September 6, 2010
Labor Day
September 4, 2010
The NYT’s Nocera Lies About Net Neutrality
And yet, here we are, a year and a half into the Obama presidency, and net neutrality is no closer to being encoded in federal regulation than it was when George W. Bush was president. Just this week, the F.C.C. asked for comments on two of the issues surrounding net neutrality, issues that have been hashed over for months. It was an obvious effort to push any decision beyond the midterm elections.
The F.C.C.’s punt doesn’t begin to get at the turmoil. When Google and Verizon, a month ago, put together a well-meaning proposal for enforceable net neutrality rules, the two companies were vilified by the net neutrality purists — because they wanted to exempt wireless. “There was universal condemnation of Google for abandoning its ‘don’t be evil’ ethos,” said Art Brodsky, the chief spokesman for Public Knowledge — the very group that was leading said condemnation.
In the wake of the Google-Verizon announcement, the F.C.C. abruptly called off talks among the various parties aimed at coming up with net neutrality rules. The talks have since been restarted, more or less, though without the involvement of the F.C.C. Yet even if the talks succeed, the resulting framework wouldn’t have the force of law, so it is hard to know precisely what they would accomplish.
And last but not least: thanks to a court decision in March — a decision that resulted directly from the F.C.C.’s effort to punish one big Internet service provider, Comcast, for violating the principle of net neutrality — the agency’s very authority to regulate broadband is in doubt.
Surely, this has to rank as the Mother of All Unintended Consequences: there is an outside chance that in its zeal to make net neutrality the law of the land, the F.C.C. could wind up as a regulator with very little to regulate.
“Net neutrality arguments have been reduced to bumper stickers,” sighed Craig Moffett of Sanford C. Bernstein, Wall Street’s premier telecom analyst. Mr. Moffett’s point is that like most political slogans that wind up on bumper stickers, the issue isn’t nearly as simple and straightforward as it might appear to be at first. Net neutrality is, in fact, incredibly complicated.
Data networks, after all, have to be managed. The engineering is complex. The capacity is limited. Inevitably, some form of prioritization is bound to take place. Rules also have to be created that will give companies the incentive they need to spend the billions upon billions of dollars necessary to extend broadband’s reach and improve its speed, so we can catch up to, say, South Korea.
Since that ruling came down in March, the agency has been going down two tracks at the same time. It has been desperately trying to find a way to re-establish jurisdiction over broadband services, while at the same time continuing to push for net neutrality. It has become a very complicated dance.
In May, for instance, Mr. Genachowski proposed that the F.C.C. could use Title II of the Telecommunications Act to re-establish jurisdiction. (Trust me: You don’t want to know the details.) But Title II brings with it all sorts of onerous, outmoded regulations better suited to the age of rotary telephones — including price regulation. Although Mr. Genachowski vows not to impose such regulation, who is to say that his successor will agree with his “forbearance” approach (as he calls it)?
And no matter how strenuously Mr. Genachowski vows not to impose price regulations, the Internet service providers have made it plain that they will sue to prevent the F.C.C. from asserting Title II jurisdiction over broadband. It is not inconceivable that the providers will win. At which point, the F.C.C. might as well close up shop.
It is this strange stew — uncertainty over jurisdiction, combined with a campaign pledge to establish net neutrality — that explains the recent Google-Verizon proposal. The truth is, virtually every player involved wants the F.C.C. to have oversight over broadband services. Otherwise, chaos is likely to ensue.
That’s why, at the request of the F.C.C.’s chief of staff, Edward P. Lazarus, representatives from all the sides of the issue, including the Open Internet Coalition, convened to see if they could come up with a framework for net neutrality they could all agree on — and that the F.C.C. could supervise. When those talks bogged down, Google and Verizon decided to come up with their own plan, thinking that they could help lead the others into the light.
Instead, they were slammed. Why? Because even though the framework they came up called for no discrimination of Web sites, for transparency and for all sorts of good things when it came to the kind of broadband that came in through a pipe, it exempted wireless broadband.
