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Art Brodsky

Art Brodsky

Obama Tech Plans at Risk From FCC and GOP Congress

Posted: 01/27/11 05:05 PM ET

President Obama's State of the Union speech certainly hit quite a few high notes for the tech community. There were a half dozen mentions of the internet, shout-outs to Facebook and Google and a mention of better use of wireless technology.

He certainly set an ambitious goal: "Within the next five years, we'll make it possible for businesses to deploy the next generation of high-speed wireless coverage to 98 percent of all Americans." What he didn't say was that his Federal Communications Commission (FCC) chairman, Julius Genachowski, has sentenced all of those wireless users to a second-class Internet experience by leaving them out of the already vague Net Neutrality order the FCC issued in December.

By taking the short cut to Net Neutrality, Genachowski bought off AT&T, but put into legal jeopardy not only Obama's National Wireless Initiative. He also the president's vision of a broadband-charged American economy. There are considerable questions whether the FCC has jurisdiction over high-speed broadband, wired or wireless, and it would need that authority to implement any new programs. Had the Commission simply reclaimed its authority over broadband, the FCC would have been on firm legal ground.

Obama's vision will be difficult to achieve given the FCC's reticence and the vehement, if ill-informed criticism of the agency from Capitol Hill that could stifle progress toward achieving the president's goals.

In a couple of weeks, the new Republican majority in the House will start hearings on the FCC Net Neutrality policy with an eye toward passing legislation to nullify the rules, with the blowback also sabotaging Obama's high-tech vision if the GOP succeeds in keeping the FCC away from authority over broadband. The House majority already officially opened its campaign against a free and open Internet, with the two leading lights, Rep. Marsha Blackburn (Tenn.) and Mary Bono Mack (Cal.) out in front with speeches and petitions.

GOP Commissioners Back Net Neutrality

But before we get to them, let's share a little secret. Don't tell Blackburn or Bono Mack, but two Republicans have already voted for Net Neutrality. They can fudge it all they want, but the two Republicans on the FCC, Commissioners Robert McDowell and Meredith Atwell Baker, cast their votes for the Comcast takeover of NBC. And in that takeover order was a merger condition, enforceable by the FCC, for Comcast to run a non-discriminatory, neutral network according to the relatively nebulous FCC rules for seven years, even if those rules are overturned in court.

McDowell and Baker tried to qualify away their support in their brief, five-paragraph, one-page statement, calling the merger conditions generally "excessively coercive and lengthy," among other adjectives. (Note: Commissioner Michael Copps' dissent was three pages long.) They even "concurred" rather than actually voting "yes" for the merger.

The FCC, attentive to the GOP sensitivities, didn't even mention the Net Neutrality condition in its news release on the merger. No matter. The bottom line is that the Republican commissioners voted to require the country's largest Internet Service Provider to follow Net Neutrality rules for seven years in order to allow the largest media takeover in history to go through. OMG.

And how did Wall Street, the bastion of capitalism, take to the news that Comcast's broadband access service, worth $8 billion, would be subject to Net Neutrality rules for the next seven years? Comcast stock went up all last week after the approvals of the merger, with investors apparently not worried about a "government takeover of the Internet."

Hill Republicans Oppose Net Neutrality

Unfortunately, Blackburn and Bono Mack, along with their other House colleagues, are not persuaded by either the Republican FCC votes, Comcast's acceptance of conditions that failed to cause the end of the world as we know it in past telecom mergers, nor by the collective Wall Street yawn. Instead, they declare war.

Bono Mack has on her campaign website a "Petition to Stop the Government Takeover of the Internet." All the stock phrasing is there. Let's take inventory. "Unaccountable boards, commissions and bureaucrats." Check. "Regulate the Internet." Check. "Government overreach and intrusion." Check. Threats to free markets, innovation and technology. Check, check, check. Regulations "forced on the private sector." Check. None of it bears any relation to reality, but it sounds good to a certain audience.

The most fundamental misunderstanding, of course, is that the FCC wants to take over the Internet. It doesn't. The talking point, while appropriately inflammatory for the target audience, is simply wrong. There is no "takeover" of the Internet. A "takeover" raises the spectre of government control of content, directing which companies, sites and services can operate and which can't. Nothing like that is even remotely happening, and it is irresponsible to suggest that it is. It's just the opposite. The future of innovation and technology and personal freedom have been fostered by an open Internet -- the kind that Bono Mack doesn't want to have protections.

