More People Realize The Obvious: Telco Regulatory Capture Is Why We Have Crappy, Expensive Broadbandby Mike Masnick
Sep. 28, 2012
French Mayor Found Guilty Of Incitement For Saying 91% Muslim Classrooms Are a 'Problem'
Red Bull Founder Starting New Conservative Media Outlet
Bill Nye Show: White People Need to Stop Using 'Asian Wallpaper,' Ruined Yoga With 'Their Lululemon Hands'
Bill Nye Show: Penalize Parents For Having 'Extra Kids' In Developed Countries
America's First Somali Lawmaker Votes Against Ending Life Insurance Payouts To Terrorists
This is hardly a new thing, but it's nice to see it getting more attention. There's a new book, The Fine Print: How Big Companies Use 'Plain English' to Rob You Blind, by reporter David Cay Johnston that points out that regulatory capture and a lack of competition are why we have crappy, expensive internet (and mobile phone service). Among the points he raises, summarized over at Yahoo's Daily Ticker, are the following:
"The telecos got the rules changed while we weren't watching," says Johnston in the accompanying interview. Basically, the phone and cable companies lobbied Washington to change laws and regulations to favor their businesses over their customers.Indeed, this is nothing new. We've been writing about this for about a decade now. It's also why we're uncomfortable with net neutrality laws, even if we believe the concept of net neutrality is quite important. We've seen how the telcos are very, very, very good at working the system to their advantage.
The only real answer to our problems is to encourage more significant competition. The question that's reasonable to ask is where that competition should be. It's not at all clear that it needs to be at the infrastructure level -- since that can be redundant. However, as Australia is now doing, you could invest heavily in a core fiber network that brings tremendous high speed access everywhere... and then let service providers compete at the service level, rather than the infrastructure level. Yet there appears to be little appetite for such things in the US these days. Rather, you have the big telcos and cable companies creating their own little controlled markets, with crappy service and inflated prices... while the rest of the world does much, much better. We've been able to get away with it in the short term, but over time, the lack of good broadband in the US is going to hurt us economically.