Congress Is Giving Away the Internet, and You Won't Like Who Gets It
Congress is going to hand the operation of the Internet over to AT&T, Verizon and Comcast. Democrats are helping. It's a shame.
Don’t look now, but the House Commerce Committee next Wednesday is likely to vote to turn control of the Internet over to AT&T, Verizon, Comcast, Time Warner and what’s left of the telecommunications industry. It will be one of those stories the MSM writes about as “little noticed” because they haven’t covered it.
On the surface, it may seem a stretch to think that those companies could control the great, wide, infinite Internet. After all, the incredible diversity of the Net allowed everything -- Web sites and services of all kinds to exist in perfect harmony. What’s more, they were all delivered to your screen without any interference by the companies that carried the bits to and fro. Until recently, they had to. It was the law. The telephone companies, which carried all of the Web traffic until relatively recently, had to treat all of their calls alike without giving any Web site or service favored treatment over another.
The result was today’s Internet, which developed as a result of billions of dollars of investments, from the largest Internet company that spent millions on software and networking, to the one person with a blog who spent a few hundred dollars on a laptop. The Internet grew into a universal public resource because the telephone and cable companies simply transported the bits.
Last fall, however, the Federal Communications Commission, backed by the U.S. Supreme Court, decided that the high-speed Internet services offered by the cable and telephone companies didn’t fall under that law, the Communications Act. Out the window went the law that treated everyone equally. Now, with broadband, we are in a new game without rules.
Telephone and cable companies own 98% of the high-speed broadband networks the public uses to go online for reading news, shopping, listening to music, posting videos or any of the thousands of other uses developed for the Internet. But that isn’t enough. They want to control what you read, see or hear online. The companies say that they will create premium lanes on the Internet for higher fees, and give preferential access to their own services and those who can afford extra charges. The rest of us will be left to use an inferior version of the Internet.
Admittedly, it hasn’t become a problem yet. But to think it won’t become one is to ignore 100 years of history of anti-competitive behavior by the phone companies. And it was a mere six weeks or so from the time the FCC issued its ill-fated decision to the time when Ed Whitacre, the CEO of (then-SBC) now AT&T issued his famous manifesto attacking Google and other Web sites for “using my pipes (for) free.” They don’t, by the way.
Here’s the inside baseball: A couple of weeks ago, a courageous band of legislators tried to stop the madness in Subcommittee. Ed Markey, Rick Boucher, Anna Eshoo and Jay Inslee proposed some good language to protect the Internet. For their troubles, they just got four more votes, other than theirs. Just three Democrats, other than the sponsors, voted for it. Only one Republican voted for it. When we talk about special interest giveaways, this one will be at the top of the list. And we won’t have only Republicans to blame.


The folks over at MyDD, as well as Atrios, have been on top of this issue. Glad to see it front-paged here.
As stated above, eliminating net neutrality will create a two-tiered Internet, just as the digital divide has finally started to close.
Only a few handful of Democrats have shown any understanding about what the net, or internet technology in general, is about. I don't expect many more to wake up now, but...maybe...
Time to start writing letters. Oh Hillary...!
Dissent Protects Democracy
April 21, 2006 1:48 PM | Reply | Permalink
AT&T is pining for the days when they could charge 28 cents a minute, 8am-5pm, Mon-Fri, 22 cents a minute 5pm-11pm, Mon-Fri, and 16 cents a minute 11pm-8am Mon-Fri and 11pm Fri-5pm Sun., for calls within the United States.
Those were their glory days, now they want to screw the consumer of internet services! Could Bernie Ebbers or Kenny Boy take over At&T so they disappear?
April 21, 2006 3:13 PM | Reply | Permalink
I'm surprised, too, at how little reaction there's been to this. Some of us care a whole lot; the rest of us don't seem to have any sense of the magnitude of the issue. It's an issue which our old friend, Al Gore, took to heart.
I wonder how it will affect our independent satellite server locally provided by our electric cooperative.
April 21, 2006 4:22 PM | Reply | Permalink
Hmm, will it be possible to say, use satellite services from European companies?
April 21, 2006 4:40 PM | Reply | Permalink
If the telecoms companies really go through with this, I expect to see Google push a cheap or free Wireless service, and I expect to see more municipal WiFi networks.
The SBC/AT&T claims are total BS anyway - even if Google wasn't paying anything, I am, and so is everyone else who has Net access. The telecoms are getting greedy, but in this case they might completely lose the Internet business in the end (along with the phone business). Land lines are so 20th century, and they'll end up being worthless.
