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If We Had Competition, We Might Not Need Neutrality Rules
Though at this rate it looks like we may not be getting either...
by Karl Bode Wednesday 11-Aug-2010 tags: legal · competition · fcc · business · Op/Ed · legislation · Politics · networking · net-neutrality · consumers
Opinions of the Google/Verizon proposal for network neutrality continue to flood in, with the vast majority of thoughts on the proposal being negative. While there are small bits that some like (the EFF for instance likes the idea of limiting FCC authority), most criticisms of the plan (see Wired's, for instance) correctly note the plan is riddled with loopholes and is designed to protect Google's Android ad empire. Of course there's also been a fair share of those who just think network neutrality itself is a bunch of silly hysteria, like Yale Professor David Gelernter, who writes in the NY Times that this is all a case of "net irrationality":

Maybe a company should be allowed to do what it likes on its own, but an Internet service provider (say Verizon) that deals with many Internet companies should treat them all equally. Why? If Verizon users don’t like Verizon’s service, they’ll switch to a different I.S.P. This is called “competition.” It isn’t a panacea and almost never works perfectly. In fact it is (like democracy) the worst possible system, except for all the others.

Except as the very first commenter to Gelernter's piece points out, the vast majority of customers have the choice of one or two carriers, something you'd think a Yale Professor would notice. If Verizon engages in bad behavior, millions of their customers have absolutely no way to vote with their wallets. That's of course something the FCC could have chosen to address with our national broadband plan -- but didn't.

Neutrality protections very well might not be necessary in a picture-book U.S. broadband market where consumers had the choice of multiple, varied providers -- but that simply isn't the case. The market is dominated by duopoly and monopoly carriers who by their nature in uncompetitive markets -- will try to get away with as much as napping regulators allow. They'll get away with substantially more if they're the ones dictating the "consumer protections" governing their sectors.

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nasadude

join:2001-10-05
Rockville, MD
Reviews:
·Verizon FiOS

competition....

the difference between 12th (or 15th or 21st or wherever the US is ranked now) and the top spots.

all of the MORE advanced broadband countries have this thing called C O M P E T I T I O N. A lot of these countries started off by regulating for competition and now they have structural competition.

I don't recall reading anything anywhere about net neutrality battles in any of the countries that have robust competition.
Bubba Rock

join:2010-04-21

Re: competition....

said by nasadude:

all of the MORE advanced broadband countries have this thing called C O M P E T I T I O N. A lot of these countries started off by regulating for competition and now they have structural competition.
yes whereas America has spent its more recent years DE-regulating for the oligarchy and sure enough that oligarchy is firmly entrenched.
LowRider

join:2006-06-23
Dallas, GA

Let's hear it

Waiting for someone to say there is competition!!!
cw30000

join:2008-07-11

There is competition!

There is competition. It's call East VS West or Verizon vs AT&T.

Honestly, why don't people see this country is controlled by big corporations, and everything on the news is just a show. Our "leaders", the politicians are all corrupted.
chronoss2009
Premium
join:2008-09-23
kudos:2

and again you want this to be imported to canada

we already have this problem why would we want to make it even worse with a foreign ISP

L337
Premium
join:2005-03-10
Chicago, IL

WHAT?

Why can't we all get along? Well they did and see how well this turned out... damn it!
mworks

join:2006-06-13
Faison, NC

1 edit

This guy worked out the solution long ago

»www.youtube.com/watch?v=KUmZs9IEQV4


If they cared that is the solution.
And he even drew up a sample draft bill of what it would look like, all the congress critters have to do is fill in the blanks.
»www.ionary.com/separationbillproposal.htm

KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK
Reviews:
·AT&T DSL Service

Re: This guy worked out the solution long ago

Yes, this is the best way. Divorce the "service" provider from being the "Network" owner/builder.

One company to maintain, build-out and upgrade a national network, and then offer it open access to ALL service providers for THE SAME RATE.

... and it will never happen.
--
"Fascism should more properly be called corporatism because it is the merger of state and corporate power." -- Benito Mussolini
Core0000
Premium
join:2008-05-04
Somerset, KY

1 edit
Is it the first guy in the speech? Or the one of the ones that come after him?

