Ramblings of an old Doc

 

Not discussing the content.

I’m discussing how the basic principal of Capitalism has failed us: Competition in a free market.

We all agree that when power is concentrated in the hands of a few, our freedoms are inevitably curtailed.

This is true, as it turns out, regarding the internet as well.

“At the heart of the problem lie a few powerful companies with enormous influence over policy making. Both the wireless and wired markets for high-speed Internet access have become heavily concentrated, and neither is subject to substantial competition nor oversight. … As a result, prices are too high and speeds too slow.” – Susan Crawford

Susan Crawford is the Benjamin N. Cardozo Law School Professor, and a former special assistant to President Obama for science, technology and innovation. Her central thesis is that if you live in the U.S.A., you’re probably paying a lot more to your ISP for inferior service when compared to other countries.

At the heart of the problem, she maintains, is the above quote. Huge cable companies like Time Warner and Comcast have no reason to to expand the infrastructure to lay down fiber. Also, Verizon and AT&T have abandoned fiber in favor of LTE. This will limit us to average speeds.

Further: The government has policies to protect and give them resources to propagate their grip on the internet service market. I wonder how those laws got written, and by whom.

“The resounding success of Google Fiber in Kansas City has already started to help this shift in expectations. People around the country are already jealous that some people have access to 1 Gbps Internet for just $70 a month, but most of us don’t.” – Andrew Couts

We need more companies and people pressuring local government to lay down fiber optic cable to provide better and faster service. The key to this is providing low interest, long term loans to allow small companies to germinate and do the things the big boys won’t.

The Connect America Fund is the way to do it. The bottle neck is the FCC and it’s allocating monies to the big internet providers which aren’t doing what’s needed. The problem is the laws which constrain the type of company eligible for the funds. They need change. If that happens, the CAF money can get many more players into the action. Competition. It works.

There are many (Like Steve Largent CEO of CTIA, the Wireless Association) who say, “The service you’re getting by existing cable and LTE are just fine. There is no problem.”

Reminds me of truly self serving statements. If you were the fox, would you tell the farmer about the hole in the wire fence?

How can anyone argue against improving our infrastructure? Like this:

Their argument is basically, the status quo is just fine, you’re getting what you paid for. No reason to expect more or better and no reason for us to improve.

Really? If that weren’t absurd enough, then how about this:

“Take a look at your most recent Internet service bill, and think about the fact that people in Hong Kong can get a 500Mbps symmetric fiber connection for just $25 per month, and tell me you’re happy with the way things are.” – ibid

Why am I reminded of what happened with Ma Bell?

Just as “too big to fail” needs to be fixed, so does this.

Source:

http://www.digitaltrends.com/opinion/its-time-to-get-angry-about-your-crappy-internet-service/

http://www.nytimes.com/2013/01/24/opinion/how-to-get-high-speed-internet-to-all-americans.html?_r=0


Comments (Page 3)
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on Feb 23, 2013

While I agree with a lot of things said in this thread, the following statement is just plain ignorant.

I’m discussing how the basic principal of Capitalism has failed us: Competition in a free market.

As I said before anyone with basic knowledge of economics will tell you that internet companies don't operate in a competitive market. Secondly, as every country in the world is aware of this they highly regulate this sector.  Everyone here is discussing how already existing regulations should be changed, free markets never factor into this discussion at all.

The bottle neck is the FCC and it’s allocating monies to the big internet providers which aren’t doing what’s needed. The problem is the laws which constrain the type of company eligible for the funds. They need change. If that happens, the CAF money can get many more players into the action. Competition. It works.

This is actually an argument for a freer market with less regulation.

Thus the above statement should be changed to "I’m discussing how the basic principal of Government has failed us: Regulation in a naturally monopolistic market"

on Feb 23, 2013

Telecom isn't a naturally monopolistic market.  In both the AU and US the companies got significant help from the government to create an artificial monopoly.  Google providing competition outside of their trust driving down prices in KC confirms this.

on Feb 23, 2013

DsRaider
internet companies don't operate in a competitive market.

