Tales of the Sausage Factory:
Shout Out for New Econ Blog

For those who subscribe to Tales of the Sausage Factory but not Wetmachine Main, I thought I would let you all know that my friend and ace economist Dr. Gregory Rose has started a new blog here at wetmachine called Econoklastic. You can read his first post here. Regular readers will recognize Greg’s name as the author of several spectrum studies that I quote incessantly, such as the ones describing how SpectrumCo and its wireless allies blocked competitors from getting licenses in last year’s AWS auction.

As you can tell from his first post, Greg is quite contrarian and willing to grind more than a few sacred cows into hamburger. It’s why we like to keep him around.

Stay tuned . . . .

Neutrino:
The XM-Sirius Merger: Part One

For a first go I thought I would try something a bit controversial. We expect that the media reform movement, and I count myself part of that movement, would generally oppose mergers which increase media consolidation. As a general rule, that’s true. But the XM-Sirius satellite radio merger is a different case and raises questions about how we approach the issue of mergers generally. This is going to be a bit long (and I tend to be a bit longwinded in any case), so I shall be posting it in installments. Endnotes are at the bottom of the page. There will be a brief quiz…. No. Sorry, forgot where I was for a moment there.

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My Thoughts Exactly:
Greg Rose and the evolution of a wet machine

Sometime right soon, Dr. Gregory Rose, he of the brilliant fisking of the spectrum auction scam, will be making his inaugural post at his new Wetmachine blog Econoklastic. So may I be the first to welcome him: Welcome, Greg! Welcome to Wetmachine! I have no idea what he’ll write about, but his background leads me to expect good things. Greg describes himself thusly:

I’ve been an academic economist for more than 20 years. My
dissertation was on developing mathematical techniques for aggregating
affective variables in utility functions. I left OSU Tulsa to come to
DC in 2004 to set up a consulting company. I’ve been doing consulting
for the public interest community on telecoms ever since. And I’m a
very unconventional economist: I’m probably the only socialist member
of the Public Choice Society.

Adding another name to the Wetmachine masthead seems as good an occasion as any to launch into some meditative malarky I’ve been cogitating on for some while about where Wetmachine came from, has been, and is tending. Especially since the one-two combination punch of Harold Feld and Greg Rose should pretty much establish Wetmachine as a premiere telecommunication/first amendment/innaleckshul property policy wonk “destination shopping” blog. Which is kind of cool, especially since it’s nothing like what I set out to create when I launched Wetmachine seven years ago. At that time I was mostly trying to pimp my books (still am), and I also was pretty irritated by the technological utopianism of blogs like Slashdot and Boing Boing & I wanted to do something in the same basic zip code as those blogs but much more curmudgeonly and technoskeptical. Sort of a blend of Slashdot and Boing Boing on a bad acid trip by way of the Unabomber Manifesto was what I had in mind. I also imagined that that the now-atrophied Bonehead Computer Museum would evolve into the central attraction of the site. Guess I missed that guess. I had no idea when I invited Harold Feld to blog with me that I was snagging a world-class policy expert with a major talent for snark, nor did I know that Howard Stearns would emerge up to his eyeballs in Croquet at the head of the Web 3.0 movement. Much to my astonishment, and with little help from me, Wetmachine has become of blog of substance (by some definition of “substance”.) Who woulda thunk it? Any of y’all as may be interested in some more of my navel-gazing, feel free to follow me below the fold.

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Tales of the Sausage Factory:
Is Copyright the Administration’s Next Domestic Spying Tool?

According to this report on CNET, the Administration has suddenly discovered intellectual property as an issue. They propose that Congress consider The Intellectual Property Protection Act of 2007 (IPPA).

Among other things, the IPPA would create a new crime of “attempted copyright violation” (Section 4(a)) and criminalize cross border (or attempted cross border) copyrighted material even where the shipment is between individuals and not for public distribution. The Act would also expand the scope of the Economic Espionage Act (Section 7) and the forfieture penalties of the Digital Millemium Copyright Act (Section 6) while likewise including a new crime of “intent” to violate these existing statutes. The statute also enahnces penalties if the infringing material “knowingly or recklessly causes or attempts to cause serious bodily harm” (Section 12(a)).

Finally, and most significant to me, the proposed Section 13 enhances the ability of federal law enforcement officials to engage in “interception of wire, oral or electronic communications” as part of an investigation of these crimes.

