Home » FCC » Recent Articles:

Another FCC Cave-In: Julius Genachowski’s Media Consolidation Christmas Gift to Murdoch

Is FCC chairman Julius Genachowski spicing up his resumé for a future career with one of the companies he used to regulate or does Rupert Murdoch deserve an extra special Christmas gift this year?

Mr. Genachowski has breathed new life into an industry-friendly plan that would allow a handful of companies to own or control even more media outlets  — the same kind of knuckle-headed thinking that brought us companies like Clear Channel that own more than 800 radio stations you can’t tell apart and an integrated media and telecom empire growing at the expense of competition.

Whether Genachowski considers “diversity” a dirty word or whether he is nostalgic for the days of William Randolph Hearst, his sudden interest in a twice-rejected harebrained scheme to allow one company to own even more is a stupendously bad idea. This is particularly true when the guy ready to benefit the most is running a company that looked the other way when its reporters hacked ordinary citizens’ phones and then used what was heard as the basis for scandalous tabloid reporting.

Would you be comfortable allowing Rupert Murdoch to own and control virtually all of your local news?

Phillip “Ask yourself if your interests or theirs are served by more media consolidation” Dampier

Regardless of Murdoch’s personal politics, the concept of a small handful of companies or media moguls reinforcing their media oligopoly with even more consolidation hardly has a track record of success for consumers. One need only look at what the 1996 Telecommunications Act and subsequent deregulation foolishness did for local radio and television stations. Do you even listen to local radio any longer? If not, why not?

  • Is it the fact the people on your “local” radio station strangely mispronounce streets and local towns because, in fact, they pre-record those messages from a city several hundred miles away?
  • Does your local radio station even bother with news any longer, or is it simply easier to rely on a national radio newscast picked off a satellite for three minutes an hour?
  • Do you have a trigger finger on the dial when the station stops playing music and starts playing endless ads?
  • Do you get the feeling any DJ that plays something not on the focus-group tested and pre-analyzed 50 song playlist will automatically be electrocuted in his chair?
  • Does your local television station run six hours a day of infomercials and practically no local programming?
  • Do you mind that some of your local stations have slashed local news budgets and may have even handed over their newscast to a competing TV station (or doesn’t bother with one any longer?)

What the FCC used to demand from local stations to demonstrate “local commitment” has been relegated to the rubbish bin. Today, local stations are mere pawns to be bought, sold or traded by well-consolidated media groups. It’s all about the money, not so much about the programming.

Radio created its problems adopting cookie-cutter, ad-infested formats that deliver no diversity and little to no local flavor. You might as well create your own ad-free playlist with an iPod or smartphone and be done with it. That is exactly what many former listeners do.

Local television lost viewers after programming budgets were slashed and local news operations were cut or contracted out. The quest for fatter profits for the corporate parent come at the expense of appealing programming. Remember when your local station ran movies or syndicated entertainment shows overnight, in the afternoon or on weekends? No more. Thanks to deregulation and capitulation to basic cable, your local station now runs program length commercials for the Skin Tag Remover, mineral makeup that involved putting ground up rocks on your face, or the Lint Lizard. Compelling viewing this isn’t.

Now the FCC wants to bring this same “success story” in spades by allowing consolidation to accelerate. Only instead of one company owning a bunch of local radio and television stations, it now wants to permit that same company to own your local newspaper, too.

Happy days these are for the likes of media baron Murdoch, who already owns local media in cities like Los Angeles and Chicago, but now wants the local newspaper in both cities as well. It represents an expansion of Murdoch’s media echo chamber the free flow of information required in a democracy cannot afford.

But Murdoch isn’t the only one prepping the champagne. Companies like Comcast-NBC could end up owning your newspaper, two major local television stations, eight local radio stations, and of course also provide your overpriced Internet access, phone and cable-TV service.

Chinese Central Radio & Television in Beijing doesn’t get this level of control, but under the latest FCC plan, Fox, Disney, Viacom, Comcast, Time Warner, and Clear Channel each would.

Murdoch and his supporters argue that allowing greater media consolidation will lead to a rescue of the ailing newspaper industry which is losing readers and subscribers in the Internet age.

