by Ryan Young
November 18, 2009 @ 3:06 pm
FCC regulators want to provide wider and cheaper broadband access by subsidizing it, raising taxes, and forcing network owners to share their network infrastructure with competitors.
A few things the FCC should consider:
-Subsidies don’t make broadband access any less expensive. They just change who pays for it. In this case, that would be anybody with a phone. Which probably includes you. The great economist Ludwig von Mises observed that “A government can no more determine prices than a goose can lay hen’s…
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by Elizabeth Jacobson
October 28, 2009 @ 1:23 pm
Net Neutrality’s opponents are fighting back. Last week it was John McCain’s “Internet Freedom Act,” and yesterday, Representative Marsha Blackburn (R-TN) introduced a house version of the bill that would prohibit the FCC from imposing any regulations whatsoever on the internet or internet service providers. From her press release:
“The internet is the last truly open public marketplace. Its openness is the key to its efficiency and success. Not all public spaces need to be regulated spaces. Indeed, federal regulation has a long history…
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by Elizabeth Jacobson
October 23, 2009 @ 10:27 am
Senator John McCain introduced a bill yesterday to combat the FCC’s push for Net Neutrality. The “Internet Freedom Act of 2009″ would limit the FCC’s legal authority to impose Net Neutrality rules on internet service providers. McCain’s statement says:
Today I’m pleased to introduce ‘The Internet Freedom Act of 2009’ that will keep the Internet free from government control and regulation. It will allow for continued innovation that will in turn create more high-paying jobs for the millions of Americans who are…
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by Elizabeth Jacobson
October 20, 2009 @ 3:36 pm
Creative destruction is never easy for an economy to digest, especially when the industry involved has an exceptionally loud megaphone to amplify its screaming. In a report released on Monday, former Washington Post editor Leonard Downie Jr. (with co-author Michael Schudson) insists that Americans take “collective responsibility” for fostering journalism and news reporting (saving unprofitable, poorly-managed news outfits). Of course, Downie doesn’t directly ask citizens for money - that would be uncouth. Instead, he suggests that universities and nonprofits, internet…
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by Ryan Young
September 23, 2009 @ 3:58 pm
Over at the Washington Examiner’s Opinion Zone, I apply what I learned back in Economics 101 to the net neutrality debate. It’s all about scarcity.
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by Elizabeth Jacobson
September 11, 2009 @ 2:24 pm
Ars Technica recently posed the question: Did Family Guy cause 179,997 FCC Indecency Complaints? Matt Lasar concludes that indeed it did:
We go over and check out the Parents Television Council’s website. And sure enough, there’s a plausible instigator—a PTC viewer action alert crusade against a March 8 episode of the animated comedy show the PTC just loves to hate, Fox TV’s Family Guy. . . As is usually the case with these campaigns, PTC gave its readers the chance to “take action…
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by Ryan Radia
August 02, 2009 @ 7:34 pm
Just when you thought the FCC’s investigation of the wireless industry couldn’t get any stranger, TechCrunch reports that the Commission has sent letters to AT&T, Apple, and Google inquiring about Apple’s recent decision to reject the Google Voice app from the iPhone App Store.
It’s been over two years since the original iPhone was launched, but it seems the FCC still doesn’t get it: the iPhone is very clearly a closed platform — a prototypical walled garden — and Apple has the final say on what applications users…
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by Jack O'Connor
July 24, 2009 @ 9:46 pm
CEI’s broadband reply comments from earlier this week received a generous quotation by Ars Technica’s Nate Anderson. Mr. Anderson took issue, however, with our claim that net neutrality mandates are essentially price controls:
“In particular, [neutrality rules] require ISPs to offer content providers a price of zero, and to differentiate prices to consumers only in certain limited ways,” says CEI’s filing. “The disastrous consequences of price controls are all too familiar. And while neutrality may currently align with industry best practices, that fact…
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by Jack O'Connor
July 23, 2009 @ 12:42 pm
CEI submitted our initial comments to the FCC on broadband policy last month, and this week we submitted our reply comments. A brief overview:
International Comparisons: The gap between the US and other industrialized nations is vastly overstated. The differences between the leaders and the rest only amounts to a few months given the current extraordinary rate of growth. Much of our alleged lag is due to the fact that we subsidize broadband less than others, and yet we still seem to…
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by Elizabeth Jacobson
June 21, 2009 @ 1:27 pm
A group of US Senators has sent a letter to the Federal Communications Commission expressing their concern that the exclusive arrangements that are common between wireless service providers and mobile handset manufacturers may be hindering competition and innovation. Senators John Kerry (D-MA), Roger Wicker (R-MS), Byron Dorgan (D-ND), and Amy Klobuchar (D-MN) are worried that the prevalence of such exclusivity arrangements (for example, AT&T and Apple’s iPhone, or Sprint-Nextel and the Palm Pre) restrict consumer choice.
