So the top story this week is going to be the AT&T acquisition of T-Mobile USA. There’s a lot being said about it, about unions, about competition, but the story I’m seeing emerging is that this deal is about spectrum. AT&T sees in T-Mobile a way to get the spectrum it needs going forward. In fact, even power grabbing FCC Chairman Julius Genachowski said to the CTIA that this is an issue:
If we do nothing in the face of the looming spectrum crunch, many consumers will face higher prices – as the market is forced to respond to supply and demand – and frustrating service – connections that drop, apps that run unreliably or too slowly.
So not only is T-Mobile a sensible purchase for AT&T in the short run, due to their use of similar technology, but in the long run this is the kind of purchase AT&T may need to be able to compete with Verizon. Verizon, of course, already got more spectrum when it bought the C Block of old television spectrum in 2008.
So if we want competition now and in the future, we need to let the deal happen.
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So, read any good Tech posts lately? OK, I couldn’t think of a better way than that tonight to introduce a pair of RedState posts on the top story of the moment: AT&T’s announced plans to acquire T-Mobile USA from the Germans. It seems that there are two major conservative perspectives on this deal.
One was described by LaborUnionReport on Sunday: if the non-union T-Mobile workforce is forced under the unionized AT&T umbrella, then the CWA and the AFL-CIO literally profit. And sure enough, the AFL-CIO has now come out in favor of the deal, even though much of the radical left is going to oppose it. I’ve mocked the CWA in this space for backing Net Neutrality over the interests of its members, but apparently blocking this merger would be a bridge too far, because blocking the merger would be against the interests of the union bosses.
However I disagree with blocking the merger regardless of the union issue. If we want to fight forced unionization, let’s pass Right to Work laws and reform the NLRB. Let’s not stop a merger that should improve the wireless service options and quality available to Americans, effectively increasing competition by merging two tech laggards together.
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In the fast-paced, highly-competitive market of wireless phone and Internet access, this announcement stands out. The wireless carrier with the second-most subscribers, AT&T, is to acquire the number four carrier, T-Mobile USA. Some would say that this is a grave threat to competitiveness, risks reducing competition and increasing prices on everyone, and so should be stopped by the benevolent masters of the Obama administration. I disagree.
This is a young and vibrant market, with many competitors already out there, and more yet to come. The acquisition of a lagging company by the #2 company only puts pressure on the #1 firm, Verizon Wireless. Not only that, but existing regulations are plenty strong, and will almost surely result in resources being made available to lesser firms, reshaping the market without reducing choice.
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This edition of Tech at Night is unfortunately delayed. It’s almost 4am now as I’m able to start this (7am eastern) because I had a bout of Net Neutrality to deal with. All websites loaded at the same speed on my DSL: zero. Total downtime.
So, late or not, let’s go. As I warned on Monday, Net Neutrality is forcing ISPs like AT&T to impose reasonable caps on their services. Known freeloader Netflix demands that AT&T users who don’t use Netflix subsidize those who do, which is of course completely unfair, which is why AT&T isn’t allowing it. Anyway, the rate caps aren’t that small, and $10 per 50GB over isn’t bad at all. Ask any wireless Internet user what you’ll get for $10.
More FCC power grabs are on the way, it seems. The FCC has what you might call a conflict of interest: the wireless market must be declared non-competitive for the FCC to be allowed to intervene. Who decides whether that market is competitive or not though? Yup, the FCC. So Fred Campbell warns that the FCC may ignore the Congress and just say whatever it takes to do whatever it wants. Boy am I glad we have Republicans in DC who are on top of the FCC already. This may take swift action to combat.
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Good evening. I’m going to start tonight with a clarification from Friday. While I identified last week’s Net Neutrality push poll with Consumer Reports, the poll was actually signed on by CR’s publisher, Consumers Union, and conducted by the Consumer Federation of America. As that one television network says, I have now made a report, and you can decide for yourself what to make of it.
Meanwhile we still have a bunch of Net Neutrality fighting going on. Republicans are on to something with the Congressional Review Act plan of repeal, and the forces of Net Neutrality are worried. Al Franken wants to start putting people in jail over it, this despite the FCC’s failure even to publish the rules of the Net Neutrality game.
