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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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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I’m back. CPAC week came and went. Then another week came and went after the horrible cold I got at CPAC. But now I’m healthy again and it’s time to start catching up. Though there’s no way I’m going to post on every tidbit I’ve run across in the last two weeks, I can try to hit the highlights.
And let’s start with the fact that the Internet Kill Switch is back under a new name. Susan Collins and Joe Lieberman have reintroduced the bill under a new name. They think if they put freedom in the name that we’ll ignore the problems inherent in giving the President emergency powers to wage economic war on America. The Internet Kill Switch is a broken idea. We don’t let the President close supermarkets nationwide if one butcher in one city has an e. coli outbreak. We can’t apply the same overreaction online.
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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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