AT&T Slams Google Over Open-Access Wireless
Robert writes with a CBROnline article on AT&T's objection to opening up a nationwide wireless spectrum. Their statement is made on the grounds that it will aid Google in their bid to get bargain-basement broadband prices. Google is just one company asking for open-access requirements on wireless signals; Skype, DirecTV, and EchoStar are others. From the article: "Yesterday, AT&T weighed in. In a letter to the FCC, AT&T said Google's "eleventh hour request" was self-serving because it would encumber licenses in the forthcoming auction 'with a laundry list of intrusive 'open access' requirements that would, perhaps, entice Google to participate in the auction. By its own admission, Google's request is intended to diminish the value of those licenses, thus preventing wireless service providers such as AT&T from bidding on them and clearing the path for Google to obtain them at below-market rates.' AT&T also said an open-access network would deprive taxpayers of billions of dollars, and inhibit the growth of wireless broadband in the country."
AT&T also said an open-access network would deprive taxpayers of billions of dollars, and inhibit the growth of wireless broadband in the country.
Isn't it good to know AT&T is looking out for us?
Dear Congress,
Please do not allow others to compete in communications. We are a monopoly and like it.
Sincerely,
AT&T
I hate this about /.
/.ers don't like invisible hands that Create or Intelligently Design things, but are downright chummy with other invisible hands.
Capitalism is basically financial engineering: figure out a way to get "the most buck for your bang/product." In a lot of instances, the most cost-effective way to do that is to rig the playing field in your favor. Capitalism is premised on a Free Market; however, once a company is successful beyond a point, it gains the power to tie up the Invisible Hand (with monopoly practices, collusion, government interference, subsidies, etc.) and thereby destroy the Free Market*, which is how they rig the playing field in their favor. It is actually in the best interests of a corporation to not have a free market. They all want captive markets where they can wring as much profit as possible. Capitalism is the problem because it is capitalism that brought about corporate government interference in an effort to maximize profits. The other problem is that corporations do not give a fig about consumers (beyond the fact that they must be kept happy enough to keep consuming); it is, however, the government's sworn and bounden duty to protect its citizens, at least according to the principles espoused by John Locke, whose thinking, coincidentally, greatly influenced the Founding Fathers of the US.
I'm so sick of all this libertarian "The Government Scares Me" tripe. The government scares me too, but when I look at what's bad in the government, it has all been brought about by powerful lobbies, the vast majority of which are corporations or industry groups. Those scare me so much more because in this day and age, they are (almost) effectively puppet-masters.
However, I completely agree that this problem wouldn't exist if we didn't have auctions or we had completely fair auctions. And also that Google is much much better than AT&T. It's just the tired, fallible libertarian claptrap that gets to me. I'm sorry for venting on you; believe me, it's not personal.
*As an aside, I find it ironic that
It has been a nervous year, with people beginning to feel like Christian Scientists with appendicitis.
The incumbents (AT+T, Sprint and Verizon) cry and scream every time anyone says anything about opening up the spectrum. They will lie, cheat and steal to make sure that no one can set up shop on that spectrum and not pay the incumbents for it.
There is a perfect example of their outright lying right in this quote. The incumbents say doing it Google's way will devalue the spectrum itself. They say that it will cost the taxpayers billions if Google gets it way.
Wrong.
Every time, they say this very same thing in an effort to scare the committee into thinking that they won't get those billions from the incumbents, knowing all the while that the committee has strong political pressure to get the most money out of the auction that they can (even the US governement notices 15 or 20 billion dollars).
Not only is it a lie about devaluing the spectrum (after all, if it is devalued, why would they care to buy it?) but it is a lie about who is going to lose money. The money for the auction goes to the government, not the taxpayers. The "taxpayer" in the end gets nothing but higher cellular bills due to lack of competition...in fact, the incumbents aim is to buy up all the spectrum and pave over it with a parking lot, which makes sure no one will ever be able to use it.
Take it from me, a guy very close to this industry. Google is certainly not the evil ones here.