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[ NNSquad ] Internet Access and Capitalism


OK.  It's not as if we don't have parallels from history to guide us.
The anti-regulatory refrains were loud from the railroad barons, from
Standard Oil, from AT&T pre-Ma Bell divestiture, and so on.

The common thread is that these enterprises provided crucial access to
*other* things that could not economically be reached in other ways at
the time.  The railroads provided the key transportation mechanism for
goods and people.  Standard Oil effectively monopolized a key energy
source needed for all manner of services and production.  AT&T
controlled most U.S. telecom with all of its attendant impacts.

In all of these cases, the controlling interests argued that regulation
would hobble operational management, undermine investment incentives,
and other bump in the night horrors.

But these are scare tactics.  Hell, John D. got even richer after the
break-up of Standard, since he owned stock in the new companies that
did so well.  AT&T has reassembled itself like the "mercury metal"
cop in "Terminator 2."

Internet Access falls into this same grouping of critical
infrastructure since it is necessary to reach *all* Internet-based
services.  Before long, how long is unclear but it will happen,
virtually all telecom will be Internet based, integrated in such a
manner that the Internet itself may virtually disappear for most
people.  It will be a pervasive utility like power and water (in the
well-developed parts of the world at least).

It is obvious that access to this resource cloud cannot be allowed
to be anticompetitively managed by dominant ISP gatekeepers, who
increasingly have economic reasons to favor (either directly
or indirectly) their own rapidly expanding content offerings vis-a-vis
those of competing outside Web-based services.

The key to avoiding these problems is genuine competition.  But in the
U.S. at least creating conditions for that to occur, given the
historical and political baggage, is very difficult.  Even the new FCC
broadband plan is mainly focused on expanding broadband access into
areas effectively unserved now, not in creating a robust competitive
landscape nationwide.  The Commission's repeated repudiation of
wholesale access arrangements -- that have been successful in creating
competition in much of the world -- suggests that real competition is
not high on the Commission's agenda.  That's not to say that the
Commission's efforts to expand broadband aren't a good thing -- they
are.  But there's an apparent unwillingness to go the whole distance
that is difficult to ignore.

And competition means *real* competition.  The mere presence of a
wireless (WISP) ISP in a given area, for example, doesn't create real
competition when it provides a small fraction of the bandwidth
available from the dominant carrier, at many multiples the cost that
the dominant carrier charges.  In an area where that WISP provides the
only effective Internet access the situation is different.  If you're
starving, you're usually unconcerned about not having more than one
menu choice.

I believe that talk of "repurposing" already "abandoned" copper for
competitive purposes is basically spurious.  Nobody in their right
mind would invest in new copper outside plant these days, and the cost
of maintaining existing copper, already rotting on poles (or worse, in
the ground) is very high and rising rapidly.  Given that reality,
there is little logic in most cases to spending capital installing
[V][VH]DSL terminals on abandoned copper when you know the end game is
going to be fiber anyway.  AT&T knows this, even as they keep trying
to leverage more and more out of their copper facilities in a desperate
race to try keep up with cable.  Eventually AT&T will go all fiber.
They'll have to.  For now they just want to stay in the game.

This also points out why it is disingenuous for the ISP lobby to try
draw comparisons with Google.  While switching ISPs, even assuming an
effective competitor exists, is usually a BFD, Bing is just a click
away, and Google is dedicated to their Data Liberation efforts that
make it even easier for Google users to leave, if they so choose.
Once the like of Rush Limbaugh and Glenn Beck allied themselves with
Big Telecom and began spouting all manner of bizarre conspiratorial
anti-neutrality garbage, it was even more evident how much panic has
erupted within the halls of the dominant ISPs and their minions.

Just as War is too important to be left to the Generals, the Internet
is too important to be left to ISPs alone.

--Lauren--
NNSquad Moderator