I’m late. No excuses. Let’s go.
So the courts threw out Verizon’s challenge of Net Neutrality, rejecting the very clever argument made by Verizon that it wasn’t premature. So now we wait for the actual publication of Net Neutrality to take place.
Well, to a point. The Republicans aren’t waiting and will vote this week in the full House to repeal Net Neutrality under the Congressional Review Act. Remember: this cannot be filibustered in the Senate, and so when it passes the House we only need 51 votes in the Senate, not 60. Seton Motley has some phone numbers to call if you’re represented by a key Democrat.
Tell ’em that even FCC Commissioner Robert McDowell, as part of the 2/5 of the FCC that voted against Net Neutrality, still thinks it was a bad idea. Ask them his question: “Nothing is broken on the Internet, so what are we trying to fix?”
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Hello! As is my right, I’m going to start tonight by shamelessly promoting my own piece arguing for the assignment of the D block of wireless spectrum to civil defense and public safety. I keep calling it civil defense because we learned about the need for this after 9/11, and if the actions of the first responders after those attacks wasn’t wartime civil defense, I don’t know what is.
I know some (but certainly not all) libertarian-leaning Republicans oppose this plan, despite or even because the 9/11 commission chairmen have come out for it. But I’m of the view that there are legitimate government roles in society, and that not all things must be (or even should be) sold or given off to the private sector. Civil defense is one of those that is perfectly fine in government hands.
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Remember the Digital TV transition? That was when we took advantage of improved technology by making all the broadcast TV stations give up their old, huge blocks of wireless spectrum, in exchange for receiving new, narrower blocks. By making the switch, we made room for new wireless technologies to bloom.
That room was split into 5 “blocks.” The C block, for example, was auctioned off to Verizon, who’s using it for 4G LTE wireless Internet. The B block has been bought up heavily by AT&T for the same use. However the D block went unsold. When it went up for auction, nobody even met the reserve price, so today the D block remains available.
After 9/11, we learned that we need to make more spectrum available to first responders. The D block would work great for that purpose. So why don’t we just hand out the D block to first responders across the country? You’d think that’d be obvious, but unfortunately some Republicans are hesitant.
Instead of just showing leadership and doing what we need to do for honest-to-goodness civil defense, we’re playing with cargo cult markets.
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Remember when I seemed to write about Net Neutrality four times a week, which was really something when I was only posting three times? Well, the AT&T/T-Mobile deal is probably going to get that much discussion for now.
Of course there’s nothing new yet. Discussion is all there is until government actually starts acting. My job is to find the interesting discussion, I suppose. So let’s start with Douglas Holtz-Eakin at NRO, who makes very well the key thing we all must remember when it comes to the wireless market: size isn’t what matters. Competition matters. And as I’ve been saying from the start, taking the sick man in T-Mobile and combining him with the #2 firm only helps competition by putting pressure on the high-flying, LTE-deploying #1 Verizon.
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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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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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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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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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