The Innovation Engine

We seem to be wired to be able to solve difficult problems, but only in a community where we have support. To create that support, we have throughout history sung songs of heroes around the campfire. We are inspired by movies. Militaries breed close-knit groups and create splendid uniforms and other rituals. We go to church. With a support group, we overcome depression. We set our sports records before a stadium full of humans cheering us on.

Alone on Antarctic ice, we die.

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Romney Bows Out

Mitt Romney, the candidate widely considered an animatronic phony and opportunistic carpetbagger, has bowed out of the race for the Republican nomination. Well, good. The idea of Romney in the White House was scary.

But he’s not all bad. If he ran for Governor of Massachusetts again I would probably vote for him. And I’ve only voted for two Republicans ever, for any office, since the first time I voted 1972.

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Mukasey == Gonzales==Republican Stooge, let's sing the “I Was Not a Nazi Polka,” Hooray!

You may recall how Fredo Corleone Harry Reid and the rest of the clueless Democrats in the Senate enthusiastically bought into the pious shitpile of festering stinking lies and prevarications that was the testimony of Michael Mukasey, the “Good German Republican”, at his confirmation hearing for the position of Attorney General, when he swore, jawohl, that he would uphold the constitution no matter what, yessir, even unto the gates of Hell or the White House, whichever came first, cross my heart and hope to die, stick a needle in my eye, yah sure, you betcha, because I am a Federal Judge of Impeccable Credential and Pedigree, don’t you know, and I uphold the law, and I vas not ein SS guard I don’t change my stripes to fit the fashion, and blah blah blah blah blah.

And so he became the highest law officer in the land, with a pat on the back and a friendly howdy-do & welcome, hail fellow well-met, from Harry and Diane and all the other fine Presbyterians & toothless cowards in the Greatest Deliberative Body in World(tm). Alberto is gone! Michael is here! Integrity has been restored to the Department of Justice! Ding Dong the Witch is Dead, Hail Dorothy! (Senators Obama, Clinton, Dodd and Biden just happened to be out of town for the vote, how unfortunate!)

Below the fold: Recalling an old chestnut from the late lamented Chad Mitchell Trio.

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700 MHz: When Will it End

E Block reached its reserve price in round 44 on Thursday and the FCC announced that it was going to six bidding rounds per day beginning on Friday, Feb. 8.

However, while D Block is probably permanently stalled below its reserve price for Auction 73 and will likely have to be reauctioned, there is still sufficient activity in the auction to expect that it will continue for as much as two more weeks, depending on whether the FCC decides to further accelerate the number of rounds per day. The following table shows the rates of convergence to full clearance over the past six and the past three rounds. These rates are consistent with an auction conclusion in the last week of February or the first week of March if previous auctions are a reasonable guide. However, there have been sufficient anomalies in auction performance in Auction 73, notably high amounts by which A and B Blocks have exceeded their reserve prices and the speed with which these prices have been obtained, which caution us not to rely too much on previous auction behaviour. The FCC has been gradually upping the number of bidding rounds per day and I expect further increases, as the agency seems inclined to press the auction to conclusion.

On the basis of these facts I would estimate at least two, perhaps three more weeks of bidding, primarily in E Block, before we see the end of Auction 73.

Hypothesis: Why Limbaugh, Coulter et al are renouncing McCain

As has been reported widely, the right wing blowhards of talk radio & pundit television have been making a big stink about how John McCain is anathema. Some people who comment on this phenomenon attempt to explain it in terms of ideological disagreements between the candidate and said blowhards, or in terms of personal animosities arising from McCain’s prickly temper and his dissing of some of the lesser gods of the Republican pantheon, etc.

I think that’s a lot of baloney.

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Comcast Reacts To FCC Probe By Changing Fine Print

Well, it appears that Comcast has learned a valuable lesson from our complaint about blocking BitTorrent and subsequent FCC investigation. Sadly, but unsurprisingly, the lesson appears to be “make our policies more explicitly outrageous.”

My thanks to Marvin Amouri at Free Press for this excellent analysis of Comcast’s new terms of service. As Marvin notes, Comcast released this puppy quietly on its website, taking advantage of the pre-existing fine print to alter terms unilaterally. (Question for Comcast, if I don’t like the new terms, can I cancel without tirggering an early termination fee?)

Marvin really says everything that needs to be said on his excellent post, so I shall limit myself with simply rolling my eyes and wondering when we will have a Congress and an FCC genuinely interested in promoting broadband adoption and competition rather than providing cover for lazy duopolists squeezing locked in customers unwilling to invest in network upgrades. Oh yeah, I forgot. According to this Administration, we already solved the broadband problem.

Stay tuned . . . .

The Economics of Telco Deregulation: Califronia Dreaming, Economic Realities, and the “Reverse Ramsey” Pricing Model

This article in the LA Times on the impact of telco price deregulation in California is a good illustration of the complex nature of the economics of competition and deregulation, and why it’s so friggin’ important for regulators and the public to understand this stuff. In 2006, the California PUC decided that voice service faced sufficient competition to phase out price regulation. In theory, competition would lead to lower costs and increased services and would remove the invariably stultifying impacts of regulation.

The result has been an increase in the availability of services and an overall decrease in the cost of service, but not in the way that ordinary folks understand or that regulators professed to expect from deregulation. Most customers have, in fact, increased the amount they pay for telecommunications services overall. But because they buy larger bundles of services that profess to discount the price of each element in the bundle, the average cost per service is lower although the amount of money paid has gone up. That might seem a good value trade if it were driven strictly by consumer choice. But consumer choice is driven by the decision of telcos to increase the cost of stand alone services. So people not looking to bundle do so because it is “cheaper” while poor people who cannot afford the higher price for the bundle get a real price hike with no value added.

Example: Feldco the Telco raises the price of basic local voice from $10 to $20, and raises the price of additional services taken a la carte from $5 to $10, but I offer a package of basic voice and five additional services for $30 (which I tell you charging $5 for voice and $ 5 for each additional feature). Any customer that can afford to upgrade to my bundled package will do so, because the “value” of the bundle (at my new prices) is $70 and you are getting it for $30. So even though you upgraded and are paying me more, the cost of basic voice (calculated as part of the package) just dropped by $5. What a savings! of course, the customers who cannot afford the additional $10 a month for the bundle experience a real price increase of $10.

Basically, the problem of wealth inequity that we have seen in every other sector of the economy — where the highest earners have enjoyed the greatest increases — is now mirrored in California’s telecommunication service market. How did this happen? Do we care? And what does this tell us about the future of the metered internet, wireless competition, and the ever popular video competition?

Answers below . . . .

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Why I Have Decided To Endorse Obama.

So here it is “Super Duper Tuesday.” My own local primary (MD) will not be until next week. And while endorsing a candidate is always a perilous thing for those of us that work in Washington, I have decided to give the Tales of the Sausage Factory Endorsement to Senator Barack Obama.

Why? See below . . . .

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