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Jim Harper of Cato has a great piece on the 700MHz auction

Please read Jim Harper's (of Cato) cogent and on-point critique of the FCC's 700 MHz auction.

Well said Jim!

"Open" is clearly in the eye of the beholder.

And "open access" is just as impossible to define as its philosophical twin: "net neutrality."  

A "Third" national broadband pipe? Try an eighth!

I keep shaking my head in disbelief when the Google camp breathlessly claims that the 700 MHz is the last opportunity to create a true "third broadband pipe?"

  • This is a common trick in politics -- to completely ignore reality and facts, and create ones own "alternate reality," which suits one's political and corporate agenda.

The much ballyhooed proposal in the 700 MHz auction for an "open access license" (whatever that endlessly evolving term means) claims to be all about Government creating a "third broadband pipe?"

Hello???!!!

  • The marketplace is already delivering many more competitive broadband pipes now! FIVE of them -- way ahead of when this Google-camp experiment may deliver in several years time.

Let's come down to earth folks.

PrecursorBlog was "Blocked" by another denial of service attack

The Precursorblog was shut down for most of today because we were hit by yet another targeted and malicious denial-of-service attack.

It appears that some net neutrality zealots may "say" they oppose any "blocking, degrading or impairing" of access to any Internet content -- but I guess that only applies to people who agree with them.

Last time this happened, I appealed to Moveon.org's, SaveTheInternet and FreePress to denounce this attack on free speech, but alas, they said nothing.

The Department of Justice on "bid rigging"

Given the issue of whether or not the 700 Mhz auction is being run for the benefit of the American taxpayer, there is a very interesting quote from a Justice Department official today on their view of "bid rigging" in a competitive government auction, in this case concerning a defense contractor.

  • "The antitrust division is committed to protecting the competitive market for Americans," said Assistant Attorney General Thomas O. Barnett, who heads the department's antitrust division. "We will continue to bring to justice those who rig bids and thereby deprive the public of the benefits afforded by a competitive bidding process."

It is interesting to juxtapose this Justice Department quote of today with another quote from today in the Dow Jones article on the 700 MHz auction, which quoted the position of Gigi Sohn of Public Knowledge on "bid rigging":

  • She acknowledged that effectively Google and public interest groups were asking the FCC to "rig the auction" to facilitate a third national broadband competitor to the incumbents - AT&T Inc. (T), Verizon Communications Inc. (VZ) and the cable companies.

The ends don’t justify the means.

FCC pulling the rug out from under the Administration's broadband policy?

Kudos to the Wall Street Journal today for their twin great editorials on net neutrality and the 700 MHz auction: "Reed Hundt's Spectrum Play" by the Jounal editorial writers and "Telecom Time Warp" by Robert Crandall and Hal Singer.

  • The Journal editorial accurately hits on the Google/Hundt cabal to rig the auction rules so they can win the Nation's most valuable spectrum at a deep discount.
    • Google is laughing all the way to the bank that they could sucker a Republican Chairman of the FCC to carry their water and stand heavily on the competitive scales to pick them as winner before the bidding commences.
    • It will be interesting to see how Chairman Martin "squares this circle" and explains why market participants should ever trust what he says going forward on competition and regulation given that up to now he has discussed no market failure or consumer problem that requires regulation to solve up to now.
  • My favorite point of many in Robert and Hal's great editorial is reminding everyone the outrageousness of the FCC mandating "unbundling" (a drastic action reserved for entrenched monopolies) when the wireless industry is so obviously competitive that the price of a wireless minute has fallen by 84% over the last decade!
  • Amazing! Chairman Martin apparently finds market failure when prices are plummeting, consumer choice has exploded, subscribership and usage has skyrocketed and investment boomed. Huh?
    • What's wrong with this picture? 
      • The only apparent explanation is that Chairman Martin now believes more in the regulatory hand of Big Government than the "invisible hand" of market forces.
    • Wireless is the single biggest competitive success story in communications!
      • And Mr. Martin's reward for all those market players that invested billions of dollars of risk capital to buildout the world's most competitive facilities-based wireless marketplace -- is heavy handed and unnecessary "separations" and unbundling monopoly regulation!

Bottomline:  The Bush Adminstration's sole policy goal in telecommunications has been to promote broadband investment and deployment to all Americans.

FCC Martin proposes corporate welfare for Google in 700 MHz auction

According to DowJones, FCC Chairman Kevin Martin is proposing some of the net neutrality/open access regulation that Google requested for 22 of the 60 MHz of prime 700 MHz of spectrum to be auctioned off by the FCC in early 2008 for use in about 2010.

I have three points to make about Chairman Martin's reported net neutrality/open access proposal.

"Save The Internet" stoops to a new low of vacuousness

SaveTheInternet has a new video out that breathlessly claims that people only have until July 16th to tell the FCC to keep a "level playing field" in order to "save the Internet!"

  • This vacuous "eye-candy" video only says "the Internet is under attack in Washington" but says nothing about what "the attack" actually is, why anyone in their right mind would want to "attack the Internet," what the FCC is actually doing or deciding that needs their input by July 16th, or even why there is a July 16th deadline to act.
  • This video propoganda is a disturbingly accurate representation of the vacuousness of SaveTheInternet's whole net neutrality position and crusade.
    • It is all form and fear and precious little substance.
    • Its scary that they don't even try to inform or educate just incite.  
  • It also tells us a lot about what they think of the intelligence-level of average Americans and those on their mailing list -- they obviously just see them as lemings to scare and herd off a proverbial cliff.  
    • There is zero respect for people's intelligence in this video propaganda.
  • SaveTheInternet sees no need for facts, for information, for context, for balance, or hearing both sides -- just feed the masses the dumbest possible version of a scare message and shout that they have an urgent deadline to act!

This video is damning proof of how vacuous the net neutrality regulation movement has become. View it and weep.

Frontline's proposal is so disingenuous: Let me count the ways

Frontline's Reed Hundt is mounting a furious eleventh hour effort to finagle a backroom sweetheart deal for his company from the FCC, in the 700 MHz auction. He attacked the outstanding op ed in the Washington Post by Robert Hahn and Hal Singer in both the Post and in RCR.  Our former Big Government FCC Chairman, Mr. Hundt also apparently has lost his cool and perpsective in railing against the rollout of the new, innovative and already successful iPhone as somehow a market failure that only his company can cure.

My response to SaveTheInternet views on broadband

A core purpose of NetCompetition.org is to promote a debate of Net neutrality regulation on the merits. SaveTheInternet.com had a recent blog post "Painting over broadband failures with pretty pictures" that prompted me to comment on their blog -- which I have included below:

"If SaveTheInternet followers are truly "open" to diverse points of view that may be different from theirs, I recommend that you consider the mounting evidence that the US is in fact not falling behind but is actually a unique success in promoting facilities-based broadband competition in the world. Please see this link for the four best alternative views on this question:
http://www.precursorblog.com/node/451 .

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Q&A One Pager Debunking Net Neutrality Myths