Are consumers getting a bad deal? In an essay published last…
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by Jack O'Connor
June 15, 2009 @ 9:51 pm
Under that Orwellian slogan, the American Telephone and Telegraph Company, or “Ma Bell,” operated its telephone monopoly for the better part of the 20th century. For sixty years, regulators nurtured Ma Bell’s control of the industry, convinced that the telephone market was a natural monopoly. At one point, AT&T’s grip was so tight that the company owned not only the wires in our walls but also the telephones we plugged into them, and its monopoly persisted until the company in…
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by Nick Brown
April 13, 2009 @ 3:26 pm
There has been some noise in technology circles the last week over the FCC comment period or Notice of Inquiry (NOI) in regards to the broadband Internet portion of the American Recovery and Reinvestment Act otherwise known as “the stimulus.”
The NOI allows individuals, association groups, public policy organizations like CEI, and businesses to issue their comments, suggestions, advise—anything really—to the FCC. This allows “the public” to describe how they feel like the funds should be spent and the best…
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by Fred Smith
April 07, 2009 @ 3:57 pm
When it comes to things such as environmental policy, the Progressives have been rather successful at promoting their world view. They realized that it would be futile to argue that property rights and human ingenuity could not solve anything - so they did not try (immediately) to socialize oil or other sub-surface minerals but they did succeed in derailing the evolutionary process by which institutions emerged to resolve emerging problems. The economist Ronald Coase noted this in an essay pointing out…
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Your hosts Richard Morrison and Cord Blomquist bring you Episode 32 of the LibertyWeek podcast with special guest Sam Kazman and surprise guest co-host Jeremy Lott. We start by looking into the possible future of the Federal Communications Commission with nominee Julius Genachowski about to ascend to the chairmanship, and then take another stroll through the New Great Depression with high-level financial talks between unpopular British Prime Minister Gordon Brown and über-popular President Barack Obama. Oregonian brewers fight a proposed fifteen…
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With the election of a new president and new Democratic majorities in Congress, the era of corporate influence is over in Washington, D.C. Or, at least that what I had heard. According to our old friend Tim Carney, I may have been mistaken:
A telecommunications company has confirmed for this columnist that its vice president for policy—who is also an Obama donor and a former lobbyist—is advising Barack Obama’s transition team on telecom policy.
Obama’s transition team, which has failed to disclose…
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by Ryan Radia
October 15, 2008 @ 11:06 am
If you wanted to communicate over long distances in real-time 25 years ago, you had little choice but to rely on your local phone company for carriage. Email and mobile phones were still oddities, and neither SMS text messages nor tweets had even been conceived.
Federal regulators, concerned that some companies might not maintain a high level of service, imposed reporting requirements so the FCC could monitor phone companies and ensure calls were being handled properly.
Fast forward to 2008, and the traditional phone company…
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by Ryan Radia
June 09, 2008 @ 12:50 am
Are you a mobile phone user, FiOS TV subscriber, or DirecTV customer who’s happy with your service and bound by a long-term contract? If so, then brace for higher prices thanks to a multifaceted regulatory assault on voluntary contracts.
On June 12, the FCC will hold a hearing to consider imposing regulations on early termination fees, which are the charges that customers who’ve entered into long-term service agreements must pay if they choose to end service prior to the culmination of their…
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by Ryan Radia
April 18, 2008 @ 10:10 am
Over 120 members of Congress sent a letter to the FCC this week arguing against new localism mandates being considered by the Commission. Led by Marsha Blackburn, these legislators are rejecting calls to embrace government control of content on the airwaves. As the letter correctly points out, imposing new federal rules on broadcasters is likely to exacerbate the very problems the FCC seeks to remedy.
Giant media companies are accused of silencing independent voices and depriving communities of diverse news coverage. Yet not…
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by Ryan Radia
April 15, 2008 @ 10:50 am
With all the recent talk of net neutrality, it’s easy to lose sight of the fundamental problem with broadband in America: the skewed ISP marketplace. At the heart of the issue is the FCC’s antiquated regulatory approach that discourages infrastructure investment and distorts market functions.
America’s two largest phone companies, AT&T and Verizon, recently filed forbearance petitions asking the FCC for relief from various regulations. Verizon is asking for the freedom to set prices on wholesale connections to competitive local carriers, and AT&T has…
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