Perhaps it is only a coincidence of timing, but I find it interesting that the Administration chooses to put this proposal forward just as its efforts to ram domestic spying legislation through Congress in the name of the “War on Terror” is running into serious trouble in the new Democratic Congress. Yesterday, the House approved an amendment to the funding for intelligence activities clarifying that the Administration must follow the procedures set forth in the Foreign Intelligence Surveillance Act (FISA) rather than claim that other authority or exigent circumstances allow it to engage in wiretaps for surveillance purposes. This follows last week’s failed Administration effort to give telcos retroactive immunity for their role in Bush’s domestic surveillance program.

While the Dems have shown themselves much more concerned with protecting civil liberties in the name of the War on Terror then the Republicans, the Dems have a known soft-spot for the intellectual property mafia. In one of the delightful ironies of the politics of special interest, aggressive civil liberties hawks like Dianne Fienstien and Barabara Boxer turn into chearleaders for the most draconian measures imaginable when it comes to “fighting piracy.”

Has the Administration found a new way to expand its domestic spying program? A way that will not only neutralize opposition, but turn its most suspicious opponents into enthusiastic proponents? How hard do any of us imagine it will be to secure a warrant for domestic spying under the cover of “intent to infringe” with the possible penalty multiplier of “intent to cause bodily harm.” Any “person of interest” the Administration would wish to target posses the means to commit this new “intent to infringe” crime if he or she has a broadband connection or even a laptop with a wireless card. In the name of investigating possible “copyright crimes,” the Administration will have free reign to sieze computers, cell phones, and other devices that might arguably contain infringing material, or that even enable someone to infringe if they have “intent” to download a single ring tone or page of text.

Note that the Administration would not even have to show probable cause that it believes that the suspect has infringed someone’s work. They merely have to show that it is probable that the person in question has an intent to infringe. That’s a rather low standard at the best of times. Coupled with the willingness of the federal judiciary to regard anyone with a broadband connection and a computer as a pirate out to pillage our noble entertainment industry, and you have a recipie for a domestic spying program that avoids all the nasty protections that FISA imposes to protect civil liberties.

I wish I could dismiss such concerns as paranoid ravings. But five years ago, I wouldn’t have believed that the Administration and the telephone companies would work hand-in-hand to develop a secret domestic spying program to listen in on the private conversations of law-abiding citizens. I would never have believed that when exposed, not only would the Administration feel no shame, it would brazenly ask Congress to “correct” the problem by making such domestic spying legal — or that Congress might actually consider doing so.

So I have to wonder, why has the Administration suddenly become so all fired up about intellectual property? And just at the moment when its efforts to get generic broader domestic spying powers appear dead.

But mostly, I wonder whether the Democrats that have loudly proclaimed their love of civil liberties and their determination to resist domestic tyranny will sell us out for the benefit of their buddies in Hollywood.

Stay tuned . . . .

Tales of the Sausage Factory:
The 700 MHz Auction as the Next Front In the Cable/Telco War.

There are many ways to parse the fights in the 700 MHz auction: incumbents v. new entrants, rural v. large incumbents, public safety v. commercial use, and the occassional suggestion by us in the public interest community. But, as I recently indicated elsewhere, an analysis of the band plan fight about large licenses v. small licenses reveals another interesting battle: Telcos v. Cable, with new entrants lining up with Telcos for large licenses and non-vertically integrated wireless carriers like T-Mobile aligning themselves with the cable-dominated consortium SpectrumCo.

What makes me believe license size in 700 MHz auction has become a new front in the fight between telcos and cable cable cos? Why has this new battleground emerged? And what are its implications?

See below . . . .

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Tales of the Sausage Factory:
I, For One, Welcome Our New Google Overlords

In a news report worthy of KBBL-TV’s Kent Brockman, MSNBC’s Olga Kharif writes of Google wielding it’s awesome and terrible powers in preparation for bidding in the 700 MHz Auction (as if I think about anything else these days). According to Kharif, “Google is wielding a surprising amount of power in the nation’s capital,” as demonstrated by “the influence Google is having on a closely watched government auction of $10 billion in licenses to provide wireless service.”

As evidence of Google’s supposed “influence,” Kharif points to Google’s involvement in the 4G Coalition “widely considered Google-led” (by whom, Kharif’s cat Mittens?) and how Martin’s express support for 4G on the large licenses v. small licenses issue shows that the FCC is likely to “play ball” with Google.

