Progressives’ Anti-Merger Mania

The proposed merger between the cable systems of Charter Communications, Time Warner Cable, and Bright House Networks has brought out the usual poseurs in opposition.  I speak, of course, of such as Common Cause, Consumers Union, and Public Knowledge (all of which are wrong in their usual and tiresome way, but not certifiable), and their more extreme kin, Media Alliance and Free Press.

As it happens, there exists a bridge between these armies of progressivism in the person of former FCC commissioner Michael Copps.  Since leaving the FCC, Copps has flocked to the aid of those organizations he favored when he was a commissioner.  So it is that the gentleman is now on the board of Free Press and a “special adviser” to Common Cause.

Which, of course, is why it’s important to know the kinds of things he’s saying about the merger.  Writing in Common Dreams (“Breaking News and Views for the Progressive Community”), Copps relieves himself of opinions like these:

This merger would create a new Comcast – a national cable giant with the ability and the incentive to thwart competition, diversity, and consumer choice….  >> Read More

The opinions expressed above are those of the writer and not of The Media Institute, its Board, contributors, or advisory councils.  The full version of this article appeared in The Hill on Feb. 9, 2016.

Net Neutrality: Solving Nonexistent Problems the Old-Fashioned Way

For all the reaction it elicited, Chairman Genachowski’s plan for codification of the so-called net neutrality rules, as suggested in a speech he gave Dec. 1, amounts to too little revealed, much less resolved, to allow for fully confident assessment.

This said, it’s not too early to observe that any public policy that is roundly condemned by Free Press, the Media Access Project, and the Nation magazine can’t be all bad.  And condemn it they have.  Under headlines like “Is FCC Peddling Fake Net Neutrality?” and “FCC Chair Genachowski’s ‘Fake Net Neutrality’ Scheme Threatens Internet Freedom, Digital Democracy,” the left’s unhappiness is as loud as it is music to the ears.

On the other hand, the chairman’s proposal has also attracted heavy fire from members of Congress, many but not all of them Republicans, and from the two Republican commissioners at the FCC.  In Congress, the general animus centers on the feeling that the FCC should at least consult with, if not defer to, the members about such things, while Republicans are especially angry that the chairman’s plan anticipates action before the newly elected members of the House and Senate are even seated.

Meanwhile, the service providers are somewhat divided, with some of them content to wrap things up in a way that falls far short of what they had feared, while others are troubled by the apparent lack of a sunset provision, and by the unsettled nature of many important details.

So philosophy on parade it is not.  It is, instead, equal parts partisan politics, an acknowledgment of the way the world works, and 100-proof deal making.  As such, it’s unsatisfying – like taking a shower with your socks on – but it’s not a complete surprise.  As reported here, it’s always been clear that Genachowski had the inclination, and the votes, to proceed with some kind of “net neutrality” scheme, even as it also has looked ever more problematical for him to go the whole nine yards, as in Title II “reclassification.”

More than this, there are aspects of the apparent plan – like its embrace of consumption-based billing – that are deeply satisfying.  It wasn’t all that long ago that Time Warner Cable had to abandon plans, in consequence of noisy opposition from the usual troglodytes, to do some trials of this kind of thing.  Charging more of those who use more is the way we price most things, of course, but that didn’t prevent groups like Free Press and Public Knowledge from piling on in opposition to TWC’s plans, nor from gloating when the company withdrew its proposed trials.

For now, the whole of this matter can be reduced to some questions, not all of them answerable.  Is Title I regulation better than Title II?  Yes.  Is this the best result one could reasonably expect from this FCC?  Probably.  Is it wise public policy?  No.  Will the FCC’s action, whatever it is, be the end of the matter?  Depends.  If, sometime in the future, a party with standing decides to sue the agency on the claim that it lacks authority to regulate the Internet in this way, it will have a viable argument with some case law to back it up. And if that lawsuit were to be resolved in a way that (once again) ordered the FCC out of the Internet regulation business, well, so much the better.

                                                
The opinions expressed above are those of the writer and not necessarily of The Media Institute, its Board, contributors, or advisory councils.

Net Neutrality in Retreat?

If you’re a “net neutrality” critic, and dabble in schadenfreude, things are looking up!  First, there was oral argument in the D.C. Circuit Court of Appeals (Comcast v. FCC), during which the panel clearly appeared to reject the notion that the FCC had authority to pursue its ambitions in this regard.

