Susan Crawford says, “We are in the course of a titanic battle for the future of the Internet in the United States. The technology community is radically underrepresented in this battle.”
NOTE: Live-blogging. Getting things wrong. Missing points. Omitting key information. Introducing artificial choppiness. Over-emphasizing small matters. Paraphrasing badly. Not running a spellpchecker. Mangling other people’s ideas and words. You are warned, people.
Telephone providers and cable providers have each been merging, increasing monopoly holds on regions.The government has a key role in providing a level playing field for innovators. If you’re worried about personalization at the app level (as per Eli Pariser yesterday), you should be very worried about it at the network level.
“The Net would not exist absent government regulation.” E.g., the telcos were required to allow modems to attach to telephone lines. When cable modems arrived, government regulators were confused. Thinking that competition was right around the corner, the FCC completely deregulated highspeed Net access in 2002 (and 2205,6,7). They took away the “regulated” level but reserved the right to reregulate it (via “ancillary jurisdiction”). The courts have found that labeling a service as deregulated but then regulating it (as in the Comcast case) makes no sense. So, the FCC is proposing to re-regulate, but free of the heavy-handed elements: No rate regulation, etc. But, carriers would be required not to discriminate among bits [= Net neutrality]. This is the FCC’s “Third Wave.” The carriers claim that this is the “nuclear option.”
The FCC needs to regulate to fulfill its mandate to enable Net access to all people. E.g., they need to gather data. And they want to make sure that it’s open for innovation. Also, to keep privacy of packets. It’s great that AT&T is part of this conversation at PDF. But AT&T has spent $6M this quarter for lobbying against any form of regulation. There have also been personal attacks, she says. Comcast spent $29M in the first quarter, she adds.
By 2012, the FCC says, most Americans will have only one choice of provider. [June 5: Susan's slide actually said that by 2012, 75 to 85 percent of Americans will have one choice of wired provider for 50 to 100Mbps speeds; sorry for the gross gloss. This comes from the National Broadband Plan.] Verizon has backed off on its plans for FIOS. So there will not be another competitor to cable. We should therefore be concerned about Comcast’s plans to merge with NBC, giving it an edge against other major video providers, but also against the growth of online video. Comcast could put content behind an authentication wall, so to see it you’d have to be a cable subscriber. The tech community should watch this merger carefully.
The content providers believe in “vertical integration,” so we’ll see many more mergers.
She says 100 yrs ago, Americans hated Standard Oil which was able to control regional production of oil. Small business people and farmers were enraged by them. Standard Oil required railroads to ship their stuff cheaper, and if the RR’s shipped competitors’ stuff, SO got paid. They also carried out espionage about competitive shipments. Like the electric grid, like the Net, the future of highspeed access depends upon government creation of a level playing field. The tech community should be working together to make sure we retain the ability to innovate.
[I interviewed Susan about the FCC's Third Way on a Radio Berkman podcast] [Note: On June 5, I made some very minor edits, cleaning up typos and unclear referents, etc., in addition to the insertion noted above.]