Tag: "federal government"

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. 

Posted February 8, 2011 by christopher

Following 9/11, Washington DC built a muni fiber network for government use.  We wrote about it Breaking the Broadband Monopoly -- noting its strong record of success.  The Washington Examiner has noted that DC-Net is looking for expansion opportunites.  

The city invested $87 million into D.C.-Net to get there. It now has 350 miles of fiber optic cable connecting city agencies at 355 locations in all eight wards. More than 33,000 District employees use it every day, and it handles calls to the emergency 911 call center and the city's 311 information line. The District also hasn't spent a dime on it since 2007. Instead, the network runs on a surplus, which is reinvested into its infrastructure, officials said. Now, the city stands to earn millions by leasing access to the network out to federal agencies.

While private companies constantly claim that local governments have no capacity to run fiber broadband neworks, DC-Net has proven not only can munis run these networks, they can offer faster speeds, lower prices, and better reliability.  Now DC-Net has a $1.6 million contract with US Office of Personnel Management.  

Posted January 28, 2011 by christopher

Wally Bowen, the Founder and Executive Director for the Mountain Area Information Network in Asheville, North Carolina, wrote the following piece after President Obama's State of the Union Address.  He gave us permission to reprint it below.

Last night in the State of the Union address, President Obama called on Congress to help “win the future” by, among other things, rebuilding America's infrastructure.

On broadband Internet access, the president was unequivocal: wireless broadband is the way forward (item #1 below).

However, he did not mention the FCC's recent approval of “open Internet” protections that are widely believed to be unenforceable. Indeed, just a few days ago Verizon filed suit to invalidate these rules via a preemptive, knockout blow.

Congress is not likely to pass any meaningful net neutrality/open Internet rules. This means that the Internet is completely exposed to “corporate enclosure” by a handful of cable and telephone companies and their business partners (Apple, Google, FaceBook, et al).

Our only alternative for preserving an open Internet -- and the freedom to innovate and use applications of our own choosing -- is the creation of non-commercial, community-based broadband networks (item #2 below).

MAIN logo

Fortunately, Asheville and WNC are ahead of the game with our nonprofit fiber networks (ERC Broadband, Balsam West, French Broad EMC, et al.) and nonprofit wireless networks like the Mountain Area Information Network (MAIN).

The way forward will be difficult. While the commercial carriers have been somewhat tolerant of nonprofit “middle-mile” fiber networks, they view nonprofit “last-mile” providers of broadband service to homes and businesses as “unfair competition.”

Indeed, 15 states have already passed laws – pushed by cable and telco lobbyists – to prohibit “last-mile” municipal broadband networks. A similar law was attempted, but tabled, in the last two sessions of the N.C. General Assembly. This law will no doubt re-appear in the upcoming session.

Fortunately, MAIN is an independent nonprofit and card-carrying member of the private sector. While the big carriers cannot...

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Posted November 25, 2010 by christopher

The abstract immediately captured my attention:

Policymakers often tell us that the Internet succeeded because of a lack of government regulation. For instance, FCC Commissioner Robert McDowell recently noted that the “evolution away from government intervention has been the most important ingredient in the Internet’s success.” These views, while widely shared, happen to be inaccurate. In reality, a diverse range of federal regulations, subsidies, and nondiscrimination protections sustained the Internet’s historic growth.

But what if, as many inaccurately assume, these regulations had never existed? What would today’s Internet look like in such a world? In this essay, I provide a fictional alternate history - in form of a satirical book review - to illustrate how differently the Internet might have developed in a truly privatized world. Although the essay below (beginning after this abstract) is fictional, it draws heavily upon both the regulatory history of the Internet and the policy arguments at issue in today’s leading regulatory proceedings.

This article covers decisions like Carterfone, the FCC's Computer Inquires, giving control over TCP/IP to the National Science Foundation rather than AT&T, and the intentions of the 1996 Telecommunications Act. It also includes a reminder of the difference between open systems and closed systems:

One important way that open policies achieve this goal is by reducing various types of transaction costs. In open networks, new market entrants can completely avoid negotiating with companies who have “gateway control” over the network. The aspiring entrants do not have to pay—nor seek permission from—the network owners for access. Accordingly, these policies encourage vastly more experimentation and amateur “tinkering.” Closed networks, by contrast, produce relatively less innovation because they rely on centralized network owners to introduce—or at least approve—innovation before it becomes available.

This is a fantastic read (really riveting telecom reading -- how often do you get that?) and a good history lesson for people who were not there to see it firsthand over the years.

Posted November 16, 2010 by christopher

In the world of essential infrastructure, thousands of years of history have taught us that entities, acting on their own narrow interest, cannot be trusted to build or govern the building blocks of commerce or transportation. The temptation to abuse that powerful position has always proved too much for those without accountability to the public.

For instance, if the only way to move goods is a canal, private canal owners will price at a high level or use their position to take a stake in all the industries using the canal. Such an arrangement is great for the canal owners but poor for the rest of society. Witness the history of canals and railroads.

Two options to dealing with this problem have historically been either regulation or public ownership of such infrastructure. Readers of this site are undoubtedly well aware of our preference for public ownership - a structural approach using coops, local government, or non-profits to ensure the interests of the public at large receive the highest priority.

This post explains one of the reasons a regulatory approach, whereby private companies still own the infrastructure (and often make key decisions) but must go through some form of public body that is supposed to prevent the natural interests of the private company from taking over and reducing the benefits to society at large.

Writing in the Financial Times, John Kay explains regulatory capture, the process by which the agency or commission supposed to regulate effectively begins to act more in the interests of those regulated rather than the public. An obvious example of this is the Minerals Management Agency that has long improperly overseen the extraction industry, leading to the BP Gulf Oil Hole.

As Kay rightly explains, there are multiple kinds of capture from outright corruption to something that leads some political science geeks bring up Gramsci and Hegemony...

But the most common form of capture is honest and may be characterised as intellectual capture. Every regulatory agency is dependent for information on the businesses it regulates. Many of the people who run regulated companies are agreeable, committed individuals who are properly affronted by any suggestion that their activities do not serve the public good. Few members of the public, by contrast, ever make contact with a regulatory agency...

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Posted September 8, 2010 by christopher

Confused about the inability of the Federal Communications Commission to regulate the massive telecom and broadband carriers? You are not alone. This article explains some of it quite well, but the ultimate lesson is that we would greatly prefer local ownership of networks that are accountable to our needs.

The FCC proves time and time again it cannot be trusted to regulate in the public interest. We need to ensure this infrastructure is operated for us, not distant corporate shareholders.

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