Lack of broadband competition continues

Free Press recently published a report on the state of national broadband indicating that a central failure of our communications policy is the lack of broadband competition.

For nearly a decade, the debate over broadband competition in Washington has been an increasingly tortured game of pretending we have broadband competition in America when almost any consumer can see that we clearly do not. We used to have competition: In the Telecommunications Act of 1996, Congress implemented a system that required telecommunications network owners to share their infrastructure with competitive providers. But in the years that followed, the powerful incumbent monopolists used the courts and the FCC to kill this regulatory system. As the rest of the world was successfully adopting this competitive model we invented, our leaders were abandoning it. Instead, they bet that competition between cable and telephone networks using different technologies would work out just as well. It didn’t.

Now the world’s leading broadband nations overseas are enjoying healthy broadband competition that has triggered higher speeds, lower prices, and wider deployment. In the United States, we’re 10 years behind, and we’re stuck with a market structure that is very difficult to steer back to where we were before we went off course. The facts on the ground are stark. Here in the United States, the duopoly phone and cable incumbents control 95 percent of the entire wired and wireless high-speed Internet access market. Prices are on the rise, and the incumbents have executed a deliberate strategy to slow innovation and deployment, hoping to squeeze every last dime out of yesterday’s technologies.

What the FCC should do: First and foremost, the FCC should make a clean break with the policies of the past eight years and declare that our broadband competition policy is a failure.

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Why metering threatens the Internet

Josh Silver of Free Press tells us why metering threatens the Internet

Cable companies Time Warner and Comcast, and phone giants AT&T and Verizon sell the vast majority of high-speed Internet service in the United States. Phone and cable companies like these have no other competition in 97% of US markets, thanks to corrupt policies passed by the Bush Administration at the companies' behest.

These duopolies are betting on the future of their "triple-play" phone-Internet-TV service, so that you'll pay them more than $100 per month and they can keep earning record profits. They know that if you start downloading video from online innovators like Hulu.com and Roku.com, eventually you won't need their expensive, advertising-ridden television service. If you decide to use online phone providers like Skype, you won't need their expensive phone service. The answer? Jack up the cost of Internet, and once again eliminate the competition.

But that's not all. Metering Internet usage also has ramifications for journalism.

We continue to learn about Madonna's adoption problems and Ms. California's old photos, but if you want substance in your news, you'll have to look beyond corporate media's steady stream of sensationalism, celebrity gossip and product placement. We need fast, neutral, affordable Internet that can deliver video, audio and other multimedia to enable efficient production and distribution of journalism and other educational content.

If I'm reading Silver correctly, he's not totally against all surcharges for truly high-volume users. And it does make sense, in the abstract, that those who barely use any bandwidth would pay less than those who stream videos and music all day. But I agree with Silver's concerns that the telecoms need to be closely regulated on this issue. But who would do the regulating, given that the telecoms have successfully purchased undue influence over Congress with their ostensibly legal campaign contributions? It seems as though we need campaign finance reform before we're going to have Congressional independence on any issue. On a separate issue relating to media, consider listening to Arianna Huffington's testimony before the Commerce Communications subcommitte, chaired by Senator John Kerry. She makes many worthy points. I am concerned, though, that she is overly optimistic that journalism would thrive in a world without newspapers. Based on what I see, much of the Internet is filled with content that has its origin with traditional newspapers and news magazines. Many these newspapers are doing terrible work because they're laying off reporters and because they put profits way ahead of journalism. Yet I'm not convinced that Internet news sites are ready or able to step into the void to do this job well enough on the scale handled by traditional media outlets. I hope I'm wrong about this--I hope that we are about to see a golden age of Internet journalism--because I don't see newspapers ever making a big comeback.

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What’s up with media reform?

What's up with media reform? Free Press is active on many fronts. Click on this video to hear Josh Silver's two-minute message regarding many of the most pressing issues. I've found Free Press to be a terrific organization providing numerous ways for thousands of journalists, citizens and citizen-journalists to exchange ideas for improvement of our news-gathering and publishing. I've attended the past three Free Press national conferences, each of which drew several thousand people. I highly recommend that you visit the Free Press website and get involved.

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Internet for everyone? Why not?

Here's a terrific article by Tim Karr of Free Press.  Why not exert some intelligent political will and make certain that blistering high-speed broadband is available to anyone who wants it at a reasonable price?   Karr's article comes with some disturbing statistics: Access to broadband today is held in the…

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Your chance to oppose FCC effort to invite further media concentration

Free Press has posted this article, including a take-action link: In 2003, the Republican-dominated Federal Communications Commission, or FCC, under Chairman Michael Powell, tried to push through a drastic media ownership deregulation package that would have transformed the American media ownership landscape. The proposal triggered one of the largest and broadest…

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