Tag: "federal government"

Posted July 16, 2014 by lgonzalez

Last night, GOP Representative Marsha Blackburn, introduced an amendment intended to destroy local authority for telecommunications investment by severely limiting FCC funding. The amendment, introduced during debate on H.R. 5016, targets 20 states, many with state-erected barriers already in place and/or municipal networks already serving local communities.

The vote was postponed but is expected today (Wednesday) at approximately 2:30 p.m. ET. Now is the time to call the D.C. office of your Representative and tell him or her to vote NO on this amendment. If your Rep has a telecom staffer, ask to speak to him or her first.

The text of the amendment is as follows:

AMENDMENT TO H.R. 5016, AS REPORTED OFFERED BY MRS. BLACKBURN OF TENNESSEE

SEC. ll. None of the funds made available in this Act to the Federal Communications Commission may be used, with respect to the States of Alabama, Arkansas, California, Colorado, Florida, Louisiana, Michigan, Minnesota, Missouri, Nebraska, Nevada, North Carolina, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, Washington, and Wisconsin, to prevent such States from implementing their own State laws with respect to the provision of broadband Internet access service (as defined in section 8.11 of title 47, Code of Federal Regulations) by the State or a municipality or other political subdivision of the State. 

Multichannel News reports that New York DFLer Jose Serrano reacted the way we hope all Members will when it is time for the vote:

Wheeler has argued that those laws were the result of incumbent broadband providers using their lobbying muscle--he used to be one of those himself as president of the National Cable & Telecommunications Association--to try to block competition.

Rep. Jose Serrano (D-N.Y.), who rose in opposition to the amendment, agreed with Wheeler, saying that the issue is about allowing cities to operate without cable company lobbyists stopping them.   He said the amendment was an attack on individual rights of citizens speaking through their local leaders. "This is to stop states...from...

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Posted January 26, 2012 by christopher

I recently stumbled across a great point regarding the spectacular failure of the US (mostly the FCC, but Congress should certainly share some of the blame) to properly regulate broadband connections to the Internet. US policy results in a few massive providers dominating the market. Fred Goldstein, a principal of Interisle Consulting Group, wrote the following:

In truly competitive markets that display some degree of commodity-like characteristics, large and small vendors tend to coexist. I'm drinking coffee right now, which is a good example. Maybe Maxwell House and Folgers (and their parent companies) have a large share of the market, competing on price for their swill. But there is plenty of room for others to differentiate their product. Dunkin and Starbucks have built huge chains on their own style of semi-premium product, while another couple of niches of premium and superpremium beans are easy enough to find. Food markets tend to be like this; check out any Whole Foods (a/k/a The Museum of Modern Vegetables) for a supply of priced-above-commodity products. I feel foolish for selling most (not all, thankfully) of my Whole Foods stock when it was in the dumps a couple of years ago.

The same thing happens in many fields. Apple itself sells computers above commodity price levels. There's a whole "high end" audio business catering to those who like to show off how much they can afford to spend. The automobile industry has mass-market commodity cars and several premium tiers.

Internet access in the US lacks that because the natural monopoly on outside plant is not properly regulated. If it were treated here by EU norms, then any number of ISPs could access the wire. Some would just be cheap; some would offer premium help desks among their services. That doesn't happen, however, when the usual number of "competitors" is two. Even more so when those competitors agree that they should divide up markets between themselves rather than overbuild, or (heaven forbid) let outside information providers onto their facilities.

The wire should be regulated. ISPs shouldn't.

Amen. Physical connections are a natural monopoly. Even if the economics supported many physical providers, having so many would be terribly inefficient. Much better to have networks that are owned by the community and have independent service providers competing to deliver services -- just like the roads.

Posted January 10, 2012 by christopher

One of the reasons community broadband networks face so many unique hurdles (often created deliberately by states in response to cable/dsl lobbying) is because of the many ways in which campaign finance corrupts our national and state governments.

Community broadband networks are focused on meeting community needs, not sending lobbyist armies into Washington, DC, and state capitals (though one of things we do at the Institute for Local Self-Reliance is offer help to those that do push pro-community agendas in these areas).

To understand why DC is so focused on furthering the corporate agendas of AT&T, Comcast, Time Warner Cable, and others, is to understand the revolving door. (Also, understanding capture -- which we have explained previously.)

