Implications of Google's Broadband Plans for Competition and Regulation -- Part 1 Modernization Consensus Series

Google's latest broadband pilot, experimenting with micro-cell (mesh) wireless broadband in its Mountain View headquarters, comes on top of Google Fiber's high-profile, commercial broadband pilot in Kansas City, that Google's CFO recently told investors was not a "hobby" but a real business opportunity.

These broadband pilots put a spotlight on Google's overall broadband plans and beg an analysis of the potential implications of Google's broadband plans for competition and regulation.

Summary of Conclusions:

  1. Securing much-faster broadband access for its users is a strategic imperative for Google.
  2. Google can offer much-faster broadband access, more widely, less expensively, and potentially more profitably, than conventional wisdom believes.
  3. Competitively Google is counting on favorable industrial policy to accelerate rollout of its broadband offering in the U.S.
  4. The more Google offers broadband access the more it will need modernization of obsolete communications laws.
  5. Potential FCC Title II regulation of broadband could be the single biggest threat to Google's ultra-fast broadband plans.

 

Net Neutrality's Misrepresentation of Free Speech -- Part 6 Defending First Principles Series

In defense of the FCC's Open Internet Order, which unilaterally mandates net neutrality, four former FCC Commissioners and Professor Susan Crawford argue to an Appeals Court that Verizon and broadband providers should enjoy no broadband freedom of speech under the Constitution.

Why are many of the biggest political supporters of net neutrality focusing their legal defense of net neutrality on the constitutional freedom of speech argument and not the main event of the case, the Comcast vs. FCC precedent, i.e. does the FCC have direct statutory authority to regulate the broadband Internet?

The reason probably has a lot more to do with politics than the Constitution. That's because the net neutrality movement has long analogized and politically marketed net neutrality to be like an individual's freedom of speech under the U.S. Constitution -- in a desperate attempt to make an arcane regulatory pricing issue relevant to the public and to mask that it is a solution of preemptively restricting freedom without evidence of a real freedom problem.

The net neutrality movement has long misrepresented the American Constitutional notion of freedom of speech in the First Amendment of the Bill of Rights in two major ways.

The Google Lobby Defines Big Internet's Policy Agenda -- Part 6 Internet as Oz Series

Google not only dominates the web, the Google Lobby also dominates Big Internet's policy agenda in Washington in part via its new proxy, the Internet Association, the self-appointed "unified voice of the Internet economy."

Since market dominance attracts antitrust scrutiny, it necessitates lobbying dominance. The FTC's antitrust investigation prompted Google to hire twelve lobbying firms in a week and to rapidly organize them and legions of law and PR firms into one of the top corporate lobbying operations influencing Washington. Tellingly, a Wall Street Journal op-ed lionized "Google's $25 Million Bargain" lobby and Politico got behind-the-scenes to explain "How Google Beat the Feds."

Professor Crawford's Obsolete Public Utility Thinking for Broadband -- My Daily Caller Op-ed

Please see my latest Daily Caller Op-ed "Professor Crawford's Obsolete Public Utility Thinking for Broadband" -- here.

  • It's a critical review of Professor Susan Crawford's new book on broadband and media concentration.
  • It's also Part 16 of my Obsolete Communications Law research series.

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Obsolete Communications Law Research Series:

Note: Please see here for a summary powerpoint presentation of the problems with obsolete communications law.

Top Takeaways from FTC's Google Antitrust Decisions -- Part 16 Google Unaccountability Series

Summary of Top Takeaways from the FTC's Google Antitrust Decisions:

  1. Google's U.S. search bias win establishes a broad Internet-friendly FTC antitrust enforcement precedent.
  2. Google has already lost on search bias in the EU.
  3. Those harmed by anti-competitive behavior are now much less likely to seek redress from the FTC.
  4. The FTC effectively has redefined self-regulation to include self-enforcement too, establishing a new de-facto FTC "honor system" for potential Section 5 Internet antitrust problems.
  5. The FTC's decision effectively makes the FTC Section 5 authority largely irrelevant in Internet enforcement going forward.
  6. The FTC's Standards Essential Patents consent order means Google's core reason for buying Motorola has backfired and the primary perceived benefit of the acquisition is largely nullified.
  7. Google's 2013 enforcement risk is centered in the EU on antitrust, privacy and intellectual property.

1. Google's U.S. search bias win establishes a broad Internet-friendly FTC antitrust enforcement precedent.

Top Ten Unanswered Questions on FTC-Google Antitrust Outcome -- Google Unaccountability Series Part 15

The FTC's reported closing of its Google search bias investigation with no real enforceable settlement mechanism and a special new self-enforcement antitrust precedent apparently only available to Google, raises serious questions about the integrity of the FTC's law enforcement process and whether the FTC accords Google with special treatment not available to other companies.

This matter raises many more troubling questions than the top ten unanswered questions raised in this piece, but these questions zero in on many of the most glaring irregularities for Congressional overseers, the media and government watchdogs to follow up on.

The Uneconomics of Data Cap Price Regulation and Legislation -- Part 14 Broadband Internet Pricing Freedom Series

 

The latest attempts to subvert the competitive success of the current free market broadband Internet to advance the fantasy of abundance uneconomics and cost-less Internet commons is the New America Foundation's (NAF) white paper entitled: "Capping the Nation's Broadband Future? Dwindling competition is fueling the rise of increasingly costly and restrictive Internet usage caps;" and Senator Wyden's proposed "Data Cap Integrity Act" to have the FCC effectively price regulate broadband usage and ban traffic discrimination a la "net neutrality."

In a nutshell, the NAF paper argues competition, usage-based pricing and the profit motive ill-serve the broadband Internet consumer; thus the Government should prohibit the market-pricing model of broadband data caps.

In a nutshell, Senator Wyden's proposed legislation argues that broadband usage and tiered pricing harm consumers by discouraging Internet use, discriminating against high-bandwidth services, and inhibiting innovation because ISPs make money on heavy broadband usage. Thus the Government should price regulate competitive broadband companies to prevent extraction of "monopoly rents."