Archive for May, 2006

Washington Waking Up to the Public Outcry

Friday, May 5th, 2006 by tkarr

In his “Media Minutes” radio report, John Anderson hails our grassroots mobilization for “making a difference in Washington”:

A broad and deep coalition banded together to pound Capitol Hill with a call to preserve the principle of network neutrality for the internet. It began with some 50 diverse organizations. That number has since multiplied eight-fold. More than 2,000 bloggers took up the call and more than a half million people have signed on to a petition supporting net neutrality safeguards.

Anderson mentions the astroturf frontmen and their telco bosses who are spending nearly a million dollars a week running television advertisements in Washington DC, which attempt to paint AT&T’s drive to kill off an open Internet as “Good for America.”

But the politicians are waking up to the public outcry, Anderson continues: “At least two bills are now circulating… that would prohibit data discrimination.”

Listen in to John’s full report.

Telcos Blitz Washington in Million-Dollar Campaign

Thursday, May 4th, 2006 by tkarr

The cable and phone lobby is bombarding Washington with TV ads telling Congress to support their plans to seize control of the Internet. According to Jeff Chester, the industry is spending nearly $1 million a week on an ad blitz to convince elected officials to side with AT&T and Verizon — and against their constituents.

“Companies such as Qwest, Comcast, Time Warner, and AT&T want to be broadband barons,” Chester writes, “with all other content providers and users reduced to serving as merely consuming digital surfs.”

How much is the PR campaign costing? Chester replies:

Well, intrepid media consultant Gary Arlen of Arlen Communications has done the math. “About 975K is being spent on Washington-area media buying,” he told us. That sum is mostly for local broadcast TV expenditures. According to Mr. Arlen, the U.S. Telecom Association has been spending $250 K/week (and so far has run-up a six-week $1.5 million ad tab). AT&T is forking out $600K per week (for its “Choice” campaign). TV4US, a telco “Astroturf” group, is spending $75k per week for at least a four-week air time buy. The NCTA, meanwhile, has gone through at least $ 1 million nationally in a year, spending 50K a week in the DC market as Congress meets.

We need to match each telco lobbying dollar with the voice of an actual person. Let Congress know that you speak louder than industry propaganda. Contact Congress today. More than 500,000 people have already.

We’re turning the tides against “business as usual” in Washington, as Josh Silver wrote yesterday:

As predicted, the cable and telephone companies have lined up their PR henchmen and “Astroturf” campaigns in an attempt to muscle through legislation that hands them control of the Internet. But they’re now facing a formidable opposition in the form of a public that’s fed up with business as usual in the nation’s capital.

Whereas before, the big telephone companies and their hired guns were confident that Congress would simply roll over, today, no member of Congress can vote with the teleco cartel without feeling public heat.

Congresswoman: Keep the Net in Hands of Ordinary People

Thursday, May 4th, 2006 by tkarr

“The Internet has revolutionized the way Americans communicate with one another and do business,” writes Congresswoman Zoe Lofgren. “It’s just common sense to keep that revolution where it belongs–in the hands of ordinary individuals, instead of a handful of big corporations.”

In a CNet News op-ed, the California Representative chides the House Commerce Committee, which “passed up its chance to keep the Internet open,” and calls on every elected official to stand firm against the telephone-cable cartel:

The latest chapter in that attack on freedom is the fight against network neutrality. For most Americans, our options for broadband Internet come down to two choices–a phone company or a cable company. Instead of continuing our freedom to use those connections with whatever content, devices and services we want, some corporations want to control what we access over the Internet. This would include giving better connections to their favored content, and charging money for that privilege.

What would the world look like if the Internet had been controlled in this way a few years ago? Imagine if the students who created Google or Yahoo had been charged a fee by a phone company for the privilege of letting their potential users have fast access. These small projects would not have turned into big ideas that revolutionized the World Wide Web. The proposed control of content goes directly against the level playing field created by Internet technology. The concept of freedom written about by Thomas Paine is being challenged by this threat to net neutrality.

If Thomas Paine were alive today, Lofgren adds, he would “write a blog about the need to protect Internet independence that would reach across the world.” By this morning’s count, more than 2,500 blogs are carrying the torch handed down by this founding revolutionary — linking to SavetheInternet.com and spreading the grassroots fire.

Click here, to get your blog involved.

The Broadband Bridge to Nowhere?

Wednesday, May 3rd, 2006 by Matt

The new Commerce Committee bill out from the Senate is a doozy. It doesn’t protect internet freedom. It hurts consumers. It will hurt entrepreneurs. On the other hand, I guess it won’t club baby seals though to be completely fair it hasn’t been through the Committee yet.

Jason Lee Miller provides the scoop:

Just for a recap, Sen. Stevens, whose largest contributors are telecommunications and broadcasting companies, wrote legislation favorable to telecommunications and broadcasting companies and unfavorable to the general consumer, small businesses, and Internet companies while providing “new protections” of rights citizens already have.

