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October 15, 2009

AT&T targets Google in net neutraility quagmire

DeathStar3.jpgYes I told you so. More than once. Net neutrality is a paper tiger. The duopoly is seeing to that handily. Rules written by the revolving door insiders at the FCC will never be a positive agent of change.  AT&T is using Google as the boogeyman in its quest to twist the new rules to effectively rub out any potential competitor. We may very well get new “net neutrality” rules that will only make the situation worse.

In a letter to the FCC (PDF) this week, AT&T went on the attack to portray Google as a big powerful company that’s trying to fool the FCC into believing that the rules shouldn’t apply to it. In the letter, AT&T is still trying to cover all of its bases. That means that, at times, it’s hard to follow which arguments it’s trying to make - the one about Google Voice or the one about net neutrality. And it doesn’t help that it stooped a little too low by referencing a convent of Benedictine nuns in a list of those who were handicapped by having calls to their numbers blocked to and from Google Voice numbers.  (ZDnet)

There are problems with AT&T’s posturing that could more permanently lock us into duopoly dominance. Since Google has gottten big and scary,  it’s an easy target, but there more to this. If enacted, net neutrality rules should ONLY apply to companies who have last mile right of ways and / or wireless spectrum. If the holder of spectrum will provide equal network access to competitors it should be exempt. Google owns no spectrum, no right of ways and does not charge for Google voice which does not even directly connect a telephone call. Calling it a competing phone service is like saying Colgate in in the dentistry business. The real reason behind AT&T’s attack on Google is to have rules written that will force providers of virtual services into the same regulatory framework that governs entities that have monopolies in last mile access or wireless spectrum. The net effect of the regulations AT&T wants would impair the ability of every VoIP, online entertainment and interactive online service to compete against a protected monopoly. There probably  are anti  competitive  issues in the way Google is doing business. They should be considered on their own merit and not used a lever to enslave us to a duopoly for the next several decades.

The only way to get open networks is with an open market. If a duopoly must exist. the only fix is to require it to divest from non access businesses.


Filed under Duopoly Follies, Editorial, FCC, Legislation / Regulation by admin

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