Sunday, December 17, 2017

The Repeal of Net Neutrality is Good For Consumers, and Other Tall Tales

Let’s face it,  the regional monopolies represented by AT&T, Verizon, and Comcast, need to make more money.  You were probably just looking at your most recent Internet provider bill and said to yourself, these poor people need to make even more money.  These ISP's would normally have but one option; to raise their rates and add new fees, which they have regularly done. There was always some risk here however, because some (not all) customers have alternatives with their competition.  Another way they can each make more money would be to “invest” in legislation that would allow them to charge content providers for access to you, their customers.

Whichever side of the political gridiron you regularly root for, you have to admit that both teams favor expediency of their specific agenda over anything else.  The good of the nation and the protection of consumers rarely enter their realm of conscious behavior.

A case in point is the recent repeal of net neutrality regulations.  I would speculate that most consumers don’t realize what just happened at the FCC with the elimination of the protections they have had since they were implemented in 2015, under Title II of the Communications Act.  In simple terms, net neutrality meant that all Internet service providers (ISP’s) had to allow equal and fair access to all content providers.  This would mean that Comcast, that owns NBC, Universal Studios, USA Network, Hulu, CNBC, etc., couldn’t give Internet priority to its network streams over the competition.  You should know that all three of the top ISP’s own content companies.

Note that AT&T also now owns DirecTv


It also meant that ISP’s couldn’t start blocking or slowing down media streams in order to demand payments from the content providers.  With net neutrality, all traffic flowed at the same speed over the network, regardless of ownership or content.  What will probably happen now, not immediately but soon, is that you will see that ISP’s will demand fees from major players like Netflix, YouTube, and Hulu.  These big players will have to “pay up” or face blocking or slow-downs of their customers’ feeds.  Smaller start-ups won't stand a chance.  Do you want to guess who will be paying these fees in the end?  I think you know the answer to this one.

When ISP’s can control the throttle and brake, they can control the content.  AT&T, Verizon, and Comcast can now make more money at your expense.  Who financially supported the repeal of net neutrality?  If you guessed AT&T, Verizon, and Comcast, you would be correct.  Since 2008, these three companies and their trade association, the National Cable & Telecommunications Association (NCTA) aka The Internet & Television Association, have spent over half a billion dollars lobbying the FCC and federal government.  That's half a billion dollars that didn't go into building infrastructure so they could complain to congress and the FCC that they don't have enough money for infrastructure.

Deregulation of business seems to be an important plank in the platform of one of our parties, (insert your guess here).  While both parties have been complicit in the deregulation game to some extent, (spoiler alert) Republicans seem to have raised it to a new art form.  They do this, with a straight face, and proclaim it is good for consumers.  When consumer protections are removed and big business is free to act in any manner they chose, how is this good for consumers?

Does anyone remember the deregulation of the banking industry?  The repeal of the protections imposed after the stock market crash of 1929, did wonders for the financial well being of millions of Americans.  Do you remember: October 19, 1987 (aka Black Monday); October 13, 1989 (aka Friday 13th mini-crash); March 10, 2000 (aka dot com bubble); September 16, 2008 (aka sub-prime mortgage Financial Crisis)?  The banking and financial industries said, "Trust us," and we did by taking away protections.  Note that both Democrats and Republicans were complicit here, but the Republicans have the deregulation gene as part of their DNA.

The head of the FCC is Trump appointed Ajit Pai.  You know Mr. Pai has the best interests of consumers in mind.  He was, after all, the former Associate General Counsel for Verizon, and wouldn't let that influence his decision to remove these consumer protections.


FCC Voting on Net Neutrality Removal
3 Republicans For; 2 Democrats Against

We all know how deregulation of the airline industry has benefited consumers.  Are you enjoying your wide people-sized seats and extra legroom yet?  I’m sure none of you has heard pre-flight announcements asking for volunteers to take another flight because this one has been over-booked.  You certainly haven’t heard the airlines ask for people to check their carry-on luggage because there just isn’t enough overhead space.


You know you can trust the airlines baggage handlers with your cameras, jewelry, and expensive clothing because if they are ever lost or damaged, the airlines will pay you back without question.  This assumes that you have receipts for each item, can prove that these items were in your bag, and file your claim in a timely (time-frame set by the airline) fashion.  Everybody trusts big business will place its customers’ needs above their respective bottom lines.  I know it’s hard to read this paragraph while your eyes are rolling.  Ah, the joys of de-regulation, when will they end?

Baggage Handler aka, the Catcher


The repeal of net neutrality captures the zeitgeist of the "new and improved" Republican party.  Take corporate money, pass or repeal legislation that benefits the corporation, and lie to the public that it is all to make America great again.  I ask the question, when did America stop being great?  Perfect, no, but we can hopefully fix what is wrong.  Much of what is wrong with America can be traced to regular visitors of the 202 area code.  Clue, I'm not talking about DC tourists here.

Opponents of net neutrality will argue that these onerous regulations are preventing them (AT&T, Verizon, Comcast) from providing better service at a lower cost to consumers.  If you believe this, please write me and tell me when your ISP lowers your broadband Internet bill.  These same people say, trust me, repeal of net neutrality will open the market to other ISP's who will provide the competition that holds down costs.  Again, please write me and tell me when you see other companies running  new coaxial cable, twisted pair, or fiber optic cable in your neighborhood to provide you with a better selection at a lower cost.  I won't hold my breath.

Airline deregulation was a good thing.  Bill Clinton did not have sex with that woman.  Banking deregulation never cost Americans a penny ($19 trillion is not a penny).  Repealing net neutrality will benefit consumers.  The Trojan Horse was a great gift to the Trojans.  Bernie Madoff had a sound investment strategy. Trickle-down economics really works.  Richard Nixon was not a crook.  My dog doesn't bite (that's not my dog).  It's only a cold sore.  You get this one and I'll pay next time.  It's supposed to make that noise.  I never inhaled.  I'm from the government and I'm here to help you.  The check is in the mail, and I won't ......











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