What do AT&T, LightSquared, and the late Super Committee have in common? Spectrum.
AT&T is the big story right now, too. They know the fix is in, with Sprint, Eric Holder, and FCC all ganging up on them as a team effort. The Obama administration is all but running guns to Sprint in this effort. So, the firm is trying to slip the noose by withdrawing its FCC application and warning the FCC that they will get sued if the application is not allowed to be withdrawn.
The only reason not to let AT&T pull back until the DoJ effort is settled is to rig the system, which is why the radicals want FCC to pick that particular fight.
AT&T is also proposing bolder sell offs of T-Mobile assets in order to make this work. The firm has repeatedly shown itself willing to negotiate, even as Barack Obama and his subordinates have stonewalled. Tech Liberation Front calls it ‘magical thinking’ that the FCC has been doing lately.
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Some government mistakes slip by with only a few of us shouting about them. The Stop Online Piracy Act, or SOPA, is not one of those. People across the Internet are getting loud against the House bill and its Senate counterpart PROTECT IP, the one I’ve been yelling about for months, but many businesses are supporting.
Yes, I’m going to be that guy, saying I was into the band before you ever heard of him. But, instead of being disappointed that the band’s gone mainstream, I’m glad we’re now at the point where Darrell Issa is changing his Twitter avatar in protest of the bill.
The bill has serious problems. As I previously warned it tampers with the delicate balance of interests present in the DMCA, but on top of that Title I is nothing but a framework for censorship in America that can and is designed to be triggered not through judicial trials, but through mere injunctions. And further, if an ISP or other targeted company cannot technically or economically manage to comply with the government’s orders to censor, the burden of proof is on the ISP to show that as an “affirmative defense.”
This bill goes too far. Kill it. Issa says he will introduce his alternative. I hope it follows the model of the UIGEA: cut off funding to lawbreakers. Censorship is not needed.
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Oops. It’s midnight as I type this out. I just remembered I’d better do Tech tonight, so here goes. Fortunately I already did my reading!
Urgent in the Senate this week is the upcoming vote on Net Neutrality repeal, which was already passed by the House. We need 51 votes, not 60. Less Government has a list of Senators to contact with this urgent message: repeal Net Neutrality! Democrats are listed there, but Scott Brown needs to hear from us, too!
The bad Net Neutrality rules are a symptom of greater problems at the FCC and demonstrate a need for greater reform, but we have to start somewhere. Let’s start with repeal.
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Last week I noted that the FCC is officially moving ahead with its new subsidy program. The administration will convert the Universal Service Fund – currently taxing the public and handing it out to rural telephone carriers – into a grab bag of Internet subsidies. The rural phone companies are unhappy, and everyone else is racing to get a cut. C Spire, apparently serving many rural southern customers, says the order “runs counter to the administration’s goal of promoting broadband deployment.” The Tech/Users Coalition, a group that includes Obama allies Google and Sprint, calls the USF “antiquated” and cheers the reform effort, while pressing for as much subsidy of Internet connectivity as possible. IIA also supports the effort.
Look, I don’t blame any business for looking to get a cut here. The money’s there, it’s perfectly legal, and that’s the way it is. Nobody squawked at the rural carriers collecting checks all these years. But that said, I hope Republicans will look to repeal all of this in 2013.
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It’s a lazy end of the week, it seems. Not much to cover, which is why I’m dipping down to chuckling at Sprint ending much-hyped unlimited data plans as its 3G network melts under the strain of iPhone 4 and iPhone 4S. I’ll say this: it should be all the harder for Sprint to claim they’re in dire competitive trouble now. Especially as, again, T-Mobile really is in trouble, unable to get the iPhone.
MetroPCS stands to benefit should the AT&T/T-Mobile deal go through, standing ready to buy assets from AT&T as part of the deal.
So let’s get government out of the way. Even rural areas see the benefit.
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Sorry if you missed Tech at Night on Friday. I was under the weather. But I’m back, and with so much to review.
How about legislation, good and bad? Well, mostly bad.
- Senate Democrats continue to push for senseless regulation of 4G Internet speeds, hindering vital new technology to increase high-speed Internet competition in America. Worse, Democrat Anna Eshoo is piling on in the House.
- Mary Bono Mack continues her push on privacy and security even though I don’t really see a government role in that, at least when it comes to private sector data. High profile cases do not good models make.