I would argue the fate of newspapers, like local radio and television, is at the hands of their corporate owners who have slashed budgets to maximize profits at the expense of readers. Murdoch’s ownership would not change this, but would allow him to further influence the media landscape for his own personal and professional agenda. Great Britain learned this first hand with Murdoch’s tabloid newspapers. The pervasive illegal phone hacking and other abuses under Murdoch’s watch became so bad, an independent report regarding the tawdry affair now advocates the need for an independent body to review media excesses and start bringing abusers to account.

Real competition used to manage that pretty well. Those days are dwindling back home in the United States.

For at least 20 years, journalism advocates have complained local newsrooms have been gutted in cost-cutting maneuvers to allow media groups to buy and sell newspapers like they were baseball cards. After every sale, more cost-cutting. First to go were local consumer reporters and investigative journalists who antagonized local advertisers with their accounts of abusive car dealers or incompetent repair companies. Many took their ad business elsewhere.

Reporters remaining on the payroll were given more stories to cover and little time to investigate. With looming deadlines, the result all-too-often is superficial reporting that relies on “he said, she said” coverage. Many newspapers also reduced local coverage in favor of cheaper wire service reports, often outdated by the time readers saw them.

Some editors counted the days until a popular columnist decided to retire. That’s one more person off the payroll. The local movie reviewer is an endangered species, now replaced with a national columnist who covers the same movies for a lot less money. In some newspapers, some local reporting comes courtesy of local bloggers that work for free or for a pittance.

Copps

With reporting like this, many newspapers are at risk of becoming irrelevant and are already a poor value for money. Those that have a chance have learned investing in local reporting can make the difference, especially if those reading the newspaper online are asked to help contribute to the cost of gathering and disseminating the news.

One thing we have learned watching 20 years of deregulation: the larger media companies get, the less innovative they become. The proof is available on your radio dial today, if you still even listen.

That isn’t just me saying it. Former FCC Commissioner Michael Copps said much the same thing:

“[America’s news and information ecosystem] has suffered the same kind of collapse as so much of America’s physical infrastructure—witness the sorry state of our bridges, highways, streets, public transportation, airports and public utilities. So, too, in media. Private sector consolidation led to the closing of hundreds of newsrooms and the firing of thousands of investigative reporters who should be combing the beats to hold the powerful accountable. Instead journalism has been hollowed out as badly as those rust-belt steel mills. Investigative journalism hangs by a slender thread, replaced by vapid infotainment, bloviating talking heads, and a dry well of facts and real-world analysis.

The public sector is at least equally culpable because government—especially the FCC where I served for more than a decade—blessed just about every media merger and acquisition that came before it. Then it proceeded, over the better part of a generation, to eviscerate almost all of the specific public interest guidelines that had been put in place over many years to ensure that the people’s airwaves actually serve the people.

[…] Instead of hurrying in the wrong direction, wouldn’t the Commission’s time be better utilized by considering (and actually voting on) some of the dozens of recommendations that have been put before it by civil rights and public interest groups to establish programs and incentives to encourage minority and female ownership? It is time for the FCC to take a deep breath, change direction, and get on with the huge challenge of encouraging a diverse media environment that serves all of our citizens and that nourishes a thriving civic dialogue.”

Readers can take action by clicking on the infographic above and sign the petition from Free Press to send a clear message to the FCC more is less. Demand media diversity and a return to local accountability from those occupying the public airwaves.

Start the Countdown Clock on Julius Genachowski’s Departure from the FCC

FCC Chairman Julius Genachowski’s cowardly lion act. The rhetoric rarely matched the results.

Washington insiders are predicting Federal Communications Commission chairman Julius Genachowski will leave his position early in President Obama’s second term.

It cannot come soon enough, as far as we’re concerned.

One of the biggest disappointments of the Obama Administration has been the poor performance of a chairman that originally promised a departure from the rubber stamp-mentality that allowed Big Telecom providers to win near-instant approval of just about anything asked from the Republican-dominated FCC of the Bush Administration. If only to underline that point, former FCC Chairman Michael Powell joined Republican ex-commissioner Meredith Atwell-Baker on a trip through the D.C. revolving door, taking lucrative jobs with the same cable industry both used to oversee.