The "government takeover of the Internet" nonsense only helps the incumbent Internet Service Providers (ISPs) take control of the Internet, but few in Congress seem concerned about that. Obama was right on target when he pointed out: "Our infrastructure used to be the best, but our lead has slipped.  South Korean homes now have greater Internet access than we do."

The incumbent protectors in Congress are doing a great job helping us slip further behind, but are doing nothing to help the U.S. get ahead. According to the latest "State of the Internet" quarterly report from Akamai, the U.S. ranks 12th in broadband speeds, with South Korea leading the way. Of the top cities with highest broadband speeds, South Korea claimed 12 (including the top 11), Japan 8, and the best U.S. city was 57th. The picture isn't pretty, and it gets uglier when one realizes that the slippage comes when the broadband carriers are totally deregulated. There is no excuse for the regulatory structure holding them back. There are no regulatory incentives not to invest, thus proving the point that crimping the FCC, as the Congressional opponents want to do, has nothing to do with broadband performance.

Blackburn, on the other hand, was a keynote speaker at the prestigious State of the Net conference, and delivered a seven-page speech. She took the same rhetorical path, and added a few twists of her own, while accidentally touching on the reality of what the FCC does. Her speech is filled with inaccuracies, contradictions, and misunderstandings.

Congress Unclear on Its Role

The most fundamental contradiction is that government should stay out of the Internet -- unless we (Congress) say it's important. At the same time that Blackburn calls for "small government," etc., she also wants government protection for intellectual property. In the past, she has chastised the FCC for not including more protections in the National Broadband Plan. The FCC has absolutely no jurisdiction over intellectual property, and yet here comes Blackburn to expand that jurisdiction.

She touches on one of the great contradictions when it comes to what Congress wants the FCC to do. Not long ago, 90-some members of Congress signed a letter to the FCC saying the Commission shouldn't act to protect Internet consumers in an area clearly under the agency's jurisdiction. Not long ago, 90-some members of Congress signed a letter to the FCC saying the Commission should hurry up and approve $30 billion Comcast takeover of NBC. Why should the FCC not do one and not the other? No rational reason, except perhaps for the money and power behind both appeals.

To be fair, she is inadvertently clear about what the FCC does and is supposed to do. In her speech, Blackburn recognized that the FCC regulates the "means of transmission," which she incorrectly calls the "least important part" of electronic commerce. It's good that she accepts what the FCC can do. It's not good to see transmission as the "least important" part. It's the most important. If one company, say Verizon, can wedge itself between customer and the customer's transaction, then true commerce, and Internet freedom, is at risk.

If she concedes the FCC regulates transmission, then what's the problem with the Commission setting rules for transmission that protect consumer rights? That's why FCC jurisdiction over transmission is important. The Commission isn't assuming it regulates "online commerce," as Blackburn suggests. It is sticking to what it can do under the law. No one has said the FCC wants to take jurisdiction over online commerce, nor to the platforms where commerce takes place. That's simply a false argument trotted out time and time again.

None of these fake arguments would be important, except to the extent that Blackburn, Bono and others are going to try to write legislation to keep the FCC from protecting consumers who use high-speed Internet access services. They want to nullify the FCC's authority over broadband. If that happens, then the good things that FCC opponents say they want to happen -- the maximum freedom for online commerce, innovation -- will constantly be under threat with no remedy in sight. And any FCC plans to expand broadband deployment will be jeopardized.

