Tag: "market power"

Posted December 13, 2017 by lgonzalez

Update 12/22/2017: Original maps generated on December 11th and used for these fact sheets understated the population of Americans forced to obtain services from known network neutrality violators. The problem is even greater than we originally calculated. We've update our maps and our fact sheets to reflect the more accurate data.

Network neutrality protects Americans from the ability of powerful ISPs to exercise unchecked power over what subscribers access and how quickly they receive certain content. The neutral characteristic of the Internet is one of its finest qualities. If Republican FCC Commissioners and Chairman Ajit Pai vote to shred network neutrality on December 14th as they’ve indicated, 177 million Americans will be left to the whims of a flawed market.

Mapping It Out, Presenting The Fact (Sheets)

We recently presented visualizations based on FCC Form 477 data that supports our findings on the way the repeal will limit vast swaths of people to a bleak Internet access future. Nationwide, approximately 29 million people have no broadband Internet access. Another 129 million will have no ability to change Internet access providers because there is no other option. Out of those folks, 48 million are forced to take service from an ISP that is a known network neutrality violator. Likewise, 146 million may have a choice between two ISPs, but about 52 million must choose between two network neutrality violators that have actively worked to undermine the policy for years. 

Our team also parsed out the numbers for California and the East Coast from Maine to Virginia. The results are just as discouraging.

In our fact sheets, we focused on the number of people who either have no broadband access or who will be forced to take service from a firm that is a known violator of network neutrality. We've included our maps to help illustrate just how pervasive this problem is in each region.California fact sheet small

As a defender of network neutrality, this is the kind of information you want to share. You can easily print, post, and pin...

Read more
Posted December 11, 2017 by christopher

Update 12/20/2017: Original maps generated on December 11th understated the population of Americans forced to obtain services from known network neutrality violators. The problem is even greater than we originally calculated, particularly in New York. End update.

This Thursday, December 14th, the FCC plans to remove network neutrality protections. Republican Commissioners and Chairman Ajit Pai justify the decision by claiming that the market will naturally protect subscribers from predatory big ISP behavior. Unfortunately, the FCC’s own numbers disprove their theory. We dug into the data that reveals how 177 million Americans will be left without any market protection following net neutrality repeal.

Visualizing The Data

Using FCC 477 data, we created a visualization of relevant data. This map focuses on the people and businesses at greatest risk - where they are limited to options from providers that have violated network neutrality in the past or have admitted the plans to violate it in the future.

NationalMap_Legend_2017_12_Updated_1.png

For a larger image, download this version [18 MB png]. 

Download Net Neutrality Repeal By The Numbers, U.S.A. Edition, fact sheet here.

The results are not inspiring. More than 129 million people are limited to a single provider for broadband Internet access using the FCC definition of 25 Mbps download and 3 Mbps upload. Out of those 129 million Americans, about 52 million must obtain Internet access from a company that has violated network neutrality protections in the past and continues to undermine the policy today.

In locations where subscribers have the benefit of limited competition, the situation isn’t much better. Among the 146 million Americans with the ability to choose between two providers, 48 million Americans must choose between two companies that have a record of violating...

Read more
Posted May 1, 2017 by Staff

This is the transcript for episode 250 of the Community Broadband Bits podcast. Gary Reback, author of Free the Market: Why Only Government Can Keep the Marketplace Competitive, joins the show to discuss antitrust law. Listen to this episode here.

Christopher Mitchell: I think we have some consensus that maybe the lack of antitrust enforcement has been going on too long and we're beginning to have some problems that need to be addressed.

Lisa Gonzalez: This is episode 250 of the Community Broadband Bits Podcast. From the Institute for Local Self-Reliance, I'm Lisa Gonzalez. In this week's episode, Christoper talks with Gary Reback, attorney and author. Gary's been called the protector of the marketplace and the antitrust champion for his work representing some of Silicon Valley's best-known companies. Gary and Christopher talk about antitrust, concentration of power and the different ways shifts in antitrust enforcement negatively impact both consumers and the market as a whole. Let's get to it.

