Obama vs. Internet: Pressuring the FCC to exert political control over the Web
online.wsj.com
online.wsj.com
There's also a strong desire here to "have your cake and eat it too." Everyone wants high-speed fiber infrastructure that's also neutral, with no tie-ins to content. In the current market, it's not clear that such service is even profitable: http://www.businessweek.com/magazine/content/11_13/b42210461... (recent asset sale suggests that Verizon might be losing money on FiOS). Having high-speed "dumb pipes" may be great for internet companies, but building "dumb pipes" isn't exactly a lucrative business. As long as we are reliant on private companies to build internet infrastructure, you'll have to make it worthwhile for them to invest billions of dollars in such infrastructure, and that's not going to happen by imposing heavy new regulatory burdens on the industry.
Examples of progressive public services? Public schools seem like a pretty good example there.
It is a fine thing to have an upside for everyone even if rich people get more of the benefit. The Chicago Symphony Orchestra, the Art Institute; these are good things. The problem happens when we use public funds to finance them.
1.) The market is already providing those services in a terribly inefficient and inadequate way that places the US at a massive disadvantage to the rest of the world which is already light years ahead of us in broadband access
2.) The current system is vastly more disadvantageous to lower income people who can't afford the ridiculous pricing models ISPs provide
Giving everyone fiber Internet is an awesome move if fiber Internet is free. But since it isn't, it has to compete with every other spending priority that governments have.
Perhaps this misunderstanding of the current state of reality is leading you to reach incorrect conclusions.
That was how telecom was run in America for 50 years and it didn't work out. These sorts of companies aren't innovative or efficient.
Any investment in new upgrades would require a public utility commission to approve a rate hike. Guess what, the public isn't going to support you raising their rates for faster internet.
Maybe it is the way to go, but you gotta be damn sure they do it correctly the first time. Because you won't get upgrades.
Proposing Title II is pretty much the opposite of that.
* DMV-level customer service
* Delayed capital improvements (single tree branches falling in alleys routinely knock out power for as much as 1/5th of Oak Park)
* Opaque pricing
* Utterly baroque billing (I've had power cut twice due to billing SNAFUs)
Much more importantly: who knows what the Internet is going to look like 15 years from now? Regulating an industry as a utility retards investment by capping the upside.
I don't like the idea that Comcast can favor Amazon over Netflix and do think there should be some lightweight regulation that prevents anticompetitive collusion between providers and networks. But Title II is a pretty scary regulatory regime; it gives the FCC control over product packaging, pricing, network interconnection, and customer dispute resolution.
It does way, way, way more than just protect Netflix.
But having just had the experience of getting an account up with them at my new office:
Having AT&T available as an option solved virtually every one of my problems, from pricing to installation dates. "AT&T says they can do XXX". "Comcast says they can do YYY". Worked great.
I do not in reality have that option with regulated utilities.
Seattle city government is borderline incompetent, our bus system is collapsing due to union capture, we can't build roads or tunnels...but the utilities seem to work Just Fine. I'd be very happy if Seattle City Light ran fiber.
(This despite Seattle's incompetent city government trying to roll out municipal fiber and failing miserably. I just wonder what would have happened if the utilities had been in charge.)