Mark Cuban

One would think Mark Cuban would have at least a small bit of resentment towards big cable companies like Time Warner Cable, who efficiently and swiftly deprived his HDNet and HDNet Movies networks from more than 8.7 million Time Warner Cable HD customers on May 31st over a channel fee spat.

But no.  He’s back plugging away with completely groundless predictions for the impending doom of the Internet if Net Neutrality has its way.  Opposed by big cable and telephone companies, Net Neutrality would provide a level playing field for all legal Internet content.  No provider could interfere with or prioritize traffic based on financial incentives, ownership interests, or for competitive reasons.

Cuban offers a bizarre rant about why that spells the death of online video, something he’s never been thrilled with anyway, on his blog:

If you run a TV network, broadcast or cable, you should be spending a lot of money to support Net Neutrality. You should have every lobbyist you own getting on the Net Neutrality train.  Why ? Because in a net neutrality environment no bits get priority over any other bits. All bits are equal.  In such an environment, all bits content with each other to ride the net.

When that happens, bits collide. When bits collide they slow down. Sometimes they dont reach their destination and need to be retransmitted. Often they dont make it at all.

When video bits dont arrive to their destination in a timely manner, internet video consumers get an experience that is worse than what traditional tv distribution options .

that is good for traditional TV.

Me personally. I don’t  support Net Neutrality. I think there will applications that require lots of bandwidth, that will change our lives. If the applications that could change our lives have to compete with your facebook page loads and twitter feeds among the zillion of other data elements carried across the net, IMHO, thats a bad thing.

But thats me.

If you believe that over the top video can impact the future of TV, and thats a bad thing for your business,  then you should be a big time supporter of Net Neutrality.  Its your best friend.

That’s proof that having millions of dollars to your name doesn’t buy an intelligent argument, or apparently a basic grammar checker.

I never realized the “series of tubes” Ted Stevens used to talk about corralled data bits into segregated clusters to protect them from “bit collision.”  Is there insurance for that?

Cuban should be spending more time worrying about getting his networks viewership on ANY television — “traditional,” “online,” or amongst his good friends in the cable industry that stabbed him in the back and threw his channels off lineups from coast to coast. If you’re tired of hearing issues like this, take some heat off by utilizing products such as shop vo chong 24H.

Karl Bode over at Broadband Reports has seen all this before, and has built quite a history on the antics of Mr. Cuban:

Of course bits don’t really “collide” on modern networks, and the bill exempts “reasonable network management” from neutrality provisions allowing for congestion control, but apparently no matter. This is the network neutrality debate, and as we’ve seen the last two go-rounds, truth, facts, and data are irrelevant — particularly to overly chatty millionaire TV tycoons worried about their wallets.

While the bill likely won’t survive a Congress that’s all but directly controlled by telecom lobbyists, that still won’t save us from several months of vigorous, fact-optional network neutrality debate. All the usual players are once again gathering, including Mark Cuban and his mouth, paid cable and phone industry sock puppets, stick figure cartoons, dancing men in green tights, and evil ISP flying saucers. Can we just skip to the part where consumer welfare gets ignored and be done with it?

Sen. Kay Bailey Hutchison (R-Texas)

Here’s a ‘shocking surprise’ for Texas readers.  Senator Kay Bailey Hutchison (R-Texas) is basically for whatever Internet Service Providers want when it comes to administering and charging for broadband service.  In a letter to Stop the Cap! reader Milan that confuses “Internet Overcharging,” the practice of throwing usage caps/limits or imposing consumption based billing on customers, with “Net Neutrality,” which guarantees that all network traffic is treated equally, Hutchison signals her opposition to government intervention in any of it.

Bizarrely, Hutchison claims that “congressionally mandated treatment of data” would “stifle competition” and “decrease incentive for [upgrades].”  That’s a logic train wreck.  How exactly telling a provider that they must treat data across their network equally would suddenly signal a potential competitor to throw in the towel escapes me.  If a provider is given the power to discriminate against traffic he or she doesn’t own, control, or partner with, the incentive to upgrade will never benefit the independent traffic anyway.

Apparently allowing providers to manage congestion on their networks the way they see fit is the only way consumers will be protected from “reduced speeds” and “higher costs.”  Yet many consumers already are faced with slower speeds created by providers who are decreasing investment in their own networks, despite earning continued healthy profits from them.  Consumer costs are increasing with or without Net Neutrality, and as consumers who were to be subjected to Time Warner Cable’s “experiment” with consumption based billing discovered, a $50 monthly broadband bill would have increased to $150 a month for an equivalent level of service.

