Happy weekend, all. To get personal, had some real excitement on my end. Preemptively replaced my chair before it fell apart, since the last one I let fall apart collapsed while I was sitting in it. I was lucky the only injury I took was a smack on each arm. But, the new chair had the LUMBAR PAD OF DOOM which started killing my back. I’ve gotten the chair adjusted, pulling the Death Pad™ way back, stopped using my pillow which changed the positioning of the pad on my back, and all should be well now. Yes, I somehow take a profession that involves sitting down and still manage to be injury-prone.
So, we’re back to talking about competition again. The FCC has announced what its rules will be for the AT&T/T-Mobile deal. Says Cnet: “First it has to determine if the deal will meet specific requirements in the Communications Act and FCC rules. And second it will determine if the merger is in the public interest.” I expect that the Communications Act won’t be a big deal, but the “public interest” fudge will be the big fight.
What the left isn’t going to allow the possibility of, though, is the idea that this acquisition might be needed just to keep AT&T competitive with Verizon at the top. Reports like this from the American Consumer Institute should inform the FCC, though. Catch this key takeaway of the market after a series of mergers it’s already seen: “The combination of higher usage and lower prices means that consumer welfare has increased significantly – not what would be expected from a “failed market.””
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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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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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After that flurry of activity online, we seem be having a bit of a slow Friday. It’s no wonder: we have a long fight ahead with respect to the AT&T/T-Mobile deal, a process that Mike Wendy calls Legalized Extortion. And when property rights are made contingent on acceptance of a goverment-dictated consent degree, it’s hard to argue with the thrust of Wendy’s point.
Scary thought for all users of SecurID, after the RSA breakin: What if SecurID has a backdoor? If it does, then there could be real danger ahead for all its users.
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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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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 went ahead and took Martin Luther King day off, so it’s a double dose of stories to cover tonight. Though first, in case you missed it, make sure to see my post today on Marsha Blackburn‘s call to action against stifling, destabilizing Internet and technology regulation.
Other than that, the big story this week so far has been the FCC finally approving the NBC Universal/Comcast merger. I don’t even know why the center-left is even supposed to be worried about that merger at this point. After all, they passed Net Neutrality, right? Anyway, it’s a real shame that this approval has only come with a number of special set asides for left-wing causes, but as I’ve said before, I’m guessing the shareholders will take what they can get after all of this delay.
Of course, the neo-Marxists are sobbing hysterically about this development. Let’s all pause, lower our heads, and take a moment to laugh at Free Press’s Josh Silver.
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Good evening. I’ve been getting some warnings for a while now about the possible next frontier in Internet regulation. I still haven’t digested it all myself, but I wanted to get the idea out there for people to think about, and be watchful for.
The Access Board is a government agency that sets rules for websites as directed under Section 508 of the Rehabilitation Act. It only applies to government websites. I see nothing to fear here right now. However this sort of thing could grow, first to federal contractors over a certain size, then all contractors, then to all businesses over a certain size… you get the idea.
After all, there’s already a push at the UN to declare it a Right to have accessible websites. I’m all for accessibility. I’ve long written HTML and supported good coding practices that naturally help accessibility. But I’m not for a nanny state, sorry.
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