A neutral Internet was good enough for the two Republicans on the FCC to swallow. It was good enough for Comcast and AT&T to agree to. It should be enough for their colleagues on Congressional forces would let it go forward. Capitol Hill as well. A broadband-charged economy is good for everyone. If only those same

 

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HUFFPOST SUPER USER
Nosybear
Liar, damn liar, statistician and brewer
06:11 PM on 01/28/2011
And excessive prices. By allowing content and distribution to be owned by companies, not splitting them, there is little competition leading to the formation of the infamous duopolies. For an example of duopoly pricing, look at Coke and Pepsi. Isn't it strange that they never run a special simultaneously? Our internet is slow and expensive, kind of like our health care system, when compared to the rest of the world. Split content and distribution!
09:56 PM on 02/07/2011
what are you talking about "duopoly" by Coke and Pepsi, lol...there must be hundreds of brands of soda out there - i buy 3 liters of soda at the Dollar Tree (yes, for $1) or 2-liters at Walmart for 60-70 cents each...but if you're a brand snob and must for some reason have Coke or Pepsi, there are so many sales(12-pk) buy2get2 or buy2get3 deals going on all the time, whether its Target or Safeway or Walmart or Albertson's or Rite Aid or Walgreens or CVS whatever, they're ALWAYS ON SALE....and half the time its damn near FREEEEEE....jeebus, get a clue...

and if you don't believe me just check out Slickdeals or Fatwallet in the Drugstores/B+M section...
ThatsTheTheWayItIs
religion, ideology, partisanship are delusional
11:09 AM on 01/28/2011
This again - bogus. Net neutrality is video on your cell phones. That's all it is, whether cell operators can selectively enhance the performance of some sites. Whether they control the protocol between the cell towers they built, and the phones they sell. Whether they own their own cell service, or whether the FCC does.

Net neutrality is guaranteed in the FCC ruling, but an exception was given to cell operators. Cable, fiber, satellite, WiFi - net neutrality is mandated on all of them. Cell networks were exempted because they are incredibly slow, built and owned by the companies, and run a private protocol anyway.

Most important, we have competition for cell phones. If you don't like your cell service, switch carriers. We broke up the Bell monopoly because we believed we were better served by competition than regulation. I think that was a mistake, but we now have to act on that basis and let competition do its thing. If it doesn't work, then we'll need to add regulations. And no, it won't be too late then. Nobody is going to set up any monopoly in this space, it's changing too rapidly. That includes Facebook, they'll be like myspace in a few years. Everything in high tech is obsolete every five years.

PS I've been a software engineer since '72, used the Internet since '85, did some work on the first browser (Mosaic), extensive work on video over networks, have a patent related to it. I know the technology, likely much better than the author.
kaisrolls
10 cents/dozen
10:40 AM on 01/28/2011
I am experiencing a very familiar communication problem...my broadband connection keeps going on and off. Yeah, I'm rural, about 40 miles North of the capitol of NYS. Gee whiz, you'd think maybe there's room for improvement? WOW! FRUSTRATING! It's wireless --- and nothingness all rolled into one. Try posting a comment, or seeing it posted, with THIS BS going on!
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Deus Angelus
10:32 AM on 01/28/2011
We assumed corporatio­ns would do the right thing when we gave them the rights of people how did that turn out? We deposited our money in the banks with the good faith they would give us a return on investment how did that turn out? We trusted Wall Street with our pensions how did that turn out? We gave the big business tax breaks and they promised us they would create jobs and spur investment. What return did we get for those tax breaks......record deficits and bailouts!!!! So now we are handing them the internet what do you think is going to happen?

You still want to trust the corporatio­ns?
10:31 AM on 01/28/2011
The Order doesn’t regulate the Internet? C’mon, Art. The very first paragraph of the Order puts paid to your assertion:

“Today the Commission takes an important step to preserve the Internet as an open platform for innovation, investment, job creation, economic growth, competition, and free expression. To provide greater clarity and certainty regarding the continued freedom and openness of the Internet, we adopt three basic rules...”

That it will be contained at just network providers is bunk. Guys like Frank Pasquale have been chomping at the bit for this Order because he sees it as a beachhead to establish a Federal Search Commission for “near monopolists” like Google.

And, what about the new OVD regulation? As Susan Crawford writes, in the Comcast Order the FCC got pretty, well, creative. Welcome to the slippery slope of Internet regulation.

Notes Crawford:

“…big lawyerly moment [which] happens on p.4: the creation of the new acronym for the imagined market on which the agencies have focused so much attention. Right there, FCC says that a group it calls “online video distributors,” or “OVDs,” have concerns.“

Public Knowledge and others were thick as thieves at the FCC in helping to create the new category / the new OVD regulation. And that won’t be used to regulate the Internet beyond simply hamstringing Comcast? C’mon.

