Up late tonight. Spent the better part of the last 8 hours setting up my new computer*. Lots of data to transfer around and all that. But fortunately there aren’t many new developments lately to talk about, so let’s go.
I’m going to start with LightSquared. Out of the blue, it’s been repeatedly claimed that LightSquared is “the next Solyndra,” and that some nebulous form of corruption is somehow benefiting the company. Is it possible? Certainly. But I’d like to see some proof that LightSquared received actual benefits from the Obama administration, as Solyndra got free money from the government in the form of loan guarantees.
No, I won’t accept proof that Barack Obama is a bad guy as proof that LightSquared had something going on. I’m playing the role of skeptic on this particular issue, because I don’t want it to be true. I want America to get more spectrum used for 4G wireless Internet, and I want us to have more national networks supplying 4G wireless Interent. LightSquared coming online would give us both, as LightSquared CEO Sanjiv Ahuja has said.
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I’ve basically got three topics for tonight’s edition. It’s sad that two of them are government antitrust actions. I suppose elections do have consequences, and one key consequence of Barack Obama’s election is corporatist selection of winners and losers in the marketplace.
The third main topic: Alleged corruption. I’m still playing the role of skeptic on accusations that the Obama administration is playing favorites in favor of LightSquared, the firm that has been caught in a regulatory quagmire over GPS issues it may have found a workaround for.
I want more 4G competition, but I also welcome Darrell Issa giving the LightSquared/Obama matter some oversight. I’d love to have a clear answer to this question. I can’t support fake competition brought about by corruption. I reject Obama propping up Sprint Nextel and if it turns out that Obama is propping up LightSquared then I reject that as well.
Which brings us to the next topic: AT&T and T-Mobile against the Department of Justice.
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I’d like to start off tonight’s edition by saying that I enjoy some of the pushback I’ve been getting in this Tech at Night series. It’s fun when someone comes here, telling me I’m all wet, then ending up admitting they’re enamored of the whole Obama regulatory apparatus. It feels good to have my pro-liberty, pro-growth, small-government positions validated like that. So to the multifaceted George Soros astroturf machine I say this: keep it coming.
And of course, one of their key talking points is that wireless competition is in danger. Consider that Radio Shack says you have nine options, and Cellular South, a carrier you might never have heard of, is suing AT&T now, while budding 4G national competitor LightSquared answers accusations it’s buying favors from Obama. It’s hard to see how the DoJ lawsuit is anything but an attempt to prop up Sprint Nextel, and hard to disagree with T-Mobile thinking its deal with AT&T will proceed on the merits.
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We’ve lost some battles lately. That’s what happens when we let a radical Democrat become President. We let Patrick Leahy’s America Invents Act pass, imposing on America a Euro-style patent system that rewards lawyering, not being the first to invent something. We let the FCC pass an illegal Net Neutrality power grab, and that will have to go to court soon.
We’re even seeing some nominally Republican-run states get on big government bandwagon against AT&T, sadly joining in the effort by the Obama administration and Sprint Nextel to hinder competition and pad Sprint’s bottom line. What are Ohio and Pennsylvania doing there? Come on.
But at least we’re on track to get meaningful 4G competition. Some question the firm’s ties with the Obama administration, but I welcome progress toward LightSquared launching its network. Unlike Obama and Holder, trying to prop up Sprint, I actually want competition and lower prices.
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Competition, growth, and innovation are all important for the American wireless Internet market. We need more, better, and cheaper service if we’re going to move in large numbers to wireless Internet, as some are predicting. This means competition and growth in the 4G sector is vital to our future economic health.
And that, in a nutshell, is why I think it’s essential that the government stay out of the way and allow the AT&T/T-Mobile deal to proceed. Obviously now it’s too late to prevent a lawsuit, since it’s already happened, but dropping the suit would be better than proceeding on the current anti-competitive path.
That’s the one fact that more and more evidence is bringing to light: stopping the merger is the anti-competitive act, not the merger itself. Both Sprint Nextel and the Department of Justice are threatening competition, hindering us from moving beyond the 4G duopoly of Verizon and Sprint Nextel.
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I’m in danger of repeating myself as the AT&T/T-Mobile saga goes on, so let me open up tonight’s post with to my latest analysis of the situation. Summary: the behavior of Sprint Nextel’s and Clearwire’s share prices, combined with Sprint Nextel’s decision to sue AT&T, should lead any observer to believe that the AT&T/T-Mobile deal benefits the 4G Internet-using public at the expense of Sprint Nextel and current market leader Verizon.
Same as it ever was, as the Talking Heads said. When Sprint gobbled up Nextel, the public gained. So, too, will the public gain if the government keeps its hands off this time.
Is Sprint in trouble? Some say yes, but the point of antitrust laws isn’t reduce competition to prop up ineffective businesses.
Help the economy, President Barack Obama. Drop the suit. Encourage your subordinates to get out of the way of job creation, innovation, and technical progress. Event the San Francisco Chronicle has run a piece explaining that.
Hearings begin September 21. Ah, government. Slow, slow, slow. Imagine life or death medical decisions in the hands of this government! Maybe they’re still trolling for some evidence that just isn’t there.
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This is one of those weeks when all the important stuff happens at once, and there’s much to cover. I’ll start with the big national story. As I previously covered, The Eric Holder/Barack Obama Justice Department is coming after AT&T, using its own odd brand of economics to claim that the merger with T-Mobile would make the wireless market less competitive. When in fact, as history has shown with deals like Sprint/Nextel, prices are only going to come down as the market gets more competitive.
But, nonsensical as it is, the Obama administration is pressing on with the same tired thinking that gave us zero net job creation last month, and downward revisions in prior months. So let’s sweep around and look at what’s going on, what others are saying both about the news and about the prognosis, beyond the Culture of Corruption aspect I already covered.
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So much going on suddenly this week. Barack Obama and Eric Holder’s DoJ has decided to come after AT&T for its plans to merge with T-Mobile, possibly doing the bidding of donors while hindering jobs growth in America as well as nationwide 4G wireless Internet competition. Sprint’s not doing much to keep Verizon in check; we need AT&T to have the spectrum needed to do that.
So Holder wants to drive Gibson manufacturing out of the US, and to keep T-Mobile in German hands, and prevent AT&T from bringing jobs back to America. Do I have that right? It’s no wonder people rate the Internet and Telephone industries much higher than they rate the government.
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Hey look, it’s Tech at Night before midnight Pacific time. Guess who’s got two thumbs and is finishing the week early? This guy.
The FCC is creating yet more new regulations. The Obama Administration just can’t get enough of these things. I didn’t know if anyone would have noticed it happen, but The Hill caught it as well.
Meanwhile the FCC slowly moves to increase national 4G competition in America by moving inch by inch toward approving the AT&T/T-Mobile deal, over the continued whining of Al Franken. Franken says he is “very suspicious of consolidation of power.” Yet, he won’t lift a finger against large unions, and he voted for Obamacare. Hmm.
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