April 21, 2006 4:42 PM | Reply | Permalink
No, because you would need geostationary satellites, and the ones European companies have are be positioned over Europe.
However, a combination of WiFi and satellites is technically feasible, completely bypassing land line based providers. If AT&T has its way, this might well become a viable business proposition.
April 21, 2006 4:46 PM | Reply | Permalink
Ummm.. sorry, but y'know, working poor Americans aren't able to keep pace with rent, the cost of food, their children's education is being dwindled down to next to nothing. Working poor American women are now more likely to develop pernicious anemia because they can't afford even formerly inexpensive fruit and vegetables, let alone the dark leafy green varieties.. working poor Americans are going without even basic treatment for illness, and are more likely to die now than ever before..
because of this, I'm really not interested in whether the internet gets sold or not, or to whom. Perhaps the grassTOPS, the majority white, affluent internet users care about this issue and will tie themselves in knots over it.. their fellow citizens could be slipping between the cracks out there and they wouldn't notice, but gosh darn it.. "the internet might be sold.. the sky is falling!!!"
Frankly, when it comes to priorities, that falls dead last to me and I'll wager the majority of Americans out there.. BTW, the telecoms out there aren't the only ones that are greedy, and Bush isnt the only one asleep at the switch.. when I read the twaddle that so called "progressives" get worked up over, and remember what they couldn't care less about.. well, you lot really aren't anyone I would look to for leadership.
April 21, 2006 6:59 PM | Reply | Permalink
Another example of the incompetence of the tech companies when it comes to lobbying Congress and the FCC.
Meg Whitman was asked a question about net neutrality in the EBAY 1Q earnings release call and her answer was "we are monitoring the situation."
This is pathetic. Intel, Microsoft, Yahoo!, Google, Amazon, Ebay, IAC, Dell, and HP together should have more influence than VZ and AT&T. But they just dont know how to play the game as well. When they wake up it will be too late for them and too late for America. We will continue to fall behind in next generation access technologies, and the rate of innovation and productivity growth will suffer.
April 21, 2006 7:23 PM | Reply | Permalink
It would be nice to see a net-gone-dark day with Google, Yahoo, FARK, TPM, MSN, Ebay, YouTube, CNN, going dark for a few hours.
April 22, 2006 12:32 AM | Reply | Permalink
Mary from RI:
The Internet has become an important tool for progressives--note how political television is wholly in the pocket of the status quo and the corporations, while the crippling defeat that's about to be handed to the Republican party in '06 will owe a debt to the left-wing Internet. This has a lot to do with the medium.
Look around you. There are a number of people who fight to keep these things free and open, and you should be grateful for their work.
If you can't accept that, or just wish to stroke your ego, take your bitter tone elsewhere.
April 22, 2006 12:34 AM | Reply | Permalink
The Internet is today's killer app for home PCs. People spend more time using their computers to surf or to play online games than to do any other tasks. The increasing sophistication of websites and online games is a significant driver of computer upgrades. So I agree that this development seriously threatens all of the businesses you mention.
April 22, 2006 1:09 AM | Reply | Permalink
Mary From RI,
I thought you had been banned. You use multiple accounts to pretend to engage in two way conversations that no true liberal would ever have.
I don't know if you are some deranged freak or a paid GOP operative. Either way your input here borders on absurd...but I guess that is your point.
April 22, 2006 1:44 AM | Reply | Permalink
Here's a problem..... I am no fool, maybe I am just tired. But I don't understand the issue at stake here. To my tired eyes it sounds like "big company bad"... I realize that is NOT what is being said.
Break it down for me.
If I use a flat fee ISP what do I care?
If I use wireless so I can hop on in the lounge of the hotel that thinks they can charge me 14 bucks an hour for "their" connection, what do I care?
If I can get to Ebay or wherever else my Google search takes me, what do I care?
Rule #1... every click of the mouse you gotta feed the dog.
I'm still looking for the doggie treat here.
"There is some background noise here, a lot of chatter, a lot of speculation and opining."
- George Bush, Oct. 20, 2005
April 22, 2006 1:58 AM | Reply | Permalink
Mary, this comment strikes me as especially short-sited. What it especially fails to see is how legislation like this will impact the poor down the line. Admittedly, net neurality is not poor peoples' primary concern right now. Nor, probably, should it be. But do you really want to suggest that access to telephones is not important? Consider not being able to call 911, for example.
