Wireless Spectrum

CNET highlights new Comscore research that shows that mobile broadband is the fastest growing type of broadband.

• One would think this hot consumer demand for "mobility" would universally be viewed as a good thing, but it isn't viewed that way by pro-regulation/net neutrality proponents.  
• They fear rapidly increasing consumer demand for mobile broadband will undermine political support and the rationale for their pro-regulation proposals to regulate and subsidize one primary stationary broadband provider.

Proponents of a new National Broadband Strategy have two huge vulnerabilities:

• A technological bias that American consumers only want fast stationary broadband speed (and not mobility too); and
• An anti-competition policy bias that the development of broadband competition over the last several years isn't working and can't work.

Those powerful policy biases against:

Since the beginning of the year, Google's stock has fallen over 25% -- about 2-3 times the fall of the relevant indexes.

• The good news for Google shareholders is that most all of Google's stock price problems are self-inflicted, so they could fix them -- if they wanted to.
• The bad news for Google shareholders is that Google is unlikely to change its problematic bahavior -- because "leopards don't change their spots."

Why is Google its own worst enemy?

First, Google routinely alienates its friends and allies.

Many have missed the high significance of the NTIA Commerce Department report: "Networked Nation: Broadband in America."

• In particular, press reports, which zeroed in on the histrionics of broadband critics, totally "missed the proverbial forest for the trees" on this one.
• The fact is that this report is a very big deal for national broadband policy.    

First, this official United States Government report represents the consensus policy thinking and sign-off of all the many parts of the United States Government involved in setting United States broadband policy, including but not limited to: NTIA, FCC, FTC, USTR, CEA, OMB, OSTP, and the Federal Departments of Commerce, Treasury, State, Justice, and Agriculture. 

Second, this is the first and only official and comprehensive U.S. Executive Branch assessment of U.S. broadband strategy/policy and of U.S. progress in deploying broadband. Broadband critics can no longer say there is no official or clear U.S. Government broadband policy, because here it is:

I am on the Congressional Internet Caucus wireless panel Wednesday with Blair Levin of Stifel Nicolaus, Michael Calabrese of the New America Foundation, and Jason Devitt of Skydeck.

The panel is on: "Opening up 700 MHz & White Spaces" What hath the FCC wrought?"

• Should be interesting given that I am the only panelist not under the influence of "openness"...

We'll soon see if net neutrality proponents are reasonable and responsible. Do they grasp that calling for preemptive, anti-investment, regulation of broadband that would discourage deployment of broadband to all Americans -- is the last thing our Nation needs during this economic downturn?

• The reality is that forward-thinking broadband deregulation has spurred massive investment in broadband and Internet infrastructure in the U.S. and this investment is spurring adoption of broadband faster than any communication service in American history.
• Moreover, an unfettered broadband economy and infrastructure is key to capturing the economic and productivity gains of more universally-adopted broadband.

Broadband deployment, adoption, competition and investment is one of the great success stories of our economy.

• The last thing our teetering economy needs right now is preemptive, anti-investment, net neutrality regulation of our cutting-edge communications sector that would only hurt the overall American economy.
• This is no time for solutions in search of a problem.
• We face real economic problems which require responsible broadband policies.  

Network World has a great piece: "Open Access not as important to wireless consumers as QoS, pricing, survey finds" which exposes the Google-led tech industry's push for open access as a not-so-subtle tech-industrial policy.

• The survey by Compete, Inc. found:
  • Only 9% of wireless users did not believe they had enough options for handsets;
  • Only 11% of wireless users believe that their carrier offered them too little content and services to meet their needs;
  • In stark contrast, 93% of wireless users believe getting a phone at a reasonable price was either important or very important.

This survey is important evidence exposing the tech industry's attempt to pass net neutrality/open access legislation/regulation as an thinly-guised tech industrial policy.

• This tech industrial policy is asking the government to intervene and mandate engineering design and pass price-related regulations that would de facto choose tech companies as market winners and communications companies as market losers.

The tech industry has done a good job of cloaking their openness campaign as what consumers want most -- because that serves their Washington industrial policy agenda.

I commend the new consumergram by the American Consumer Institute on: "With increased competition, US consumers exert their power over wireless providers." 

• Its a timely overview of all the benefits that US wireless consumers enjoy as a result of the US having arguably the most competitive wireless market in the world.

You wouldn't know that if you only listened to the many wireless and America bashers, organized by Google and the New American Foundation, who are gathering for a wireless/America bash-fest on Capitol Hill next week, January 22nd, called "Free my phone!"

The Washington Post reports that a consortium of Google's closest net neutrality allies: FreePress/Moveon.org, Public Knowledge, New America Foundation, Media Access Project, are poised to petition the FCC again, this time to mandate that wireless carriers deliver all text messages to their customers, even including text messages by wireless competitors trying to sell their competing wireless services.

Verizon's announcement that it will allow customers to choose any app and/or any device on its entire network in 2008 is proof positive that competitive market forces best serve consumers, not rigid net neutrality regulation or legislation.

I see three big takeaways from the Verizon announcement: consumer protection/reliability; market discipline, and more diversity of consumer choice.

The WSJ article today: “Google has even bigger plans for mobile phones” appropriately addresses the big “open” question of whether Google is serious about becoming a wireless carrier, because if it is, it will need to bid and win substantial spectrum in the upcoming FCC 700 MHz spectrum auction.

The WSJ article states: “the behind-the-scenes moves illustrate just how serious the Internet giant is about trying to reshape the wireless world.” The evidence in favor of Google’s serious entry into wireless is significant, as Google: