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Tom Wheeler Defends Title II Rules, Accuses Pai of Helping Monopolists (arstechnica.com)

simkel shares a report from Ars Technica: Former Federal Communications Commission Chairman Tom Wheeler spoke out against the FCC's proposed repeal of net neutrality rules this week, saying the repeal will help monopoly broadband providers abuse their dominant position. There's "a monopoly provider for three-quarters of the homes in America, and no choice," Wheeler said in a forum (video) in Arlington, Virginia Monday hosted by US Rep. Don Beyer (D-Va.). "When you've only got one provider, who makes the rules? The provider makes the rules." Wheeler was referring to FCC data that shows most Americans live in areas with either one provider of high-speed broadband (at least 25Mbps downstream and 3Mbps upstream) or none at all. With the FCC's new Republican leadership seeking to overturn net neutrality rules, "the question becomes, will giant companies be able to exploit their monopoly position?" Wheeler said. "Who is going to stand up for consumers? Who is going to stand up for innovation? And who is going to stand up for the most important network for determining our future in the 21st century?"

28 of 134 comments (clear)

  1. But... FREE ENTERPRISE by r2rknot · · Score: 5, Insightful

    It will save us. For some reasons someone will find tons of money in rolling out infrastructure to fight those established companies and provide us with competition!

    (sarc)W/e we do, we cannot allow the government to create this public infrastructure, its not their place(/sarc)

    --
    "...whenever any Form of Government becomes destructive...it is the Right of the People to alter or to abolish it..."
    1. Re:But... FREE ENTERPRISE by alvinrod · · Score: 5, Insightful

      It's hard to have a free market, when in most jurisdictions the local government sells monopoly rights for service to a single cable provider. I'd agree with removing net neutrality restrictions if there is no ability for local governments to restrict access to the market. Government granted monopolies (e.g. utilities) have always faced regulation, and the cable companies expecting to have their cake and eat it too is silly.

    2. Re:But... FREE ENTERPRISE by El+Cubano · · Score: 4, Informative

      It will save us. For some reasons someone will find tons of money in rolling out infrastructure to fight those established companies and provide us with competition!

      To me the problem is that the industry is highly regulated, by the government of course. So, relaxing/repealing net neutrality results in an imbalance.

      I would like to see us go either all one way or the other. An examination of the way the Post Office was treated in the first ~100 years of the US would be very instructive to this whole debate. That is how critical the Internet is to us now. I have commented on that previously here on /.

      That said, I would be less bothered by the net neutrality relaxing/repeal if there were an accompanying relaxation of the regulations which frequently prevent local municipalities and co-ops from providing competing services.

      I live in an area where my options are dial-up, T1, satellite, or microwave. The services are all either slow, expensive, or poor quality (usually all three of those). I have talked with some of my neighbors about what it would take to form a co-op to provide the homes in our area with fibre optic service. We know that there several fibre backbones that pass not very far from us and if we pooled our resources then we could likely provide ourselves far better service than is currently available. Cost would be a bit of an issue up front, but the far more problematic piece of it is the ridiculous level of regulation involved to get anything done. It would take literally years of constant effort to get to where we could even have the first trenches dug.

      So, I suffer through having crappy Internet because I really like the area where I live. Net neutrality won't affect me very much personally and I don't think that having it or not having it will result in big monopoly providers extending service to areas they view as unprofitable. For that to happen, there would have to be a mandate for them build out or the government would have to do it. The other option which I mentioned above, people doing it for themselves in the form of co-ops would be a great solution, but for the stifling regulations which are clearly intended precisely to prevent what I am suggesting.

    3. Re:But... FREE ENTERPRISE by Orgasmatron · · Score: 2

      I should write a bot to monitor slashdot and just repost the best of my rants about cable monopolies whenever a story pops up about the FCC or broadband or whatever. Here is the short version.

      FIND OUT WHAT PART OF GOVERNMENT IS CAUSING THE MONOPOLY IN YOUR AREA AND FIX IT.

      For the vast, vast majority of American slashdot readers, your area is economically viable for two or more systems. There are cable companies that are eager to expand into your area. They have the money. They know how to build a fiber plant. They know how to run a successful ISP and/or cable company. They probably already have blueprints showing exactly what and where they would build in your neighborhood. Find out what regulator is telling them "NO". Is it your local city board? The state public utility commissions? County zoning? Landlord in your apartment building?

      Personally, I live several miles outside of a small town, in a semi-rural area. The closest city is ~40 miles away. The closest MSA (big city) is about 100 miles away. I have three fiber drops from two cable companies in my yard, and I pay 50% less than people in the nearest monopoly zone.

      --
      See that "Preview" button?
    4. Re:But... FREE ENTERPRISE by ShanghaiBill · · Score: 2

      in most jurisdictions the local government sells monopoly rights for service to a single cable provider.

      Do you have a citation for this? I doubt this is true.

      Most ISPs are monopolies because it just isn't worth it to build out duplicate infrastructure when the resulting competition will lead to a fall in prices insufficient to recoup the investment. But it is rarely illegal.

    5. Re: But... FREE ENTERPRISE by Anonymous Coward · · Score: 4, Interesting

      Free market is best market.

      However, free does not mean free from regulations. Without regs, powerful companies form and control the market.

      We do not have a free market for internet.

      IMO, regulations should be designed to keep markets free and healthy. This way the market can respond to Changing conditions rather than waiting on congress, who is often ten years behind.

      My idea is this:

      Legislatively separate the markets that have been used to form internet trusts. Basically, trust bust.

      Mandate that you can only own one of the last mile, the ISP, or content creation.

      Make laws regarding collision between such companies.

      Suddenly, you would have your choice of ISP over whatever last mile connects you. And ISPs would have no perverse incentive to control what media you consume.

      BAM.

    6. Re:But... FREE ENTERPRISE by anegg · · Score: 3, Interesting

      Interestingly enough, there was something a lot like a free market for ISPs at one point: when consumer Internet access was via dial-up. All you had to do to be an ISP was to get a dedicated Internet circuit (like a T1 with a heady 1.544 Mbps) and a number of POTS lines (say 10 to 40 or so) with modems on them, and you were an ISP! (With 56Kbps modems your service speed was "smoking!" At that point the "phone company" didn't even really know what Internet service was, and cable companies just provided TV channels.

      Then Digital Subscriber Line came along, typically deployed as Asymmetric Digital Subscriber Line (ADSL), with download speeds that might have been 768Kbps, no need to tie up your house's phone line with your Internet connection, and the connection itself was "always on!" The paying public abandoned dial-up ISPs, switching to DSL. DSL was more limited access on the provider side, because you had to be in the telephone company CO. There were some legal provisions for telephone companies to provide access to their copper lines for alternative DSL service ISPs, but it really crunched down the number of competitors as the "telephone companies" realized that there was a lot of money to be made as an ISP. Verizon's move to FIOS seems to have been in part inspired by the fact that although they had to share access to the copper cable plant, they could install the fiber cable plant and NOT have to shared it. At most of the locations that I'm aware of, as soon as a household switched to FIOS, the copper plant was disconnected from that house (loophole in the rules I think - they only had to share the copper if it was connected to the house, they couldn't be forced to provide a copper connection to a house for use by an alternative provider).

      Cable companies got into it as they had their own cable plant and realized they could make $$$ just like the phone company of Internet service. Since cable Internet and FIOS offered much better bandwidth than DSL, the public switched again...

      So - each time the public has voted for increased bandwidth, the public has also voted to constrain competition, albeit unknowingly. It this point, many households in the US need Internet almost as much as they need electricity and water. Its a utility and should be under the common carrier rules (in my opinion).

    7. Re:But... FREE ENTERPRISE by R3d+M3rcury · · Score: 2

      I have talked with some of my neighbors about what it would take to form a co-op to provide the homes in our area with fibre optic service. We know that there several fibre backbones that pass not very far from us and if we pooled our resources then we could likely provide ourselves far better service than is currently available.

      Why does this sound somewhat nefarious...

      "Fred and Louise have the metal detector--they'll find exactly where the cables are run. Once we find them, Bob'll take his backhoe and dig a trench from there back to Audrey's barn. Nate and his kids will dig down to the cable. Mark, your job will be to use that blow torch to carefully> cut through the cement around the cables. Then I'll come in and splice our cable in. Any questions?"

      I don't think that having it or not having it will result in big monopoly providers extending service to areas they view as unprofitable.

      This is actually where I get grouchy about the monopoly aspect.

      Okay, I'm granting you exclusive rights to provide service for this community. That means everybody--not just the easy ones. So they set their rates, make money, and then whine because "providing service to these outlying areas is expensive!"

    8. Re:But... FREE ENTERPRISE by Aighearach · · Score: 5, Insightful

      If you read Adam Smith, he explains it; a free market can't exist naturally. They come about when government regulates an industry to enforce trust and ensure that new market entrants have a level playing field. When government continually and disinterestedly prevents entrenched interests from interfering with competitors and newcomers, then a Free Market can arise.

      There are lots of them, the language has just been heavily attacked and obfuscated by the fuedalists, so people don't realize it and would identify the wrong things if they tried.

    9. Re:But... FREE ENTERPRISE by Orgasmatron · · Score: 2

      Yes, I'll quickly go and fix the cost of installing the last mile wiring to my house

      While I don't know your actual physical situation, I can promise you that for most people reading this, the "last mile" is not the problem. Have you looked into the actual cost? Do you have any idea how much the cable companies expects to pay per subscriber anyway? Or are you just assuming that the economics don't work?

      Where I live, local governments are not allowed to give a monopoly to any one provider.

      There are about a dozen non-obvious way to grant a de facto monopoly that are all designed to skirt around such bans. Have you talked to the small cable companies in your area to ask them why they aren't expanding? Or are you just assuming that there are no roadblocks?

      The only real way to fix it is to force last mile owners to make their infrastructure available to competitors at cost or near cost.

      This is a nightmare. Or, at least it was when it was imposed on the telcos. If you know of a way to make it work, please share with the rest of us. I'm in favor of this idea, in theory. But I've seen it crash and burn too many times in practice.

      I don't have a problem with co-ops or even cities building or buying a physical plant and operating it. I don't support confiscation when the current owner doesn't want to sell. And they must be operated by a fanatic - someone absolutely committed to open access. I expect that we'll end up in more-or-less this situation eventually, except without the benevolent dictators.

      --
      See that "Preview" button?
    10. Re:But... FREE ENTERPRISE by Obfuscant · · Score: 2

      Okay, I'm granting you exclusive rights to provide service for this community.

      Hi. I'm from the US DOJ. Cease and desist, let's chat about your financial future as a local government, ok? You cannot legally grant exclusive rights for this.

      So they set their rates, make money,

      Back when there was the ability to grant exclusive franchises, many of them came with local regulatory bodies that had control over the rates that a cable company could charge. I know, I have been on two of them. Every rate increase had to be approved.

      With DEregulation, that power was taken from the local communities and rates began their nearly unfettered climb. DEregulation caused that.

  2. Monopoly Issues are why this matters by Anonymous Coward · · Score: 5, Insightful

    Wheeler has it right it is the Monopoly Stupid. All monopolistic industries need to be regulated to prevent monopoly abuses. That is an actual free market fact.

  3. Re:Wheeler openly opposed invoking title 3 by DontBeAMoran · · Score: 2

    We're not listening to him. We're reading to him.

    Wait, english doesn't work that way...