Legislators in the early days of telephony had to make similar choices. Some were good, some were bad, but who gets to talk on which telephone lines for what prices today and the insurance that a call to 911 from any telephone in the US will reach an emergency service are the results of major choices made in the Communications Act of 1934 (choices based, in many cases, on the "common carrier" model of the railroads).
Without getting into the details, the point is that today's legislation structures tomorrow's access-picture. If you care about tomorrow's poor as much as you care about today's - and however many green leafy vegetables are available, there will still be poor people in the future - I think this issue should rise in your priorities.
April 22, 2006 3:31 AM | Reply | Permalink
Is there a bill number we can refer to for purposes of calling/writing Congresscritters?
That was a problem with the MyDD post about this, too. I was going to call my Congresspersons yesterday, but it was damned hard for me to think of a way to make it clear to the Congressional phone-answerer just what it was that I was opposing, and I couldn't find a bill number anywhere.
I'm gonna be pissed if the telecoms jam this one through and the opponents of this measure didn't even do the basics to enable people to voice their opposition.
April 22, 2006 4:42 AM | Reply | Permalink
This is merely another case of selling out to the highest bidder. This theme is the common denominator of all that Congress does and is derived of the morally corrupt scheme that is our electoral process. Anyone who thinks this country is about the citizens, freedom, integrity or other arcane concept is living a fantasy. The words of all of our politicians are meaningless. We must judge their performance and cast our votes only upon the results. No excuses and no spinning allowed.
thepeoplechoose
April 22, 2006 4:42 AM | Reply | Permalink
1. With the internet there are always international implications that we in the U.S. often ignore.
2. There is a very vibrant Ecommerce industry out there. Amazon, paypal, and much, much more. A tiered system has the potential to break this.
April 22, 2006 4:43 AM | Reply | Permalink
I don't know if you are some deranged freak or a paid GOP operative.
In cases like this, always - always! - assume they're paid GOP operatives.
April 22, 2006 4:56 AM | Reply | Permalink
If you (or your ISP) doesn't pay AT&T the higher rates, your computer may not get to Ebay. Or maybe you can get to Amazon, and not B&N.
The telcos are going to be able to determine who gets the favored Internet lanes and who gets shut out (or at least severely slowed down).
See savetheinternet.com for more -- they have a page about "how this affects you."
Dissent Protects Democracy
April 22, 2006 5:03 AM | Reply | Permalink
There is no bill number at the moment. It is technically a "committee print" with the title, "Communications Opportunity, Promotion, and Enhancement Act of 2006." That's how it will be considered in the House Energy and Commerce Committee markup.
When it gets to the House floor in another week or so, it will have a formal bill number.
April 22, 2006 6:44 AM | Reply | Permalink
This is a really good idea, Jerry. I hope someone with more pull than I have (like, say, a Google lobbyist) sees it and makes it happen. Seems to me you could do worse than start a site (NetGoneDark.com is available) and hope it catches on.
You should at least float the idea on a discussion thread and see what others think might be done.
April 22, 2006 7:26 AM | Reply | Permalink
Just imagine internet service in red america: jesusnet.com, homeshopping.com, porn.com.
April 22, 2006 7:30 AM | Reply | Permalink
Ummm.. sorry, but y'know, working poor Americans aren't able to keep pace with rent, the cost of food, their children's education is being dwindled down to next to nothing. Working poor American women are now more likely to develop pernicious anemia because they can't afford even formerly inexpensive fruit and vegetables, let alone the dark leafy green varieties.. working poor Americans are going without even basic treatment for illness, and are more likely to die now than ever before..
That's a good point. None of that should be acceptable.
But without the Internet I'd never have heard you complain about it. Information is the tool human beings use to improve their world. Without information you will have nothing, you will accomplish nothing, and you will be nothing. Anyone who deprives the population of information is creating poverty and suffering.
April 22, 2006 7:35 AM | Reply | Permalink
Art's got it right. Here's some more info. Also known as the Barton bill, this bill would remove the system of local and state awards of franchises for video services and replace it with a national system administered by the FCC. This is a sweetheart deal that would allow the belcos (AT&T and Verizon) to compete with the cablecos without having to go through the existing process of negotiating a license with the local franchise authority. Existing cable licenses could use this national franchise model to renew when their current license expires.
It's important to note that under such a federally issued franchise, video services providers would *not* be required to provide service to 100% of their franchise area - there are no build-out requirements, even over a set number of years, as there are with current cable franchises. Thus, providers would be allowed to "cherry pick" some areas, ignore others, and price service areas differentially.