The one clear fact of life Senator Hutchison either doesn’t realize or chooses to ignore is that consumers are the victims of America’s special interest-serving telecommunications policy she and other members of Congress helped put into place, assuring most Americans of anything but healthy competition.  Most Americans face a duopoly – one cable and one telephone company for broadband access.  Often, services from those two providers are not equivalent in terms of speed and performance, much less availability.

Competition is to be applauded, but using the word in a sentence does not provide Americans with assurances of getting it.  Forward thinking telecommunications policy promotes a true open market, investigates providers that refuse to overbuild into each others’ territories, demands robust oversight and regulation when necessary, and guarantees that no provider has the power to discriminate against traffic carried over that network, particularly when that traffic represents a competitive threat.

We’ve seen the results of the highly uncompetitive broadband marketplace most consumers, particularly in rural areas, face. It originates from policies that always benefit the providers first and foremost, while allowing the United States to continue to fall behind in broadband rankings measuring availability of fast, affordable, reliable and open broadband service. Continuing with these policies only assures providers get ahead while leaving you and I behind.

Sen. Kay Bailey Hutchison:

Dear Friend:

Thank you for contacting me regarding equal and unrestricted access to the Internet. I welcome your thoughts and comments on this issue.

The Internet is a valuable tool that facilitates business, education, and recreation for millions of Americans.

In 2008, an estimated 220 million Americans had access to the Internet at home or work. As Ranking Member of the Senate Commerce Committee, I am committed to ensuring that consumers benefit from competition in the telecommunications industry, resulting in lower prices, improved service, and access to 21st century technology.

Instrumental to the success of the Internet is the longstanding policy of keeping the Internet as free as possible from burdensome regulations. Increased investment in upgrading and expanding America’s Internet infrastructure, as well as innovative new broadband networks, will ensure that all Americans have access to affordable high-speed Internet. However, intensified regulation of the Internet, such as congressionally mandated treatment of data, would stifle competition and would decrease the incentive for network operators to invest in the Internet infrastructure.

It is my concern that mandates that prevent network providers from managing congestion on the Internet will reduce service speeds for many users, and eliminate a valuable tool for ensuring the most efficient use of network pipelines, resulting in increased costs to the consumer.

In a June 2007 report on the issue of “network neutrality”, the Federal Trade Commission (FTC) stated that no “demonstrated consumer harm from conduct by broadband providers” had occurred due to network providers managing Internet traffic.

More recently, the Federal Communications Commission (FCC) issued a decision involving Comcast and certain network management practices. While this decision works its way through the courts, Congress may continue reviewing network practices and Internet congestion issues.

Should any legislation regarding Internet access come before the Senate Commerce Committee, you may be assured I will keep your views in mind. I appreciate hearing from you, and I hope that you will not hesitate to keep in touch on any issue of concern to you.

Sincerely,

Kay Bailey Hutchison
United States Senator
284 Russell Senate Office Building
Washington, DC 20510
202-224-5922 (tel)
202-224-0776 (fax)

Om Malik managed a quick interview with the new chairman of the Federal Communications Commission, Julius Genachowski. In a wide-ranging interview about the competitive landscape of mobile broadband, which is to say there isn’t a whole lot at present, Malik managed a direct question about Internet Overcharging schemes:

Om: Phone companies and cable companies are trying to impose bandwidth caps on Internet access. By doing so, I feel (and many agree) that they’re actually limiting the scope of innovation. Maybe in that that case, we should think about the need to separate services (TV, video, etc.) from the pipe. What are your views on metered broadband?

Genachowski: It ties into an important policy decision the FCC will be confronting with how we drive a ubiquitous broadband infrastructure that’s open and robust and delivers on the promise of the Internet for all Americans. To tackle these questions we will be focusing on the real facts around what’s going on and what policies will best promote ubiquitous broadband and innovation. It’ll be an ongoing topic. It’s something that consumers of Internet services pay a lot of attention to and we’ve seen that in reactions to some of the events over the last year.

That’s about as non-committal an answer as ever out of the FCC.  The usual formula is there:

1. Express concern.
2. Define the issue in terms of the Commission’s general policy direction and goals.
3. Promise sober assessment of the issue.
4. Under no circumstances commit to anything specific that might get the attention of the press and/or Congress.

