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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And now I really push the definition of Tech at Night, starting to write this at 2am. I’d originally planned to skip tonight’s edition, and instead just sleep. But I woke up, and sleep isn’t returning anytime soon, so let’s make the rounds of tech and policy.
Some Democrats still haven’t learned the lesson of the PCCC. The far left alternative to the DCCC published a Net Neutrality pledge for Democrats to sign. Every Democrat who signed it lost in November. Yet some Democrats continue to press that extremist agenda. It shows just how of touch Harry Reid’s Senate really is.
Possibly more importantly, the drive for the Internet Tax (which again, they call Universal Service Fund reform) continues from the left. The New York Times came out for it, and a group called Consumer Federation of America is even targeting Netflix specifically for an Internet tax. Watch out.
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Remember when the Communication Workers of America backed Net Neutrality in the mildest way possible, despite the fact that it risked killing CWA jobs? Well here’s their payoff: CWA is all-in for the Internet Tax.
Of course, the left isn’t calling it the Internet Tax. Instead it’s “Universal Service Fund reform,” by which they mean finding a way to get more money into the so-called Universal Service Fund for rural phone access, then spend that money on state-run Internet access. How will they get that money? With “contributions” of course, by which FCC Chairman Julius Genachowski actually means USF taxes.
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The big story as we close out this week is Verizon appealing the FCC’s Net Neutrality order. Verizon is choosing to go back to the DC Circuit Court of Appeals, the site of the last Net Neutrality legal fight. That was the Comcast v FCC case, lost by the FCC because the FCC simply doesn’t have the legal authority to do it. Some say it could set up the FCC for another loss for Net Neutrality II to be fought out there.
In fact, Verizon is doing all it can to get this decided the right way. Verizon is arguing the DC Circuit is the only place this should be resolved, on the grounds that the FCC is essentially modifying Verizon’s wireless spectrum licenses. Clever. Also interesting is the request that the Comcast v. FCC panel be assigned to this appeal, on the grounds that the judges involved won’t have to waste time getting up to speed on the issues. A friend told me Verizon had some clever lawyering going on with this. Not being especially familiar with regulatory litigation, or even a lawyer at all, my ability to judge that is limited, but what I’m reading suggests it’s true.
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