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Tuesday, June 29, 2004

HFR on Broadcast Ownership

Harold Furchtgott-Roth not only has the hardest name to spell in regulation, he is also one of the most prescient commentators. His discussion of the Third Circuit's recent media ownership decision catches it all: the arbitrariness, the lawlessness, the astounding breadth of the FCC's legal authority and the scandalous frailty of First Amendment doctrine in this area.

posted by Ray Gifford @ 4:39 PM | General

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Thursday, June 24, 2004

Presidential Broadband

President Bush said some smart things today on innovation at the Commerce Department. Along the way, his address hit on electronic medical records, distance medicine and distance learning, and innovations in border security. But for telecom diehards, the juicy stuff was saved for the second half of the speech when he talked about making broadband affordable (no taxes on it) and regulator mandated unbundling (support for the FCC decision). He also hit on BPL and Wi-Fi as promising new technologies.

At a separate venue, Senator Kerry talked about the digital television transition today. While I haven't seen the text of his speech, the Kerry plan on technology and innovation is here.

My take: It is about time. Major party candidates near-always give lip-service to telecom and technology issues. Al Gore invented it. Bob Dole thought it would make him hip. (He didn't and it didn't.) This year concrete policy proposals are being put forward on spectrum, DTV, and wireline broadband. These are not the easiest issues to put on bumper stickers, but they gird much of the economy. A national candidate's attention to tech issues shows his or her seriousness about the future of America.

posted by @ 5:26 PM | General

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Wednesday, June 23, 2004

The Missing Element

This afternoon, an anonymous regulator emailed the following.

AT&T recently announced that it will stop competing for local and long-distance residential customers in 7 states. Z-Tel made the same announcement for 8 states. AT&T's assigns blame solely to "a June 9 decision by the Administration and the FCC not to appeal a recent Federal court decision that overturned FCC wholesale rules put in place to introduce competition in local markets."

Notice that both AT&T and Z-Tel will continue offering services to the business market. Why should that be, given that the FCC's national "no-impairment" finding in enterprise (business) markets means that, at worst, the mass (residential) market will be treated the same as business?

The answer to anyone familiar with telecom regulation is that residential rates (of at least the ILEC) are artificially capped by either state commissions or legislature. Business rates are often twice as high as residential (even though the average cost to serve business is likely lower than that of residential) to subsidize low residential rates. The result, of course, is plenty of competition in the business market, with or without UNE-P, and competition in residential markets only where state actors have created suffiicient margin for the CLECs to enter.

AT&T's real complaint, then, is with state regulators and legislatures - they should end the price squeeze by ending the residential subsidy. But then, that doesn't play as well with the masses, does it?

posted by @ 5:16 PM | General

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"Completely Wired"

In remarks delivered in Denver on Moday, presumptive Democrat nominee John Kerry proclaimed: "If Bangalore and India can be completely wired, then so should all of Colorado and all of America." For sure.

But at least one consulting group based in India begs to differ. According to a January 2004 report from Nagendra Technology Consulting, the Indian Broadband Era started somewhere in late 1999 when DSL/cable was introduced. "Now in it's 5th year of services things still seem bleak, but the market has been rapidly expanding in numbers even if not in quality." The report goes on to state that: "Although most providers wire you up with modems or connections capable of reaching in excess of 10 mbps, the actual bandwidth that is usuable is still very limited and capped by the provider within 128 kbps, and cost dramatically for 512 kbps if available as an option."

Completely wired? I guess it depends on what the definition of "completely" is and the definition of "wired" is. Isn't that so?

posted by Randolph May @ 2:12 PM | General

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Tech Political Sophistication

USA Today leads the Money section with the tech sector's increasing political sophistication.

The political sector's response: What took you so long?

posted by Ray Gifford @ 12:44 PM | General

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Unwise Testimony on VoIP

Last week, NARUC President Stan Wise testified at the Senate Commerce Committee hearing on the VoIP Regulatory Freedom Act of 2004. He took the opportunity to trot out the tired argument of regulators everywhere: We regulate telephones; VoIP service looks like telephone service. Ipso facto, we should regulate VoIP too.

Wise calls for regulation based on the "functional nature" of a service. By this standard, any service that includes voice is fair game for state officials. Look out wireless. Look out cable. Look out BPL. More useful would be an examination of the underlying networks and economic forces at work in a given market. Compare this with the following from Wise's testimony: "If the physical structure of a particular service makes its carrier unable to exert market power, for example, that may impact whether the full panoply of economic regulation should apply."

Wise gives voice to the opinion of state officials who advocate a default position of "the full panoply of economic regulation." Such was the case in New York where a recent VoIP decision of the NY PSC lumped Vonage in with traditional telecom providers. At the time I predicted, "the decision will become a rhetorical feather to the cap of the pro-regulation folks." Sadly, Wise has made an honest man of me.

posted by @ 12:22 PM | General

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Not Bayou Bystanders

Chairman Billy Tauzin once explained to me that politics is something that we all know about; and then there is something called Louisiana Politics. The implication is that very few people really know much about politics and how they work down in the bayou.