Google’s rationale — and, without question, Google was the one that compromised — is that wireless was still too new, and the capacity constraints were still too severe, to impose net neutrality, at least at this point. To put it another way, Google was looking at the issue realistically, instead of theologically.
So there we now stand. Net neutrality is in limbo because the public interest purists believe that any compromise is a sellout, and because the F.C.C. so badly shot itself in the foot by pursuing the Comcast case. It is difficult to see how we’re ever going to get net neutrality rules.
Then again, maybe the current snarl isn’t such a bad thing. “If everybody just walked away, the probability of anything bad happening is quite small,” said Mr. Moffett. I agree. Consumers have come to expect an open Internet, and companies will violate net neutrality at their peril. That is just the way the Internet has evolved.
Without the F.C.C., the Federal Trade Commission would probably wind up serving as the Internet’s sheriff, using antitrust law as its guide and bringing tough enforcement actions. Nobody in the industry wants that.
September 3, 2010
Did You Read Your Own Post?
What’s most amazing about this is that Democrats generally and the White House specifically seem completely uninterested in doing anything about this — other than exacerbating it. The need to do something is what leads me to believe (without knowing) that Obama will nominate (without necessarily causing to be confirmed) liberal favorite Elizabeth Warren to head the new Consumer Protection Agency created by the Financial Regulation bill. If they do that and are serious about it, that would definitely be a good thing, but at this point, Democratic malaise and apathy are so entrenched that it’s hard to imagine a single nomination doing much to change it.
One should acknowledge: the mere fact that the health insurance industry and the market generally sees this “reform” bill as a huge boost to the industry’s profitability does not prove, by itself, that this is a bad bill. Contrary to what I’ve seen said in various places, I haven’t advocated for the defeat of this bill. I’ve said from the start that there are reasonable arguments on both sides and that one must weigh (a) the corrupt, mandate-based strengthening of the private insurance industry, the major advancement of the corporatism model of government, the harm this is likely to do to some who are now covered and some who cannot afford the forced premiums, and the chances for a better bill if this one is defeated, versus (b) the various substantial benefits to many people who do not now have and cannot obtain health insurance and the risk that defeat of this bill will ensure preservation of the status quo. Weighing those factors is difficult and, at least for me, produces ambivalence.
Why Democrats fought so hard to include this provision which could have been replaced by far less objectionable alternatives is beyond comprehension.
We can only hope that Wyden’s recent shift away from the individual mandate is a sign that the Democratic Party is beginning to acknowledge what a massive political and policy mistake they made.
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wayoutwest August 4th, 2010 at 9:37 pm
5
I think it’s going to take a while for Americans to move from anger and scapegoating to understanding who is the real enemy. When and if they do wake up we might get a***edited in moderation***.Too many progressives and liberals still think that we can change the system by electing a few more good guys to fight for us.
Until someone stands up and demands that the TBTF banks, oil companies and other predatory capitalists are nationalized we are not going to change anything.
***MODNOTE: comments advocating violence or revolution are not permitted***
Reply
wayoutwest August 4th, 2010 at 10:19 pm
6
So peacefull Democratic Revolution is a taboo subject on FDL?
Nice Company You Keep. Your Kind of People…
BP is warning Congress that if lawmakers pass legislation that bars the company from getting new offshore drilling permits, it may not have the money to pay for all the damages caused by its oil spill in the Gulf of Mexico……
“If we are unable to keep those fields going, that is going to have a substantial impact on our cash flow,” said David Nagle, BP’s executive vice president for BP America, in an interview. That, he added, “makes it harder for us to fund things, fund these programs.”
September 2, 2010
The FCC and Net Neutrality: Superfluous Public Comment = “No Comment”
After months spent gathering comments about preserving an open and competitive Internet, the F.C.C. requested more feedback on Wednesday about whether regulations should apply to wireless Internet service.
The agency is also asking for comments about one of the most hotly debated Internet regulatory issues: special services that offer to prioritize certain digital traffic for a fee.
Those two issues were at the center of a recent proposal by Verizon and Google that generated widespread debate in the telecommunications and Internet communities.
