Monday, January 20, 2014

Deregulation: one story of a successful race to the bottom

You are paying two to three times as much for your internet access than someone in Europe or Asia. And the quality of that service is inferior to that of our international friends. Why? Deregulation.

From this article:

"Americans pay so much because they don't have a choice," says Susan Crawford, a former special assistant to President Barack Obama on science, technology and innovation policy.

Although there are several national companies, local markets tend to be dominated by just one or two main providers.

"We deregulated high-speed internet access 10 years ago and since then we've seen enormous consolidation and monopolies, so left to their own devices, companies that supply internet access will charge high prices, because they face neither competition nor oversight."

You are about to pay a lot more for less courtesy of the fall of net neutrality, but the fault does not lie wholly at the feet of the judicial system. It has to do with the fact that our Internet service providers are not common carriers. In other words, it a regulatory thing.

From this article:

Under the Bush administration, the FCC was determined to deregulate the telecommunications industry. As part of that effort, it reversed its previous stance and removed Internet providers from common carrier regulations. But even as it deregulated the industry, the FCC sought to maintain the notion of net neutrality. 

Unfortunately, by determining that the broadband providers weren't common carriers, it basically took away from itself the legal authority to enforce that notion. That's what the court ruled Tuesday: that the FCC can't impose common carrier rules on companies that aren't common carriers.

Both of those links offer a clear and understandable explanation of how we're getting swindled by the Big Communication lobby and how it's going to get worse. So read them (while you can) and the next time you pay your $70 (or $80 or $100) Internet bill, remember that the same service in Seoul, South Korea costs about $15.


*  *  *

16 comments:

Anonymous said...

Dearest Hostess,

You obviously don't understand free markets. At this very moment an industrious little nerd at Sarah Lawrence is starting an ISP in his dorm room that will delivers us from the big greedy meanies and provide unlimited access for 2:50, create thousands of good paying jobs and cure cancer. Pay Attention!

RJ

Bill said...


On Topic. Interesting.

Erin O'Brien said...

Very interesting indeed.

The article cites the US as #3 in the world re: broadband prices. It also quotes an average monthly fee of $15 stateside.

So. Where do I get this magical $15 high speed 'Mericun internet?

Erin O'Brien said...

Oh dear. Now I get it. The site you've recommended, Bill, is thusly described on it's "About" page:

Hi, we’re The Connectivist.

The Connectivist is an online magazine created in partnership with the National Cable & Telecommunications Association (i.e. the Internet and television people) ...


Do you righties always fall for this stuff? Even when you're paying your $70 Internet bill?

Anonymous said...

Do you righties always fall for this stuff? They don't fall for it, they create it. "Trade Industry Journal" is a euphemism for infomercial. Notice, too, how they got the obligatory digs in on Communist and Islamic countries…and the piss poor. The Sudanese Millenials seem to have more important things to deal with than Facebook. Like staying alive.

Bill said...

Remember when TV was free?.

Bill said...



You can pay $70 per month or you can pay less.

Erin O'Brien said...

For 12 months and (ahem) restrictions apply. What, exactly, does the service cost after 12 months, Bill?



Bill said...

I don't know anyone, except businesses, who pays $70 for internet access. I'm paying $41 but started paying 29, I think, about 4 years ago. When you threaten to choose another ISP, you can negotiate a better deal. Kind of a pain in the ass but $70? One can save a little money by picking up an Obama phone.

Erin O'Brien said...

Enjoy that low rate, Bill. And enjoy reading this page. In a year or so, your provider may choose not to allow you to access it--unless you agree to a little monthly price increase of course.

I wonder about small businesses. This will devastate them. How can you plan anything if you have no idea who can promptly access your website?

Payola redux, here we come.

VideoDude said...

Obama phone? Really Bill? You mean the program that was started by St. Ron Reagan, expanded by George W. Bush, to include basic cell phones. Then it was renewed by Pres. Obama. At least you have your Teabagger talking points ready to go. The problem with most cable entities is yes, they may provide internet service for less than $70, but they require that you, at least carry basic cable.

VideoDude said...

Here Bill, is an article about the truth of the "Obama Phone". People whom keep posting these Teabagger lies, do not deserve to be taken seriously.

http://thinkprogress.org/election/2012/09/27/924011/the-truth-about-the-obama-phone/

Anonymous said...

Upon reflection I think it's important to remember this issue is not only about money but about controling the free flow of information. Of course it's the Corporatists that want to dictate the narrative so the distinction may be unnecessary.

RJ

Bill said...

Yes Everyone knows that the Obamaphone wasn't his idea. Got thin skin? Throw in a little humor and all hell breaks loose. I'm not worried about the cost of internet service. It's "free" all over the place. What I am worried about is the cost of water. It's terrible and, we are now, officially in a drought. That's a big deal. The last one was a huge pain in the ass. I'm pretty sure I'll have to sacrifice some landscaping. Do you really have to pay $70 a month for internet access in Ohio?

VideoDude said...

I just checked Time Warner Cable. For standard TV (Which TWC requires to have internet service is $19.99, Lowest cost internet service (2Mbps) is 14.99. So cost of cable plus internet is at least $50.

Erin O'Brien said...

I pay Cox $110 for basic cable (no premium channels) and the lowest cost internet plan. My one other option would be getting DSL on my AT&T (already $45 per month) landline. I have no idea what that would cost after the (ahem) introductory price expires, but you can bet it ain't $15 a month.

I suppose I could get a disc. Um, no thanks.

Bill, this concept puts my entire career in jeopardy. What if I can't access all the quirky sites I visit to do my research? Or what if sites are randomly downgraded and load slowly? What if the publications I write for get washed away by some carriers?

Only the big boys will be able to payola up in order to be considered "first tier" and only the wealthy will be able to afford the plans that allow fast access to them.

If the Obama administration doesn't get these bastards designated as "common carriers" we are all going down together.