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How Big Telecom Tried To Kill Net Neutrality Before It Was Even a Concept

An anonymous reader writes This opinion piece at Ars looks at the telecommunications industry's ability to shape policy and its power over lawmakers. "...as the Baby Bells rolled out their DSL service, they saw the cable industry's more relaxed regulations and total lack of competition and wanted the same treatment from the government. They launched a massive lobbying effort to push the Clinton and Bush administrations, the Federal Communication Commission, and Congress to eliminate the network sharing requirement that had spawned the CLEC market and to deregulate DSL services more broadly. Between 1999 and 2002 the four companies spent a combined $95.6 million on lobbying the federal government, according to data from the Center for Responsive Politics, which would rank them above such trade group lobbying behemoths as the Chamber of Commerce and the American Medical Association in total lobbying expenditures for the years. The companies also spent millions to lobby the public directly through aggressive advertising and public relations campaigns."

34 of 62 comments (clear)

  1. Ah, progress. by Anonymous Coward · · Score: 1

    Now we're so far along you literally have to BEG to cancel your service.

  2. SubjectsInCommentsAreStupid by lesincompetent · · Score: 4, Insightful

    ... instead of spending that money to improve their infrastructure...

    1. Re:SubjectsInCommentsAreStupid by lesincompetent · · Score: 1

      Someone actually modded flamebait? Let the paid shill witchhunt begin!

  3. So.. they were scumbags since the start? by Anonymous Coward · · Score: 5, Insightful

    I mean.. is this really a surprise?

  4. Slashdot posters, beware! by Okian+Warrior · · Score: 5, Interesting

    Fellow readers, beware of astroturf comments.

    We know that the big companies hire agencies to send fake letters of support to government agencies, letters purported to come from everyday people in support of whatever the big company wants to do at the time.

    We also know that the big companies hire agencies to send fake letters of support from politicians that support whatever the big company wants to do at the time. We know that political campaigns do the same thing.

    I've been interested in ghostwriting/astroturfing for awhile now. It seems reasonable that if a company has enough money to mount a fake grassroots campaign, then some of that money would be put towards shaping public opinion on public boards.

    Especially a highly popular board frequented by all the smart people in the country.

    Looking at one previous article about network access I can't help but get the impression that people are reaching around backwards to make their point. The plight of all those poor, twisted arguments brings a tear to my eye.

    Really - watch the commentary on these articles and see if any of the arguments seem weak or contrived.

    We may be infested with astroturfers.

    1. Re:Slashdot posters, beware! by Okian+Warrior · · Score: 4, Insightful

      So what you're saying is you're totally not an astroturfer from the other side, and from now on you'd like us to be automatically suspicious of all comments that argue in favor of something you're not in favor of / argue against something you're in favor of (and totally not hoping to shut down any conversation before it starts), and they're probably just comments from people being employed by big evil corporations, but you're totally not astroturfing in the name of net neutrality? And there are totally not any logical fallacies in your argument?

      Actually, I'm a big fan of cogent, reasoned responses (to my posts) that put forth a contrary position. They are so rare that I sometimes post a "thank you" in response.

      Just saying "this doesn't track with my experience" ("I've taken 200+ cab rides in my life and not once encountered a bad experience", yeah, right), or "you're wrong about that", or "how dare you say the emperor has no clothes" doesn't quite cut it.

      So tell me: instead of insinuating that there are logical fallacies in my argument, what exactly *are* the logical fallacies in my argument?

    2. Re:Slashdot posters, beware! by ColdWetDog · · Score: 4, Funny

      Especially a highly popular board frequented by all the smart people in the country.

      Reddit? Why do we care?

      --
      Faster! Faster! Faster would be better!
  5. Why isn't this influence peddling or corruption? by bogaboga · · Score: 5, Interesting

    Between 1999 and 2002 the four companies spent a combined $95.6 million on lobbying the federal government, according to data from the Center for Responsive Politics...

    When done in other countries, my government calls it corruption. When done here, it's called lobbying.

    Question is: Who is lobbying on behalf of Joe Six Pack and family?

  6. Re:Why isn't this influence peddling or corruption by Okian+Warrior · · Score: 4, Interesting

    Question is: Who is lobbying on behalf of Joe Six Pack and family?

    Lots of groups!

