Tag: "carterfone"

Posted October 21, 2011 by christopher

Art Brodsky of Public Knowledge makes a compelling case that the Federal Communications Commission is refusing to take actions that will create thousands of jobs. And his estimate is probably low.

Smartly, he doesn't just pin it on the FCC, where the stumbling block appears to be Chairman Genachowski (both Copps and Clyburn already want to help the innovators and true job creators) but also on Congress

To explain:

Once upon a time, the old, old AT&T was the sole supplier of telephones and other equipment to consumers and businesses. The FCC, in a series of market-opening orders, culminating in the 1968 Carterfone ruling, finally freed the non-AT&T world to provide telephone equipment. Through the years, consumers and businesses had many more choices as new companies sprang up to provide home phones, business phones, and business switching equipment for voice and data. Anyone could buy a phone and plug it in. At one telephone equipment show in the mid-1980s, a small California computer company said it was going to enter the telephone business, but only put up an empty booth promising products later. (Whatever happened to those Apple guys and their phones, anyway?)

...

One reason is that the FCC over the years succumbed to the Big Telecom campaign to put all the little guys out of business through subterranean means that the public would never see (like charges big phone companies levy to connect to their network). Another is that the FCC gave up the authority over Internet access (broadband), which leads to its current troubles in trying to justify legally how to get an open Internet and will likely lead to future controversies over how to support broadband deployment (universal service).

Right now, it doesn't matter whether Democrats or Republicans appoint FCC Commissioners so long as 3 of the 5 commissioners are more concerned with what benefits a few massive companies rather than the vast majority of businesses and citizens.

FCC Logo

This is exactly why communities are smart to build their own networks -- they have more control and are less damaged by the poor decisions and waffling of the federal...

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Posted January 7, 2011 by christopher

Bob Frankston has long been critical of both telecommunications companies and the regulators who are supposed to oversee them (but instead are often captured).

Bob has published a lengthy explanation of what is wrong with the US approach to expanding access to the Internet and the beginnings of an alternate approach. This paragraph from his conclusion is where I'll start:

We have a right to communicate. If we fund infrastructure instead of charging for services we can realize that right.

A number of thoughtful people have made the same comments and I believe we will ultimately build access to the Internet as infrastructure (rather than as discrete services arising from the history of telecommunications), but I'm not sure how we will get there.

Perhaps it helps for some to remember just how far we have some. Most of the people pushing for the government to stop regulating the gatekeepers to the Internet seem not to understand why government regulates telecommunications providers. Simply put, when telecommunications was largely unregulated, they screwed their subscribers.

The FCC defines a “completed call” as one that merely rings. It’s a perfect example of naïve indifference to the larger question of why we are using the phone. To a user (a word that makes us forget we are talking about people) a call is complete when you reach a person or, at least, leave message. Yet the phone companies didn’t allow answering machines until the Supreme Court overruled them in the 1968 Carterfone decision.

This story is repeated again and again because it is at the very heart of the concept of telephony. In 1956 they lost the Hush-A-Phone decision. They tried to prohibit people from putting a box around their phone! That was the extent to which the providers went to preserve control and dictate how you were supposed to use their network.

As Frankston rightly points out (here and elsewhere), the best one can say about regulation is that it has been imperfect. This is one reason we encourage public ownership rather than regulation from an authority closer to those regulated than the people...

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