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Timothy Karr

Timothy Karr

Posted: January 21, 2011 11:03 AM

Verizon has a love-hate relationship with Net Neutrality. The company professes its love of the open Internet, but then tries to smother it with a pillow in the middle of the night.

The company's strained relationship with openness was evident yesterday when Verizon asked a federal appeals court to overturn an extremely weak Federal Communications Commission rule protecting Net Neutrality -- the principle that guarantees Internet users' the right to go where they want and do what they choose online.

Ironically, the rule in question, adopted by the FCC just last month, was modeled after a vastly unpopular "policy framework" drafted by Verizon and Google attorneys in August. (Nate Anderson of ArsTechnica lays out these similarities in graphic detail).

So why, then, is Verizon now challenging a rule that the FCC crafted to appease, well, Verizon?

Apparently, the company wants us to believe that its devotion to the open Internet is absolute, and that it simply doesn't require pesky rules to stay honest.

"Verizon has long been committed to preserving an open Internet and meeting the needs of our customers," said Michael Glover, its deputy general counsel, in a statement yesterday. He added, however, that the company's legal challenge was in opposition to the idea that the FCC be given any authority to test this commitment.

Like Comcast before it, Verizon is arguing that we simply need to trust that it will keep its promises and protect the Internet's democratic nature.

It's the same kind of trust that BP asked for when the oil company spent millions to lobby Washington for regulatory leniency in advance of last April's Deepwater Horizon disaster.

It's the same kind of trust that Goldman Sachs wanted when it spent millions to lobby Washington for regulatory leniency in advance of the 2008 mortgage meltdown.

In retrospect, it's crazy to think that this spin still finds an audience in Washington. But Verizon is actually arguing that Internet access, an essential pathway to economic growth and opportunity for millions of people, should be left entirely to its discretion, free from any checks against the type of blocking and discrimination that many Internet providers have talked about implementing.

In a widely reported legal contortion, Verizon's attorneys based the company's appeal on the notion that the FCC order changes the terms of its existing wireless spectrum licenses. These sorts of license appeals must be heard in the U.S. Court of Appeals for the D.C. Circuit, the same court that in April ruled that the FCC had overstepped its authority when it sanctioned Comcast for blocking legal file-sharing applications. This circuit is thought to be the most industry-friendly of the 11 circuit courts of appeal, according to Andrew Schwartzman of Media Access Project.

Trust them.

There's a simple reason we create regulatory public policy, and all of Verizon's claims shouldn't persuade the court or the FCC otherwise. It's this: The only thing you can trust about Verizon is that it seeks to boost its bottom line and serve shareholders by any means possible. That's the nature of corporations. And naturally, the public shouldn't expect corporations like Verizon to put our best interests first.

Sound public policy is designed for that role -- to make corporations behave in ways that don't harm the rest of us without driving them out of business.

What will keep Verizon honest and committed to an open Internet are clear rules of the road and a real watchdog to enforce them.

 

Follow Timothy Karr on Twitter: www.twitter.com/TimKarr

 
 
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09:37 AM on 01/22/2011
The consumer never wins.
04:20 AM on 01/22/2011
That's a bad conclusion Tim, who's watching the 'real watch dog.' We the people voted for no one in the FCC, 325mil budget with a very limited accountability to 'the public.' You should take an objective look at how gov regulation actually influences industries. In all cases they make entry into the industry more difficult, tend to be written by groups representing the industry players of the industry to be regulated, and the regulating body always has a revolving door to industry leaders. I would rather have 'the public' choose to do business Verizon because they like the products or service that they provide, or in true 'democratic' fashion, choose to not do business with Verizon. Trust them! Trust the people Tim. The FCC does not have the answer, nor does Verizon, but the masses of individuals all have their own answer that works best for them, and by choosing Verizon, or a competitor, we have an answer.
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arkymorgan
Nobody knows the trouble I've been...
10:58 AM on 01/22/2011
To increase 'truth in advertising' we should reword 'we, the people, to 'we, the corporation'.

At least we would be spared all the masquerading hype and distruths.
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xanas
libertarian, voluntarist, anarchist
10:59 PM on 01/21/2011
Verizon is doing what is expected of a corporate ally of government, it's trying to extract favors from government in exchange for favors to government. This is the corporatism that you get in a hampered market economy.

There is no free market in internet access or anything close to it. Net neutrality is no positive, as it only imposes even more regulations which will lead to further cartelization of the industry. If you want more businesses of a certain type you have to leave room for diversification, and net neutrality limits the diversity of providers. There's only so many different ways to differentiate your ISP from someone elses ISP.

Having municipalities pay for the networks is not a solution, this simply makes tax payers pay the costs, many of whom have no interest in the network, so you are using others money for something from which they will not benefit. People should pay for what they want and not force others to pay for it.
12:05 AM on 01/22/2011
No one is suggesting that municipalities "pay for" the networks. I'm suggesting that municipalities build and maintain the transmission links (the industry term is "dark fiber") and recover all its costs by leasing it to the competitive private companies that actually provide network services to customers.

We've done this with roads for centuries and only the most over-the-top libertarians would call that "socialism". Indeed, people can easily see that it would be a very bad idea for UPS or any private entity to own all the roads and make all the rules. If that's not obvious, study the history of the railroads in the 19th century.