You don't get it. Network providers are unsung heroes, which I have blogged about here:

http://mediafreedom.org/2011/01/network-providers-are-americas-great-unsung-moral-actors/
10:01 PM on 02/07/2011
there's your near monopoly - Google...why is it nobody complains about them though? because they supporting the dems? hmm...

Genachowski needs to be fired for overreach...
08:34 AM on 01/28/2011
A five year plan? That sounds familiar. I'm glad we're loaded up with all these new ideas here in the 21st century.
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mdmccormick
I am tired of this BS
08:19 AM on 01/28/2011
Much like the money in the SS system is the last that the Wall Street crooks have not been able to get their hands on, so net neutrality is the last source of information dissemination that the top 1% do not control. We can not afford to lose either.
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Rightlygay
Already EQUAL
09:51 AM on 01/28/2011
Wall Street is probably not too interested investing a bunch of IOU's.....all thats left of the social security trustfund.....
This user has chosen to opt out of the Badges program
03:44 PM on 01/30/2011
Those IOUs are backed by the full faith and credit of the United States government. They're as good as anything in this country gets.
07:16 AM on 01/28/2011
Only policy that is approved by the plutocracy will be approved.

Who in the room still believes the U.S. today is any better than the Soviet Union?
02:25 AM on 01/28/2011
President Lincoln is still the only US President ever to hold a patent. And he understood the value of profits in making progress.

A quote from Lincoln now appears on the facade of the US Patent Office.

"The patent system adds the fuel of interest to the fire of genius."

It really can't be said better than that. If we want progress, if we want innovation, if we want new technology, we should follow Lincoln's counsel and protect the PROFITABILITY of doing so.

Maybe with Net Neutrality, there will never be a push for ultra-high-speed internet infrastructure. After all, who's going to spend billions building, maintaining, and improving infrastructure if they can't even guarantee that their own company will benefit?

If Comcast could carve out a high speed pipeline with which to deliver pay-per-view content, they might want to build that infrastructure. They might want to develop new, better technologies. They might want to do a lot of things to create new markets and new possibilities.

By protecting the profit motive, you open the doors for millions of people around the country to move forward. Net Neutrality assumes that the government knows best, that we should look to the past instead of the future, and that profit is inherently bad despite what Lincoln knew about it.
10:24 AM on 01/28/2011
Totally agreed with this!
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chuck becker
02:12 AM on 01/28/2011
When the Internet fails, Ham radio will carry the vital communications.  Any one, any community, any organization that depends on the Internet to stay connected will eventually find itself disconnected, isolated, and alone.  Enjoy, but beware.  The Internet, particularly an Internet under the control of both government and corporation, is a flip of the switch aware from deathly silence.
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NebDem78
Basai Master
02:42 AM on 01/28/2011
I do not own a Ham, but they are a must for the survivalist.

"The Internet, particular­ly an Internet under the control of both government and corporatio­n, is a flip of the switch aware from deathly silence."

I agree, but for the time being they need the revenue and the people in their computer seat. Btw, I got a comment from you last night, but for some reason the moderator did not allow it to clear. I can recall a little bit from it and I agree, we both have the same mixture in our political thinking: Liberal on social issues, and a little conservatism on economic issues. Living in a Red State has crafted me this way.
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chuck becker
03:41 AM on 01/28/2011
I think the mods periodically get swamped.  I have received several responses from posters here that I was glad didn't get cleared.  I remember writing that note to you, maybe it just got lost in the crush.

A community (100-1000 people or so) only needs one Ham operator to stay in touch with the rest of the world, no matter what happens.  I'm not a Ham, either, but I do have a GMDSS (global maritime distress safety system ... ie; non-Morse radio) license.  It was a real challenge, passing that test.  I've known a lot of commercial radio telegraph operators, and learned a lot from them, too.  http://wireless.fcc.gov/commoperators/index.htm?job=t1  25 words per minute by radiotelegraphy sounds crazy.

