Tuesday, July 03, 2007

 

FTC on net neutrality

FTCThe FTC has released a report on Broadband Connectivity Competition Policy which addresses the issue of net neutrality and the FTC's views on whether government should intervene in the issue.

Having the FTC examine the issue is interesting in itself. In some ways, people have suggested that carriers can do what they like with certain communications services, but if they call it "Internet", then there are certain neutrality characteristics that should apply. In its statement accompanying the release of the report, FTC Chair Deborah Platt Majoras says
This report recommends that policy makers proceed with caution in the evolving, dynamic industry of broadband Internet access, which generally is moving toward more – not less – competition. In the absence of significant market failure or demonstrated consumer harm, policy makers should be particularly hesitant to enact new regulation in this area.
Almost echoing statements made by Canadian Competition Bureau chief Sheridan Scott at The 2007 Canadian Telecom Summit, the report says
The FTC’s statutory mission is to protect competition and consumers by safeguarding and encouraging the proper operation of the free market. ... In evaluating whether new proscriptions are necessary, we advise proceeding with caution before enacting broad, ex ante restrictions in an unsettled, dynamic environment.
The FTC also advocates the 'free markets' approach favoured by Canadian Industry Minister Maxime Bernier. The report says:
Over time, competition produces the best results for consumers, providing them the lowest prices, the highest-quality products and services, and the most choices. Competition forces firms to lower their costs and prices and to improve quality, service, convenience, and other attributes that consumers value. Competition induces firms to produce the types and amounts of goods and services desired by consumers. Our freemarket system fosters innovation, creativity, and entrepreneurship that are unmatched around the world.
Similar to the situation in Canada, many claim that the broadband access market is a cozy duopoly between the telcos and cablecos. The FTC study disputes this:
While there is disagreement over the competitiveness of the broadband Internet access industry, there is evidence that it is moving in the right direction. Specifically, there is evidence at least on a national scale that:
  1. consumer demand for broadband is growing quickly;
  2. access speeds are increasing;
  3. prices (particularly speed-adjusted or quality-adjusted prices) are falling; and
  4. new entrants, deploying Wi-Fi, WiMAX, and other broadband technologies, are poised to challenge the incumbent cable and telephone companies.
Although this is merely a high-level snapshot of a dynamic, evolving marketplace, such evidence challenges the claims by many proponents of network neutrality regulation that the broadband Internet access market is a cable telephone duopoly that will exist for the foreseeable future and that the two primary broadband platforms do not compete meaningfully.
As I have written before, the FTC report notes that regulation, however well-intended, has associated costs, and may lead to unintended consequences, especially where the conduct for which regulation is intended has generally not yet occurred.

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Comments:
big druuuuum rooooollll....one of the major fears of net neutrality proponents surfaces almost immediately....this is a great indicator of the road we'll embark upon if Canada does not regulate, and please, humans are greedy by nature, some more than others, so spare me the line about the free market will decide etc....

According to the band's web site, Pearl Jam's Lollapalooza webcast was censored by sponsor/webcaster AT&T:

When asked about the missing performance, AT&T informed Lollapalooza that portions of the show were in fact missing from the webcast, and that their content monitor had made a mistake in cutting them.

During the performance of "Daughter" the following lyrics were sung to the tune of Pink Floyd's "Another Brick in the Wall" but were cut from the webcast:

* "George Bush, leave this world alone." (the second time it was sung); and
* "George Bush find yourself another home."

But really, who cares, right? Just a bunch of DFHs whining about the fact that the world is at the mercy of the worst president in American history. Boo hoo!

But yes, there are larger implications. Even for you. Clean-cut American, working-class hero that you are:

AT&T's actions strike at the heart of the public's concerns over the power that corporations have when it comes to determining what the public sees and hears through communications media.

Aspects of censorship, consolidation, and preferential treatment of the internet are now being debated under the umbrella of "Net Neutrality." Check out The Future of Music or Save the Internet for more information on this issue.

Most telecommunications companies oppose "net neutrality" and argue that the public can trust them not to censor.

That's right. AT&T, like other telcos who say you can "just trust them" not to censor content in the absence of mandatory net neutrality, just did exactly what everyone who's worried about net neutrality always believe they would do.

What'd that take? About ten seconds?

Why don't people just laugh in the faces of industries that claim they can self-regulate?

Do you want Canada to become a country where corporations and certain politicians collude to have dissenting view points shut out? Is that democracy?? Do not be fooled by the 'let the market decide' argument, because when there is only 2 or 3 providers in the market, who have erected barriers to entry so massive that they remain the only ones in the marketplace, then that is not a free market or in the best interest of Canadian citizens. It will create an undemocratic and tiered system, stifle innovation and our voices.
 
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