    Here's a list:

    The National Smoker’s Alliance
    The 50 Cent Party
    Center For Consumer Freedom
    Al Gore’s Penguin Army
    Microsoft
    Save Our Species Alliance
    Working Families For Wal-Mart
    The Big Ten Network
    Comcast
    GOP

    (NB: The companies listed come from an article titled: "Ten Horrible Examples Of Astroturfing")

  7. TELCO / ISP spending before and after by Crashmarik · · Score: 4, Informative

    http://www.freepress.net/sites...

    This image tells all you need to know about Cable/Telco promises.

    Once you have a monopoly that has no competition there is no reason to improve service or product quality and every incentive to drive it down to as low a level as you can without people rioting outside your offices.

  8. Big Government is worse that Big Business by Anonymous Coward · · Score: 1, Insightful

    I hate the concept of having the US government regulating the Internet any more than it already does. The FCC is a PoS, last thing I want is it getting between me an my path to the Internet. Regulation ends up hurting small business as bigger companies lobby to have regs set that push out little guy, look at the relationship between the big banks and government. When the banks fucked up and were set to fail, what did the US government do? Gave them tax payer money to survive. In return the banks give the government citizen records on transactions and deposits all the time

  9. Re:Why isn't this influence peddling or corruption by Anonymous Coward · · Score: 1

    Question is: Who is lobbying on behalf of Joe Six Pack and family?

    Congress is supposed to represent Joe and his family in the first place. "The People" was never intended to be a special interest group.

  10. Re:Why isn't this influence peddling or corruption by CrimsonAvenger · · Score: 4, Interesting

    Hmm, $95.6M in lobbying over three years...

    That's $31.9M per year, spread across four companies.

    Or an average of about $8M per year each.

    Let's see. Annual revenue for those companies averages in excess of $50B each (two of them managed to make >$210B, so I didn't even bother checking the other two, just used the revenue for those two averaged over four companies).

    So, they're spending an average of 0.016% of their income on lobbying.

    Frankly, given the power of the federal government, spending that LITTLE to buy favourable legislation is surprising.

    Do remember, the more power the government has, the more worthwhile it is to just buy laws that favour you.

    When done in other countries, my government calls it corruption.

    No, that would be graft, not corruption. There is a difference, though it's pretty much hairsplitting....

    --

    "I do not agree with what you say, but I will defend to the death your right to say it"
  11. Net Neutrality fear-mongering? by heretic108 · · Score: 1

    This seems like the place to ask - have there been fearmongering campaigns against Net Neutrality in the USA? I was having a discussion about it on a business web forum and copped some brutal flames for speaking in its defense; people on that forum are making it out to be some kind of communist gulag that will destroy future internet innovation. Every time I made a point in favour of net neutrality, they would scream "Don't you believe in property rights, you TROLL?"

    --
    -- In the beginning was the WORD, and the WORD was UNSIGNED, and the main(){} was without form and void...
    1. Re:Net Neutrality fear-mongering? by Fire_Wraith · · Score: 2, Informative

      From what I understand, there's been a fair bit of fear-mongering in right wing media related to it. Some of it is fueled by reflexive opposition to the current president, certainly, but a lot of it ties into the general attitude of "private = good, public = bad" that can be manipulated into viewing any sort of (federal) government action as being malign. There's also a degree of confusion fueling some of it, where "Net Neutrality" has been (deliberately) conflated with bringing back the Fairness Doctrine.

    2. Re:Net Neutrality fear-mongering? by swb · · Score: 1

      You could make an argument based on fact that high speed internet has gotten cheaper and better in constant dollars.

      In 2000, I paid something like $123/month ($90 then) for 768Kbps and one static IP.

      In 2015, I pay for $85/month for 18Mbps and a /29.

      In absolute terms, it's $5 cheaper for 20 times faster service with much greater flexibility (more static IPs). In constant-dollar terms, it's 30% cheaper.

      Now, I'm not defending cable. I think the content providers saw that cable companies could jack up rates at will and demanded their cut in terms of increased carriage fees and the cable companies just went along with it, raising rates further to pass on the cost. They then saw cheaper streaming eating into their programming monopoly and bandwidth consumption as a risk to their infrastructure carrying capacity.

    3. Re: Net Neutrality fear-mongering? by jmac_the_man · · Score: 1

      What are you talking about? The organization you linked to wasn't appealing to the government to force their ads onto television. They were making an argument against NBC, and they think that the fact that NBC refused to run their ad strengthens their argument. The Fairness Doctrine had nothing to do with it.

    4. Re:Net Neutrality fear-mongering? by jmac_the_man · · Score: 1
      In 2008, there was a professor and Net Neutrality supporter who explained the fairness doctrine as "Sometimes you'd go to foxnews.com, and CNN would show up instead." That would be like a fairness doctrine for the internet.

