Tag: "competition"

Posted April 25, 2017 by christopher

The larger focus of our work in the Community Broadband Networks Initiative is to ensure communities have the networks they need. Our guest for Community Broadband Bits episode 250 is an expert in how markets break and the policies that make them work. 

Gary Reback is a well known Silicon Valley lawyer and Of Counsel at Carr Ferrell LLP. He also wrote an excellent book, Free the Market: Why Only Government Can Keep the Marketplace Competitive that I fully recommend. Reback has had a front-row seat to the failings of government policy that has allowed a few technology firms to garner so much market power today.

We talk broadly about markets and monopoly rather than focusing on broadband and telecommunications. This is a good introductory conversation for people unfamiliar with the real threat and harms of monopoly. 

A related conversation is my interview with Barry Lynn in episode 83.

We want your feedback and suggestions for the show-please e-mail us or leave a comment below.

This show is 25 minutes long and can be played on this page or via iTunes or the tool of your choice using this feed.

You can download this mp3 file directly from here. Listen to other episodes here or view all episodes in our index.

Thanks to Arne Huseby for the music. The song is Warm Duck Shuffle and is licensed under a Creative Commons Attribution (3.0) license.

Posted April 8, 2017 by Nick

A recent edition of State Scoop published Christopher's thoughts on the state of competition in the broadband market in the United States. In the piece, Christopher argues how incumbent Internet Service Providers translate their economic power into political power, as seen in the recent vote to strike down consumer privacy protections. He also more widely distributes our recent infographic, "The Market Has Spoken. The Market Is Broken." We've reproduced the op-ed here:

Paths for repairing a broken broadband market

Infographic & commentary: Christopher Mitchell of the Institute for Local Self-Reliance says the new anti-privacy legislation passing through Congress offers further evidence that America's broadband market is broken, but not beyond repair.

To be charitable, one of the reasons that Republicans in Congress moved so quickly to eviscerate privacy protections for internet access subscribers was an overriding belief that the market provides better protection than regulators. To be less charitable, it is possible all the lobbyist contributions to their campaigns had an impact.

But the market is not providing a check to AT&T or Comcast power. They are effectively monopolies — and as we just saw — can translate their market power into political power to wipe out regulations they find annoying.

At the Institute for Local Self-Reliance, where we work to support local economies, this broken market is a major problem. Cable monopolies are bad for local businesses, which become less competitive from paying too much for unreliable Internet access. Communities cannot thrive without high quality Internet access today. 

So we created the infographic below, which offers evidence for our claim that the market is broken. The Federal Communications Commission has documented that most households don’t have a choice in broadband providers, let alone a meaningful choice (where you actually like one of the companies you have to choose between).

Despite widespread... Read more

Posted April 5, 2017 by htrostle

This is the transcript for Community Broadband Bits Episode 247. Ken Demlow of Newcom Technologies chats with Christopher Mitchell about what happened in Nashville and why poles are important for fiber. Listen to this episode here.

Ken Demlow: There's all that kind of communication that not only can improve what happens in electric and what happens in water, but also just such better communication with your customer, and it's all good stuff.

Lisa Gonzalez: This is episode 247 of the Community Broadband Bits Podcast from the Institute for Local Self-Reliance. I'm Lisa Gonzalez. Ken Demlow, Sales Director of Newcom Technologies joins Christopher this week to talk about several topics. In addition to discussing engineering and design and how it relates to telecommunications networks, Ken shares how Newcom is taking advantage of new technology to offer communities the best results. Christopher and Ken also get into the details of smart-grid and some benefits and uses that you might not necessarily think of right away. The guys spend some time on what happened in Nashville when Ken worked on the Google Fiber project. He shares his inside perspective. You can learn more about Newcom at nucomtech.com. Now, here's Christopher with Ken Demlow from Newcom Technologies talking about engineering and design, smart-grids, and pole drama in Nashville.

Christopher Mitchell: Welcome to another edition of The Community Broadband Bits Podcast. I'm Chris Mitchell. Today, I'm speaking with Ken Demlow, the sales director of Newcom Technologies. Welcome to the show.

Ken Demlow: Thank you. Good to be here.

Christopher Mitchell: Ken you're one of my favorite people at these trade shows. We're here at the Iowa Association of Municipal Utilities, and as you know, I contrived an excuse to have you on because I think you're a fun person to talk to.

Ken Demlow: Thank you. That's better than I deserve, but thank you.

