Good evening. Or Good morning on the East Coast, as it’s unfortunately approaching 5am there as I start tonight’s edition. A big story is that the House Judiciary Committee will get into the game of watching the FCC, following in the footsteps of the Energy and Commerce, and Oversight committees. Commissioner Robert McDowell and Chairman Julius Genachowski are among those set to testify before Bob Goodlatte’s Competition subcommittee. I’m somewhat troubled by this, because Goodlatte seems to be looking for a government solution to a non-existent problem.
Hopefully Commissioner McDowell will set Goodlatte straight that we need a hands-off approach to the Internet, not creative reasons to increase regulation of a critical center of growth for our economy.
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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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Good evening. Yes, I’m late again on Tech at Night. Even later than I was on Monday in fact. But instead of scolding me, let’s take out our anger on Democrats like Barbara Boxer and Jerry Brown for threatening California’s long-established high tech leadership.
More and more companies and their good, high-paying jobs are fleeing the state. Green tech firms, medical supply firms, information service firms, you name it, they’re leaving. Every field a state wants to be good in over the next 20 years is being hurt by California’s oppressive regulation, increasing taxation, and refusal to cut the kickback spending to union fatcats.
I have to wonder if Texas will reclaim the high-tech crown from California, leaving the Silicon Valley to be more like Death Valley when it comes to jobs, growth, and innovation.
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