      It got coverage at the time, but I haven't been able to find a link. I've been looking for awhile.

      The problem with the phrase Net Neutrality is that it refers to two discrete concepts which should each have separate names. Some folks mean a ban on consumer-level blocking or prioritization. (There's pretty much no opposition to this. The Republican Net Neutrality bill, if passed, would implement that ban in law, as opposed to FCC regulation.) Other folks mean mandatory settlement-free peering. (These people say Netflix's ISP shouldn't have to pay more because they push more traffic onto the the network. The counterpoint is that organizations that need or want more bandwidth should pay more for it.) Title II regulation (placing wireline internet under strict government regulation designed to capture but perpetuate natural monopolies) is a third issue that doesn't actually solve either of the other two problems.

      These are complex technical issues, and it shouldn't be a surprise that the general public DOESN'T KNOW what any of the three concepts are. The deliberate conflation (of using the phrase Net Neutrality to refer to two discrete issues and then conflating Title II with that) has made the problem worse.

  12. Re:Why isn't this influence peddling or corruption by Dutch+Gun · · Score: 2, Insightful

    People tend to think of "lobbying" as a dirty word, but keep in mind that lobbying also works on behalf of ideals and organizations you believe in. The EFF is involved in lobbying, for instance, and organization that many of us here appreciate and support. Or, pick an organization you care about, and you can bet they're doing some lobbying of their own. That's not inherently a bad thing.

    The word essentially has it's roots in ordinary citizens waiting in the capitol lobby to bend the ear of their representative, telling them how they felt about specific topics. Eventually, it was understood that it's more efficient to hire someone to collectively represent your interested and present them to your representatives, because it's impractical for a politician to meet individually with every single citizen of their district.

    The corruption comes in, of course, in the wining and dining of said politicians - when it moves beyond simply trying to convince them and instead giving them subtle or even outright monetary rewards, such as promises of lucrative employment after a term of office is served, etc. That's not lobbying - that's just bribery. I'd be curious to see what exactly all that "lobbying" money is spent on.

    --
    Irony: Agile development has too much intertia to be abandoned now.
  13. Re:Why isn't this influence peddling or corruption by Anonymous Coward · · Score: 1

    That's why it's very important to wealthy people that money be equated with speech under US law, that way the richer you are the more free speech you have. It's also why they almost universally support regressive taxation (they call it "flat" or "fair" tax), and want to dissolve pension funds. Pension funds were the way everyday American had power over corporate America. Pension funds owned voting shares of corporations and used that power for their members. Public employee pension funds still do the same (like when CalPERS forced a shareholder vote on Wells Fargo's foreclosure practices, or a shareholder vote on Walmart execs). THIS is the reason wealthy conservatives want to get rid of the last large pension funds - to take away what little remaining power Joe Sixpack has in the corporate world.

  14. Re:Why isn't this influence peddling or corruption by matfud · · Score: 3, Funny

    Being sarcastic.

    That looks like a very very good return on investment :)

  15. Re:Why isn't this influence peddling or corruption by matfud · · Score: 1

    There are many such organisations.
    Be careful though as many have many more than one side to them. The lobbying is not necessarily what joe public thinks it is and is not necessarily what the companies paying into it think it is. The NRA is a prime example.

    Why do politicians get good pensions and health care and if high up security for decades after they have left office? Hrmm.

  16. Re:Why isn't this influence peddling or corruption by TapeCutter · · Score: 1

    So, they're spending an average of 0.016% of their income on lobbying.

    Revenue is not profit.

    --
    And did you exchange a walk on part in the war for a lead role in a cage? - Pink Floyd.
  17. Show them no mercy, for you shall receive none by Dega704 · · Score: 4, Interesting

    The only possible way to counter these bastards is with an absolute avalanche of public backlash. It worked in turning Wheeler around; now we need to turn up the heat on our so-called 'representatives'. To hell with big cable and telecom. Burn their crops and salt their fields. Rip their monopolistic power from their hands and savour the sound of them kicking and screaming the entire way.

    1. Re:Show them no mercy, for you shall receive none by WarmBoota · · Score: 4, Interesting

      Posting and losing some mod points. I think there should be a clear message to politicians: Do you want your name associated with the most hated company in America? Make sure they know how vile Comcast is and tie them to it. .

