13:44
The March 21st Senate Judiciary Subcommittee hearing reviewing the Verizon-cable agreements provides Congress with an opportunity to learn:
Given that the DOJ has such weak grounds and facts under antitrust law to challenge the Verizon-cable commercial agreements, and given that the spectrum transfer is in the public interest in multiple dimensions, opponents appear to be pushing the FCC to do whatever necessary to try and block Verizon-cable under the FCC's make-it-up-as-they-go-along public interest standard.
Submitted by Scott Cleland on Mon, 2012-03-05 10:57
Mobile technology advances are dramatically increasing the intensity of competition broadly online and offline. The technological convenience of using a smart phone, tablet etc. rather than a card or cash to pay for goods and services, wherever one may be, is igniting a competitive free-for-all.
Activists and regulators who fear a potential new communications "opoly" lurking around every corner -- in need of preemptive government intervention to protect consumers from the convenience, savings and benefits of a highly-competitive marketplace -- need to take a breath, enjoy, and get out of the way of this amazing technological convergence and innovation over mobile payments.