We had high hopes for Mr. Genachowski when he took the helm at the FCC — particularly over Net Neutrality, media consolidation, and predatory abuse of consumers at the hands of the comfortable cable-telco duopoly. Genachowski promised strong Net Neutrality protections, better broadband — especially in rural areas, an end to rubber stamping competition killing mergers and acquisitions, and more aggressive oversight of the broadband industry generally.

What we got was the reincarnation of the Cowardly Lion.

The Washington Post reviews Genachowski’s tenure during the first term of the Obama Administration and reports he has few unabashed supporters left. Telecom companies loathe Genachowski’s more cautious approach and consumer groups hate his penchant for caving in when lobbyists come calling. In short, another Democrat that talks tough and caves in at the first sign of trouble.

“His tenure has been nothing but a huge disappointment because he’s squandered an opportunity to give consumers the competitive communications market they deserve,” Derek Turner, head of policy analysis at public interest group Free Press told the Post. “If someone like him upholds compromise, it quickly leads to capitulation, which is what he’s done. He folds…to the pressure of big companies.”

Genachowski’s Record:

Analyzing AT&T’s Plan to Expand Service: Transformation or Bait & Switch for Rural America?

AT&T’s Supreme Court: senior executives sitting together in judgment of landlines at Wednesday’s analyst conference.

Yesterday, at least a half-dozen AT&T senior executives sat lined up in a perfect row to present Wall Street with the company’s vision for the future.

There were no consumers in attendance, just a group of Wall Street investors and analysts that braved the latest nor’easter to attend.

At issue: what to do about AT&T’s landline network, particularly in rural areas. Earlier this year, AT&T CEO Randall Stephenson, still smarting from a regulatory slap-down of his plan to acquire T-Mobile USA, ranted his disapproval of federal regulators for nixing the deal and then reflected on AT&T’s rural customers who still cannot buy broadband service from AT&T.

One of Stephenson’s strongest arguments in favor of merging with T-Mobile was it would facilitate a rural broadband solution. With that off the table, Stephenson seemed at a loss:

“We have been apprehensive on moving, doing anything on rural access lines because the issue here is, do you have a broadband product for rural America?,” Stephenson said. “And we’ve all been trying to find a broadband solution that was economically viable to get out to rural America and we’re not finding one to be quite candid. That having been set aside, now we’re looking at rural America and asking, what’s the broadband solution? We don’t have one right now.”

Now AT&T claims they do, and miracle of miracles, it turns out they never needed the buyout deal with T-Mobile after all.

AT&T’s solution is good news for urban, suburban, and exurban customers who will benefit from billions in additional investments to beef up the company’s U-verse platform. Those with access to U-verse TV, broadband, and phone service will soon find maximum speeds available up to 75Mbps — important at a time when cable companies are moving to 50-100Mbps premium service tiers. Those without access to U-verse, bypassed by its recently completed initial buildout, now will have a chance to see the service in their communities.

For more exurban and near-rural areas, AT&T has a positive plan to rid customers of the scourge of painfully slow ADSL service, better known simply as “DSL,” which AT&T pitches at speeds typically 10Mbps or less. In more rural areas, it is often much less.

By using additional fiber and using D-SLAM technology to reduce the amount of copper wiring between the phone company and you, AT&T’s IPDSLAM service will dramatically improve speeds for customers languishing with 3Mbps service to upwards of 45Mbps. But for now, AT&T won’t roll this out as a full-scale U-verse service. Because maximum speeds are lower and network variability is expected to be greater, AT&T will instead pitch this as a broadband and landline phone service package. Customers will be marketed satellite dishes if they want television service bundled in.

Although not as robust of a platform as U-verse will soon be, it still represents a major improvement over DSL, which is now barely tolerable for today’s online multimedia experience.

But AT&T’s “good news” may not be so great for its most rural customers, who either have the slowest DSL service or more likely no broadband at all. Those customers have waited years for AT&T to invest in upgrades to finally connect them to the Internet, but AT&T’s plans have gone in a very different direction.

AT&T’s rural solution is to take down the existing landline network and move everyone to its wireless cell phone service. To implement this proposed solution, AT&T will aggressively invest in rural cell sites within the 22 states where it supplies landline service. The company claims 99% of its customers will be able to access a 4G LTE signal within a few years.