A reasonable alternative to municipal ownership of the fiber plant would be private ownership by a regulated common carrier banned from end-user services, either directly or through a subsidiary. That restriction is crucial; the FCC allowed the telephone companies to sell DSL on an "arms length" basis, and that turned out to be a huge mistake.
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xanas
libertarian, voluntarist, anarchist
01:08 AM on 01/22/2011
Well, I am a voluntarist/anarchocapitalist, and you can call me an over-the-top libertarian if you prefer :)

I think government has poorly managed roads. A monopoly on the production and maintenance of roads has many problems. http://mises.org/daily/3416
03:27 PM on 01/21/2011
Network neutrality (or the lack thereof) is just a symptom of the real problem: insufficient competition in local broadband transmission. With a real choice of Internet providers, you could switch if you don't like the policies of your current provider.

Ideally, municipalities should deploy "dark fiber" networks just as they now build and maintain roads. The actual service would come from commercial companies leasing non-exclusive access, just as taxi and trucking companies now pay to use the roads and compete with each other.

But whenever an enlightened town tries this, the Verizons and AT&Ts scream "socialism!" and run to the state house to outlaw it. What are they so afraid of?
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Bryan Boru
Engineer, Libertarian
07:39 PM on 01/21/2011
Your solution is too sensible.
03:17 PM on 01/21/2011
Agreed. Businesses deserve absolutely no trust.

They also should have no voice in our government, because there is nothing a business can be trusted to do with a voice in government except damage that government to generate profit.
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RS
I think, therefore, I don't listen to Limbaugh
01:29 PM on 01/21/2011
From Tim's article:

"The only thing you can trust about Verizon is that it seeks to boost its bottom line and serve shareholders by any means possible. That's the nature of corporations. And naturally, the public shouldn't expect corporations like Verizon to put our best interests first."

AMEN. And because the Supreme Court has recently ruled that corporations are also people, the public also should NOT expect Chief Justice John Roberts and his fellow rightwingers (Scalia, Thomas, Alito, and Kennedy) to consistently put OUR best interests first.

'Nuff said.
02:07 PM on 01/21/2011
Don't forget, YOU are a corporation as well, as long as your name on the court documents are in ALL CAPS.

Thing is, we as a country are too busy yelling "liberal" and "republican" at each other to stop things like this, and that's how they like it. Divide and conquer.

I'm sure it'll fall on deaf ears here at huffington though, as everyone seems so blinded by party loyalty on here they can't even see the real enemies, or are just too ignorant to connect the dots..

WAKE UP SHEOPLE! Internet 2 is coming fast.
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RS
I think, therefore, I don't listen to Limbaugh
08:28 AM on 01/22/2011
It all boils down to WHO CONTROLS THE MEDIA Shneezy. Always remember: HE WHO CONTROLS THE MEDIA CONTROLS THE MASSES. Keep in mind: about 90% of the mainstream media today is controlled by only five rightwing Republicans:

Jeff Bewkes (Chairman & CEO of Time Warner)
Bob Iger (Chairman & CEO of Disney)
Rupert Murdoch (Chairman & CEO of News Corporation)
Sumner Redstone (Chairman & majority stockholder of Viacom & CBS Corporation)
Jeff Immelt (Chairman & CEO of General Electric)
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VintageMary
01:28 PM on 01/21/2011
I wouldnt trust Verizon, or any large media/communication companies to any degree.
12:23 PM on 01/21/2011
The FCC's order is un-tethered from Congressional authority, and stands against 1st & 5th amendment rights of network providers.
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AntiClast
If it ain't broke, don't break it!
12:58 PM on 01/21/2011
I have the right as a paying consumer to see what I want. I don't, so far, have a choice of network provider. So I can quit a provider who makes it unbearably slow to see anything I want.
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smarti
some opinions need a breath mint... try a smarti!
01:59 PM on 01/21/2011
believing that "network providers" (or any other corporation) are citizens due the same bill of rights protections as actual persons is a central problem in this nation.
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GregCoyote
12:14 PM on 01/21/2011
Trust? The phone company? Are you crazy?
Let's just trust the criminals in jail. That way we can just let them all go and save millions.
There is never been, nor never will be a phone company that can be trusted. Money is at the base of ALL decisions these companies make. As long as we remember this and regulate for the consumer, we are okay...but never, ever trust them.
11:45 AM on 01/21/2011
Tim, you're wrong again. Placing the word "evil" or "profit-seeking" before your reasoning does not make your argument correct. Verizon has a case - the FCC is beyond its legal authority; it is acting ultra vires to the Communications Act and the US Constitution, as I have blogged on here:

http://mediafreedom.org/2011/01/as-expected-verizon-appeals-fccs-net-neutrality-order/
11:44 AM on 01/21/2011
The internet is not broken - please don't try to "fix it". I don't want the almightly big government to screw up a good thing.
03:15 PM on 01/21/2011
Net neutrality doesn't change anything about how the internet has historically worked. In fact, it enshrines into law a set of agreements vital to the function of the internet - a set of agreements that companies have started to violate in order to generate more profit.

Basically, net neutrality is when an internet provider says, "I will handle everyone's traffic equally."

What we're seeing is businesses getting the bright idea to say, "Hey, if you pay me extra, I'll give your traffic a little... boost." bribery on the internet. Or, worse, "Hey, pay me extra or I'll dump your traffic," blackmail on the internet.

These things are unethical and should be illegal - but they're _profitable_, so businesses absolutely will do them (and have started to already) unless they are stopped by the force of law.
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Sarad
11:37 PM on 01/21/2011
Indon, you have summed up beautifully and eliminated all the fluff produced by the ISPs. Thank you.
11:46 PM on 01/21/2011
I don't object to networks giving priority to some traffic over others. The real question is WHO DECIDES which traffic is more or less important. I.e., the issue is not mechanism but policy. As long as the policy is set by the end user who's paying the bills, then it's a good idea.