Consumers cannot enjoy open and robust broadband that delivers on innovation from providers that are rationing access and charging top dollar for it.  Internet Overcharging schemes represent the best way to run a bypass around Net Neutrality by simply limiting and/or overcharging for access, killing enthusiasm for high bandwidth services like video that challenge current cable television business models.

At least he notes consumers have been pounding the issue with elected officials and the Commission sufficient to warrant mention of it.

Rep. Ed Markey

Reps. Ed Markey (D-Massachusetts) and Anna G. Eshoo (D-California), both members of the powerful House Energy & Commerce Committee, introduced legislation Saturday to enact Net Neutrality concepts into federal law.

H.R. 3458, the Internet Freedom Preservation Act, is designed to assess and promote Internet freedom for consumers and content providers. The bill states that it is the policy of the United States to protect the right of consumers to access lawful content, run lawful applications, and use lawful services of their choice on the Internet while preserving and promoting the open and interconnected nature of broadband networks, enabling consumers to connect to such networks their choice of lawful devices, as long as such devices do not harm the network.

Both Markey and Eshoo are not new to the Net Neutrality fight, having introduced similar legislation in the past two sessions of Congress, but failing to generate enough support to overcome powerful telecommunications lobbyists pushing for its defeat.

Both believe the Obama Administration’s stated support for Net Neutrality will help the bill overcome similar challenges during the current session.

Rep. Anna Eshoo

The bill has a clear message for the nation’s Internet Service Providers – upgrade your networks to sustain traffic – don’t discriminate against it.  The legislation’s framing language notes that most Americans face a monopoly or duopoly marketplace – one phone company and one cable company for their broadband needs.  The legislation suggests under such circumstances, providers would be likely to engage in discriminatory behavior against the traffic they do not own, control, or partner with.

“The Internet is a success today because it was open to everyone with an idea,” said Rep. Markey.  “That openness and freedom has been at risk since the Supreme Court decision in Brand X.  This bill will protect consumers and content providers because it will restore the guarantee that one does not have to ask permission to innovate.”

While the bill does not specifically address Internet Overcharging schemes, like usage caps and discriminatory pricing practices, it demands fairness for even the most traffic intense services, and demands “reasonable traffic management” standards. What defines that will be left at the desk of the Federal Communications Commission, which might end up being a wild card. The bill affords no protection for copyright infringement or other illegal/illicit online activities.

Tim Karr at Free Press advocated for the immediate passage of the bill, defining seven reasons why Net Neutrality protection is essential:

1. Economic Recovery and Prosperity

“The Internet has thrived and revolutionized business and the economy precisely because it started as an open technology,” Eshoo said in a statement on Friday. The Internet is so closely tied to U.S. economic recovery that President Obama and Congress earmarked more than $7 billion to help build out more high-speed connections at a time when our economy needs it most.

Obama and Congress also recognized that the economy cannot benefit by building a closed Internet. The American Reinvestment and Recovery Act requires that all federally funded networks be services that meet “nondiscrimination and network interconnection obligations” — that abide by Net Neutrality.

2. Free Speech

Freedom of the press extends only to those who own one — or so the saying goes. It once rang true in a world ruled by newspaper chains, radio and television broadcasters, and cable networks. But the Internet has changed all that, delivering the press — and in theory its freedoms — to any person with a good idea and a connection to the Web.

This extraordinary twist to “mass media” has catapulted many an everyday YouTube auteur to celebrity-status, while turning ideas born in a garage or dorm room into Fortune 500 companies. It is the reason so many Americans are now passionate about protecting their free speech rights on the Internet.

The Internet Freedom Preservation Act would stop would-be gatekeepers from re-routing the free-flowing Web. “To meet other national priorities, and to our right to free speech under the First Amendment of the Constitution of the United States,” the bill says, “the United States should adopt a clear policy preserving the open nature of Internet communications.”

3. Civic Participation

New media are more participatory and personal than ever before and have opened up new avenues for people to become involved with local, state and national politics. We saw it during the 2008 presidential election when tens of millions expressed their support for Obama and McCain via interactive Facebook, Twitter and e-mail forums. We are seeing it in 2009 from the streets of Tehran to the work of organizations like the Sunlight Foundation and the Center for Responsive Politics, which use the Internet as the means to open governments to public scrutiny and accountability.