Phillip “Are you following this shell game” Dampier

But here is where things begin to get dicey.  AT&T told investors it has no current plans to differentiate rural wireless customers from their urban counterparts. In larger cities, a smartphone and data plan is not necessarily a necessity — customers can still access a landline to place urgent calls or find a home broadband plan that does not carry the kinds of restrictive data caps wireless plans deliver.

Rural landline customers often pay low rates for their home phones, primarily because their local calling areas are generally far more restricted than in larger communities. The base rate for rural phone customers can be around $10 (before taxes and fees) in some areas. The base rate for AT&T’s wireless service starts at around $40 for 450 talk minutes or $19.99 for anchored, wireless unlimited calling home phone service (with a $36 activation fee and a two-year contract) that works with your existing home phones. Both represent rate increases.

Wireless data plans are notoriously expensive and limited. Verizon’s plan for home broadband users is priced at $60 a month with a 10GB limit. Less expensive plans with limits 25 times greater (or unlimited) are available from wired broadband providers. If the customer wants a smartphone for their data and home voice calling, bundled plans start at $85 a month with a 1GB usage limit.

With these prices, it is no surprise AT&T is promoting this as great news for the company. But we’re not so sure the average rural American is going to be pleased treated like a second class citizen with high priced, usage-capped Internet access.

As victims of Hurricane Sandy also found out last week, the venerable landline also enjoys a reputation of working after disasters strike. Unlike a fallen tree knocking down a phone line in the backyard, should AT&T’s wireless network fail in a storm, it would potentially leave hundreds, if not thousands of customers without service. Repair crews could take days to reach damaged facilities. That actually happened to Frontier Communications in some parts of West Virginia where heavy snows and tree damage made travel nearly impossible.

But there are important clues to what AT&T is really up to in regulatory filings that accompanied the showy presentation AT&T put on in New York Wednesday.

AT&T Has a Plan — Move Customers Away from Low Profit, Low Growth Landlines to High Profit Wireless/Deregulated Broadband

After the two hour presentation ended, AT&T posted a copy of its proposal sent to the Federal Communications Commission.

Reviewing the 24-page document is a classic case of  déjà vu. Once again, after the rhetoric is set aside, AT&T is back, peddling the same case to retire landline service and the regulatory obligations that accompany it. Only now, it has a carrot to dangle in front of regulators — significant investments in broadband expansion.

Although the private sector has invested well over $1 trillion in broadband networks, much remains to be done. As of 2010, roughly 14 million Americans, residing in rural and other high cost areas where the broadband business case is tenuous at best, still lacked access….

[…] Carriers such as AT&T are stepping up to do their part. In fact, just today, AT&T announced a $6 billion investment plan to expand and upgrade its wireline network to bring robust IP broadband services to millions of additional locations in its legacy footprint.

[…] AT&T makes this announcement with full confidence that the Commission will continue to implement the National Broadband Plan’s vision of removing regulatory impediments to efficient, all-IP networks, including obligations that could require carriers to maintain legacy facilities and services even after they have deployed new, IP-based alternatives.

I guess they didn’t need T-Mobile after all.

Translation: We used to bypass 14 million Americans, leaving them behind because it was unprofitable to serve them. But now we’re going to invest some additional money. But before you get that investment, we need you to agree the landline is a relic and (largely unregulated) IP-based networks are the future. We are not going to run both, so if you want all of this investment, you have to let us abandon our regulatory responsibilities and commitments to rural customers.

AT&T even tried to calm investor fears about capital spending increases, arguing the potential payoff of discarding landline service opens up a new era of earnings, both from shifting customers to AT&T’s highly profitable wireless service at a cost of double, triple, or more what customers used to pay the phone company, and a platform to sell them even more services later.

A number of Wall Street analysts disagreed, panning AT&T’s wireline investments as unproven.

The Broadband Coalition, a group of competing telecom providers, called the entire affair a smokescreen:

AT&T’s announcement today that it needs regulatory intervention from the FCC in order to invest in IP technology is a re-run of a tired ploy to leverage the company’s dominance. AT&T only invests in order to respond to competition, and competition is made possible by the very pro-competitive policies that AT&T seeks to eliminate.  The Broadband Coalition members have invested billions of dollars to bring the benefits of IP to American consumers from coast to coast.  But if AT&T gets its way, competition will largely disappear, investments will dry up and consumers will suffer.