      --
      90% of everything is crap. Also, crap is relative.
    2. Re:Show them no mercy, for you shall receive none by thegarbz · · Score: 1

      The only possible way to counter these bastards is with an absolute avalanche of public backlash. It worked in turning Wheeler around; now we need to turn up the heat on our so-called 'representatives'. To hell with big cable and telecom. Burn their crops and salt their fields. Rip their monopolistic power from their hands and savour the sound of them kicking and screaming the entire way.

      I was going to get right behind you but I have a raid on this afternoon and I can't live without my internet connection tonight.

    3. Re:Show them no mercy, for you shall receive none by jmac_the_man · · Score: 1

      ... an absolute avalanche of public backlash... worked in turning Wheeler around

      No it didn't. Wheeler has been grinding an axe against the cable companies for years, ever since his idea of "America Online, delivered over cable networks" didn't pan out. (Wheeler wrote about this in his editorial on the subject.) He just waited until after Obama was safely reelected to implement the plan that Obama has wanted since day one.

  18. Re:Why isn't this influence peddling or corruption by Anonymous Coward · · Score: 1

    it was understood that it's more efficient to hire someone to collectively represent your interested and present them to your representatives, because it's impractical for a politician to meet individually with every single citizen of their district.

    You can do that for free, or at least the costs should be separate and related directly to rallying the troops and forming your group so it can be heard above the crowd. That is not what is happening with lobbying. The currenct state of liobbying is giving money to a political party so they will "listen to you". That is CORRUPTION because the money is not needed for them to listen, it is used by the party to buy commercials and send out flyers for them sop they can get elected again. No company would ever just give politicians or anyone for that matter money just because. They KNOW the money will get them what they want, that is a bribe plain and simple. Those same companies spending money on politicians are NOT giving it to their customers or giving it to the voters so they can push the politicians and there is a good reason they don't.

  19. I wanted Net Neutrality by Anonymous Coward · · Score: 1

    I wanted Net Neutrality. I did not want a 300+ page regulatory clusterfuck that essentially is the opposite of Net Neutrality.

    1. Re:I wanted Net Neutrality by jmac_the_man · · Score: 1

      By begging your telco masters ever so kindly to take twice as much money from you for a promise not to block the websites you want to use like Netflix, only to have them renege like they've been doing with the money you're giving them now?

      The Republicans have introduced a Net Neutrality bill that would ban paid prioritization, making this practice illegal. Since it wouldn't mandate settlement-free peering and it isn't explicitly designed to perpetuate monopolies, the Democrats are holding out for Title II.

  20. Re:Why isn't this influence peddling or corruption by loftarasa · · Score: 2

    Annual revenue for those companies averages in excess of $50B each (...)

    So, they're spending an average of 0.016% of their income on lobbying.

    Revenue and income are different things.

  21. Re:Why isn't this influence peddling or corruption by jmac_the_man · · Score: 1

    Also of note, the pro "NN"/Title II crowd did a lot of lobbying and a lot of supporting Obama's election in 2012. TFA only tells half the story. Like everything else in politics, "lobbying" is only bad when people who don't agree with you are the ones doing it.

  22. The issue is NOT net neutrality by stoatwblr · · Score: 3

    The real issue - the elephant in the room which the net neutrality debate serves to dance around - is lack of effective local competition.

    The USA professes free trade, etc, etc but is actually one of the most restrictive countries to do business - and (possibly illegal) state/regional sweetheart deals on local loop mean there is no effective competition for broadband services (A duopoly is as bad as a monopoly and in most areas there is a legislated monopoly on local loop).

    With effective competition, net neutrality is a non-issue. There's a reason that this is only popping up in the USA and that's because the vast majority of consumers face a market with either only 1 or 2 broadband providers.

    Meantime in Europe, I sit on a 100Mb/20Mb VDSL circuit - unthrottled - getting full bandwidth - and knowing that if my ISP plays stupid games with access to Netflix I can switch to another one with 2 phone calls. They know it too, so they actually provide good customer service instead of the surly service commonly encountered Stateside.

  23. do not trust by paul+mafinga · · Score: 1

    The Fed appears to be propping up the legacy copper telcos and entertainment industry -- courtesy of a myriad lobbyists.

    Does the Fed version of net neutrality make sense? Some say that net neutrality is a meaningless concept, given enough bandwidth.

    Perhaps stronger efforts to light up the $ 200 B. of dark fiber that We the People funded in the 90s, and moving the telco and TeeVee wiring over to fiber, should be done first.

    Encouraging the executive branch to reinterpret a 1996 telephony law and apply it to the Internet sounds uncomfortable up front, given their track record of favoring large, entrenched players over raw bandwidth to We the People.