Because this legislation removes control from states and municipalities, it is opposed by groups such as the US Conference of Mayors, the National League of Cities, and the National Assoc. of Telecommunications Officers and Administrators (NATOA). A lot of useful info on this can be found at www.natoa.org - follow the link to policy. If you want to help defeat this bill, it's not enough to just write your congressmen - have your municipal and state elected official contact your congressmen and senators, as well. There are Op-Eds showing up all over the place - NATOA has examples. See if you can get one placed in your local paper.
Finally, note that this legislation would be devastating for local public, educational and governmental access channels. While it's true that new providers would have to carry any pre-exisiting access channels, the formual for providing support for those channels, and for allowing for bandwidth increases to keep up with increasing demand and technical abilities (VOD, for example) are completely inadequate.
Don't know if that comment about "what's the fuss about" was a troll or not. But this choking off of the public's ability to use these media to communicate is a grave threat about which all who care about the quality and responsiveness of our government should be highly alarmed - no matter what your urgent concerns are, foreign or domestic.
For more on the threats to PEG access this bill presents, see www.saveaccess.org and www.alliiancecm.org.
Seems like this will get through the House. Contact your senators, too. Ask them to support the Inouye-Burns principles for local control (not the Ensign-McCain principles) - these too can be found at natoa.org
~Rob
April 22, 2006 7:42 AM | Reply | Permalink
URL Spelling Correction: That's www.alliancecm.org - for the Alliance for Community Media.
~Rob
April 22, 2006 8:03 AM | Reply | Permalink
What impact will wireless delivery of internet content have on this issue? "Wired" argued that the key to the growth of the Internet was the breakup of the old AT&T, because AT&T would never had the incentive to do the buildout necessary.
Are there competitors like Vonage etc who might under price the Verizons and the like?
Daniel A. Greenbaum
April 22, 2006 8:03 AM | Reply | Permalink
Yes, but this "net neutrality" law being American, they wouldn't be bound by it either. If you honestly believe that no ISP can serve your needs without this law, going outside the country isn't going to help.
April 22, 2006 8:03 AM | Reply | Permalink
The telcos have never liked the internet. In the late 1980's, primarily at the instigation of IT&T, the International Standards Organization (ISO) began drafting the "Open Systems Interconnect" (OSI), and standardized it as ISO 7498-1 in 1994. Buried in the details of the networking protocols was a teleco-centric model of communications. Fortunately, the folks developing the internet just yawned or snickered and kept on doing their own thing.
A standard is just a worthless piece of paper if no one bothers to adher to it. So having lost in the marketplace of ideas, the telcos are getting their paid muscle in Congress to turn their view of the world into law.
savetheinternet.com cites cases of Canadian telcos blocking sites they don't like, and charging extra to use competitors' sevices. Now, blocking sites in America would likely generate a backlash if it was done indiscriminately. But sites could be blocked temporarily at critical times, as the R's jammed Democratic phone banks during an election day. At the extreme, the example of China's restrictions on internet content should be sufficient warning against allowing a few special interests to control information flow.
April 22, 2006 8:24 AM | Reply | Permalink
they split att into eight parts and they are coming back together. please read gerry spence's book "with justice for xxx." corporate rise again. the tea party is correct by why that had the tea party was given as misinformation.
or at "least" that's my opinion.
April 22, 2006 8:47 AM | Reply | Permalink
it used to be that law enforcement had to search for evil doers.
now everyone reports upon themselves via the internet. but can we be sure why a person visited a porn site or site that describes the proper way in which to build a bomb?
April 22, 2006 8:56 AM | Reply | Permalink
hey........mary.........i love you.
April 22, 2006 9:12 AM | Reply | Permalink
The full committee will be hearing this bill this coming week. From the Committee on Energy and Commerce website:
(http://energycommerce.house.gov/108/Markups/04252006markup1848.htm)
April 22, 2006 9:21 AM | Reply | Permalink
Um.. Mary..
just because its not a priority issue for poor o underclassed americans doesnt mean its an irrelevant issue. Youre refusal to "care" about it is rather dangerous. As of right now the internet is an extremely democratic and public domain. Giving it up has results beyond BIG Comapnies making more money. It means the "working poor AmericanS" that you seem to believe are the priority in concerns will have less access, or ability to afford, use, learn, communicat, or benefit from the internet. Your lack of concern effectively means that youre willing to increase the difficulty and access afforded to the lower privaledge of our American community.
