Net Neutrality – the GOP’s latest Wasted Opportunity (Guest Post)

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Now that the FCC decided vote itself the right to degrade the most vibrant sector of the economy into a public utility, let’s take a quick look at it’s impact. First off, it seems that a few of the bigger supporters are figuring out that making a deal with the devil might not be such a good idea

Three of the driving forces behind the 10-year effort to regulate the Internet — Netflix, Mozilla, and Google — have, in the last few days and in their own ways, all recanted their zealous support of Net Neutrality.

AT&T just joined a lawsuit against the FCC

The flurry of lawsuits comes the day after the new rules were published in the Federal Register. Parties who oppose the new rules will now have 60 days to file an appeal with the courts. The Court of Appeals may ask those parties filing suit to combine their cases. But for now each case has been filed separately.

Perhaps this might be why the most transparent administration insisted on keeping the contents of this power grab secret from the public until after it was forced onto us? Of course, President Obama has it all figured out.

Image appears via The People’s Cube

The president is promoting a plan to expand access to broadband communications services by increasing competition.

Obama said faster Internet service will create jobs and allow local businesses to grow. He was speaking Wednesday from Cedar Falls, Iowa, which provides high-speed Internet to residents.

“Create jobs”. One thing I’ve noticed over the years is that the less experience one has in creating jobs or understanding of how they are created the more likely one is to use that phrase. Here is what reality looks like:

The possibility of strong net neutrality rules in the U.S. has AT&T pulling back on its high-speed Internet promises. AT&T announced Wednesday that it would stop an infrastructure investment that would have brought faster broadband connections to a 100 U.S. cities, reports Reuters.

“We can’t go out and invest that kind of money deploying fiber to 100 cities not knowing under what rules those investments will be governed,” AT&T Chief Executive Officer Randall Stephenson said Wednesday at an analyst conference.

Despite my best efforts to educate economically illiterate politicians, too many of them don’t understand that real investment is a long term decision. No stockbroker ever said, “I’ve got a great investment opportunity for you! It could make you a bundle, but the government is about to grant itself open-ended authority and we have no idea what impact it could have on your returns.” Just like no sane individual investing their own money would say “Sign me up!” Mark Cuban had his opinion to offer on this horrible solution to a non-existent problem (censorship mine):

Billionaire investor and ABC “Shark Tank” star Mark Cuban unloaded on the Federal Communications Commission’s plan to fundamentally change how it oversees the open Internet.

“That will f*** everything up,” said the voluble Cuban in remarks Wednesday at the Code/Media conference at The Ritz-Carlton, Laguna Niguel, Calif.

Cuban said this bid to significantly expand the agency’s authority to regulate broadband providers is nothing more than an attack on giant media companies like Comcast*.

“Net neutrality is just a demonization of big companies,” Cuban said.

And as Ian Paul at Techive pointed out,

Google Fiber has had the effect of increasing competitor speeds and service in areas where it operates—competition that arguably would not have happened otherwise.

We’ve got an administration that thinks that innovation comes by imposing Great Depression-era legislation over the most vibrant part of our economy. If only there were a political party that could capitalize on something so simple as a way to make an inroads with voters who don’t want the government in every aspect of their lives. Keeping government tentacles off of the Internet? That might even appeal to young people, an area where the GOP never misses an opportunity to miss an opportunity.

In closing, here was a good take by @matthewberryfcc regarding the days leading up the FCC revealing its new rules. Transparency!

Cross posted from Brother Bob’s Blog

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Blogging by the credo of "Making the world a more offensive place, one blog post at a time", Brother Bob started writing posts around the beginning of the Obama presidency over at Brother Bob's Blog. A born-again Existentialist and self-professed libertarian with conservative tendencies, he has ironically chosen to live in the Washington, DC area - deep behind enemy lines. He has always loved history, and spent eight years volunteering as a tour guide on weekends, giving over 200 tours to roughly 2,500 mostly foreign guests. His tours were highlighted by stories generally not found in the history books or most other tours, such as the importance of the Battle if Antietam, the origins or Arlington Cemetery, and dispelling the myths of FDR's New Deal. Although his favorite subject to blog about is Economics, as seen in his Economics for Politicians series, his posts try to address angles that other conservative writers and the mainstream media (naturally!) miss. "There's no point in putting up a post on a subject that someone smarter than me has already written". He believes in the "Happy Warrior" approach, and tries to inject humor in his posts, sometimes successfully. Two such examples are his posts comparing the modern left to the horrible Star Wars prequels, and analyzing the laments of a DC woman in search of a feminist boyfriend. Brother Bob lives with his very patient wife known as Sister Babe, and their fantastic son. Little Bob. Little Bob is also the reason that being a tour guide came to an end, as spending Saturdays raising a son takes priority over giving lectures to foreign visitors on the folly of Keynesian economics. BB is also grateful for the opportunity to take his place among the outstanding writers at Flopping Aces, appreciates every person who takes the time to read his posts, and especially those who join him in the conversation in the comments.

4 Responses to “Net Neutrality – the GOP’s latest Wasted Opportunity (Guest Post)”

  1. 3


    The return of national socialism. Goebbels would be so proud . The government will again get to pick the winners and losers; Instead of letting the market, naturally. take its course. They’ll repeat the failure of the 1934 communications act. A terrible piece of legislation that wound up eventually extincting all of the previous players. A tragic waste of,, even outright theft of large chunks of the players’ capital. Ever wonder why the Western Electric 500 dial phone didn’t disappear until about 1984? Government wisdom! How about a 50 year straight-line depreciation schedule on all plant and equipment; And, grandma’s local service can’t be more than $10.00 per month. How and what capital could be invested where. All those “tariffs”, “911”, Various regulatory, State, Local and of course, Federal. One of the taxes on telephones was to finance Spanish-American War debt! The world wide web had to be built fast: Before the government could get their mitts into it. Behold, the return of the “Light Touch of the leviathan, Just think, great companies like G.E(The old G.E., Edison’s companies) ., Cisco, and especially that company founded by Bell evul assistant: Watson; Yes, even those “new” phone companies need to be beaten down some; It’s usually a progressive that complains about the cell tower (Those: Oh…Yes. Even more reason to control) Iillusive IBM, , and of course, Google too, can eventually enjoy the companies of: ITT, Western and Automatic Electric. The intellectual property theft alone, was staggering. Wait until everything has to be archived onto half-inch mag tape, or something, Ultimately, they’ll literally have the power to tax, by the bit. Bit by bit. Or, bit-by-bit.. Even those feral government required bis; Don’t forget the long distance surcharge. And, those bits you’re just going to have to pay for, bits that you CAN NOT refuse; If you know what I mean, comrade. If you know what I mean.

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