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Submitted by Scott Cleland on Wed, 2015-07-29 17:49
Google’s market capitalization has approached a half trillion dollars as its stock hit an all time high, because of a positive quarterly profit surprise and because Google’s new CFO signaled that “Google cost discipline” may no longer be an investment oxymoron.
The market appears to be ignoring that Google’s legal status as a corporation changed in 2Q15 to an FCC Title II regulated common carrier that is subject to very strict and preemptive behavioral non-discrimination requirements to mitigate potential abuse of market power on Google’s network -- per the FCC’s new Open Internet Order which reclassified Internet infrastructure as Title II common carriage regulated to enforce strict net neutrality.
This analysis of Google’s many new common carrier liabilities has four parts: I) the investment and regulatory relevance of Google being a common carrier; II) the evidence of Google being a major Internet access player via the surprising size of its Internet infrastructure, communications, traffic carriage, and market power; III) a listing and explanation of Google’s many new FCC common carrier liabilities, including nine potential net neutrality violations, three privacy, and three transparency; and IV) a conclusion about what this could mean for Google and its valuation going forward.
Submitted by Scott Cleland on Fri, 2015-07-24 16:35
Submitted by Scott Cleland on Mon, 2015-07-20 19:01
Imagine if one company out of the Fortune 500, #474 with ~$6b in revenues, and 2,000 employees, representing about .03% of U.S. GDP, and .06% of the population, comprised 36% of all the vehicle traffic going in one direction on our interstate highway system on any given day.
Now imagine that one company’s lobbying was instrumental in convincing the government to grant that company’s business model the right to commercially use the highway system forever for free, by not ever having to pay a standard gas tax or private highway tolls, like other businesses or people do to pay for the relative wear and tear that their usage causes on the highway systems.
Imagine further that the government justified this special one-way highway traffic treatment, by saying it would be better and fairer for everyone if the companies that use and profit most from using the most one direction of the highway system never had to pay for that delivery benefit – that consumers should subsidize their commercial use and profits in “perpetuity.”
The company’s situation you just imagined is Netflix’. The government agency is the FCC. And the perverse government arrangement is the FCC’s mandate of a permanent zero price for all Internet downstream traffic.
Submitted by Scott Cleland on Wed, 2015-07-15 13:07
We will learn quickly and unequivocally at the FCC’s August 6th meeting, if the FCC is true to its word -- that there will be no “utility-style rate regulation” of broadband.
While the FCC’s Open Internet Order fact sheet stated: “the Order makes clear that broadband providers shall not be subject to tariffs or other form of rate approval, unbundling, or other forms of utility regulation,” will the FCC majority -- in its first post-Open-Internet-order ruling -- cynically do the exact opposite by imposing de facto “utility-style rate regulation” to the IP transition from copper to fiber networks?
Submitted by Scott Cleland on Mon, 2015-07-13 16:52
Submitted by Scott Cleland on Tue, 2015-07-07 18:51
In the coming months, Google, and to a lesser extent, Facebook and Apple are on a collision course with American and foreign law enforcement over their pervasive, law-evasive, encryption of Internet traffic by default, which increasingly means law enforcement with a legitimate court-ordered-warrant, cannot search a Google, Facebook, or Apple users’ communications to investigate, prevent and prosecute terrorism or felony crime.
All three, to different degrees, are seeking to regain user trust lost by Snowden’s exposure of ubiquitous NSA spying, by deceptively trumpeting their encryption of traffic as a panacea for privacy vulnerabilities.
[Please don’t miss the summary below of that encapsulates how more pervasive, law-evasive, encryption is not a privacy/security panacea but a grave threat to both public safety and the global free and open Internet we know today.]
Submitted by Scott Cleland on Mon, 2015-07-06 10:54
What is the Internet?
Simple question, one would think the FCC could give a simple, straight and accurate answer when talking to their international regulatory counterparts, but they won’t.
That’s because they don’t want them to regulate the Internet like the FCC just has regulated the Internet in its Open Internet Order.
To try and justify regulating just the ISP-telecommunications-side of the Internet, but not regulating the Silicon-Valley-telecommunications-side of the Internet, the FCC’s, diplomatic message is as hypocritical as it is embarrassing: ‘do as we say, not as we do.’ (Translation: Adopt America’s Silicon-Valley-industrial-policy as your country’s policy.)
The FCC has lost its credibility internationally because to claim that they are not regulating the Internet, the FCC must torture the definition of “the Internet” beyond recognition.
America’s international counterparts get the joke, they weren’t born yesterday.
And the joke is the FCC’s spin.
Submitted by Scott Cleland on Wed, 2015-06-24 21:38
Google’s wiretapping is back in the news. The Guardian reports “Google [Chrome] eavesdropping tool installed on computers without permission.”
This is not an isolated incident. It is a part of a broader Google pattern of behavior.
What should be big news and scandalous here is that the company that has gathered the most Internet users in the world based upon public representations of being pro-privacy and open -- is secretly engaged in widespread wiretapping.
Wiretapping is illegally intercepting and recording people’s communications without their knowledge or consent. In the U.S., wiretapping is a criminal offense punishable by a fine and up to five years in prison.
Submitted by Scott Cleland on Tue, 2015-06-23 17:52
Please don’t miss my latest Daily Caller op-ed, “FCC Changed “Can-do” Internet into “Can’t-do” Internet.”
FCC Open Internet Order Series
Part 1: The Many Vulnerabilities of an Open Internet [9-24-09]
Submitted by Scott Cleland on Mon, 2015-06-15 23:13
The FCC’s just operative Open Internet Order, with its classification of broadband as Title II common carriage and vague Internet conduct standard, sets ISPs up for FCC “gotcha” or contrived regulation and enforcement.
FCC Commissioner O’Reilly exposed the FCC’s “gotcha!” game: “I will be vigilant in resisting any attempts by the agency to act as a referee enforcing rules known to none of the players and made up along the way.”
And the FCC’s Enforcement Chief, Travis LeBlanc, tacitly admitted to playing the contrived “gotcha!” game in an article with the National Journal entitled: “The FCC’s $365 Million Man.”