You should rethink your apathy, and if truly your concern is lower class americans, then you might want to consider how losing one of the most important democratic forums in history to private organizations is going to further oppress and repress your "working poor Americans." Im not interested in net neutrality simply so that i can have access to amazon, al jazeera or moveon.org.
Time to pay attention to the selling of our public commodities. Parks, Internet, Water, Air...
April 22, 2006 10:02 AM | Reply | Permalink
I look forward to the day when the GOP website comes through at blazing fast speed, while i will get 404 errors and slow connections to al jazeera, talking points memo, the Democratic party website, move on, etc...
April 22, 2006 10:06 AM | Reply | Permalink
Sorry I missed this earlier, I had a litle accident with my hair-shirt as I was walking over broken glass barefoot to bring food to cripples and orphans. Boy the light coming from my halo is a little harsh this time of day, so please excuse any typos - I don't have time for piddly stuff like spelling when human life is at stake - children are starving in Mali as we speak and you want to blither about "green leafy vegetables"! I'd be angry if anger was an emotion I let myself feel, but I do pity you, in a compassionate way.
And seriously, if Rush Limbaugh and friends did not control the media, things would be better. If they close off the one uncontrolled form of mass communication, things will be worse. Dark or light leafy veggies notwithstanding.
April 22, 2006 10:29 AM | Reply | Permalink
A Bi-partisan online coalition has formed, which includes folks like Craig Newmark of Craigslist, Glenn Reynolds of Instapundit, Lawrence Lessig, Timothy Wu and Vint Cerf, known as the father of the internet and the Gun Owners of America. There is an excellent video here that explains 'net neutrality' very simply. Feel free to join the coalition here.
April 22, 2006 10:30 AM | Reply | Permalink
I wonder whether a 'tiered' Internet will remain a US phenomena and if so - whether that will set back the US in terms of broadband penetration.
In the UK now - broadband prices are being DRIVEN down and even now being offered free.
Holland has 75 percent households within reach of broadband and 25 percent using it. And the EU has an active plan to bring broadband to rural areas around the continent.
The US may lead the world in absolute broadband numbers - but a tiered internet in the US would edge out a large proportion of the market when TV and the Net begin to merge.
In other words, creating a hierarchical internet will make the US less competitive in the New Global Economy if the rest of the world is not following the same rules.
And chances are - they will not - especially in Europe where there is an enormous effort on the part of both EU and national legislators to bring broadband to the masses.
It's interesting to note that it was only a few years ago when Bill Gates was in Europe telling various think tanks and politicians that Europe has to catch up or they will be left behind - this was in the days of being charged per minute for local calls and the Internet which made it ridiculously expensive to go online. In Canada and the US local calls have always been flat rate - so monthly fees for the net were reasonable.
Per capita the US is now trails South Korea, Canada and much of northern Europe in rolling out high-speed Internet access. And it shouldn't and can't afford to fall farther behind.
Some use the statistics to argue for greater telecom liberalisation, while others argue for more active intervention by the FCC. Backers of strong net neutrality regulation say it is necessary because some broadband providers are sniffing around a new pricing plan that would speed up service to Web-based companies willing to pay an extra fee. But it's insane - because a two-tiered Internet would hinder small companies offering innovative services from competing with those who can afford to pay for speed.
Or pay not to be slowed down. In other words - you pay chump - or you won't be doing business on my block.
It seems these Democrat and Republican legislators were bought and paid for by the likes of AT&T. Surprised?
RK
April 22, 2006 11:34 AM | Reply | Permalink
Nope, it's worse than that. AT&T doesn't care about charging higher rates to you or your ISP, what they want is to charge higher rates to eBay. Or Amazon. Or Google. Or Yahoo. Or baybe TPM. If the people providing content don't pay AT&T extra, their packets answering web-site requests just might happen to get dropped on the floor. Business is business, y'know. And if Amazon signs on as AT&T's official book/music/everything store, well, then, that's just too bad for competitors who want their sites to deliver the same level of responsiveness.
The commercial antitrust implications of this kind of discrimination are enough to make it violently against the public interest. But consider what happens on the political side when, say, only the best-funded sources of news and opinion can be sure their messages will be reliably available to people who want them. Once the infrastructure for discrimination is in place, setting up the Fox News version of the internet would be easy to do, hard to detect and prove.
April 22, 2006 12:55 PM | Reply | Permalink
ACTION NOW!
No they're NOT because we're not going to let them! Why don't you encourage people to get to the Electronic Frontiers site and become active?
http://www.eff.org/
Don't worry folks, we have the power!
April 22, 2006 5:19 PM | Reply | Permalink