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As I began work on tonight’s late Tech at Night, reports came out of an explosion at a nuclear power plant in Fukushima prefecture, Japan. As Japan continues to deal with an unimaginably strong earthquake and then a devastating tsunami caused by that quake, I hope nobody takes those special circumstances and tries to argue against clean, effective power generation technology in the general case. Let them bury the dead first, clean up, and examine the causes of the problems before we then pause and make intelligent decisions.
Though as much as the earthquake causes me to woolgather about my own earthquake history, life does continue to go on here in America. And in fact, Republicans are getting so aggressive on tech policy issues. Mike Lee in particular has gotten much attention for calling for antitrust hearings against Google in the course of greater Senate committee efforts toward possible Search Neutrality laws. In fact I suspect he’d get even more if not for the Sendai earthquake.
I’m sure it’s infuriating the daylights out of the radicals that one of America’s most prominent TEA Party Senators is in favor of strong government action here, and I don’t know if I agree with it myself, but if Microsoft was vulnerable to years of government harassment despite the fact that anyone, at any time, could easily acquire high-quality competing products, so will Google be despite the existence of major search competitors.
Though if Senator Lee is making this move because of the juicy political effects, more than an actual desire to be a trustbuster, then his move gets two thumbs up from this observer. Ditto Joe Barton’s rumblings of going after Google for the children and their privacy.
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I know nobody wants to talk about Net Neutrality right now when unions are the issue giving everyone warm feelings right now, but there were important hearings held Wednesday. Greg Walden’s House subcommittee held hearings on HJ Res 37, which disapproves of Net Neutrality to invoke the Congressional Review act and overrule the FCC’s power grab.
On top of that, the FCC responded to the demands from Fred Upton, Lee Terry, and Walden to give an economic justification for Net Neutrality. The response was unsatisfactory, and the Republicans concluded, in a statement that in fact called Net Neutrality a “power-grab”: “The truth is imposing these rules will cause more harm than good by stifling innovation, investments and jobs.” They’re right, too, notwithstanding Nancy Pelosi’s ignorant bleating.
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Much to cover, and less time to cover it in! So many important things I don’t even know what to hit first. So, I’ll be biased and hit what I found out about from RedState. Google and the NLRB teamed up to promote unionization, with Google providing free ad space.
That’s a problem for three reasons. First, the NLRB is supposed to be the impartial arbiter of disputes between unions and employers. For the NLRB to promote unionization is to tip its hand as being a tool of one side: the unions. Second, Google isn’t even unionized. Third, and the undoing of the scheme: The NLRB, like the rest of the government, is prohibited by law from accepting free goods or services. If it weren’t for that, they’d all have continued to get away with it as they have since 2008. What a technicality.
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Good evening, I wrote in my best Alfred Hitchcock impression. Top story as we go into the weekend: our friendly neighborhood House Republicans are pressing on with their oversight of the FCC and Net Neutrality in particular. The resolution disapproving of Net Neutrality is postponed, but instead we’re getting pressure on the FCC to justify its actions economically. Good on Greg Walden, Fred Upton, and Lee Terry!
Meanwhile, up in Vermont, we’ve got a case study going on demonstrating why we don’t want industrial policy in the volatile, constantly innovating telecommunications world. Government grants to favored firms tend to favor those firms and their investors, not the people intended to get the help. Vermont is trying to pump government money into Universal Access, and failing. Let’s not repeat that nationally, please.
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Welcome to the remarkably early Tech at Night tonight. When I have my initial preparation done by 6pm, I’m not going to stay up until midnight to do the actual writing. Not gonna do it. Wouldn’t be prudent.
We start with some mild bad news: the resolution disapproving of Net Neutrality has been delayed. Fred Upton is getting recognition for his active work challenging the Obama administration on its overreaches, and Greg Walden’s subcommittee seems to be following suit nicely, but we will have to wait on this one particular vote.
The Democrats are definitely worried, though. Apparently it’s a bad thing that the FCC’s ability to act ahead of the Congress. Haven’t these Democrats ever heard of actually passing legislation to deal with new challenges?
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