Wireless investment already is “unleashed!”– FCC net neutrality regs would only leash it

October 30, 2009

The WSJ op-ed, “Net Neutrality: Spur to Entrepreneurship, an open network will unleash investment” is a dystopian and nonsensical assertion that it is Government that “unleashes” investment, when everyone’s common sense knows that Government regulation is all about putting leashes on businesses and investment!

Competition and market forces have already unleashed $300 billion in cumulative U.S. wireless investment per CTIA!

  • Only net-neutrality-at-all-cost-proponents would argue that a big new government leash and spiked-choke-collar — of banning wireless business and technical practices that have always been legal and necessary to operate wireless networks efficiently and meet demand — would somehow “unleash investment!”
  • How are new, never-before-imposed FCC “leashes” — on standard wireless business models/practices, everyday network operations, and network design/engineering — going to “unleash” investment?
  • How would creating new massive uncertainty about how wireless business, operations, and engineering can legally be done — encourage more wireless investment and not less?
  • How would bringing the notorious inefficiency of government red tape and the FCC to wireless, somehow spur more efficiency in the wireless market and accelerate more net investment than the free market does today?  

A big takeaway here is that this op-ed is part of a much broader PR and advocacy campaign by the FCC and Google, to justify a new “Open Internet” industrial policy that specifically favors only Silicon Valley California venture capital and company investment over most all other forms and sources of investment around the country.

  • This discriminatory and unbalanced investment thesis requires an elephantine-pirouette on the head-of-a-pin to not fall down in embarassment.
  • This government-is-the-font-of-all-investment thesis requires selective one-sided analysis where one inflates and glorifies the investment generated by the very narrow Silicon Valley California segment, while also totally ignoring and demonizing those currently investing heavily in wireless.
    • For those seeking external confirmation of this one-sided, tunnel-vision investment thesis, look no further than the FCC’s draft Berkman study by broadband public utility advocate Yochai Benkler and the other study the FCC has commissioned from Columbia, to examine telecom investment.
  • A big part of the FCC’s justification of net neutrality and a bigger government role in broadband overall is making the case that the private sector and private investment has failed the Nation and consumers and that Government intervention is needed in order to make it all right.

Finally, it is interesting to note that in advocating for an FCC proceeding which seeks to advance more transparency, the authors of the WSJ op-ed today were not transparent in disclosing their extremely close financial ties to Google, the company that would be the single biggest beneficiary of the FCC’s proposed open Internet regs.

  • Many may not know that the IRS has been investigating the tax exempt status of Mozilla, to determine whether the Mozilla Foundation behind the popular Firefox browser, can legitimately claim tax exempt status when 88% of the Foundation’s revenues come from Google in payments for being the default search engine for Firefox downloads.
  • These Mozilla “entrepreneurs” were not very “open” about Mozilla effectively being on the Google dole…


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