July 22, 2008

FCC’s future of Digital Media / Broadband hearing. The joke’s on us!

coneheads.jpgThe FCC’s much ballyhooed panel on the future of broadband included mostly presentations that have nothing to do with broadband itself. Chairman Martin, wants more mapping as a means to introduce more regulation and is concerned with cable tv rates. Others reported on their individual obsessions with piracy, porn, social engineering, subsidies and take rate. There was one brief shining moment of relevance:

Commissioner Robert McDowell, appearing to reject some of the more regulatory policies of his colleagues, said that the Internet has flourished because engineers have, and should continue, to be the solvers of engineering problems, not governmental officials.

The comment drew applause from the crowd. (Broadband Consensus)

What almost no one at this meeting understands is that broadband itself is nothing more than the big dumb pipe that our duopoly dreads. That is not surprising since the availability, quality and cost of broadband to the consumer is of no interest to most of them. They are merely using the hot topic of broadband as a platform to push their individual, irrelevant agendas. These individuals and others like them are the reason why broadband growth has stalled and that economies of scale have not reached consumers.

Cnet’s Declan McCullaugh unknowingly sums up the problem with government  involvement with the following quote:

Cynics might say the field hearing itself was an exercise in political pacification: Doyle is the vice chairman of the House Commerce Committee’s telecommunications and the Internet panel, which oversees the FCC.

Marge Krueger, an administrative director for the Communications Workers of America union and an invited speaker, called Doyle “our favorite congressman for working families in Pittsburgh.” She said the CWA is in favor of more broadband competition “as long as companies’ don’t compete on…lower labor costs.”(Cnet)

Of course McCullaugh decries lack of consensus in the hearing, a typical socialistic view. Lack of consensus is a healthy normal state for a democratic government when they have extended their reach into places where they do not belong to begin with. The internet grew exponentially when it was free and unmanaged in the days of dial up. Government regulation that was supposed to insure fair competition on incumbent carriers network has actually ended said competition in last mile access when broadband became the norm. It’s time for the regulators to retreat from their mistakes and let the market work by restoring and equal access requirement, and do nothing else. Yes there will be disorder and disruption. That is what is supposed to happen.

As for the next hearing, I have a suggestion for the FCC. Any presenter that is not addressing the the big dumb pipe is not relevant to broadband. While everyone is free to express themselves, these irrelevant agendas should be vetted in other forums.

Filed under FCC, Legislation / Regulation, competition by admin

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