Blog - Page 23

A new coalition, NoChokePoints, has been formed to lobby Congress and the Federal Communications Commission to further regulate the prices that incumbent telephone companies (Regional Bell Operating Companies or Incumbent Local Exchange Carriers) can charge for special access services purchased by businesses and institutions. Special access circuits are dedicated, private lines. For example, Sprint purchases special access circuits to connect its cell towers to its backbone. According to a coalition spokeswoman, Huge companies like Verizon and AT&T control the broadband lines of almost every business in the United States. The virtually unchallenged, exclusive control of these lines costs businesses and consumers more than $10 billion annually and generates a profit margin of more than 100 percent for the controlling phone Read More ›

Small cellphone operators want Congress or the Federal Communications Commission to prohibit larger carriers from becoming exclusive providers of popular handsets, like the Apple iPhone (AT&T), Blackberry Storm (Verizon Wireless), Palm Pre (Sprint) and Samsung Behold (T-Mobile). John E. Rooney, President and CEO of United States Cellular Corp., testified at a Senate Commerce Committee hearing this week: These arrangements harm consumers in rural areas and decrease competition nationwide and do not enhance innovation. Let’s examine these arguments. Rural Consumers Rooney bemoans the fact that many rural residents of Alaska, Arizona, Colorado, Idaho, Kansas, Maine, Montana, Nebraska, Nevada, New Hampshire, New Mexico, North Dakota, South Dakota, Utah, West Virginia and Wyoming are not served by AT&T network facilities while Victor H. Read More ›

The Japanese government filed comments in response to a Notice of Inquiry the Federal Communications Commission issued as part of its effort to design a grand strategy for broadband (see this and this). Japan has been working on opening essential facilities for broadband services to encourage broadband development in a fair competition environment. In 1999, local loop unbundling was ensured (for dry copper and line-sharing), and in 2000, collocation rules were established and optical fiber network unbundling were ensured. These policies accelerated the spread of DSL services and led to the rapid start up of FTTH services. In 2009, we also introduced rules to ensure Next Generation Network (NGN) unbundling. We have enforced the promotion of competition to realize the Read More ›

President Obama received a Cyberspace Policy Review from cybersecurity experts this week and pledged to create an Office of Cybersecurity Coordinator in the White House. A federal cybersecurity coordinator may help government agencies better coordinate their responsibilities and authorities and eliminate duplicative or inconsistent efforts. But most of the networks and computers which power the world’s most dynamic economy and support the strongest military are owned and operated by the private sector, as the cybersecurity experts and the President acknowledged. The private sector has been hard at work improving the reliability of software and building security features into the network. The importance of the network in combating cyber attacks has largely been overlooked. Network operators eliminate most spam, which, according Read More ›

The European Union issued the opinion explaining its decision to fine Intel $1.45 billion for offering discounts to large purchasers (see this and this), a common and typically procompetitive business practice. Although antitrust originated in the U.S., antitrust enforcement has become more active in other parts of the world where awareness of the limitations and dangers of overly-aggressive antitrust enforcement is still in the embryonic stages. This has created a regrettable forum-shopping opportunity for less-successful U.S. and foreign competitors. According to one report, Many smaller companies complaining of abusive practices by their larger rivals were so frustrated that they went overseas to the European Commission and to Asian authorities to find receptive enforcement officials. The Obama administration plans more aggressive Read More ›

In North Carolina, the Utilities Commission Public Staff (an independent agency which represents consumers before the Utilities Commission) sent legislators an email objecting to legislation which would update the state’s antiquated telecommunications law. The email contained the following arguments: CURRENT LAW ALLOWS LOCAL EXCHANGE COMPANIES AMPLE FLEXIBILITY TO COMPETE WITH CABLE AND WIRELESS. UNDER THE PROPOSED LEGISLATION, THE COMMISSION WILL NO LONGER BE ABLE TO ENSURE THE AFFORDABILITY OF BASIC LOCAL SERVICE OR ADEQUACY OF SERVICE QUALITY, OR HANDLE COMPLAINTS FOR CONSUMERS ABOUT BILLING OR SERVICE. The first argument is misleading — although it is true there is some flexibility, it certainly isn’t adequate (let alone ample). The second argument is technically correct in some respects but is utterly beside Read More ›

President Obama intends to nominate Mignon L. Clyburn to the Federal Communications Commission. Clyburn is a good pick. She has been a member of the Public Service Commission of South Carolina since 1998. She chaired the South Carolina commission from 2002 to 2004, is a past chair of the Southeastern Association of Regulatory Utility Commissioners and is a respected leader in the National Association of Regulatory Utility Commissioners (NARUC). She is trained in economics and has a reputation for thoughtfulness. The remaining question is who ought to be the Republican nominee to fill the seat vacated by former chairman Kevin J. Martin (a soon-to-be-vacant seat held by Republican Robert M. McDowell will also need to be filled). By law, two Read More ›

According to House Subcommittee on Communications, Technology, and the Internet Chairman Rick Boucher (D-VA) Deep packet inspection enables the opening of the packets which hold the content of Internet transported communications. Through the use of DPI the content can be fully revealed and examined. It has generally accepted beneficial uses such as enabling better control of networks and the blocking of Internet viruses and worms. It also enables better compliance by Internet service providers with warrants authorizing electronic message intercepts by law enforcement. But its privacy intrusion potential is nothing short of frightening. The thought that a network operator could track a user’s every move on the Internet, record the details of every search and read every email or attached Read More ›

In Alabama, HB 478 and SB 373 would protect competitive telecommunications, voice over Internet, cellphone and broadband services from utility regulation. Competition drives innovation which benefits consumers, as we have seen so often in telecommunications beginning in the 1980’s and 90’s–when small steps towards free and open competition enabled new services and features. For example, long distance service used to be fairly expensive. Long distance prices have come down dramatically. They have come down to the point that for many consumers–consumers whose phone service is not subject to regulation by the state Public Service Commission–long distance is a bundled service with unlimited use. Cellphone service–again not subject to PSC regulation–used to cost 47 cents per minute. Now, with many providers Read More ›

Read about it first at Discovery Institute’s Russia Blog – by Charles Ganske and Mike Averko. Click here to read the post.