    --
    #DeleteFacebook
  4. Re:get government out of broadband and healthcare by DontBeAMoran · · Score: 3, Insightful

    I have at least 4 choices for broadband where I live

    Consider yourself lucky. Maybe your brain tuned out this part of the summary so I'll copy it here again for you:

    There's "a monopoly provider for three-quarters of the homes in America, and no choice," Wheeler said in a forum (video) in Arlington, Virginia Monday hosted by US Rep. Don Beyer (D-Va.). "When you've only got one provider, who makes the rules? The provider makes the rules."

    --
    #DeleteFacebook
  5. Government created those monopolies by mpercy · · Score: 4, Interesting

    75% of people only have one provider choice because of government grants of monopoly status.

    How about some other options?

    * ISPs cannot be content providers or affiliated with content providers--they can be a data pipe or a content provider but never both
    * In areas where local government has granted access rights to only one provider, use PSC model to mandate that that provider must provide access to other providers for the backbone to the pole (e.g., the gas line to my house was built by one company, but I can chose to get my gas from any provider in the market via the same pipe)
    * Local government could build the pipes and lease them to all providers at the same rates--we can't have 100 companies digging up roads to bury cable or pipes, whether it be for electricity, gas, water, sewer, cable/fiber for TV/internet, but a coordinated infrastructure contracted by local government that does all of the above and then leases non-exclusive access to providers makes a lot of sense

    1. Re:Government created those monopolies by Anonymous Coward · · Score: 4, Insightful

      How about some other options?

      OK, but you don't really offer any. And here's why:

      * ISPs cannot be content providers or affiliated with content providers--they can be a data pipe or a content provider but never both

      This is a stronger version of net neutrality. Under current rules, they can provide content---but they cannot not deprioritize content of their competitors.

      This is actually a more open market than your proposal. They are still allowed to compete with content providers, as long as they do it on a level playing field.

      * In areas where local government has granted access rights to only one provider, use PSC model to mandate that that provider must provide access to other providers for the backbone to the pole

      The only way the FCC can mandate this is by classifying broadband as a Title II service, which is exactly what Pai is trying to roll back.

      This requirement is possible under the current classification, but Wheeler waived it in order to exercise a light touch. ISPs would have to revamp their business from top to bottom.

      * Local government could build the pipes and lease them to all providers at the same rates--we can't have 100 companies digging up roads to bury cable or pipes, whether it be for electricity, gas, water, sewer

      A city or county would have to decide to build an entire broadband network out of pocket and then force the ISPs to use it. This is insanely expensive---both the actual construction and the inevitable lawsuits.

      This is not a practical course of action without federal intervention that eliminates some of the costs and risks.

      (AC because of moderation elsewhere in the thread)

  6. Re:Consumers and poor people are crap. by Opportunist · · Score: 2

    The good thing about SUVs and Humvees is that they are easier targets for RPGs than those pesky little dinky eco models.

    --
    We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
  7. Why would he stand up for consumers? by Anonymous Coward · · Score: 5, Insightful

    The whole basis of democratic government is, the *people* choose the leadership, so the leaders act in the majority interests of the *people*.

    It all falls apart when the President isn't the one the people voted for. Why exactly would his people do anything for the majority of Americans?

    You've got Chairman Pai increasing profits for Verizon, his former company (and probably his future employer too). Ka-chink!

    You've got Scott Pruit refusing to ban Chlorpyrifos, (a proven brain poision for unborn children in rural areas). Helping Dow Chemicals, who in turn funded Trump both politically, and privately via golf tournaments and corporate events at Trump properties. I guess I can imagine where Scotts next paycheck will come from. Ka-chink!

    Healthcare? Tax cuts for health company profits funded by increased levies... 45k more people expected to die each year from the lack of coverage... like a 911 every month, every year. Ka-chink!