In short, many of the people who make decisions about telecommunications policy in DC have worked, will work, or are presently working for the massive companies that effectively control access to the Internet in most of America's communities.

The good folks at Geke.US have created the following Comcast Venn Diagram illustrating a small piece of the DC revolving door.

Comcast and DC's revolving door Venn Diagram

Reforming this system is a deep, seemingly intractable problem. But for those looking for answers, a good place to start is with the work of Lawrence Lessig. I just finished his Republic, Lost, which offers a grand tour of the problems resulting from the present system of campaign finance.

You can also see a number of his presentations here.

His organization, the Rootstrikers aim to get to the root of problems rather than being distracted by trying to fix symptoms of deeper problems. This is precisely what we do with our focus on community networks.

Many focus solely on resolving digital divide issues, improving rural access to the Internet, lowering the cost of broadband, or the various other problems that result from narrowly-focused private corporations owning and controlling essential communications infrastructure with...

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Posted December 20, 2011 by christopher

It is hard to avoid becoming cynical when watching the federal government interact with big corporations like AT&T. So when AT&T announced it would merge with T-Mobile, giving AT&T and Verizon a combined 3 out of 4 cellular subscribers, I thought two things:

1) What a terrible idea. Higher prices, fewer jobs, less choices, etc.

2) The Federal Government will likely not prevent it - instead opting for some minor concessions that no one will bother to enforce.

Sometimes, it is very good to be wrong.

Cecilia Kang of the Washington Post, decodes the language from Wall Street to explain the biggest winner from the federal government blocking the merger: consumers.

“Without the combination, we think the wireless industry will be further weakened by continued hypercompetitive activity, particularly regarding subscriber acquisition costs,” said Nomura Securities analyst Mike McCormack.

That means customers can still get lower rates as the industry competes for their dollars. T-Mobile, for example, will continue to be a low-cost competitor, according to consumer advocacy group Consumers Union. A survey showed that data plans from T-Mobile were $15 to $50 less per month than those offered by AT&T.

An excellent reminder that what is best for Wall Street is not what is best for the 99%. Big companies like AT&T find competing for customers a hassle that lowers their profits -- they consider a market with four sellers to be hypercompetitive. In wireline, they have acquiesced to the "competition" of two competitors -- cable and DSL.

This is one reason communities build their own networks -- the private sector is not truly competitive when it comes to ISPs and most communities have no prospect real of improvement absent a public investment.

But we should rejoice in this victory -- because we earned it. Without the hard work of many grassroots groups, it is hard to imagine the Department of Justice or FCC standing up to such a powerful corporation.

Some quotes from some of the many organizations responsible for protecting the 99% of us who don't benefit from higher prices and fewer choices.

Andrea Quijada of the...

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Posted December 14, 2011 by christopher

I've censored the following, in protest of a bill that gives any corporation and the US government the power to censor the internet--a bill that could pass THIS WEEK. To see the uncensored text, and to stop internet censorship, visit: http://americancensorship.org/posts/15925/uncensor

████████, a █████████████ █████████ ████ ███████ if it ██████ █████ the ████████ in an ██████ to ████ ███████ ████ ████ as ██████ and █████████ ████████████. █████ the ██████ to the ████████ is ███████████, it ████ ██████ █████████ ████ no ██████ on █████ who do not ███████ █████████.

Uncensor This

Posted December 9, 2011 by christopher

If you aren't familiar with SOPA - the "Stop Online Piracy Act" or its companion in the Senate (called PIPA or Protect IP), you should be. This is legislation that would allow the US government to require Internet Service Providers block web sites without due process. Sascha Meinrath and James Losey from the New America Foundation explain the threat in Slate:

The interconnected nature of the Internet fostered the growth of online communities such as Tumblr, Twitter, and Facebook. These sites host our humdrum daily interactions and serve as a public soapbox for our political voice. Both the PROTECT IP Act and SOPA would create a national firewall by censoring the domain names of websites accused of hosting infringing copyrighted materials. This legislation would enable law enforcement to take down the entire tumblr.com domain due to something posted on a single blog. Yes, an entire, largely innocent online community could be punished for the actions of a tiny minority.

