FCC Responds With Fear and Trembling to My Scolding on Tardiness and Releases Two Additional Items

[Assume aspect of guiding light, hero, and all around object of devotion, Stephen Colbert]

Obviously stung by my scathing critique of the FCC’s failure to release the promised Notice of Inquiry on broadband industry practices, the FCC has now issued the promised NOI (technically, it issued a few hours before my post went live, but I know Stephen would want me to count it as a “kill”).

As an obvious additional attempt to curry my favor, the FCC has released two additional items that address long standing criticisms by myself and others, that the FCC’s annual “Broadband is Bustin’ Out All Over!” Report (aka the Section 706 Report on Deployment of Advanced Telecommunications Services to All Americans) dramaticly overstates the status of broadband competition in the country. In addition to the annual Notice of Inquiry, the FCC has also released this Notice of Proposed Rulemaking on how to improve the data collection and reporting process.

[End Colbert channeling]
More details below . . .

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Last Month's FCC Network Neutrality Items

Sorry this is so late, but it’s been a busy time, what with Passover and the rush for the FCC’s upcoming 700 MHz auction. But I figure it is still worthwhile to keep folks updated on net neutrality at the FCC.

Of course, last month’s FCC meeting had a lot going on. Take a gander at the agenda for the March FCC meeting (March 22). Notice anything unusual? Yep, it’s veerrrrrryyyyy loooooonnnnnggggg. Thirteen items. So long, in fact, that Chairman Martin called an “intermission” in the middle. At one point Commissioner McDowell sheepishly admited he was still drafting his separate statement on the item to be voted, becasuse he hadn’t gotten a chance beforehand.

I wish I had time to go into detail on these things. I hope to eventually catch up and write about things like the access to inside wiring proceeding and the digital radio rules.

But for now, I will limit myself to the declaratory ruling ruling on wireless services and the Notice of Inquiry on Net Neutrality. As discussed below, the FCC majority once again proves that while they can’t deregulate fast enough, taking action to protect our right to speak freely with one another always needs “more study.”

More below . . . .

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Free Press Rescue Internet Radio Campaign and Paper Magazines

My friends at Free Press have put together a campaign to fight the threat to internet radio. you can find out how to take action at their website here.

Meanwhile, going from newest technology to oldest, Free Press co-founder and media scholar/activist Bob McChesney has sounded the alarm on an increase in postal rates that will hit small magazines much harder than big ones. The deadline for comments in this proceeding is April 23.

The Internet is wonderful, but does not eliminate our need for independent magazines and other “old tech” news and diversity of views. So while I hope that folks will sign the internet radio petition, I really want to urge everyone to sign on to the postal rates campaign as well.

Stay tuned . . .

My Impossibly Long Field Guide for the 700 MHz Auction (It's Really Important, Even If You Haven't Heard About It Much In The Main Stream Media)

Few events in the wireless world matter so much, yet get so little coverage, as the upcomming 700 MHz wireless auction. Why? Because they’re hard, and the mainstream media (MSM to us “bloggers”) are afraid you will get all confuzzled and bored. Besides, isn’t non-stop coverage of Anna Nichole Smith more satisfying? (Hint: She’s still dead.)

Small wonder that even if you are in the minority of folks who have heard about the “digital television transition” and the “return of the analog spectrum,” you have not heard about the huge policy fights over how to auction off the single most important block of spectrum for the foreseeable future. Which is, of course, how the big carriers like it.

You can find a pretty good 12-page summary prepared by some investment analysts over here. But, being the highly-opinionated public advocate and believer in democracy that I am, I also provide a hopefully helpful guide for de-mystifying the swirl of players and activity attracted to the distribution of this multi-billion dollar block of spectrum licenses. Issues include network neutrality, open access, wireless competition, the future of broadband competition, and a whole lot of public safety stuff. It includes a cast of thousands from Frontline to Cyren Call to the Ad Hoc Public Interest Spectrum Coalition (I thought up the name myself! O.K., I was in a rush . . . .) and an army of incumbents that like the universe just the way it is, thank you and do not look kindly on those of us trying to shake things up.

I warn you, this is extremely long (13 pages, I probably should have broken it up into more than one post), and complicated, and all that stuff that mainstream media figures your pretty lil’ heads can’t handle without getting all confuzzled. So, if ye be readers of courage, willing to risk getting all confuzzled and thinking about how our wireless and broadband future will unflold for the next 10-15 years, read on! Or you can go back to Google News and plug in “Anna Nichole Smith” (yup, still dead).

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Independent Musicians Launch “Rock The Net” Network Neurtality Campaign

My good friends at Future of Music Coalition (FMC) launched a major campaign today for net neutrality. Called “Rock the Net” (a name whose lameness caused some modest embarsement at the begining of the call, but sometimes you gotta grab that cliche by the horns so you can trample the wolves while swimming from the sharks), the campaign brings together major music groups to raise awareness of the net neutrality issue and press for network neutrality legislation (such as the Dorgan-Snowe bill pending in the Senate).

Why do musicians care about network neutrality? And who are Future of Music anyway? See below….

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Too funny not to share . . .

