We the people like to own stuff and not pay rent to use it (BTW, rent includes taxes but that's another story). They the oligarchs like to own the stuff and charge us rent to use it. The rise of a middle class has historically meant the rise of a property-owning class. The underclass pays exorbitant rents. The telecommunications world -- or at least the US part of it -- is a battle of rent vs. buy. Economics says that ownership or rentership is all based on access to capital. Certainly capital is a huge part of the equation -- can you spell "home loan"?; but it's not the whole story... more
Every once in a while I look in on the white spaces, to see how things are going. You'll recall that the white spaces are unused, non-contiguous ("swiss cheese" ) frequencies between broadcast stations around the county. Commr. McDowell of the FCC has said that initial rules for the white spaces will be released sometime this fall. If the white spaces are made available on an unlicensed basis for use by opportunistic, "smart," low-power mobile devices, entrepreneurial engineers will think of ways to use this wealth of spectrum (300 MHz wide, if fractured) to provide mobile connections to whatever fiber installations are nearest. more
Yesterday's post explained how peer-to-peer (P2P) applications use the processing power, bandwidth, and storage capacity of participants in a service rather than centralized resources. This makes such applications generally less subject to catastrophic failure, much less subject to running out of resources (since each new user brings new capacity as well as new demand), and much cheaper FOR THE PROVIDER of the application in terms of hardware and bandwidth required. It's the FOR THE PROVIDER part that's the rub. Let's consider the case of BBC's iPlayer service... more
There is an excellent business case for Google bidding megabucks in the upcoming 700MHz auction and investing even more to get a network up and running. I think Google is well aware of the value to them if they win and the harm they'd suffer if the duopoly wins instead. Google can make big bucks with a nationwide third network AND make things better for all Internet users AND improve the United States' pathetic competitive position in the contest for broadband access. Hope this post doesn't end up post-tagged "wishful thinking"... more
Paul Kaputska has the best wrap-up of the 700 MHz press releases and statements online, with comments from major players. Rick Whitt is polite and welcoming, noting the progress that's been made (who would have thought any move towards unlocking devices from networks was possible?) while saying it would have been better to have included wholesale requirements. But while even mainstream media was (finally) focusing on the moderate, incremental, and possibly hopelessly unenforceable (and ultimately meaningless) steps taken by the FCC today in announcing its auction rules, something else happened. more
The FCC has issued rules which will govern the auction of valuable radio spectrum which could make a huge difference in the price and quality of communications in America. The glass is definitely half something: I'd say closer to empty than full but there are some things to like and some hope for competition. The decision is a compromise. Republican Chairman Martin was joined by Democrat Commissioners Adelstein and Copps in setting some open access conditions for 22MHz out of the 62MHz which will be auctioned. Republican Commissioner Tate reluctantly went along with these conditions and Republican McDowell voted against them. more
Someone asked me a question today about Google's new partnership with Sprint. Sprint/Nextel is the third largest wireless carrier in the U.S., falling far behind Verizon and AT&T -- who together control 51% of the wireless market. (Sprint services are also resold by Comcast and Time Warner as part of their packages.) Sprint has announced it won't bid in the 700 MHz auction. Sprint has other plans... more
Google Chairman Eric Schmidt has made the FCC an offer it shouldn't refuse. At this point it's unlikely that the FCC will accept but it would be good for the United States if it did -- and good for Google, of course. Two problems with the Google offer: at&t and Verizon hate it and it probably would result in the 700MHz auction bringing in somewhat less money (immediately) for the treasury than an alternative which would encourage the telcos to bid. more
To date, the FCC has posted 27,063 comments it has received from the Citizens of the United States about its Network Neutrality NOI, aka Broadband Industry Practices WC Docket No. 07-52 [.doc, .pdf]. The first hundred are here, with links to the rest. more
The Federal Trade Commission intends to monitor the information that telecom and cable companies provide about high-speed Internet service in the service plans they offer to customers, according to a report issued last week by the agency. The FTC asserts in the report, released on June 27, that since it has jurisdiction over matters involving consumer protection, it "will continue to enforce the consumer protection laws in the area of broadband access."... The consumer protection sections of the FTC report raise this question: are broadband providers engaging in a deceptive practice when they advertise a connection speed of, for example, "up to" 768 kilobits per second (kbps) - and yet actual speeds are considerably lower? more
The term "last mile" highlights the fact that we are the consumers at the end of a broadband "pipe". Saying "first mile" is a little better but the Internet is not a pipe to or from somewhere else. It's about what we can do locally and then what we can do when we interconnect with other neighborhoods. It's better to describe our neighborhood as the first square mile. Telecom is about selling us services; the Internet is about what we can do ourselves locally and then interconnecting with others everywhere. In writing the First Square Mile - Our Neighborhood essay which I just posted I came to better understand the fundamental difference between the world of telecom which is about giving you choices and the Internet which provides opportunity to discover what we can't anticipate... more
Google has launched a new Public Policy Blog focused on U.S. government legislation and regulation -- reported in the media as part of Google's efforts in setting up focus on the U.S. government since early 2005. In an entry posted over the weekend on the blog by Richard Whitt, Washington Telecom and Media Counsel, key argument within the net neutrality debate is explained... more
Previously, I've written about how the success of the MVNO (though not without its problems) demonstrates how an Open Access-like business model can work in a wireless context. The underlying carrier, such as Sprint or Verizon, can sell access to its network at wholesale rates to a company like Virgin Mobile, which then markets to consumers. This model can be and is a success both for the retailer and the wholesaler. MVNOs are not perfect. more
Today's Wall Street Journal had an interesting article (subscription required) on the current state of the wireless walled garden. It cites several recent clashes between handset vendors and cellcos over the extent to which consumers can use their phones to access non cellco content. From the article: "At stake for consumers are what services will be available on their mobile phones and whether they're free or cost a monthly fee. The wireless Web is taking off more slowly in America than overseas, and one reason is that U.S. carriers tightly control what applications are available on mobile devices..." more
A friend who read my Creating Sustainable Network Neutrality paper wrote to say, "Help me understand what is so bad about treating different types of communications differently." That's a really good question! If you want to offer vertically integrated services on special purpose networks, such as video entertainment or pager service or telephony, I do not have a problem with that, provided you don't use your market power to impede Internet applications that offer competing services... more
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