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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Hello! As is my right, I’m going to start tonight by shamelessly promoting my own piece arguing for the assignment of the D block of wireless spectrum to civil defense and public safety. I keep calling it civil defense because we learned about the need for this after 9/11, and if the actions of the first responders after those attacks wasn’t wartime civil defense, I don’t know what is.
I know some (but certainly not all) libertarian-leaning Republicans oppose this plan, despite or even because the 9/11 commission chairmen have come out for it. But I’m of the view that there are legitimate government roles in society, and that not all things must be (or even should be) sold or given off to the private sector. Civil defense is one of those that is perfectly fine in government hands.
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Remember the Digital TV transition? That was when we took advantage of improved technology by making all the broadcast TV stations give up their old, huge blocks of wireless spectrum, in exchange for receiving new, narrower blocks. By making the switch, we made room for new wireless technologies to bloom.
That room was split into 5 “blocks.” The C block, for example, was auctioned off to Verizon, who’s using it for 4G LTE wireless Internet. The B block has been bought up heavily by AT&T for the same use. However the D block went unsold. When it went up for auction, nobody even met the reserve price, so today the D block remains available.
After 9/11, we learned that we need to make more spectrum available to first responders. The D block would work great for that purpose. So why don’t we just hand out the D block to first responders across the country? You’d think that’d be obvious, but unfortunately some Republicans are hesitant.
Instead of just showing leadership and doing what we need to do for honest-to-goodness civil defense, we’re playing with cargo cult markets.
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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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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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