Everyone interested in economics and how it impacts policy should watch this video clip of Yoram Baum explaining Mankiw’s ten principles of economics.

http://www.youtube.com/watch?v=VVp8UGjECt4

I laughed so hard, my pump was totally primed! — John Maynard Keynes

What is the sound of one invisible hand clapping, the market after watching Yoram Baum — Adam Smith

My Academic Article on Unlicensed Spectrum Gets Published

Every now and then, I take a break from the delightful and snarky world of blogging to dash off the odd researched piece for an academic journal. This is always an annoying and painstaking process, because academic journals want footnotes not just the occassional link. They also dislike articles that use terms like “incumbent whankers.”

Still, the effort (when I can find the time for it) is usually worth it — at least from my perspective. You can judge for yourself by following the link to the Commlaw Conspectus website and downloading From Third Class Citizen to First Among Equals: Rethinking the Place of Unlicensed Spectrum in the FCC Hierarchy.

For those unsure if its worth slogging through 39 pages of lawyer writing, here’s a summary. The FCC has a basic hierarchy of licensed spectrum, licensed by rule (family radio service and a few other things), and unlicensed spectrum. From a wireless perspective, the FCC exists for licensed spectrum, has a few oddball things licensed by rule, and has a few slivers of space open for unlicensed spectrum. Unlicensed spectrum is the “third class citizen,” required to shut off if it causes the least interference to licensed services while accepting any interference that comes its way. When the FCC allocates spectrum rights, it does everything possible for licensed services while looking with askance at the free-wheeling unlicensed poor relation. As a result, licensed services get choice spectrum and unlicensed services get the leavings — and that on sufferance.

In my article, I argue that the First Amendment calls for standing this on its head. Licensing of spectrum came about because old technology couldn’t handle everyone using this all at once we call this the “scarcity rationale,” because the need to license spectrum to avoid interference made licenses ‘scarce’). But because the FCC must give the approval for any new technologies, the technology to eliminate scarcity (and thus eliminate the need for exclusive licensing) will never come about. This circular reasoning offends the First Amendment. Accordingly, when the FCC considers whether to permit unlicensed uses, it should need to justify its decisions under a higher Constitutional standard than it does in other licensing cases (“intermediate scrutiny” rather than “rational basis” for all you legal types out there).

Besides, I argue, it’s also better policy.

While I hardly expect the FCC and the federal courts to read my piece and exclaim: “At last! What perfect wisdom! What fools we have been!” I do hope this helps advance the debate some. As with everyone else who publishes in a field where the debate has simmered for a few years, I argue for a “third way” between licensing and commons. Rather than eliminating exclusive licensing altogether, or proposing we split the spectrum down the middle, I propose allowing a gradual evolution in technology and until exclusive licensing will gradually wither away, with perhaps a handful of truly sensitive services still licensed exclusively.

Of course, if that happened, your cell phone bill would drop like a rock, ubiquitous wireless broadband would become too cheap to meter, and television and radio conglomerates would lose their precious monopolies on the airwaves. So don’t hold your breath.

Stay tuned . . .

We are pleased to offer our customers whatever services they want, as long as they don't help competitors . . . .

As some of you may have heard, carriers Cingular, Qwest and possibly other carriers are refusing to allow their subscribers to call freeconferencecall.com. Expect a number of other services to suffer similar fates — barring regulatory action or other legal steps.

What’s going on? It’s actually not a net neutrality issue (although as Bitchslappin Blog points out, it does serve as a rather nasty reminder of what is likely to happen in a non-neutral network). The issue here stems from a rather complex bit of regulatory arbitrage that I don’t fully understand myself. The facts here remain very murky, and I have no idea of the carriers are legally entitled to block these calls. (although my gut feeling based on my very surface understanding of the applicable law and the available facts is a qualified no — How’s that for legal caveats and wishy-washitude!) But if you’d like my speculaton on what I think is going on here, and why it’s likely to go on, read below….

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Great Paper on NN Out of University of Florida

I’m back from a vacation in Israel to discover an amazing economic analysis of network neutrality posted by my good buddies at Consumers Union on hearusnow.org. Written by University of Florida Economists Hsing Cheng, Subhajoyti Bhandyopadhya and Hong Guo, Net Neutrality: A Policy Perspective applies game theory to the network neutrality debate. They conclude that abandoning network neutrality would create a disincentive for broadband network providers to build fatter pipes.

If this analysis seems familiar, it’s because I wrote something similar (but without the fancy math) about a year ago. As always, I get warm fuzzies whenever economists confirm my Econ 101 “gut check.”

Of course, these guys being real economists (as opposed to undergrad posseurs like yours truly) have a bit more to say on the subject and use lots of fancy math that I will not try to reproduce. But I offer some brief plain language explanation (including what I think are the brilliant points in the analysis) below….

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Tim Wu Writes Incredibly Important Paper on Wireless Networks

Tim Wu, a brilliant scholar who combines an understanding of law, technology and economics to his writing, has written an incredibly important paper on wireless networks for the New America Wireless Future Program. You can download it here.

But Tim has done more than write a brilliant paper about why we need network attachment rules and network neutrality rules for wireless networks. He has — by accident or design — put his finger on the critical issue of public policy of our time. Do we regulate to increase public welfare, or do we only regulate to cure “market failure”?

What the paper is about, why it’s important, and what the opposition to it tells about the state of public policy these days, below….

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