F.C.C. officials said the request for additional comments was tied in part to the Google-Verizon proposal. But the agency was also trying to guard against generating unintended negative consequences, and to ensure that any rules it did adopt would not be thrown out on a technical claim that the commission had not followed federal rule-making procedures.
“As we’ve seen, the issues are complex, and the details matter,” Julius Genachowski, the F.C.C. chairman, said in a statement. “Even a proposal for enforceable rules can be flawed in its specifics and risk undermining the fundamental goal of preserving an open Internet.”
The FCC will seek comments on whether net neutrality rules should apply to mobile broadband or specialized and managed services, FCC Chairman Julius Genachowski announced Wednesday. Under a net neutrality proposal released by Verizon Communications and Google in August, mobile broadband and managed services would be exempt from net neutrality rules, but many consumer and digital rights groups have complained that those exemptions would fragment the Internet and hurt users.
The National Cable and Telecommunications Association, a trade group representing cable-based broadband providers, promised Wednesday to work with the FCC on net neutrality rules. The new inquiry raises “important and complex issues,” NCTA said in a statement.
Randolph May, president of conservative think tank the Free State Foundation, praised the FCC for issuing the new inquiry.
“Seeking further comment on the issues relating to specialized services and wireless platforms can only serve to further clarify the issues and, potentially, bridge differences,” May said. “This is surely positive.”….
Thomas J. Tauke, an executive vice president at Verizon, said the company was encouraged by the commission’s decision to further study net neutrality as it applied to wireless broadband and specialized services.
“At the same time, it remains clear that whatever action the F.C.C. takes will be clouded by legal uncertainty until the Congress enacts legislation that spells out the authority of the F.C.C. and establishes a broadband policy,” Mr. Tauke said.
September 1, 2010
The Prize of the Venture
August 30, 2010
The Internet and Its Two Kinds of Monopoly
Intel’s own efforts to build a wireless chip business through its Atom processors have faltered, analysts say. Intel has deals with LG and Nokia to provide wireless chips. Mr. Otellini has been seeking ways to get into this market and diversify the company beyond PC chips.
Intel expects the deal to close in the first quarter of next year, pending regulatory approvals…..
Intel has also faced antitrust scrutiny in its primary chip business. This month, it reached a settlement with the U.S. Federal Trade Commission to resolve regulators’ complaints that the company had thwarted the efforts of competitors like Advanced Micro Devices and Nvidia.
Under that settlement, Intel agreed to refrain from a variety of business practices in an effort to resolve accusations of anticompetitive behavior in the market for computer processor and graphics chips.
August 29, 2010
Kleptodicy and the NYT’s New Public Editor
Scold, scourge, wreaker of cold justice: apparently, that’s what’s expected of the public editor.
The public editor is a radical concept.
And, so you know, I do bring certain articles of belief to this.
I believe a news organization needs to be aggressive. When caution trumps ambition, something dies.
I believe there is no conspiracy. Neither Arthur O. Sulzberger Jr. nor Bill Keller is the Wizard of Oz, dictating an agenda from behind a screen. Rather, The Times comes together like parallel computing: many lines simultaneously flowing through a filter, hitting the driveway and flashing on a screen. It is very messy.
I believe that journalists should leave their political views at the door when they report and edit the news. I’m a registered Democrat who voted for Barack Obama and then Scott Brown, so, as you can see, I have already left my views at the door!
First, he needs to keep driving home that he is committed to addressing the deficit…
August 25, 2010
Food For Thought: We Can Have Food And Thought, Or Else Neither
- The amendment sponsored by Senator Bernie Sanders (I-VT) pertaining to farms that engage in value-added processing or that co-mingle product from several farms. It will provide the Food and Drug Administration (FDA) with the authority to either exempt farms engaged in low or no risk processing or co-mingling activities from new regulatory requirements or to modify particular regulatory requirements for such farming operations. Included within the purview of the amendment are exemptions or flexibilities with respect to requirements within S. 510 for food safety preventative control plans and FDA on-farm inspections.
