THE NATIONAL VIDEO/INTERNET FRANCHISING BILL: HOW WE SHOULD FEELIn a
comment on
my last post,
Jill asks:
"How should we feel?... Can you sum what's at stake, or re-direct to a prior post where you discussed?"Sure. Let's get boring. Here's how
I feel personally about
the bill that Energy and Commerce will start considering next week -- presumably with Congressmen Brown and Strickland in attendance.
1) Both the telecom and cable companies are seeking vertical integration of very large chunks of the Internet content, backbone and ISP markets. In Cleveland, the likely result is enhanced duopoly control of high-speed Internet service as it gets faster -- two dominant players (AT&T and Time Warner), each of which has the power (and the intent, apparently) to steer its customers toward its own preferred web content.
You could solve this problem by stopping the vertical integration -- you know, actual antitrust enforcement -- but that's no longer a serious option. You could require the two systems to act as "common carriers" for competitors, but that fight was lost (with respect to cable being an open network for ISPs) six or seven years ago. So vertically integrated companies with closed networks are what we're gonna get.
The "street argument" for the bill is, basically, we're better off with two of these companies in our community intead of just one. This would probably be true, all other things being equal. But of course other things
won't be equal. The monopoly we have now (cable) has an element of control over its monopoly behavior -- the local franchising process, which gives consumers some leverage on program mix, rates, and equitable availability of service. The current House bill eliminates these vestiges of community control, substituting FCC "protections" that are essentially meaningless.
So first off, Congress should not be legislating to substitute a vertical duopoly for a regulated vertical monopoly, eliminating community regulation in the process.But if that's what they're going to do, at least the substitute Federal regulation should be meaningful. At a minimum, it should prohibit the use of the vertical duopoly to steer Internet traffic to favored web sites and services. "Prohibit" means more than a slap-on-the-wrist fine for blocking a site or a user. It means
putting an affirmative obligation on the franchised companies to offer both up and down services on a non-discriminatory basis. Failure to comply should bring either automatic loss of franchise, or the possibility of disadvantaged content providers to sue you for damages, or both.
2) Of course there's another approach to the vertical monopoly/duopoly problem -- enable more players to compete. If we're not going to impose Net Neutrality and open-network obligations on the big telecom and cable systems through regulation, at least we can make sure our network access, from top to bottom, isn't dependent on them.
That's what the
Utopia project in Utah is doing, building city-owned residential fiber networks as an open last-mile infrastructure for use by multiple ISPs, television and phone providers. At a much lower bandwidth, it's what
Philadelphia Wireless is doing... inducing Earthlink to create a third, wireless citywide data infrastructure that's open to other ISPs and networks including community nonprofits. It's what cities in other countries (notably
Reykjavik in Iceland) have been doing for years. It's what some community wireless groups envision -- interconnected nets of community-owned APs that spread across regions or even the country.
Maybe it's where
One Cleveland is taking northeast Ohio, eventually. I hope so.
Public policy should aim to expand the ability of
all comers, public and nonprofit as well as private, to add to the diversity and openness of the network at all levels. A national franchise system may, in fact, help bring more private infrastucture builders into some communities by allowing them to compete only for "high-value customers" and ignore others. For the high-value customers themselves, this will be a good thing. But for the rest of us, public and community networks will be be needed to accomplish the same good competitive outcome.
To this end, the bill before Energy and Commerce has one excellent provision: Section 401(a), which says:
Neither the Communications Act of 1934 nor any State statute, regulation, or other State legal requirement may prohibit or have the effect of prohibiting any public provider of telecommunications service, information service, or cable service (as such terms are defined in sections 3 and 602 of such Act) from providing such services to any person or entity.
If the rest of the bill is going to be passed, Section 401(a) must remain, without compromise.3) Most of the funding for community computer access and literacy programs in Ohio has come from state and local regulatory bargains. From 1994 through 2000, consumer intervenors were able to secure over $5 million to support low-income technology access programs through PUCO case settlements with telephone companies. The biggest local CTC funding initiative, Cleveland’s $3 million Neighborhood Technology Fund, was created as part of the city’s 2000 franchise agreement with Adelphia Cable. These initiatives couldn't have happened under the all-Federal system now being pushed through Congress.
I freely admit to being an interested party here -- I work for the coalition that first proposed the Neighborhood Technology Fund deal. You may not share my interest in the slightest. But if you think the "digital divide" is a legitimate policy concern, you should be aware that the pending Energy and Commerce bill will eliminate the main tool Ohio state and local governments have used to address that concern.
Is there a way to fix this? I don't know. Maybe companies with national video/Internet franchises should be required to pay into the Universal Service Fund, and low-income IT programs should be made eligible for USF funding. But
something needs to be done to compensate communities for this important (if unintended) effect of ending their franchise authority.
So to sum up, here's what I want Congress to do with this bill:1)
Preferably, just kill it. Too much bad stuff, not enough good stuff, and all the wrong people in the room to make it better.
But this is probably not in the cards, so at a minimum...
2)
Place an affirmative obligation on nationally franchised TV/Internet providers to offer both up and down services on a non-discriminatory basis (i.e. Net Neutrality and no redlining of customers). Failure to comply should bring either automatic loss of franchise, or explicit standing for disadvantaged content providers to sue for damages, or both.
3)
Keep Section 401(a), guaranteeing communities' "right to network" without state or Federal interference, in the bill without compromise.
4) Do something to
compensate communities for the lost opportunity to bargain for community technology resources as part of franchise agreements.