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I wanted to be sure folks saw what Greg Moore, Executive Director of the National NAACP Voter Fund said recently on net neutrality in a commentary piece in the Asbury Park Press: 

• "Given the proven impact of broadband prices on its adoption, policies that increase the cost to users should be forbidden. Now, some well-intentioned online activists are pushing regulations called "net neutrality," which would keep costs low for the large Internet content companies but shift the costs of network expansion mostly to consumers."
• "The effects could be disastrous for low-income and minority communities, pricing them out of the broadband market by guaranteeing a free ride to companies such as Google and eBay while shifting costs for broadband expansion back to consumers. Although net neutrality activists claim to be protecting free speech, net neutrality regulations would effectively silence many minority voices, as low-income communities drop off the online landscape because they can't afford the price of admission."

Extremely well said!

Welcome to Portia Krebs a new blogger at NextGenWeb.org for USTelecom!

I am delighted their will be another blogging voice in the debate promoting the continuation of a free market Internet that remains free of net regulation.

I encourage other people to blog and enter the debate who understand that "Internet freedom" means much more than so called "net neutrality" and free speech, but also means: free market, free enterprise, freedom to be different, freedom of ownership, freedom to choose, freedom of diversity, and freedom of opportunity -- essentially economic freedoms that naturally flow from America's political freedoms!

Watch out when Big Government advocates call for a "national" anything!

• House Telecom Chairman Ed Markey is calling for a "national broadband map."
• Senator Rockefeller (WV) and others are calling for a "national broadband plan."  

Egads! 

A "national broadband plan" is a codeword for a 1970's-style government "industrial policy" where the government decides what technologies consumers get and which companies will succeed of fail. 

• Industrial policies proved economically disastrous -- and thankfully were abandoned in the US -- allowing our economy to flourish.
• Look no further than the mess of the current French economy, which is the world's petri dish for "national" industrial policies. 
• Their economy and employment situation is one of the leading basketcases of Europe.

My first big problem with this "national" thinking is that there is no national broadband problem.

• The US has more facilites-based broadband deployment, investment and competition nationally than any other country -- by a wide margin.
• Is deployment perfect nationwide? of course not.
• If there is a broadband problem it is in some isolated rural areas.
• We may have a "rural" broadband problem but not a "national" broadband problem!

My second big problem is Senator Rockefeller's call for a new "national" goal of 10Mbps broadband by 2010 and 100 Mbps by 2015.

Kudos to Steve Pociask of the American Consumer Institute on his excellent paper on: "Net Neutrality and the Effects on Consumers."

• It should be required reading for all consumer groups.
• It exposes how net neutrality does not benefit the average American consumer, but benefits special interests like high-volume Internet users... like consumer "groups."   

Steve's clear, insightful, and easy-to-read paper explains how net neutrality would harm consumers by:

If you care about the reality of American competitiveness and innovation be sure to check out the recent Economist Intelligence Unit (EIU) global digital rankings.

• "The EIU e-readiness rankings for 2007 ranked 69 countries in terms of six criteria. In order of importance, these are: consumer and business adoption; connectivity and technology infrastructure; business environment, social and cultural environment, government policy and vision; and legal and policy environment."

What's most interesting, is that this objective ranking by the respected Economist, does not show the negative broadband outlook or assessment of the US that the OECD ranking does. 

• In this EIU overall ranking, the United States ranks #2, not 12th or 15th like in the OECD rankings.
• The EIU full report also has North America ranked higher than Western Europe in broadband affordability!
• Listen to this quote from the full report:
• "The US, with its heavily entrepreneurial culture, penchant for innovation and highly IT-literate workforce and student population, stands clear at the top of the group." 
• Concerning "Consumer and business adoption: The report says:
• "In the sheer scale of individual and business Internet use, the US certainly dwarfs all other countries."
• "There is some concern that the great weight of the US in online activity makes it a sponge for the world's available digital resources, including talent and funding."

So why is this EIU report important? 

I always take time to read interviews with CEOs because I always learn something.

• The USA Today cover story interview with Steve Ballmer of April 30th was no exception.

What did he say that was relevant to the Google-DoubleClick?

First, he made the case why the Google-DoubleClick merger is a big deal:

• "I do think that it would be worth the regulators taking time to understand this market, much the way they took the time to understand other parts of the technology business, because the whole future of the media and advertising will move to the Internet. "
• "What we think of television today, what we think of newspapers, magazines, you name it -- all of these things are going to move to the Internet and be funded by advertising. And so we are talking about a pretty important part of ... people's basic lives." 
• What this means is that Google-Doubleclick is about the evolution and the future of advertising. 

In response to a question about being third in search -- Ballmer said:

I just got around to reading the WSJ small business insert section from April 30, and to my surprise what do I find?

In the WSJ section cover story: "In search of traffic" by Kelly Spors, she notes this in her third paragraph:

• "Search engines don't disclose their ranking formulas, making it tough for small companies to figure out how to boost their site's results. Even worse, big competitors can afford to pour lots of resources into the same effort putting small companies at a bigger disadvantage."

Very interesting that search is not neutral. It favors big companies!

• Horrors!
• How could Google, the champion of all garage entrepreneurs, the corporate guardian of net neutrality, the defender of free content, and the only corporate chieftains organizationally committed to not being evil --how could they, the Googlers, be allowing harm to come to the little guy?
• Where is their sense of justice? Where is their moral center? Where is their outrage?  
• Say it ain't so Sergey, Larry and Eric!
• We so want to believe your billionaire-nesses are true to the cause!  

If Google is the dominant search engine and the main Internet access technology for upwards of a half billion Internet users, and Google itself is not net neutral -- how is that setting a good example for the broadband companies Google demands should be net neutral?

It is always a joy to read clear thinking rigorous analysis. I have known and respected Marius Schwartz's mind and work for several years, and I am delighted that he brought the heft of his intellect and  DOJ experience to the question of "wireless net neutrality" in his white paper:

• "Hanging up on Carterfone: The Economic Case Against Access Regulation in Mobile Wireless."  

For anyone who cares about the merits or substance of net neutrality as a proposed public policy, it would be hard to find a better debunking of Columbia Law Professor Tim Wu's sophomoric and vacuous work on wireless net neutrality than Marius'.

The WSJ yesterday had an illuminating interview with David Rosenblatt CEO of DoubleClick about its acquisition by Google.  

Mr. Rosenblatt engaged in some pretty effective "spin" so I thought it would be helpful to shine a brighter light on some of his pat answers that were... how should I say it... less than forthcoming.

In response to a question about whether he could reassure web publishers that Google did not have too much market power, he said: "Google shares revenues with publishers so it makes sense that their interests are pretty much aligned." 

I recommend listening to Larry Irving's, (President of the Internet Innovation Alliance) keynote at the Killer App expo that can be heard by podcast.

•  On one point near to my heart, not taxing the Internet, Irving asked, "Why is telecommunications such a highly taxed product (3rd behind alcohol and gambling) when it's such an important tool for growth and competition?" Two of those products can hurt people, but better communications access can only help the economy.

He makes a great point. It makes no sense to tax an engine of economic growth as mucha s we do.