- Joe Barton wants to harass Amazon now, once again proving we did the right thing in not letting him head up Energy and Commerce. Seriously: If you’re allying with a Massachusetts Democrat, reconsider.
- When government comes preaching fairness, watch out: the push for a nationally-enforced Internet sales tax continues, which of course is just the first step to a joint state-national sales tax akin to the Canadian Harmonized Sales Tax. It’ll start at just one percent, I’m telling you. “One penny, for the children,” or “for seniors,” or even “for the Global War on Terror.” And then it will grow.
- We’re deeply in debt and running a massive deficit, but it’s time for a new program on “distracted driving”!
- OK, one piece of good news: Kay Bailey Hutchison is pressing the issue in the budget supercommittee of all places. encouraging voluntary incentive auctions of spectrum is great news no matter what the context, as we need all we can get. Giving the D block, previously proven to be unwanted at auction, over to civil defense is also good news, I believe. We learned that on 9/11. Look, I’d be all for auctioning it… if we hadn’t already tried and failed.
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Oh for crying out loud. For all that Washington talks tough about getting Americans access to high speed Internet, the “supercommittee” wants to tax new spectrum licensees. That’s just what we need: make it more expensive to build out America’s wireless infrastructure in order to pay for the President and his Cabinet to hand out money to their friends and political supporters. Isn’t that special? Here’s a joint letter against it from a number of industry groups.
Then you’ve got Dick Blumenthal, Al Franken, and Amy Klobuchar, leading the charge for the Democrat-controlled Senate that hasn’t passed a budget in 900 days, but wants to get government involved on what can or can’t be called 4G wireless Internet. Great prioritization here.
Spectrum’s important, though. Merely having access to a solid Internet connection lets Americans ave lots of money every year. Not just from being able to buy online, but also from gathering information, and simply from being able to stay at home. IIA did the math and American families each can save thousands of dollars a year online. And we’re busy regulating, taxing, and harassing firms like Google and AT&T, instead of getting government out of the way of investment. Yes, I’m frustrated.
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Steve Jobs died today after a long battle with cancer. He was 56. Founding NeXT would have been enough to turn anyone into a cult hero in his field. Acquiring Lucasfilm’s Graphics Group and turning it into Pixar would have made anyone a respected business leader.
But for Steve Jobs, those were feathers in his cap called Apple, the company he co-founded with Steve Wozniak, and then later saved from extinction by returning to lead it again. He led Apple to its point today as the most valuable corporation in America, measured by public market capitalization. To do that, Jobs had to beat Microsoft and he had to beat IBM. He won in the end.
Far from just a visionary, people from Apple have always said he was a hands-on leader, who had a personal stake in the success of the company and of the products he helped create. Apple ][. Macintosh. NextStep. iMac. MacOS X. iPod. iPhone. iPad. Jobs leaves behind an incredible legacy, and his death will be felt by his industry, and the world. RIP.
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So, LightSquared. Some say that in some nebulous way, the firm is getting unreasonable and possibly illicit support from the Obama administration. I still don’t see it though, especially after listening in on a briefing of LightSquared’s today.
The briefing discussed in depth the issues LightSquared has had with GPS manufacturers. LightSquared that they’re trying hard to be a “good neighbor” and have worked with the FCC to address all issues, to the point of giving up half their spectrum voluntarily, and standing ready to invest $50 million to help GPS makers fix the issues. Because LightSquared does claim that the only issues left involve “precision” GPS which, by design, listen on LightSquared’s spectrum.
LightSquared points out that this is legal. You can listen to whatever you want. The problem is, legally you have no leg to stand on if you receive ‘interference’ by the legitimate holder of the spectrum you’re listening to. That said, they’re still working on a solution so everyone can benefit.
Now obviously this is their side of the story. If there’s a detailed rebuttal of these claims available, I’d love to hear it and link to it in Tech at Night. I’m interested in finding the truth of this matter. We need spectrum, desperately, but I want to go into this knowing the facts.
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So, Net Neutrality has been published. Now nothing can stop Verizon’s lawsuit over the illegal power grab. Remember: the FCC has tried this before, when they went after Comcast. They lost. It’s not unreasonable to expect them to lose again.
Meanwhile, federalism continues to be trashed as Puerto Rico jumps into the game. They don’t want to pay taxes but they want to block our free market. Lovely. If only AT&T could get territories dismissed even as it tries to dismiss the anti-competitive lawsuits of its competitors.
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