    Even the NRA now joining in. With a 'Get a gun to defend Trump' advertising message, $3 million donation to him, and in return his promise that "the assault on guns is over". They get a cut of gun sales. Ka-chink!

    Can't wait to see what treat he's got as reward for Putin. Let me guess, the "information co-sharing to fight 'ISIS" plan? The one where Putin gets access to US intelligence under excuse of fighting terrorism? He certainly floated the boat on that plan with his test leak.

    The reason for this mess is because the squatter in the Whitehouse was chosen by more Russians than Americans. None of them feel the need to do their job for the benefit of Americans.

    1. Re:Why would he stand up for consumers? by moeinvt · · Score: 2

      Even the NRA now joining in ... They get a cut of gun sales. Ka-chink!

      FALSE

      The NRA has a fundraising program in partnership with firearms retailers. Customers are asked to round their purchase up to the nearest dollar with the pocket change going to the NRA.
      The NRA does not "get a cut" of gun sales. Buyers are solicited for donations at the point of sale.

  8. It's higher than 3/4 by rsilvergun · · Score: 3, Insightful

    just because data shows two providers doesn't mean they both work. Buddy of mine fought with his DSL provider for years before breaking down and buying cable. It was twice as much.

    --
    Hi! I make Firefox Plug-ins. Check 'em out @ https://addons.mozilla.org/en-US/firefox/addon/youtube-mp3-podcaster/
    1. Re:It's higher than 3/4 by Anonymous Coward · · Score: 2, Insightful

      except where dsl != cable. Open up the cable lines so they can be shared by new companies offering connectivity and content. Like what should have happened with phone lines in the 90s.

  9. Re:Tom Wheeler is not on our side by Anonymous Coward · · Score: 3, Insightful

    Except it didn't discourage investment. That was a lie by some ISPs to try and prevent Title II status being made.

  10. Re:get government out of broadband and healthcare by Fire_Wraith · · Score: 4, Insightful

    It's certainly a fair argument that the commerce clause has been a gigantic loophole for pretty much whatever the government has wanted to do.

    But that doesn't change the fact that the Internet is, as part of its intrinsic and core nature, a medium for inter-state and international commerce. How many people do most or all of their shopping on the internet? How many businesses rely on the internet to function? If the internet shut down for a day, do you think any business is getting done, at all? I know the company I work for would probably tell everyone to just go home for the day if we didn't have internet. I'd argue that the internet is just as critical to commerce as transportation (roads/rails/shipping).

    So sure, push back against the misuses elsewhere - but don't throw the baby out with the bathwater.

  11. Re:get government out of broadband and healthcare by drinkypoo · · Score: 4, Insightful

    You spent a shitload of time explaining why you shouldn't trust him and you should check up on him, but no time checking up on him.

    If you're confused about the specifics of who can get what, check this out.

    --
    "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
  12. Re:Tom Wheeler is not on our side by Fire_Wraith · · Score: 4, Insightful

    That would be great, except our choices at the time were either Net Neutrality, or Cable Company F*ckery. Nobody was offering anything to encourage ACTUAL competition.

    It would be great if the Republicans in Congress (and elsewhere) started actually supporting measures to break up the monopolistic BS, and arrange a system where companies would actually compete on merits and service and cost and such. If I had a lot of choices, then it wouldn't matter so much if Comcast or Verizon or whomever decided to engage in shenanigans with network traffic. But like the vast majority of Americans, I don't.

    Net Neutrality is a band-aid on a deeper injury - but all the Republicans, along with Ajit Pai and friends, are doing for us is ripping off the band-aid and letting us bleed. They're getting rid of Net Neutrality, and telling us that "everything is fine now!" as if that was the problem. No, Net Neutrality was a solution, even if not a good/ideal one. They're not offering other solutions though, because they like the problem staying.