Christopher Mitchell: Welcome to another edition of the Community Broadband Bits Podcast. I'm Chris Mitchell. Today, I'm speaking with Gary Reback, a well-known Silicon Valley lawyer. Welcome to the show, Gary.

Gary Reback: Thank you.

Christopher Mitchell: I'm excited to have you on the show. You're well-known for being very involved in getting the government to sue Microsoft and for writing a book that actually came to me at a really good time about seven years ago called Free

the Market!: Why Only Government Can Keep the Marketplace Competitive. I really enjoyed that book, highly recommend it. For our audience's sake, we're not going to talk much about broadband in this conversation. But I think that many of these principles around competition in markets apply very strongly but it's something that will be sort of in the sideline. Gary, I'm curious if we can just start with a brief description of what you might describe as a working market before we spend the rest of our time talking about the markets that aren't working as well.

Gary Reback: So that's an important question and...

Read more
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.

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 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 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 May 8, 2014 by christopher

The FCC is hearing the massive public outcry over its plan that would allow the big cable and telephone companies to create fast and slow lanes on the wires most of us depend on to access the Internet. Chairman Wheeler has made some bold claims that he would not allow commercially unreasonable deals but many doubt the FCC has the authority to enforce his tough talk.

Now we see that FCC Commissioner Rosenworcel wants to slow down the rulemaking for "at least a month" given the outcry.

Resistance to the plan does seem to be building with the emergence of over 100 Internet-dependent companies decrying the possibility of fast and slow lanes. Full letter here [pdf].

Mozilla has developed an alternative approach to reclassification that some are saying just might work, but as a naturally conservative person, I will want to see it vetted by trusted experts like Harold Feld. The main problem with reclassification seems to be that Republicans would demagogue it as Obama attempting to take over the Internet - a problem for Democrats already facing an uphill battle in November.

However, Barbara van Schewick - one of the most knowledgeable people on this matter - makes a strong case for the FCC rebooting the whole process, gathering more input, and ultimately reclassifying Internet access as Title II while forebearing many of the Title II powers that would allow the FCC to wield too much control over access to the Internet.

Much like the FCC has long overseen telephone access without censoring the content of our speech, it would be possible for the FCC to reclassify Internet access without getting involved in content.

However, the larger problem remains - the market power of the massive firms like Comcast and AT&T. As long as they continue to wield the power they do (which will grow if consolidation continues), they will buy support in Congress and use the FCC's revolving door to their...

Read more
Posted September 7, 2012 by lgonzalez

Back in 2010, we reported on the merger between Comcast and NBC, which was in the works at the time. One of the issues that came up was how programming is chosen.

At the time, the Tennis Channel had filed a suit against Comcast, alleging that Comcast did not make Tennis Channel programming available to as many subscribers as the Golf Channel and NBC Sports (both belong to Comcast). Comcast, under the Communications Act and Commission rules, is required to place channels owned by others on tiers equal to its own similar types of channels and can't play favorites.

The FCC had reviewed the case at various levels for two years (there was an appeal) and finally, in July of this year, issued a decision in favor of the Tennis Channel. The Tennis Channel alleged discrimination, Comcast argued the Tennis Channel was using the FCC to get out of a contract it wanted to escape. According to a Meg James LA Times article:

The FCC ordered Comcast to provide the Tennis Channel with distribution comparable to the two sports channels, which would effectively increase its coverage by about 18 million homes, and force Comcast to pay Tennis Channel millions of dollars more each year in programming fees.

It was the first time that a major cable operator has been found in violation of federal anti-discrimination program carriage rules that were established in 1993.

Comcast was ordered to remedy the situation within 45 days, a window that would make the Tennis Channel available in more homes during one of the biggest tennis events of the year, the U.S. Open in New York. The channel is currently available in about 34 million homes nationally.

Comcast immediately asked for a stay from the remedy, appealing to the U.S. Court of Appeals for the D.C. Circuit. Comcast was granted the stay while the case is argued on appeal. Once again, Comcast's army of lawyers  are strategically using the court as a way to slow down an adversary's remedy.

We...

Read more
Posted January 6, 2011 by christopher

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.

Subscribe to market power