Christopher Mitchell: I think we're going to start with just a brief explanation of what Newcom Technologies does.

Ken Demlow: We are telecommunication... Read more

Posted April 3, 2017 by lgonzalez

“Monopoly” may be a fun family night activity, but if you live in a place where you have little or no choice for Internet access, it’s not fun and it’s not a game.

According to FCC data, most families don’t have a choice in Internet access providers, especially providers they like. Nevertheless, the biggest companies keep reporting increasing revenues every year. People aren’t happy with the service they’re receiving, but companies like AT&T and Comcast continue to thrive. What’s going on?

In a recent State Scoop piece, Christopher wrote: 

[T]he market is not providing a check to AT&T or Comcast power. They are effectively monopolies — and as we just saw — can translate their market power into political power to wipe out regulations they find annoying.

At the Institute for Local Self-Reliance, where we work to support local economies, this broken market is a major problem. Cable monopolies are bad for local businesses, which become less competitive from paying too much for unreliable Internet access. Communities cannot thrive without high quality Internet access today. 

We created this infographic to present the evidence showing that the market is broken. This resource also discusses why creating more competition in the current market is such a challenge. An effective way to overcome this broken market, however, is to consider what hundreds of local communities are already doing - investing in publicly owned Internet infrastructure. Our infographic offers a few examples of different models, each chosen to suit the communities they serve.

Get a larger version of the infographic here

market-broken-infographic-small-2.png

Get a larger version of the infographic here.

Kudos to intern Kate Svitavsky who created the infographic.

Stay up to date on community networks with our newsletter.

Posted April 2, 2017 by lgonzalez

 

Take a minute to learn just a few of the reasons why local communities invest in publicly owned networks. Our short 2012 video is a great way to share information about community networks - there can be other options beyond big cable and DSL providers.

 

 


Posted March 30, 2017 by Nick

On March 24th, Christopher was on episode 232 of the web show "This Week in Enterprise Tech." Christopher discussed the future of community broadband networks in the Trump era as well as shared information about the models of successful networks across the country.

Christopher begins his discussion of these issues at 29:45 with host Friar Robert Ballecer and guest co-hosts Lou Maresca and Brian Chee. Throughout the show, the group covers the beginning of the FCC Chairmanship of Ajit Pai, how the Senate is legislating against Internet privacy regulations, and how community networks are pushing ahead to achieve better connectivity for local businesses and residents.

The folks at TWiT.tv share excerpts from our video on Ammon, Idaho, and the guys get into a deeper discussion about the possibilities of local empowerment from community networks.

You can stream the episode at TWiT.tv, or watch here:

Posted March 14, 2017 by lgonzalez

As federal agencies examine the potential consequences if the AT&T - Time Warner merger is allowed to proceed, how we analyze antitrust also needs to be reevaluated. 

A new report from the Roosevelt Institute takes a closer look at how antitrust enforcement philosophy has changed, how that change has enabled our current state telecommunications in which a few large anticompetitive players control the market. The authors offer recommendations and cautionary predictions that may arise if we continue without reassessing how we scrutinize these large scale mergers.

Authors Marshall Steinbaum and Andrew Hwang complement each other with economic and legal approaches. Steinbaum is Senior Economist and Fellow at the Roosevelt Institute and has also written for Democracy, Boston Review, The American Prospect, and The New Republic. He earned his Ph.D. from the University of Chicago Economics Department in 2014. Hwang is a legal fellow at the Roosevelt Institute and has also been an associate at Simpson Thacher & Bartlett LLP, working on transactions involving securities issuance, mergers and acquisitions, and corporate lending. He received his J.D. from the Duke University School of Law in 2014 and B.A. in economics and political science from the University of Chicago in 2011.

The report notes how scrutiny of mergers has come to depend on the perceived harm the results will have on consumers, but such a narrow focus results in harming competition.

Instead, regulators should adopt a more holistic view of market power, specifically incorporating analysis of upstream impact of anticompetitive behaviors, especially those enabled by mergers. This would entail closer scrutiny of vertical mergers, positive price discrimination, and non-price-based schemes to profit excessively by withholding access to consumers.

Several specific recommendations caught our attention as particularly relevant approaches, including:

Regulators should utilize Section 2 of the Sherman Act to a greater degree by taking enforcement actions against antitrust violators, up to and including undoing previous mergers that have proven anti-competitive after the fact.

