Dave Burstein of DSL Prime is interviewed on a recent episode of America's Report on TelecomTV.

This debate is loudest in America, uncoincidentally the developed market with the least competitive market in internet access. Democrats, who are in favour of net-neutrality rules, insist regulation is needed to prevent network operators discriminating in favour of their own services. A cable-TV firm that sells both broadband internet access and television services over its cables might, for example, try to block internet-based video that competes with its own television packages. Republicans, meanwhile, worry that net neutrality will be used to justify a takeover of the internet by government bureaucrats, stifling innovation. (That the internet’s origins lie in a government-funded project is quietly passed over.)

These details are important, but the noise about them only makes the omission more startling: the failure in America to tackle the underlying lack of competition in the provision of internet access. In other rich countries it would not matter if some operators blocked some sites: consumers could switch to a rival provider. That is because the big telecoms firms with wires into people’s homes have to offer access to their networks on a wholesale basis, ensuring vigorous competition between dozens of providers, with lower prices and faster connections than are available in America. Getting America’s phone and cable companies to open up their networks to others would be a lot harder for politicians than prattling on about neutrality; but it would do far more to open up the net.

Frontier has been bitten by the same disadvantage many communities face when building their own networks -- little market power means having to overpay for everything. When Frontier bought millions of Verizon rural lines, it bought a few FiOS connections as well. But not enough to gain any bargaining power with channel owners. So Frontier had to raise the costs of its video services up for 46%. Lest anyone feel too sorry for Frontier, they are doing just fine. It is their customers who suffer. But it is a reminder that the issue of scale and market power are barriers to all competition, not just community networks. If we want to have real competition in this country, the Congress and the FCC need to stop ignoring the problems caused by massive players distorting the market. This unregulated market is an invitation for big players to join together and screw everyone else.

We're about to start a new year and thanks to the FCC, we'll see some expanded creativity from the private broadband carriers who want to raise the prices we pay. In fact, you might not be aware of the lengths to which they have already gone. Illustrated nicely by this graphic from the folks at New Networks. But now they have increased power to increase the prices they overcharge us in novel ways. I'm a sucker for Les Misérables, so when a friend reminded me of some of the lyrics, I couldn't help but post them up here as they seem appropriate. Some things never change. From Master of the House:

THENARDIER Enter M'sieur Lay down your load Unlace your boots And rest from the road (Taking his bag) This weighs a ton Travel's a curse But here we strive To lighten your purse Here the goose is cooked Here the fat is fried And nothing's overlooked Till I'm satisfied... Food beyond compare Food beyond belief Mix it in a mincer And pretend it's beef Kidney of a horse Liver of a cat Filling up the sausages With this and that ... Charge 'em for the lice Extra for the mice Two percent for looking in the mirror twice Here a little slice There a little cut Three percent for sleeping with the window shut When it comes to fixing prices There are a lot of tricks he knows How it all increases All those bits and pieces Jesus! It's amazing how it grows!

Les Mis Photo used under Creative Commons License, courtesy of daviddmuir.

Excellent lecture.

Genachowski proposed that the FCC formalize its four principles of network openness. To encourage broadband deployment and preserve and promote the open and interconnected nature of the public Internet, consumers are entitled:

• to access the lawful Internet content of their choice.
• to run applications and use services of their choice, subject to the needs of law enforcement.
• to connect their choice of legal devices that do not harm the network.
• to competition among network providers, application and service providers, and content providers.

To these, Genachowski proposed adding two more: The first would prevent Internet access providers from discriminating against particular Internet content or applications, while allowing for reasonable network management.

[T]he question shouldn't be whether or not consumers can now view a neutrality proposal after it was hashed out in private meetings (predominately with only the largest, wealthiest carriers), it should be: why weren't consumers absolutely integral in crafting it? AT&T has met with the FCC half a dozen times in the course of three weeks and likely knows precisely what's in this plan -- do you?

Chief Financial Officer Joe Euteneuer said the time was right for Qwest to sell operations in the north-central and mountain west region because there were too many competitors in the marketplace. Euteneuer said the telecommunications market needs to resemble the cable-TV business, which has been heavily concentrated into two huge powerhouses — Comcast and Time Warner Cable.