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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?"

12 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 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.

    4. 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.

  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. 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)

  4. 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.

  5. 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.

  6. 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.'"
  7. 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.