This is a winnable fight. We have over half a million signatures, and the Senate’s going to listen.

Another Web Pioneer Speaks Out for Net Neutrality

Wednesday, May 3rd, 2006 by tkarr

Tim Berners-Lee, one of the inventors of the Web, came out in support of Net Neutrality calling it fundamental to maintaining a fair and competitive market economy.

When, seventeen years ago, I designed the Web, I did not have to ask anyone’s permission. The new application rolled out over the existing Internet without modifying it. I tried then, and many people still work very hard still, to make the Web technology, in turn, a universal, neutral, platform. It must not discriminate against particular hardware, software, underlying network, language, culture, disability, or against particular types of data. The Internet is increasingly becoming the dominant medium binding us. The neutral communications medium is essential to our society. It is the basis of a fair competitive market economy.

This tip came from Om Malik at GigaOm. Om adds: “I think it is time for start-ups and their backers to take stock of what the loss of network neutrality would mean to their business. Win or lose, this one has business implications, more so for many of the smaller corporate citizens.”

The financial industry is beginning to make noise to that end. According to a story in The Hill, the financial-services industry is weighing coordinated opposition to the telco-friendly language in the House’s bill, “fearing a financial hit if lawmakers allow phone and cable companies to charge banks more for secure Web service.”

This concern is now echoing among venture capitalists and Internet innovators in Silicon Valley, according to a column by Tom Foremski.

Berners-Lee joins fellow pioneer Vinton Cerf in support of a free and open Internet.

The New York Times: Keeping a Democratic Web

Tuesday, May 2nd, 2006 by Matt

The Editorial page of the New York Times weighs in:

“Net neutrality” is a concept that is still unfamiliar to most Americans, but it keeps the Internet democratic. Cable and telephone companies that provide Internet service are talking about creating a two-tiered Internet, in which Web sites that pay them large fees would get priority over everything else. Opponents of these plans are supporting Net-neutrality legislation, which would require all Web sites to be treated equally. Net neutrality recently suffered a setback in the House, but there is growing hope that the Senate will take up the cause.

One of the Internet’s great strengths is that a single blogger or a small political group can inexpensively create a Web page that is just as accessible to the world as Microsoft’s home page. But this democratic Internet would be in danger if the companies that deliver Internet service changed the rules so that Web sites that pay them money would be easily accessible, while little-guy sites would be harder to access, and slower to navigate. Providers could also block access to sites they do not like.

That would be a financial windfall for Internet service providers, but a disaster for users, who could find their Web browsing influenced by whichever sites paid their service provider the most money. There is a growing movement of Internet users who are pushing for legislation to make this kind of discrimination impossible. It has attracted supporters ranging from MoveOn.org to the Gun Owners of America. Grass-roots political groups like these are rightly concerned that their online speech could be curtailed if Internet service providers were allowed to pick and choose among Web sites.

The House Energy and Commerce Committee defeated a good Net-neutrality amendment last week. But the amendment got more votes than many people expected, suggesting that support for Net neutrality is beginning to take hold in Congress. In the Senate, Olympia Snowe, a Maine Republican, and Byron Dorgan, a North Dakota Democrat, are drafting a strong Net-neutrality bill that would prohibit broadband providers from creating a two-tiered Internet. Senators who care about the Internet and Internet users should get behind it.

Citizen Journalists Get on the Bus

Tuesday, May 2nd, 2006 by Matt

Poynter posts on a warning from Dan Gillmor:

“The cable and phone companies want to control not just the pipes through which our data moves. They also want to decide what will get delivered, in what order, and at what speed. They haven’t pulled this off yet, but they’re getting closer every day. …If they succeed in capturing the kind of control they want — and they’re closer than I would have believed possible — we’ll all be harmed.”

Indeed — and content producers (especially major, mainstream organizations) probably have the most to lose if network neutrality is undermined. I think it’s high time for media companies to wake up to this threat. Yes, “network neutrality” sounds geeky, but it cuts to the heart of our industry: how content will get distributed online in coming years.

Meanwhile, Agroblogger, Sportslizard Entrepreneur, the New York Scooter Club, and Wine Education chime in. I kind of like to highlight some of the more unusual folks coming out in support of net neutrality; that’s only to highlight that threatening the free internet is bringing out a diverse group who care about this critical medium.

Politicians Worried About Voter Backlash on Internet Freedom

Monday, May 1st, 2006 by Matt

From National Journal:

Congressional and industry sources said Republican leaders are worried that voting against a network neutrality amendment — one that would keep dominant Bell and cable companies from charging competitors more to transmit high-speed Internet content — could be a political liability. Some technology companies and public-interest groups want FCC-enforceable regulations barring Bell and cable companies from undermining neutrality.

“We are trying to explain that a vote for a telecom bill that does not address the issue of network neutrality in any way is a very difficult vote politically, closer to the election, for Republicans,” said former Rep. Vin Weber, R-Minn., who was hired by technology companies to lobby his former colleagues on the subject.