After all, we’ve learned that the Comcast NBCUniversal Merger completed in 2013 has resulted in anticompetitive behavior by Comcast, regardless of its promises to treat content providers other than its own... Read more

Posted March 2, 2017 by htrostle

This is episode 241 of the Community Broadband Bits podcast. John Bergmayer from Public Knowledge joins the show to talk about the "bundle" in the cable industry. Are cable bundles a bargain as advertised? What do customers want? Listen to this episode here.

John Bergmayer: You know the structure of the programing industry and the structure of the cable industry means effectively they're not being served. They’re getting ripped off I believe.

Lisa Gonzalez: This is episode 241 of the Community Broadband Bits podcast from the Institute for Local Self Reliance, I'm Lisa Gonzalez. Cable subscribers often complain about bundling. Being forced to choose from video packages that include channels they don't want in order to get access to the content they do want. Why are we stuck in this model? And what are the ramifications for service providers? Especially now that so much content is available via the Internet. What are some of the concerns smaller cable providers encounter when negotiating for content? This week, Christopher talks with John Bergmayer, Senior Counsel from Public Knowledge who explains why Comcast and Time Warner Cable and other cable companies are so in love with the bundle. They discuss why it's difficult to move past this model and whether or not bundles are a bargain, as they are described in advertising. Or something quite different. Now here's Christopher and John Bergmayer, Senior Counsel at Public Knowledge, discussing unbundling and the world of cable.

Christopher Mitchell: Welcome to another edition of the Community Broadband Bits podcast. I'm Chris Mitchell. Today I'm speaking with John Bergmayer, Senior Counsel for Public Knowledge, a non-profit organization in Washington, DC. Welcome to the show!

John Bergmayer: Yeah, thanks for having me Chris.

Christopher Mitchell: John, can you tell us a little bit about what Public Knowledge does for people that haven't been around to hear past interviews with Chris Lewis and Harold Feld and other great people that you have on staff?

John Bergmayer: Sure, you know, we're a DC based public interest organization, or consumer group. We fight for consumer rights in a number of areas such as, telecommunications, cable TV, copyright... Read more

Posted March 1, 2017 by christopher

Susan Crawford has come back to the podcast to tell us about her recent travels in North Carolina and Tennessee, talking to people on the ground that have already built fiber-optic networks or are in the midst of figuring out how to get them deployed.

Susan is a professor at Harvard Law, the author of The Responsive City: Engaging Communities Through Data-Smart Governance and Captive Audience: The Telecom Industry and Monopoly Power in the New Gilded Age, and a champion for universal high quality Internet access.

We have an informal discussion that ranges from what is happening on the ground in North Carolina and Tennessee to the role of federal policy to why Susan feels that municipal wholesale approaches are important to ensuring we have better Internet access.

It was a real treat to have Susan back on the show and to just have a discussion about many of the issues that don't always come up in more formal presentations or media interviews. We hope you enjoy it! Susan was previously on episode 125 and episode 29.

Read the transcript for the show here.

We want your feedback and suggestions for the show-please e-mail us or leave a comment below.

This show is 21 minutes long and can be played on this page or via iTunes or via the tool of your choice using this feed.

You can download this mp3 file directly from here. Listen to other episodes here or view all episodes in our index.

Thanks to Break the Bans for the music. The song is ... Read more

Posted February 22, 2017 by christopher

One of the most recurring complaints about cable television is the bundles - people resent having to pay for channels that they do not watch. Especially when those cable prices go up consistently. The cable companies tend to absorb most of the blame and anger for this model, but they aren't entirely responsible.

To explain how the cable industry works, Public Knowledge Senior Counsel John Bergmayer joins us for Episode 241 of the Community Broadband Bits podcast. We talk about overlapping monopolies, market power, and how the cable companies themselves are somewhat imprisoned by content owners. 

As fits with our focus, we also talk specifically about how smaller firms (which includes all municipal networks) are particularly harmed by the status quo and even more harmed by the ongoing consolidation of the largest cable companies becuase they then have far greater negotiating power. 

Read the transcript of the show here.

We want your feedback and suggestions for the show-please e-mail us or leave a comment below.

This show is 30 minutes long and can be played on this page or via iTunes or via the tool of your choice using this feed.

You can download this mp3 file directly from here. Listen to other episodes here or view all episodes in our index.

Thanks to Admiral Bob for the music. The song is Turbo Tornado (c) copyright 2016 Licensed under a Creative Commons Attribution (3.0) license. Ft: Blue Wave Theory.

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