I might just let this go as another example of the Google-mania that has takne root in the press, but the normally perceptive and attentive Paul Kapustka on GigaOm made the same mistake. Because Martin said nice things about 4G and the DBS Guys (which I still thinks sounds like a Rock Band that performs at the CES Show), everyone is all “oooohhh the 4G guys are doing real well.” And the Google worshippers are all “Ah, Google Overlords, is there nothing you can’t control?”

Two critical facts tend to drop out of this analysis.

1) Martin lost his first-round bid to get the larger license-size reag plan through. That was the original plan, as noted by the Commission when it initiated this proceeding last August. This large license proposal got enormous push-back from SpectrumCo LLC (Comcast/TW/Cox/Sprint-Nextel) and the independent wireless incumbents (T-Mobile, MetroPCS) and the little rural guys. The fact that Martin was unable to get his fellow Republicans to vote with him and get the large-license band plan ratified in this round (as opposed to considered as one option among several in the Further Notice) is a set back for the supporters of large licenses.

2) The other supporters of large licenses, the ones Martin couldn’t mention for political reasons, are Verizon and AT&T. You might remember these telcos from such Kevin Martin movies as “Local Governments Hate Competition” and “Cyren Call: Song of Satan.” Verizon went so far as to hire ace auction expert Peter Cramton to write this paper on “Why Large Licenses In The 700 MHz Band Make Jesus Happy.”

[WHY the telcos and the cable cos are battling over the sze of licenses is extremely interesting and important, and is the subject of this post here.]

So yeah, Martin gave the big shout out to the DBS and 4G guys, since he’s not exactly going to say to the Dems “I’m puzzled why Ds who claim to hate cable market power back SpectrumCo against Veizon and AT&T.” And I think Martin genuinely does believe large licenses are the best way to get another national broadband competitor on the scene. (I also believe it, which is why I prefer large licenses a la the telcos and our Great Google Overlords.) But the idea that Martin did this just because Google redid the words “Federal Communications Commission” in rainbow and promised that they wouldn’t do evil with the licenses doesn’t exactly cut it. (No offense to Rick Whitt, whom I like and I think is a great lobbyist, but lets stay focused on the actual docket and relevant history, shall we?)

I suppose I should just accept that Google exerts a fascination on the trade press these days and let it go (and figure that anyone who wants my view on reality rather than Googleview will come here). But after spending last summer of watching Google and the rest of the tech industry unable to find their lobbying ass on net neutrality with both hands and a compass and a big sign saying “telcos, please spank us here”, while constantly hearing from the press and the cable cos how all of it was really the amazing Google Overlords at work has made me just a shade irritated.

Besides, it’s Friday afternoon and I’m due for my shabbos rest.

Stay tuned . . . .

Tales of the Sausage Factory:
O.K., Now You Can Call Some Bush Supporters Facists

By which I mean in the literal and technical sense of adhering to the philosophy of facism, rather than simply as a pejorative. Glenn Greenwald writes this piece critiquing an Op Ed in the Wall St. J. by Harvey Mansfield. Greenwald chooses to focus his analysis and ire on Mansfield. In doing so, he misses the far greater danger — the reemergence of the philosophy of facism as a political force in the United States.

My analysis below . . .

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Tales of the Sausage Factory:
A Must Attend for Community Wireless Networking

Below the surface, where policy makers rarely go, live the community wireless networkers. They don’t have billions in capitalization, they don’t lay miles of fiber, and they don’t have spectrum licenses. Heck, most aren’t even commercial organizations. Many of them are collections of volunteers, or non-profit organizations. The commercial ones are usually small businesses, embedded in their comunities, trying a run a business in a responsible manner rather than dreaming of huge IPOs.

But the community wireless networks (CWN) change people’s lives every day. They bring broadband connectivity to neighborhoods that can’t afford it and the rural areas that the big boys ignore. They are the development lab of innovation for networking. From open source mesh to solar powered transmitters to “cantenna”-type reuse and recycling of available parts, you can find folks playing with these in community wireless networks.

The Third International Summit for Community Wireless will take place in Columbia, MD at Loyolla Colege on May 18-20. It represents an unparalleled oppotunity to find out what is going on not just here in the U.S., but in other countries as well. This is the place to find out how people confronting the “digital divide” in the trenches are finding solutions in places that the largest companies don’t want to service. Whether it’s how to keep cows from knocking down your towers or how to make sure a local project stays local and sustainable, you’ll find people talking about it here.

I plan to be there. I know a lot of great people listed in the press release reproduced below plan to come as well. If you’re smart, you will as well.

Stay tuned . . . .

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