Former Congressman Chip Pickering, coalition spokesman, stated,  “AT&T is simply trying to use its belated roll out of IP technology as an excuse to rewrite the telecom rules to its advantage.  We already know that AT&T’s claim that IP will somehow alter the laws of economics and lessen its dominance is patently false.  Clearly, AT&T’s proposed changes are not necessary to achieve widespread IP deployment, but the retention of competition policy is.”

Consumer groups accused AT&T of lying to federal regulators when the company argued the T-Mobile acquisition was essential to accomplish their plan to expand wireless service to 96% of the U.S. population. A year later, the company now claims it can deliver 4G wireless service to 300 million Americans and 99% of its landline service area without breaking much of a sweat.

CNN:

AT&T insists that it wasn’t being disingenuous with the regulators. Things changed, the company says, pointing to the 40 new spectrum deals it signed over the past year. The FCC recently made available some spectrum that wasn’t on the table when AT&T was negotiating its T-Mobile takeover.

“We chartered a new path,” AT&T spokeswoman Roberta Thomson told CNNMoney on Wednesday.

That’s precisely what the FCC — and industry analysts — believed would happen.

Now What

For now, rural customers need not worry AT&T will put their entire rural landline operation up for sale, potentially selling off a large number of  customers to companies like CenturyLink, Frontier, Windstream or FairPoint.

Rural America’s new home phone?

But AT&T’s lobbying machine will soon descend on state legislatures to win regulatory approval of their “abandon landlines” agenda. AT&T has a carrot for those legislators as well — a promise that states that hurry to rubber stamp AT&T’s wish list will be first in line for “investments.”

“We are going to have to see 21st-century regulation for 21st-century investments like this,” said AT&T CEO Randall Stephenson. “I think what you’re going to see is that these investments will go first to those states where you have good line of sight to good regulatory authority to do some of the things we’re talking about here.”

The implications for rural customers are profound if AT&T wins permission to scrap the landline network. Despite assurances from AT&T this is a technology argument, in fact it is more of a campaign to rid themselves of regulatory and consumer protection rules that have been around for decades. The type of technology used makes all the difference. Landline providers are usually compelled to provide reasonable, affordable, universal service for all Americans. Broadband, IP-based, and wireless networks now exist largely in a deregulation free-for-all where AT&T can do as it pleases, serve who it likes, and charge whatever it wants.

Considering AT&T’s current business plans, that sets the stage to worsen the newest digital divide — one pitting urban areas with faster, advanced, and more competitively priced networks against rural America, consigned to expensive, usage capped wireless service that may or may not work when a natural disaster strikes.

The only way this plan works for consumers is if common-sense service obligations, consumer protection, open access for competitors, and mandated equivalence of service is part of the package. Without it, AT&T will get exactly what it wants: a regulation free lifestyle, an expensive wireless network that rural residents will be forced to use for basic telecommunications, and cost savings and revenue opportunities AT&T will use to bolster its own profits, while cementing its monopoly position in the rural communities of 22 states where it operates.

Robocalls, Some Engaged in Dirty Tricks, Overwhelm Voters; “65 Calls So Far Today”

Phillip Dampier November 6, 2012 Consumer News, HissyFitWatch, Public Policy & Gov't, Video 1 Comment

Stopping robocalls

Landline customers in swing states have been under assault since last weekend from waves of robocalls, some containing false and misleading voting information, that have come in at rates of 20, 30, or even more every hour.

“Robocalls” are the annoying recorded messages mass-blasted to landline customers from candidates, their wives, political allies, and astroturf groups encouraging support for particular candidates or demonizing their opponents. While most landline customers receive a handful of “get out the vote” reminders during Election Day, voters in hotly-contested swing states are under siege with dozens upon dozens of recorded political messages. Now some are unplugging their phones until the polls close.

In Wisconsin, one woman said she received “calls” from President Obama, Governor Romney, and 63 others before she finally pulled the plug on her phone.

[flv width=”576″ height=”344″]http://www.phillipdampier.com/video/WXMI Grand Rapids Assault of the Robocall 11-5-12.flv[/flv]

Norma Escribano-Smith in Grandville got 65 robocalls on her phone before she finally became so exasperated, she unplugged it. WXMI in Grand Rapids reports on life in a swing state. (3 minutes)

Some groups blast out calls opposing specific ballot measures — marriage equality and tax measures are two hot issues this season. Others are more clandestine about their true identity, launched by dirty tricks firms that are masters in the dark art of the misleading robocall.