I'll take him at his word. In spite of my travels to state capitals around the country, All the King's Men would not be enough to help me follow the legislative process in Baton Rouge. Thus I was pleasantly surprised to see that SB 877 has been sent on to Governor Kathleen Blanco for consideration. As introduced, the legislation closely matched model legislation developed by the ALEC task force on information technology and telecommunications. While PFF was not an active participant in the debate, through research and publication we were not simply bystanders either. Various parties to the legislative debate have made use of our research on municipal telecommunications providers throughout the last month.

According to Communications Daily, the compromises inherent to the process of lawmaking did not dilute the essence of the bill. CommDaily reports that the bill would require PSC obligations on the private sector to apply to local governments that enter the telecommunications marketplace. It seems only fitting. If anyone has made a careful analysis of the legislation, I invite you to email me your thoughts.

posted by @ 9:37 AM | General

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Tuesday, June 22, 2004

If It's Broke, Fix It

"If it ain't broke, then don't fix it," they say.

But if it is, then do. My piece in today's CNET, "How to Reform the FCC," argues it is time to fix the FCC, which if not broke, is ailing. I'm talking some serious instituional reform.

Scalpel please! And transplant tools too. Let's get this patient to the operating table.

posted by Randolph May @ 10:29 PM | General

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Speaking of a la carte

The local newspaper has a story today on the movement to mandate cable "a la carte pricing." The mandate, championed by Senator McCain and various "consumer" groups, would have government require cable be turned into a tapas bar -- small, expensive portions -- instead of its current, all-American "all-you-can eat" packaging. The story is slightly sympathetic to the a la carte side of the story. Still, no one has better addressed the underlying economic issue than Stuart Buck, who eloquently explains bundling as a means to effectuate price discrimination, a necessary move in a high fixed, low marginal cost industry.

posted by Ray Gifford @ 2:07 AM | General

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Free Phones -- And Not a Regulator in Sight!

Cablevision plans to offer free phone service along with its broadband and television package. Remind me, what was all that unbundling hubbub about?

But I eagerly await the first consumer advocate to demand Cablevision offer this free phone "a la carte" instead of in a package.

posted by Ray Gifford @ 2:03 AM | General

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Friday, June 18, 2004

The Ornery Contrarian

posted by Randolph May @ 9:41 PM | General

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Wednesday, June 16, 2004

Crocodile Tears for the TRO

posted by Ray Gifford @ 7:00 PM | General

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On NPR's On Point Tonight

posted by Ray Gifford @ 5:50 PM | General

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Tuesday, June 15, 2004

H.R. 107 & the Bells: What the Devil is Going On Here?

posted by James DeLong @ 1:11 PM | General

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Friday, June 11, 2004

Ronald W. Reagan, RIP  --------

posted by Ray Gifford @ 11:46 AM | General

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More on Patents

posted by James DeLong @ 10:10 AM | General

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Thursday, June 10, 2004

Patent Controversies

posted by James DeLong @ 1:11 PM | General

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TRO's Demise Good for Competition

posted by Ray Gifford @ 12:41 PM | General

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Kudos for Kevin

posted by Randolph May @ 9:35 AM | General

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Checkmate

posted by @ 12:15 AM | General

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Wednesday, June 9, 2004

The Ball's in Kevin's Court

posted by Randolph May @ 4:06 PM | General

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Monday, June 7, 2004

Declan: Tear Down the FCC and Lime the Soil

posted by Ray Gifford @ 3:13 PM | General

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What Would Reagan Do?

posted by Randolph May @ 1:56 PM | General

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Saturday, June 5, 2004

D-Day and Reagan

posted by Randolph May @ 7:41 PM | General

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Friday, June 4, 2004

The Grey Lady Gets It Wrong, Again

posted by @ 3:04 PM | General

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Property Rights on the (Internet) Frontier

posted by James DeLong @ 9:37 AM | General

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Thursday, June 3, 2004

Tech Central's Catch Me If You Can

posted by Randolph May @ 5:41 PM | General

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From One SG to Another: No Mere Squabble Over Unbundling

posted by Randolph May @ 2:46 PM | General

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ALTS is Right

posted by Ray Gifford @ 12:41 AM | General

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Wednesday, June 2, 2004

When did the States Deregulate Retail Rates?

posted by @ 5:12 PM | General

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Tuesday, June 1, 2004

Signs of the Apocalypse

posted by @ 5:28 PM | General

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Buck on Cable a la Carte

posted by @ 4:21 PM | General

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The Problem with Pick-and-Choose

posted by @ 1:26 PM | General

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The Missing Element
"Completely Wired"
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Unwise Testimony on VoIP
Not Bayou Bystanders
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Speaking of a la carte
Free Phones -- And Not a Regulator in Sight!
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