Then, just last week, there was the White Paper filed at the FCC on behalf of Time Warner Cable by constitutional scholar Laurence Tribe, arguing that net neutrality as proposed is likely unconstitutional under the First Amendment.

Last but not least is the report, debated but out there, that the Administration is cooling on net neutrality because it fears that it might depress the amount of capital the private sector invests in broadband deployment — an argument also made here — thereby defeating the goal of ubiquitous broadband access and stunting job growth as well.

One can only imagine the anguish such a turn would engender in the net neutrality crowd.  A conflict between Free Press and the Administration?  How could they reconcile it?  What manner of prose could they summon to express their innermost feelings?  The “vituperative retreat” perhaps, or maybe something more stylish, like an Olbermannesque commentary.  Perhaps they’d initiate, simultaneously, 100 diary threads on DailyKos.

Well, we don’t know for sure but we can dream.  What we do know is that Chairman Genachowski’s plan of extending and codifying the FCC’s "Internet principles,” announced with such confident fanfare not so long ago, is now coming under heavy fire from lots of quarters.

Laurence Tribe’s brief is particularly noteworthy, both for its line of argument and for the road map it lays out for a court challenge on constitutional grounds, should net neutrality be formally adopted.  To quote just one of several poignant passages therein:

Net neutrality proposals rest on the mistaken premise that the constitution gives the government a role in ensuring that the voices of various speakers receive equivalent attention and that audiences receive equal access to all speakers.  In fact, a central purpose of the First Amendment is to prevent the government from making just such choices about private speech, including decisions about what amount of any given kind of speech is optimal.

That Tribe was an active supporter of the candidacy of President Barack Obama, and served as a judicial adviser to Obama’s campaign, suggests that he has the Administration’s ear on such matters.  This, coupled with speculation about the reason for the departure of Susan Crawford, a strong proponent of net neutrality, lends weight to the notion that the Administration may be reconsidering its erstwhile support of net neutrality regulation.

If so it would just be another example, as H.L. Mencken put it, that for every complex problem there is an answer that is clear, simple, and wrong.

Time Warner Cable and Consumption-Based Billing


Time Warner Cable has had quite a bumpy ride for the past couple weeks.  Having announced earlier a plan to conduct trials of a consumption-based billing policy, in which users would be charged based on the amount of data they download and upload, by week’s end the company was obliged to suspend the trials altogether.

What happened in between were the protests of some customers and bloggers, the usual mischief of some of the “public interest” lobbies (they’re from Washington and they know what you want), and most importantly, the intervention, as critics, of a congressman (Massa) and a U.S. senator (Schumer).

Aside from the fact that broadband users who consume unusually large amounts of bandwidth, downloading movies and the like, would have to pay more, it’s not immediately clear what’s wrong with consumption-based billing.  That is, after all, the way we pay for most things, and it protects those who use less from having to subsidize the payments of those who use much more.

No matter.  In an age when information “wants to be free,” and everyone is entitled to everything, arguments based on marketplace economics are probably not going to persuade a lot of people, and certainly not grandstanding members of Congress.

Which is why, at the end of last week, Glenn Britt, Time Warner Cable’s CEO, announced a suspension of the trials scheduled for later this year in Rochester, N.Y., Austin and San Antonio, Texas, and Greensboro, N.C.

In a display of their usual savoir-faire, several of the “public interest” moguls were full of gloating, like that of Timothy Karr of Free Press: “We’re glad to see Time Warner Cable’s price-gouging scheme collapse in the face of consumer opposition.  Let this be a lesson to other Internet service providers looking to head down a similar path.”

Only slightly less tiresome was the statement of Gigi Sohn of Public Knowledge: “The company properly listened to its subscribers, the public and policymakers, all of whom (emphasis added) were highly critical of the proposition in the first place.”

The celebrations, however, may be a bit premature.  What Time Warner Cable said was that it was suspending the trials, not abandoning consumption-based billing, and that in the meantime it was going to deploy measurement tools, a kind of “gas gauge,” that would allow users to see how much bandwidth they were using each month.

Assume that some months from now it transpires that the vast majority of users consume bandwidth in amounts that would qualify them for the lowest and cheapest tiers, while only a small minority would have to pay at the highest rates.  Now that would be awkward, wouldn’t it?