“There is huge grassroots constituency for the net neutrality position: all sorts of Internet users,” said Weber. “It is a big and powerful constituency, but it is not necessarily an organized constituency. I would not like to cast a vote that can be portrayed by bloggers and others as a vote against the Internet.”

Politicians on both sides should be worried about their vote. A really easy way to organize our constituency is to threaten the medium we use to communicate with each other. We don’t like it.

Oh, and the Wine for Newbies podcast series signed on today. Congrats, you’ve managed to make wine drinkers mad!

Artists Get It

Monday, May 1st, 2006 by Matt

It’s not just Ask A Ninja and Alyssa Milano. More artists are weighing in on this issue, through MySpace, blogs, and other tools that depend on a free internet.

Boston-based rap artist Mr. Lif blogged about net neutrality today, and Save the Internet is on the news page of Alternative Tentacles. Internet freedom is about artistic freedom, creative freedom, and the freedom of expression. The artists get it.

Ed Whitacre, Proud Telecom Monopolist

Monday, May 1st, 2006 by Matt
Net Revolt

In any fight, it’s important to know who the players are. In the contest for a free and open internet, Ed Whitacre, CEO of AT&T, is one of the foremost anti-freedom advocates.

So who is this guy? Ed Whitacre is a telecommunications veteran, and has slashed and burned his way across an industry through consolidations and mergers. Companies he has bought include Pacific Telesis (1997), SNET (1998), Comcast Cellular (1999), Ameritech (1999) and AT&T (2005).

Whitacre is also a pampered man who talks about the telecommunications infrastructure as ‘my pipes’ and generally steps on anyone who gets in his way. This royalist attitude filters down to his company’s behavior; for instance, his companies don’t really follow laws they don’t like.

Under Whitacre, SBC has raised a few complaints of its own, using the courts to take on the FCC and derail some of the telecom reform decisions the carrier found too onerous.

This bad faith behavior is a serious problem for legislators. You see, Whitacre is simply going to disobey what he doesn’t want to obey, and put political and legal pressure everywhere he can. Cutting deals with his side doesn’t make sense, since they’ll take what they like and advocate against the rest. Whitacre’s attitude is also stridently anti-competitive and dishonest. For instance, there’s this famous interview where he talks about internet regulation:

How concerned are you about Internet upstarts like Google, MSN, Vonage, and others?

How do you think they’re going to get to customers? Through a broadband pipe. Cable companies have them. We have them. Now what they would like to do is use my pipes free, but I ain’t going to let them do that because we have spent this capital and we have to have a return on it. So there’s going to have to be some mechanism for these people who use these pipes to pay for the portion they’re using. Why should they be allowed to use my pipes?

The Internet can’t be free in that sense, because we and the cable companies have made an investment and for a Google or Yahoo! (YHOO ) or Vonage or anybody to expect to use these pipes [for] free is nuts!

Ed Whitacre is of course lying. Those aren’t ‘his pipes’. They belong to the shareholders of his company. And Google and Yahoo and every web site operator aren’t using ‘his pipes’ for free, they pay a lot of money in bandwidth for the privilege of putting lots of content on the internet. What Whitacre means is that web content companies shouldn’t be allowed to operate without paying him a toll, but that’s different from asserting they don’t pay anything. That is a lie.

But I found the most revealing aspect of Whitacre’s character to reside in his answer to this question on regulation in a Businessweek interview.

The cable companies have an agreement with the cities: They pay a percentage of their revenue for a franchise right to broadcast TV. We have a franchise in every city we operate in based on providing telephone service.Now, all of a sudden, without any additional payment, the cable companies are putting telephone communication down their pipes and we’re putting TV signals. If you want us to get a franchise agreement for TV, then let’s make the cable companies get a franchise for telephony.

If cable can put telephone down their existing franchise I should be able to put TV down my franchise. It’s kind of a “what’s fair is fair” deal. I think it’s just common sense.

It’s not common sense, it’s excessive regulation. What Whitacre is saying is remarkable. Whitacre doesn’t want his company to compete on a level playing field; he’s actively lobbying for hobbling other industries to his company’s level. This is inefficient economic behavior, and should not be encouraged.

You see, Whitacre isn’t in favor of free markets, he’s in favor of a political advantage for his company’s profit margins. Cable TV coming to eat his lunch? No problem, let’s get the government to regulate the problem away. Internet VOIP challenging his company’s business model? No problem, let’s get the government to regulate the problem away. American entrepreneurs generating wealth off the open and free internet with no innovation coming from the telcos? No problem, let’s get the government to allow the telcos to privately tax the wealth without having to do anything.

Ed Whitacre is everything that’s wrong with American business. Dishonest. Cowardly. Anti-competitive. Anti-innovation. Anti-market. It’s no wonder that America is 16th in broadband penetration.

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