You are here
Submitted by Scott Cleland on Tue, 2008-04-08 01:30
Martin Geddes of Circle ID challenged my estimation methodology in reaching that Google fleeced the American taxpayer for $7 billion.
With all due respect to Mr. Geddes, first his analogy of taking "a tasty apple, a yummy banana and a mouldy pear, is simply not analogous here. One doesn't pay $4.7b for a "mouldy pear." The regulations did not make the spectrum itself bad to eat, but simply restricted the use of the spectrum or in Mr. Geddes example how someone would be allowed to eat a good pear. People will pay less for a fruit if they are restricted on when and how they can eat it.
Second, Mr. Geddes suggests I am confusing the American taxpayer with the American public. I most certainly am not. I am recognizing that there is a very specific law, the 1993 Budget Act, which effectively defines that the American public is the American taxpayer because the purpose of these spectrum auctions are to reduce budget deficits. One may not agree with how the law defines the American public in this instance, but that opinion doesn't change that it is the operative law here.
My estimate in my blog was trasparent and simple so everyone could see how I got my figure.
Submitted by Scott Cleland on Mon, 2008-04-07 14:16
My eyebrows raised when I read the FT's article: "Google loses talent that turned chos into capital."
What attracted my attention is that Google is reacting to the ~37% drop in Google's stock price by spending shareholders money on giving restricted stock to employees who are no longer satisfied with stock options.
I wonder what the price tag will be for this, it could be significant....
Submitted by Scott Cleland on Mon, 2008-04-07 13:41
Successful Internet musician, Damian Kulash wrote for the New York Times, the standard pro-net neutrality op ed -- Beware the New Thing.
There are two big flaws in that logic.
Submitted by Scott Cleland on Fri, 2008-04-04 14:48
Many have broadly swallowed Google's "spin" that Google really "won" by losing the 700Mhz auction -- without digesting the serious implications of Google's public admission.
So what's wrong with what Google did?
First and foremost, Google's flagrant manipulation of the auction rules and process fleeced the American taxpayer out of at least $7 billion, by my estimate.
Submitted by Scott Cleland on Thu, 2008-04-03 14:38
Surprisingly, Google continues to keep its users in the dark on the new reported cyber-security threat where cyber-crooks have infiltrated Google's searches putting them at heightened risk of identity theft and fraud.
The San Franciso Chronicle in its article "Hackers infiltrate Google's searches" followed up on the original USA Today article "Google searchers could end up with a new kind of bug." I blogged on the USA Today story and explained why this problem is a big deal.
Apparently, from what I have been able to gather from my sources -- Google is under the illusion that because they don't control the websites that are infected -- they don't have an obligation to warn their users.
Let's review the facts of why Google may have: a budding user trust problem, a potential PR disaster on its hands, and a potential legal contingent liability/class action lawsuit vunerability for shareholders to worry about.
Submitted by Scott Cleland on Wed, 2008-04-02 10:39
It was very welcome, but not surprising news, that FCC Chairman Martin and a majority of the FCC plan to deny eBay-Skype's petition to apply 1960's "Carterfone" monopoly regulations on today's wireless competitors.
This was not a close call. Carterfone regulations were appropriate forty years ago with a monopoly and no competition. However, dusting off ancient regulations for a bygone monopoly era have no business or relevance today.
The facts are that Americans enjoy more wireless competition than most any country in the world, enjoy the lowest or near lowest wireless prices in the world, and use about four times more wireless minutes than our european counterparts, because of the dramatically lower prices -- all per the American Consumer Institute.
The Skype petition is an excellent evidence that the net neutrality movement does not believe in competition policy or a free market Internet, but believe in a government managed Internet.
Google is not warning its users of its role in one of largest cyber-security breaches ever on the NetSubmitted by Scott Cleland on Tue, 2008-04-01 19:03
USA Today broke a much under-appreciated and potentially blockbuster Internet security breach story: "Google searchers could end up with a new type of bug." Kudos to Byron Acohido and Jon Swartz, who reported it in USA Today, and also blogged on it at ZeroDayThreat.com, a site for their book "Zero Day Threat" which defines a Zero day Threat as "a threat so new that no viable protections against it exists."
Why this is a big deal:
Submitted by Scott Cleland on Tue, 2008-04-01 10:50
Despite Japan having some of the fastest and cheapest broadband in the world, they still have to worry about network congestion and need to manage their networks and shape traffic, according to Adam Peake, a fellow at the International University of Japan who spoke yesterday at the Freedom to Connect Conference.
The takeaway here is that many in the net neutrality movement maintain that there is no need to manage the network if providers would just add more capacity.
Peake also explained that there is a pernicious p-2-p program called Winny, which is a major culprit in the network congestion and which is near universally reviled because it is one of those pernicious p-2-p programs that give all p-2-p a bad name because the protocol routinely makes the private content on users' hard drives available for identity theives and fraudsters.
Submitted by Scott Cleland on Mon, 2008-03-31 14:57
I am attending David Isenberg's Freedom to Connect Conference today as a very very small minority of broadband industry folks.
In listening to a panel on politics and the web, my ears perked up when Donna Edwards, who defeated Rep. Al Wynn (MD) in a democratic primary, admitted that only one citizen of the thousands she met going door to door during the campaign -- actually asked her about net neutrality. Very interesting.
All the bragging by Matt Stoller of Open Left and other net roots suggested that Edwards win was a win for net neutrality at the net roots.
The reality is now shared from the candidate that net neutrality was not at all on the minds of voters in Maryland.
Submitted by Scott Cleland on Fri, 2008-03-28 18:38
I must admit I have been amused watching the market's angst over trying to figure out if Google's growth is slowing down given that Comscore has reported that paid clicks have fallen 3% from January to February of this year.
First, I am amused because Comscore also showed that Google gained market share during that same period from 59.2% from 58.5%.