- The amendments sponsored by Senator Michael Bennet (D-CO) to reduce unnecessary paperwork and excess regulation. The Bennet language pertains to both the preventative control plan and the produce standards sections of the bill. FDA is instructed to provide flexibility for small processors including on-farm processing, to minimize the burden of compliance with regulations, and to minimize the number of different standards that apply to separate foods. FDA will also be prohibited from requiring farms and other food facilities to hire consultants to write food safety plans or to identify, implement, certify or audit those plans. With respect to produce standards, FDA will also be given the discretion to develop rules for categories of foods or for mixtures of foods rather than necessarily needing to have a separate rule for each specific commodity or to regulate specific crops if the real food safety issue involved mixtures only.
- The amendment sponsored by Senator Debbie Stabenow (D-MI) to provide for a USDA-delivered competitive grants program for food safety training for farmers, small processors and wholesalers. The training projects will prioritize small and mid-scale farms, beginning and socially disadvantaged farmers, and small food processors and wholesalers. The program will be administered by USDA’s National Institute for Food and Agriculture. As is the case for all of the provisions in S. 510, funding for the bill and for this competitive grants program will happen through the annual agriculture appropriations bill process.
- The effort championed by Senator Barbara Boxer (D-CA) to strip the bill of wildlife-threatening enforcement against “animal encroachment” of farms is also in the manager’s package. It will require FDA to apply sound science to any requirements that might impact wildlife and wildlife habitat on farms.
- An amendment proposed by Senator Sherrod Brown (D-OH) to amend the traceability and recordkeeping section of the bill that will exempt food that is direct marketed from farmers to consumers or to grocery stores and exempt food that has labeling that preserves the identity of the farm that produced the food. The amendment also prevents FDA from requiring any farm from needing to keep records beyond the first point of sale when the product leaves the farm, except in the case of farms that co-mingle product from multiple farms, in which case they must also keep records one step back as well as one step forward.
Not in the package but still under serious negotiation for inclusion in the bill when it reaches the floor of the Senate is an amendment by Senator John Tester (D-MT) to exempt food facilities with under a certain annual gross sales threshold from preventative control plan requirements and to exempt farmers who primarily direct market product to consumers, stores or restaurants from the bill’s produce standards regulations. Our expectation is this amendment will be successfully negotiated over the coming weeks and will be accepted as part of the final bill once the bill reaches the Senate floor.
We also continue to note and emphasize the additional provisions NSAC helped secure when the bill was marked up in Committee last year. Those changes included:
- requiring FDA and USDA coordination (including with respect to organic farming);
- limiting recordkeeping for farmers to just the initial sale to the first purchaser of the crop; and
- language in the produce section directing FDA to create rules that are appropriate to the scale and diversity of the farm, that take into consideration conservation and environmental standards established by other federal agencies, that do not conflict with organic certification standards, and that prioritize high risk crops.
August 23, 2010
Liberal HAMP-Smokers Kicking the Habit?
On HAMP, officials were surprisingly candid. The program has gotten a lot of bad press in terms of its Kafka-esque qualification process and its limited success in generating mortgage modifications under which families become able and willing to pay their debt. Officials pointed out that what may have been an agonizing process for individuals was a useful palliative for the system as a whole. Even if most HAMP applicants ultimately default, the program prevented an outbreak of foreclosures exactly when the system could have handled it least. There were murmurs among the bloggers of “extend and pretend”, but I don’t think that’s quite right. This was extend-and-don’t-even-bother-to-pretend. The program was successful in the sense that it kept the patient alive until it had begun to heal. And the patient of this metaphor was not a struggling homeowner, but the financial system, a.k.a. the banks. Policymakers openly judged HAMP to be a qualified success because it helped banks muddle through what might have been a fatal shock. I believe these policymakers conflate, in full sincerity, incumbent financial institutions with “the system”, “the economy”, and “ordinary Americans”. Treasury officials are not cruel people. I’m sure they would have preferred if the program had worked out better for homeowners as well. But they have larger concerns, and from their perspective, HAMP has helped to address those.