  13. Re:Tom Wheeler is not on our side by tbannist · · Score: 2

    It would be great if the Republicans in Congress (and elsewhere) started actually supporting measures to break up the monopolistic BS, and arrange a system where companies would actually compete on merits and service and cost and such. If I had a lot of choices, then it wouldn't matter so much if Comcast or Verizon or whomever decided to engage in shenanigans with network traffic. But like the vast majority of Americans, I don't.

    The problem is that running cables to houses seems like a natural monopoly. Once you have one cable for an internet connection, you don't actually need a second one (unless it's somehow better than the first one). The only way that I can see to increase competition is to make the actual internet infrastructure a public utility managed by either the local government, not for profit organization, or maybe a corporation that is explicitly prevented from being owned by any service provider(s). However, these steps seem far more intrusive than Title II classification to impose network neutrality...

    --
    Fanatically anti-fanatical
  14. Re:Get RID OF THE FCC by k6mfw · · Score: 3, Interesting

    It happened before, wasn't too pretty when SCOTUS ruled in 1920s Commerce Dept had no enforcement powers. Radio waves became the wild west as stations changed freq and power levels to whatever they wanted, listeners gave up and receiver sales plummeted (ref Gordon West book on General Radio Licensing Manual). More of that adventure from back in the days:

    "Pending Radio Legislation"
    from the magazine Radio Age, July 1924

    CONGRESS has adjourned without acting either way on pending radio legislation, according to the news dispatches from Washington.

    Unless a special session is called, which does not seem likely at this time, radio will be untouched by legal attachments until next year, at least.

    The two most important measures which were shelved by the adjournment of the well-meaning but unusually deliberative governmental bodies are the White Bill and the Dill Bill. The first proposes to establish governmental control over radio broadcasting, reception and perhaps the industry eventually. This bill, while not viciously attacked, did not go through because some representatives of the people wanted to know just why such a young and untried industry as radio should suffer the bonds of law so soon. Accordingly, it is unlikely that the White Bill will ever become a law -- so the fans may rest assured they will not be hindered for some time to come in that respect.

    The Dill Bill is more far reaching in its scope. It is liberal and fair-minded. It asks that the copyright laws be amended so that copyrighted music can be broadcast without the payment of levies to the music publishers. Although this bill has been opposed at every step by huge organizations and moneyed interests, as well as several prominent music publishers, it was about to be passed with a fair majority when Congress adjourned.

    There is still hope for the Dill Bill, then, and we hope that when it finally reaches the President's desk it will represent the result of a fair compromise between the broadcasters and the music publishers, in the interests of the fan who listens to broadcast music and helps the sale of the published article by buying the pieces he likes best.

    Government legislation, we believe, appears to be the only means yet suggested which offers any kind of a solution to the bitter enmity between the broadcasters and the so-called music "trust."

    Radio's recent jump to prominence in official circles such as Congress is only one indication of its growing importance. Big capital interests, legislators and public spirited citizens are realizing more and more that radio will some day control the destinies of our nation; and accordingly they are setting out to prevent its too sudden growth to an unwieldy influence. Quick government control, the legislators aver, will prevent radio from becoming a menace instead of the help and pleasure it should be.

    In a measure these radio-legislators are right. Something must be done to prevent the air from becoming a bedlam of tangled wave lengths. Something must be done to prevent the ether from being clogged with propaganda and useless stuff that will discourage interest in the world's latest miracle.

    If legislation works along those lines, it will be beneficial. But if it takes a political trend, this country will see a united uprising of righteously aroused fans -- lovers and promoters of the good in radio.

    --
    mfwright@batnet.com
  15. Re:Not the FCC's Job by R3d+M3rcury · · Score: 2

    When you've got a hundred providers, who makes the rules? The provider. I suspect Mr Wheeler is being disingenuous here.

    Speaking of being disingenuous...

    When you've got a hundred providers, who makes the rules? The provider you choose. Which means that market forces will shape those rules, rather than one provider (who is interested in collecting the most money while doing as little work as possible) or "the gubmint."