In Florida, registered voters in heavily Democratic areas report getting calls identified by Caller ID as the local Obama campaign office. The recorded messages that follow inaccurately tell voters the election has “been extended” and they can “vote for Obama tomorrow” by dropping off their ballots at a local polling place. The local Obama office is not the source of the calls, however. Someone is faking (better known as “spoofing”) the Caller ID information.

In Tucson, Ariz., local Republicans are getting calls suggesting their party supports a state proposition on the ballot the GOP actually opposes. Over in Phoenix, the campaign of Republican candidate Jeff Flake was caught making misleading and inaccurate robocalls misdirecting Democratic supporters of Richard Carmona to the wrong polling locations, often miles away. Those calls are now being looked at by the Department of Justice in Washington.

Democrat Mary Crecco of Scottsdale  said she “just freaked out” when she got the Flake robocall. “It was totally wrong, totally wrong, and I feel like it was done purposely,” she told a Phoenix TV station.

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/KPNX Phoenix Democrats fuming over Flake robocalls 11-5-12.flv[/flv]

KPNX’s ‘Watch Dogs’ launched a special investigation into misleading robocalls from the campaign of Jeff Flake misdirecting Phoenix-area Democrats to the wrong polling locations. (3 minutes)

So who avoids robocalls? Cell phone customers. Under FCC rules, robocalls to cell phones are not permitted without permission from the person being called. In Pennsylvania, one Verizon Wireless store manager reported brisk sales from customers in the last few weeks driven away from their landline by the avalanche of political messages and other telemarketers.

Some states have successfully controlled the onslaught with laws that do not allow recorded robocalls unless first introduced by a live operator asking for permission to play them. That dramatically raises the cost of robocalling, leading many groups back to traditional mailers or broadcast advertising, both only slightly less annoying.

“Four out of five calls this morning were political calls,” John Fox, Pottsville, told a Pennsylania newspaper Monday at Fairlane Village mall. “I told my wife not to answer the phone anymore.”

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/WSAW Wausau Voters Annoyed by Political Robocalls 11-5-12.mp4[/flv]

 WSAW in Wausau has started giving out tips to call-weary Wisconsin voters who are fed up with a constant assault of robocalls on their home phones.  (2 minutes)

Stop the Cap!’s Election Guide for Broadband Enthusiasts

Tomorrow is election day in the United States. Stop the Cap! has reviewed both presidential candidates’ positions (or the lack thereof) as well as the past voting records and platforms of members of both major political parties. With this in mind, it is time for our election guide for broadband enthusiasts. Regardless of what candidate you support, please get out and vote!

Neither political party or candidate has been perfect on broadband advocacy or consumer protection.

We’ve been disappointed by the Obama Administration, whose FCC chairman has major problems standing up to large telecom companies and their friends in the Republican-led House of Representatives. Julius Genachowski promised a lot and delivered very little on broadband reform policies that protect both consumers and the open Internet. Both President Obama and Genachowski’s rhetoric simply have not matched the results.

Bitterly disappointing moments included Genachowski’s cave-in on Net Neutrality, leaving watered down net protections challenged in court by some of the same companies that praised Genachowski’s willingness to compromise. Genachowski’s thank you card arrived in the form of a lawsuit. His unwillingness to take the common sense approach of defining broadband as a “telecommunications service” has left Internet policies hanging by a tenuous thread, waiting to be snipped by the first D.C. federal judge with a pair of sharp scissors. But even worse, the FCC chairman’s blinders on usage caps and usage billing have left him unbelievably naive about this pricing scheme. No, Mr. Genachowski, usage pricing is not about innovation, it’s about monetizing broadband usage for even fatter profits at the expense of average consumers already overpaying for Internet access.

Obama

Unfortunately, the alternative choice may be worse. Let’s compare the two parties and their candidates:

The Obama Administration treats broadband comparably to alternative energy. Both deliver promise, but not if we wait for private companies to do all of the heavy lifting. The Obama Administration believes Internet expansion needs government assistance to overcome the current blockade of access for anyone failing to meet private Return On Investment requirements.