*EDIT*
After watching more of the video, I guess it was the first guy.

Z80A
Premium
join:2009-11-23
Reviews:
·Cox HSI

Sorry, Google and VZ don't speak for everyone

This shouldn't be a negotiation of backroom deals between two corporate giants. Google doesn't need "protection". It's Google's competitors that would end up needing protection from ISP interference.
--
"Our goal (was to make) a billion phones Flash-enabled by 2010...We're actually going to get 1 billion Flash-enabled phones by 2009." -Adobe Chief Technology Officer Kevin Lynch in Nov 2008.

KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK
Reviews:
·AT&T DSL Service

Ignoring reality is a full time job.

I love articles like that. Was he paid by lobbyists? Sheesh.

Yes, I'm not happy with AT&T, let's say. I'm signing up for FIOS!

Oh wait.

Yeah, all that robust competition. Well, you know what they say about living in Ivory towers....
--
"Fascism should more properly be called corporatism because it is the merger of state and corporate power." -- Benito Mussolini
qworster

join:2001-11-25
Bryn Mawr, PA
Reviews:
·MSN
·Brand X Internet
·DSL EXTREME

I find it telling...

I find it telling that virtually all of the competition was eliminated during the republican Bush/Powell FCC days, which runs completely contrary to the usual republican mantra of "let the marketplace decide".
I guess that they only allow the marketplace to decide when the incumbents aren't fattening their wallets and/or Swiss bank accounts!
gorehound

join:2009-06-19
Portland, ME

Re: I find it telling...

i agree but i might add that i am becoming equally pissed off at democrats.i see both of these parties as krap.
what we need is some kind of new party that stands for our consumer interests and does not care to take money from the bigwig corps.
qworster

join:2001-11-25
Bryn Mawr, PA
Reviews:
·MSN
·Brand X Internet
·DSL EXTREME

Re: I find it telling...

said by gorehound:

i agree but i might add that i am becoming equally pissed off at democrats.i see both of these parties as krap.
what we need is some kind of new party that stands for our consumer interests and does not care to take money from the bigwig corps.
I quite agree. Genowski is a major disappointment.
Mr Matt

join:2008-01-29
Eustis, FL
kudos:1
Reviews:
·CenturyLink
·Comcast
·Embarq Now Centu..
·Millenicom

If the Internet were a municipal private water system!

You would only be allowed to take a shower once a week. You flow rate would be reduced or you would be charged $1.99 per 100 Gallons if you used more than your allotment. You might not be able to take a shower during peak periods because the water pressure would be to low.

Here is why lack of competition has screwed the customer. As a former Dial-Up ISP insider I sat in on many meetings where upper management cursed what they called the Mickey Mouse ISP's. The reason they were so pissed off was that the Mickey Mouse ISP's thwarted managements efforts to raise prices by implementing usage based billing like American On Line had and raise monthly prices. In 1995 dial-up internet access cost about $24.00 per month for a 14.4Kbps connection. By the year 2000 when my employer sold their customer base to a national ISP the competition forced the company, to reduce monthly fees for flat rate internet access, to about $14.00.

There were two major reasons why my employer abandoned the dial up business. The first was the cost of constant equipment upgrades to keep up with the competition. When competitors advertised that they upgraded their network from 14.4Kbps to 28.8Kbps customers began to move their accounts to the ISP that offered the higher speed. Management got tired of the high cost of upgrading their POPS every Six Months. The straw that broke the Camels Back was when the competition began offering performance enhancing software. The big problem was both the cost to upgrade pops with "Turbo" Software and the cost of holding the customers hand to install the software. That caused them to throw in the towel. The second reason was the hand writing on the wall. Management projected that within Five Years (From the year 2000) dedicated broadband would replace the dial up and their embedded base of dial up customers would become worthless. So they sold their customer base while it still had value.
Core0000
Premium
join:2008-05-04
Somerset, KY

Competition

"In fact it is (like democracy) the worst possible system"

Were lacking competition when it comes to the federal government as well...

What? someone was going to say it.

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