Yup, I grew up in an, at the time, red region of a very blue state.  It's schizophrenic, now bluer than blue with a redder than red undertone.  Here's the local paper I grew up with: Anderson Valley Advertiser.  It was a very different place when I graduated and left town in 1968.
kaisrolls
10 cents/dozen
09:42 AM on 01/28/2011
Believe me when I tell you that if you think your HAM radio is secure, think again. Without the FCC having the power to fine and or imprison someone or some entity for messing with your communication, you'll be at the mercy of that person's or entity's possibly jamming your communications. Don't think it can't be done.
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chuck becker
01:07 PM on 01/28/2011
See my point above about jamming a dozen, or a few hundred packet switched networks versus the impossibility of jamming thousands of packet switched networks.  Complying with FCC regs is logical, it keeps the system working smoothly, with maximum efficiency of bandwidth.  Nobody relies on the FCC to keep some mysterious extra-governmental entity from jamming their communications.  And if someone tries, there are a multitude of countermeasures.

Ham radio may not be ideal, but when my segment of the Internet goes down, it keep communications open while those who don't have access are looking at "Unable To Load Page" errors.
10:10 PM on 02/07/2011
who do you think is going to jam these signals? if anything it will be the gov't or some gov't entity(Nat'l Guard, FEMA)...in time of emergency nobody else will have the power or organization...or maybe you think Guido down the street is interested in jamming YOUR ham radio...yeah right...
10:52 PM on 01/27/2011
Why exactly do you think that the FCC should have authority over broadband?

DSL/Cable/Wireless broadband communication from you to your ISP are intrastate end to end.
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Martin Privat
for evil to triumph, good men need only do nothing
11:12 PM on 01/27/2011
DSL/Cable/­Wireless broadband communicat­ion from you to your ISP are intrastate end to end-

This may be true but what about the back-haul that links you to websites like this one for instance. Those are interstate. All you have to do is trace-route a website to see how many hops it takes to get from your home to the server serving the information to you which in most cases is interstate. If it IS interstate then the FCC does have authority.
If the FCC doesn't have control are we supposed to rely on ISP's to do the right thing. Yeah right. If doing the right thing means doing what is right for their shareholders then you are bang on accurate.
08:42 AM on 01/28/2011
Except what we're doing here isn't commerce. Could the FCC assert control over that? Will it start policing speech as it does now with radio and television? Is that where you want the internet to go because that is where it will end up. Why do you assume that ISPs are evil yet FCC commissioners are angels? At least I can change ISPs. Unfortunately, I'm stuck with the FCC.
09:43 AM on 01/28/2011
The commerce between you and your ISP is for broadband communication *to them*.

The interstate communication that occurs "on top of" that link is interstate, but it is not what you are paying the ISP for. You pay the ISP for broadband communication to the ISP.

This has already been worked out years ago.

Why do you automatically assume that the FCC will do the right thing but ISPs won't?
10:18 PM on 02/07/2011
besides that the FCC only has authority over the "spectrum" because the spectrum is limited....there are no limits to cable/dsl/etc and there is no reason for the FCC to get involved aside their lust for more power(Genachowski)...what they also want to do is control free speech(or at least speech that they don't like) on the internet...they're trying to control the blogs and the forums...and this admin has been accused of having people on staff who's job it is to post in bb forums...wouldn't surprise me a bit...wonder how many thousands(hundreds of thousands) of gov't cubicle "workers" spend most of their day surfing the internet anyway, whooping it up for higher benefits and pensions for themselves....oh yeah, this is the huffington post, prob a lot of them on here right now...
10:07 PM on 01/27/2011
Why does Marsha Want Congress to Regulate the Internet? Why not just say NO FEDERAL branch (the FCC and congress and the federal courts included) has any authority to decide or rule on any aspect concerning the Internet?

BUT Marsha Blackburn did Vote FOR: Patriot Act Reauthorization, Electronic Surveillance, Funding the REAL ID Act (National ID), Foreign Intelligence Surveillance, Thought Crimes “Violent Radicalization and Homegrown Terrorism Prevention Act, Warrantless Searches, Employee Verification Program, Body Imaging Screening, Patriot Act extension; and only NOW she is worried about free speech, privacy, and government take over of the internet?

Marsha Blackburn is my Congressman.
See her “blatantly unconstitutional” votes at :
http://mickeywhite.blogspot.com/2009/09/tn-congressman-marsha-blackburn-votes.html
Mickey