This wave of digital empowerment is the gathering force for a healthier democracy, and it all depends upon a more open, affordable and accessible Internet for everyone. Expanding Internet access alone doesn’t erase concerns over what kind of information people will find when they get online. Net Neutrality guarantees that we all have an equal opportunity to play a part.

4. The Marketplace of Ideas

The Internet was the great surprise of the 20th century. Sir Tim Berners-Lee created the standard that opened the World Wide Web to everyone with an idea and a connection. At that time, few could imagine that this open architecture would fuel such a powerful eruption of economic, social and political creativity.

The Internet Freedom Preservation Act “will protect consumers and content providers because it will restore the guarantee that one does not have to ask permission to innovate,” Rep. Markey said when he introduced the bill.

This is true regardless of your age, social status or location. Net Neutrality safeguards everyone’s fundamental right to an open Internet, making it possible for one person’s good idea to blossom into the next big business or, even, a movement of millions.

5. Social Justice

Broadband in America today is not equally accessible: Users are predominantly middle- or upper-class and live in urban or suburban areas. Poorer communities and communities of color, as well as communities in rural areas, have been largely left off the grid.

Imagine what it would mean, then, to provide a connection to disadvantaged areas without also extending to them Net Neutrality’s guarantee of openness. Dominant ISPs have argued for this exception, saying Net Neutrality prevents them from connecting more people. But it’s a false choice and far too high a cost to give network owners the power to shunt ideas percolating up from these communities to a digital backwater.

The Internet Freedom Preservation Act guarantees equal and unbridled access to the Internet’s engine of opportunity, leveling the playing field so that we all have a chance to be heard.

6. The Rise of the Gatekeepers

A high-speed connection is useful only if you can connect to everyone else online. Net Neutrality leaves control over your Internet experience with you, the user. Yet network operators are considering charging extra money depending on where you want to go and what you want to do online. Some are deploying technology that would sift through and filter the content that you share with others online. Such discrimination endangers the open and level playing field that has made the Internet so democratic.

As more of us rely upon a high-speed connection to do all things media — watch and make video, follow the news, listen to music, Tweet, email and call our friends — legacy media are too tempted to get in our way, steering us back via old channels where they make all decisions for us. But there’s no going back to the analog oligarchy. The Internet Freedom Preservation Act keeps the gatekeepers at bay.

7. The Obama Opportunity

Forces are coming into alignment for Net Neutrality. We have a president who is an outspoken supporter, congressional leadership willing to fight for an open Internet, and a pro-Neutrality chairman newly ensconced at the Federal Communications Commission.

Since the fight for Net Neutrality began more than three years ago, 1.6 million Americans have picked up the phone, signed petitions, spoken out publicly and written letters to urge their members of Congress to get behind Net Neutrality.

The tides have shifted. Still, giant phone and cable companies aren’t going away. They think they can squash our movement — and over the past six months alone, they have hired 500 lobbyists in Washington to try to stop this bill.

This is our best chance to beat them back once and for all.

Despite continued financial pressure on cable companies’ core cable television business, Cablevision Systems was able to grow its broadband service, and retain broadband customers.  The company also announced it will spin off its Madison Square Garden unit into an independent entity, still owned by Cablevision shareholders.  Madison Square Garden includes the arena of the same name as well as ownership of two sports teams – the New York Knicks and New York Rangers.

The spinoff will create two distinct entities for Cablevision – an entertainment company comprised of Cablevision cable systems and Rainbow Programming, which runs several basic cable networks, and MSG, which will be sports-oriented.

In its earnings report, Cablevision said the Madison Square Garden unit had an operating loss of $8.4 million, and according to cable analyst Craig Moffett of Sanford Bernstein, will likely face a $500 million dollar charge for renovation of the arena in the coming years.  Cablevision said it earned $87 million, or 29 cents per share, in the most recent quarter, compared with $94.7 million, or 32 cents per share a year ago.  The decline in earnings was attributed to pressure from MSG losses and a drop in the number of basic video subscribers, as well as losses from its Newsday newspaper operation.

Cablevision’s broadband service retained strong customer loyalty.  It also stands out as being free of Internet Overcharging, and proud of it.  The company has made it clear it appreciates broadband growth in the United States and considers broadband usage “addictive,” and wants to be certain it remains so.

Cablevision is also considering introducing additional features to its Wi-Fi service, including the provision of a wireless voice service available to customers in New York and New Jersey.