1. You mean ISPs?

2. That is exactly how Capitalism has failed: It isn't a free market and there is no competition. Why are the proponents of Capitalism so silent about this. Worse, why are the victims of this not demanding action? 

The reason?

Poorly written law, corrupting election laws masquerading as free speech, and lobbies which (quite openly) buy politicians and their further action/inaction, all causing futility.

I want real Capitalism and a real, free market place to be allowed to work. You didn't understand that.

 

on Feb 23, 2013

DrJBHL
I want real Capitalism and a real, free market place to be allowed to work.

And I'd like honest businessmen running it... but isn't that an oxymoron...honest businessmen/women.  Had to add them... some of those bitches are worse than the men.

on Feb 23, 2013

What proponents of Capitalism?  The politicians on the left and right just want to regulate different things, neither of them are free market capitalists.

 

You're not going to hear complaints about government created monopolies from the people that created them.  For the same reason, you can't blame Capitalism for something the government did.  The government gave particular companies money to build networks on public land without paying for it, giving them monopolies, while guaranteeing that no one else could afford to build competing networks by making it prohibitively expensive to join the game.

on Feb 25, 2013

It's all a simple calculation of population density.

The more people + smaller country ...the cheaper things will be [assuming equivalent economy otherwise].

Whether it's gas, electricity or comms ....it's the same deal re service provision aka 'connection'.

Hopefully our current PM will be around long enough to ensure those idiot Liberals don't pull the plug on optic fibre.

on Feb 25, 2013

Hopefully our current PM will be around long enough to ensure those idiot Liberals don't pull the plug on optic fibre.

That's looking doubtful given the current polls.  She is trailing Abbott by quite some margin, so unless that trend reverses significantly before the next election, we'll have that idiot dipshit running the country instead... and frankly, he's by far the worst alternative to Juliar, so no, I don't want him inflicted upon us any time soon... at all/not ever.

on Feb 26, 2013

We all agree that when power is concentrated in the hands of a few, our freedoms are inevitably curtailed.

That goes for the government as well.  While I agree with the premise, I do not agree with the solution.  Indeed, the biggest threat to freedom is not business, but government.

on Feb 26, 2013

DrJBHL


Quoting DsRaider, reply 31internet companies don't operate in a competitive market.

1. You mean ISPs?

2. That is exactly how Capitalism has failed: It isn't a free market and there is no competition. Why are the proponents of Capitalism so silent about this. Worse, why are the victims of this not demanding action? 

The reason?

Poorly written law, corrupting election laws masquerading as free speech, and lobbies which (quite openly) buy politicians and their further action/inaction, all causing futility.

I want real Capitalism and a real, free market place to be allowed to work. You didn't understand that.

 

 

It's not a failure of Capitalism as much as it is the application of Capitalism to something Capitalism is currently unsuited to handle.

 

Capitalism only works when there is competition and market power equality.  Neither of this exist in the American broadband space.

 

on Feb 26, 2013

Dr Guy
 Indeed, the biggest threat to freedom is not business, but government.

We control the government, it represents us. If a government fails then it's our fault, people have fought to get a system where we have some control, complacency is the enemy of freedom ... 

on Feb 26, 2013

"We control the government"

Right, that's how we ended up with the carbon tax nobody but Juliar wanted.

... and like that wanker, Abbott's going to abolish it when he comes to power later in the year.

Nope, he'll just view it as a nest-egg and let it accumulate to his benefit.

That's why it's called government... to govern; rule; be in charge; boss everybody else around.

After winning an election it's called "coming into power" for a reason... they have the power to do all that and more.

So voting in an election isn't about who you want to elect, but about who will do the least amount of damage... to rip you off.

"If a government fails then it's our fault"

No, governments fail because they're all tarred with the same self-serving brush and seek only to feather their own nests'

Abbott leads the polls right now, but if anybody thinks he's any better than Juliar in the lying an deception stakes, then they have rocks in their heads.... 'Work Choices' anyone?

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