If you think this scenario is unlikely, consider what happened to Mooo.com earlier this year. Back in February, the Department of Justice and Department of Homeland Security seized 10 domains during a child-porn crackdown called “Operation Protect Our Children.” Along with this group of offenders, 84,000 more entirely innocent sites were tagged with the following accusatory splash page: “Advertisement, distribution, transportation, receipt, and possession of child pornography constitute federal crimes that carry penalties for first time offenders of up to 30 years in federal prison, a $250,000 fine, forfeiture and restitution." Their only crime was guilt by association: They were all using the Mooo.com domain.

From our point of view, what is most interesting is not who is pushing this bill (Hollywood and the usual suspects that tried to kill the VCR because it would obviously destroy the movie industry) but who is not resisting. After all, whenever the issue of network neutrality comes up, the big telecom companies pay a bunch of organizations like Americans for Prosperity to create astroturf movements to oppose a "government takeover of the...

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Posted November 12, 2011 by christopher

Dane Jasper, the CEO of Sonic.net, one of the few ISPs to survive the death of broadband competition over the past ten years, wrote about "America's Intentional Broadband Duopoly."  It is a short history of how the FCC's flawed analysis (helped along by incredible amounts of lobbying dollars, no doubt).

He starts by asking when the last time anyone offered to sell you broadband over power lines (BPL).  The FCC decided that cable and telephone companies shouldn't have to share their wires (which are a natural monopoly) with competitors (creating an actual marketplace for services) because BPL, satellite, and wireless would put so much competitive pressure on DSL and cable.  FAIL.

Then, in the Brand X decision, they ruled that Cable would not be required to allow competitors to lease their lines either. The FCC did this by reclassifying broadband Internet access as an “information service”, rather than a “telecommunications service”. As a result, common carriage rules could be set aside, allowing for an incumbent Cable monopoly. This decision was challenged all the way to the supreme court, who ruled in 2005 that the FCC had the jurisdiction to make this decision.

To close out Powell’s near-complete dismantling of competitive services in the U.S., the FCC took up the issue of ISPs resale of DSL using the incumbent’s equipment, also known as wholesale “bitstream” access. If Cable is an information service under Brand X, why shouldn’t Telco have the same “regulatory relief”? The result: the FCC granted forbearance (in other words, declined to enforce its rules) from the common carriage requirements for telco DSL services.

For those who are thinking that wireless is finally competitive with cable and DSL, don't forget that while 4G appears much faster (because so few people are using it presently), it still comes with a 2GB monthly cap. So if you want to do something with your connection aside from watching one movie a month, 4G is not competitive with a landline connection.

Posted November 2, 2011 by christopher

CNN Money has profiled 7 government-backed inventions.  Most of us know the Internet would not have been possible without the research and development funded by tax dollars, but fewer know that the GPS and microchip were also created as a direct result of "big government."

Beyond those inventions, I was suprised to find that aerodynamic trucks (tractor trailers on the highway) were designed by NASA.  Bar codes -- imagine modern commerce with the ubiquitous bar code -- were developed with funding from the National Science Foundation.  

As a nation, we greatly appreciate the innovation that comes from the private sector (especially you Apple fan-boys) but it is beyond time we recognize the role of the public sector in innovation as well.  Heck, just how much innovation would we see on farms if they were still only connected with dirt roads??  How much more will we see when they are all connected with fast, affordable, and reliable connections to the Internet?  

Posted September 7, 2011 by christopher

In the aftermath of AT&T accidentally admitting they have nothing but a smokescreen to justify buying one of their few competitors, it seemed that nothing had changed and AT&T was going to continue pushing this anti-competition, anti-consumer deal through.

But then the Department of Justice filed suit to prevent it. What does that mean and what is next? Public Knowledge tells us below. In the meantime, Sprint has also filed suit under the Clayton Act to separately oppose the takeover.

Why do we care here at Community Broadband Networks? Because the biggest companies - AT&T, Comcast, Verizon, CenturyLink, etc. - have tremendous market power that allows them a disturbing amount of power over the future of access to the Internet and as they become even larger, the prospects of any community building a network in their territory becomes more bleak.

Posted July 30, 2011 by christopher

An excellent satirical look at those who believe government is the root of all problems. Modern society has many problems that cannot be solved by individuals acting autonomously -- we need to work together to solve them.  "Government" is one of the key entities we use to work together to solve problems. 

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