While this sober business analysis has kept private providers from upsetting investors with expensive capital investments, it has also allowed millions of Americans to go without service. The “incremental growth” argument advocated by private providers has allowed the United States’ leadership role on broadband to falter. In both Europe and Asia, even small nations now outpace the United States deploying advanced broadband networks which offer far higher capacity, usually at dramatically lower prices. Usually, other nations one-upping the United States is treated like a threat to national security. This time, the argument is that those other countries don’t actually need the broadband networks they have, nor do we.

The Obama Administration bows to the reality that private companies simply will not invest in unprofitable service areas unless the government helps pick up the tab. But those companies also want the government to spend the money with as little oversight over their networks as possible.

That sets up the classic conflict between the two political parties — Democrats who want to see broadband treated like a critically-important utility that deserves some government oversight in its current state and Republicans who want to leave matters entirely in the hands of private providers who they claim know best, and keep the government out of it.

FCC Chairman Julius Genachowski’s regular cave-ins for the benefit of Big Telecom brought heavy criticism from us for his “cowardly lion” act.

Just about the only thing the two parties agree on is reforming the Universal Service Fund, which had until recently been directing millions to keeping traditional phone service up and running even as Americans increasingly abandon landlines.

But differences quickly emerge from there.

The Obama Administration believes broadband is increasingly a service every American must be able to access if sought. The Romney-Ryan campaign hasn’t spoken to the issue much beyond the general Republican platform that market forces will resolve virtually any problem when sufficient demand arises.

Republicans almost uniformly vociferously oppose Net Neutrality, believing broadband networks are the sole property of the providers that offer the service. Many Republicans characterize Net Neutrality as a “government takeover” of the Internet and a government policy that would “micromanage broadband” like it was a railroad. Somehow, they seem to have forgotten railroad monopolies used to be a problem for the United States in the early 20th century. Robber barons, anyone?

President Obama pushed for strong Net Neutrality protections for Americans, but his FCC chairman Julius Genachowski caved to the demands of AT&T, Verizon, and the cable industry by managing Net Neutrality with a disappointing “light touch” for those providers. (We’d call it “fondling” ourselves.)

Democrats favor wireless auctions and spectrum expansion, but many favor limits that reserve certain spectrum for emerging competitors and for unlicensed wireless use. Republicans trend towards “winner take all” auctions which probably will favor deep-pocketed incumbents like AT&T and Verizon. The GOP also does not support holding back as much spectrum for unlicensed use.

Republicans have been strongly supporting the deregulation of “special access” service, critical to competitors who need backhaul access to the Internet sold by large phone companies like AT&T. Critics contend the pricing deregulation has allowed a handful of phone companies to lock out competitors, particularly on the wireless side, with extremely high prices for access without any pricing oversight. The FCC under the Obama Administration suspended that deregulation last summer, a clear sign it thinks current pricing is suspect.

Romney

Opponents of usage-based pricing of Internet access have gotten shabby treatment from both parties. Republicans have shown no interest in involving themselves in a debate about the fairness of usage pricing, but neither have many Democrats.

As for publicly-owned broadband networks, sometimes called municipal broadband, the Republican record on the state and federal level is pretty clear — they actively oppose community broadband networks and many have worked with corporate front groups like the American Legislative Exchange Council (ALEC) to ban them on the state level. Democrats tend to be more favorable, but not always.

The biggest problem broadband advocates face on the federal and state level is the ongoing pervasive influence of Big Telecom campaign contributions. While politicians uniformly deny that corporate money holds any influence over their voting, the record clearly indicates otherwise. Nothing else explains the signatures from Democrats that received healthy injections of campaign cash from companies like AT&T, and then used the company’s own talking points to oppose Net Neutrality.

But in a story of the lesser of two-evils, we cannot forget AT&T spends even more to promote Republican interests, because often those interests are shared by AT&T:

  • AT&T has spent nearly $900,000 on self-identified “tea party” candidates pledged to AT&T’s deregulation policies;
  • AT&T gave nearly $2 million to the Republican Governors Association — a key part of their ALEC agenda;
  • AT&T gave $100,000 to everyone’s favorite dollar-a-holler Astroturf group — The Heartland Institute, which opposes Net Neutrality and community broadband.

Search This Site:

Contributions:

Recent Comments:

Your Account:

Stop the Cap!