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No change coming to broadband in wake of FCC rule change

By | May 7, 2010, 5:57am PDT

Summary: Nothing is going to happen, good or bad, with U.S. broadband for quite some time, in the wake of the FCC’s rule change.

Nothing is going to happen, good or bad, with U.S. broadband for quite some time, in the wake of the FCC’s rule change.

The Bells insist they have the right to sue. “There is no Title 1 1/2” thundered NetCompetition, Scott Cleland’s pro-Bell lobbying group. (That’s Cleland at right in a PBS appearance.)

Former Republican Rep. Tom Tauke, now Verizon’s top lobbyist, also told CNET the FCC lacks authority to reclassify broadband delivery as telephony but then forbear applying most rules on telephony to it. (The agency’s argument on why Tauke is wrong can be found here.)

But saying a regulator “can’t” do what they are doing and suing to stop it are two different things. The first is free. The second costs money.

Tauke suggested the FCC look to Congress, but current Congressional leaders have given the agency a green light to do what it’s got to do. The key word in that last sentence is current. If Republicans seize Congress after November and seek a “minor” issue on which to challenge the Administration, they could turn to broadband.

The agency’s own rules make waiting the right move. It has to vote on a detailed regulatory regime, it has to go through a comment period, it has to make a final rule — the political situation regarding Congress will be much clearer by the time it’s all done.

Perhaps the emptiest statement in the whole debate is the Bell threat not to invest in broadband unless the Bells get their way. Because they didn’t do it during the last decade despite billions in subsidy designed to make them do it, and rule-making that went all their own way.

But with no new competitors promised, no competition forced onto the Bell lines, and with the Bells fighting the agency, the only clear fact is that users in the post-Obama years may still be have to make do with Clinton-era broadband.

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Dana Blankenhorn has been a business journalist for 30 years, a tech freelancer since 1983.

Disclosure

Dana Blankenhorn

Dana Blankenhorn has been a journalist, writer and part-time futurist for over 30 years.

At the present moment I run only a personal blog in addition to my ZDNet open source blog.

DanaBlankenhorn.Com has the subtitle The War Against Oil. In the past I have used it to write about political history, e-commerce, personal matters, some ideas related to open source, and The World of Always On, which is the idea of using sensors, motes and RFID to turn WiFi links into platforms for applications which live in the air.

My IRA account at Schwab holds a few tech shares, most notably some Intel and Applied Materials, but there are no open source companies in it. I don’t even own any CBS stock.

Biography

Dana Blankenhorn

Dana Blankenhorn has been a business journalist for nearly 25 years and has covered the online world professionally since 1985. He founded the Interactive Age Daily for CMP Media, and has written for the Chicago Tribune, Advertising Age's "NetMarketing" supplement, and dozens of other publications over the years.

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RE: No change coming to broadband in wake of FCC rule change
gorians Updated - 8th Sep
It has to vote on a detailed regulatory about it is bank that website attacked from the site support from any soldier site to the light home page is great regime
blocking of certain protocols like Comcast have.. so what've they got to lose from this?

What am I missing here?

p.s.
How do I subscribe for reply notifications in this new interface?
@AzuMao Its going to take time to overtake Facebook. Years and years. Before the NYU kids get a sniff of Facebooks scale theyre going to have some gray hairs, and some of that hair they have today will be staring at them from inside their combs. araba oyunlari araba oyunlari ben 10 oyunlari
It has to vote on a detailed regulatory about it is bank that website attacked from the site support from any soldier site to the light home page is great regime
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The broadband industry in general needs to upgrade itself. We are too far behind the rest of the world to sit on our udffs and do nothing. I discontinued my affiliation with ATT many years ago, but feel that they are totally out of line in their reluctance to imporve the system.
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Why should they change, they complain that they are losing money so they get grants. Then there are no controls on how they use the money once it is absorbed into the corporate structure. So they apply for rate increases. We still get nothing for it.
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Perhaps the emptiest statement in the whole debate is the Bell threat not to invest in broadband unless the Bells get their way. Because they didnt do it during the last decade despite billions in subsidy designed to make them do it, and rule-making that went all their own way. a b c d e f g h i j
The FCC needs to take a hard stance on the telco's, as we have had the last 14 years of history to examine since the enactment of the "Communication's Act of 1996".

I would expect the Bell's to try and perform a repeat of it, and try to get more subsidies and concessions. And if history repeats itself, only to invest them in their stockholders, forget investing in needed infrastructure. So, how should the FCC go about taking a hard stance with the telcos?

The first place the FCC should start is with local exclusivity agreements. These NEED to be done away with. Whether they are done away with immediately, or over a period of time; THEY NEED TO GO. Exclusivity agreements restrict competition. And we all know competition kills monopolies. In my area, you have a cable monopoly (BrightHouse), a telco monopoly (Verizon) and a half@$$ed cable monopoly (Knowology). Price wise, no REAL competition. Everybody wants to OWN you, or tie you up with contracts (I am talking about you - Verizon $360 in ETF's if you cancel early). Who needs to be `shackled` to a lousy service provider.

Next, the FCC needs to open up access to wired (wireless being a different animal) broadband networks like that have done with local telephone companies. When the "Communications Act of 1996" was enacted, the telco's got what they wanted when the local access provisions were limited to land lines ONLY. There is NO such requirement for fiber and cable even today. Fourteen years is plenty enough time for them to have recouped their (albeit late) investments. I remember all of those promises made back then. F------ liars! Unless the FCC finds some b----, it will be more business as usual, and we will continue to get screwed!!! After all, we have the `Best Government Money Can Buy!`

The FCC needs to treat telcos as `dumb pipes`, and regulate the access portion of internet service. Otherwise, it will be more walled gardens that telcos are so fond of building. The FCC needs to paraphrase President Reagan, and tell the telcos to `tear down their walls`.
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Your statement "Perhaps the emptiest statement in the whole debate is the Bell threat not to invest in broadband unless the Bells get their way." because they didn't do it with government incentives makes no sense at all. The Bells are simply saying if you restrict the payback from investment in infrastructure, you get less investment. It's simple Economics 101.

Like it or not, the biggest inducement to investment by the Bells is customer demand. Everybody knows how bad AT&T got after the iPhone was introduced and AT&T's data traffic increased by 50x (yes, that's 50 times what it was before). People threatened to leave AT&T. What's not widely reported is that last year AT&T spent $17 or $18 billion in upgrading their wireless network, and will do roughly the same this year. As you pointed out, that's far more than they spent in reaction to government mandates.

That's also simple Economics 101, something you would be wise to brush up on.
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Great!!! thanks for sharing this information to us!
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