Verizon

A recent study by the Leichtman Group found 70% of American broadband subscribers are very satisfied with their service, and relatively few are actually seeking faster Internet access.

• This suggests the drumbeat for a national broadband industrial policy, because America's Internet is too slow and falling behind the rest of the world, is just empty rhetoric and wishful assertions by Big Government types.
• As I have blogged before, the facts are not the friends of those screaming for de facto nationalizing the Internet.  

Bottom line:  The more one learns about the facts about what benefits American broadband consumers actually enjoy, and what they demand in the future, it is not what the Big Government folks claim.  

The FCC is reportedly considering putting "the burden on the network operator to prove that its network practices are reasonable" in its net neutrality proceeding on Comcast's network management, according to today's top story in Washington Internet Daily.

• Assuming that this report is accurate, and assuming that an FCC majority would approve such a shift of the burden of proof, let me explain why such an FCC ruling would be a profound assault on the freedoms that Americans hold most dear.   

It would be supreme irony, if in the supposed name of "Internet Freedom," the FCC somehow ruled that network operators had no freedom to manage their private property, enter into contracts or pursue business without prior permission from the FCC.

New facts from independent sources continue to undermine the political charge that the U.S. is falling behind in broadband, the thinly-veiled charge that Big Government proponents use to justify the need for a national broadband industrial policy to replace the current free-market national Internet policy.

• A new report by Nielsen, the independent market research firm: "Critical Mass: The worldwide state of the mobile web"
  • Ranks the U.S. #1 out of the 16 countries they measure in mobile Internet usage penetration -- ahead of the UK, Germany, France and Italy and others. 
  • The report also concludes that penetration of 3G-broadband-capable handsets is greater in the U.S. than in the EU (28% vs 25% of consumers respectively.)

Why are these new independent findings important?

First, broadband mobility is as important to Americans as stationary broadband speed.

I wrote the anti-net neutrality argument and Professor Lowell Feldman wrote the pro-net neutrality argument for the ABI Telecom Technology Committee newsletter this month for the American Bankruptcy Institute:

Both articles are copied below, mine followed by Professor Feldman's:

Why Net Neutrality is Unnecessary and Bad Policy

Written by:

Scott Cleland

The reality of market pricing for Internet usage is naturally gaining more attention.  

• The New York Time's had an informative Sunday page one story: "Charging by the Byte to curb Internet traffic." 
• Today the Wall Street Journal highlighted why market pricing for Internet usage is evolving with dramatic changes in the Internet marketplace in its story today: "Cisco projects growth to swell for online video."  

The big economic takeaway here is that in a free market Internet, where users have very different demand: i.e. needs, wants and means for speed, usage, mobility, latency, immediacy, reliablity, flexibility and other attributes -- suppliers (ISPs, application providers and content providers) must have the freedom to innovate, experiment and provide a diversity of choices, at a diversity of prices in order to meet the diversity of demand from users.

The 2008 World Competitiveness Yearbook just came out and the U.S. is ranked #1 in world competitiveness again -- for the fourteenth year in a row.

I have to admit that I was surprised by all the back-pedaling and calculated retreat by net neutrality proponents at the House Internet Subcommittee hearing on Chairman Markey's net neutrality bill HR5353.

Net neutrality proponents were clearly on the defensive, proactively responding to criticisms of the bill and not spending much time touting its benefits.

Kudos to Timothy Lee of Cato, for his post in Techdirt: "Changing the Internet's architecture isn't so easy." 

Mr. Lee challenged Professor Lessig's assertion at the Stanford FCC hearing that network owners have the power to change the Internet's architecture.

Why his insightful analysis is so devastating to Professor Lessig's core assertion underlying the need for net neutrality legislation is that it exposes some "inconvenient truths" about the reality of trying to change the Internet's architecture:

The big surprise of the hearing was that Chairman Martin was a last minute witness. The Committee created a new first panel for just Chairman Martin, which ended up consuming about 60% of the allotted time for the whole hearing, and which was also the prime time when most of the Senators and press were in attendance. This surprise testimony practically relegated the other panel, which was expected to be the main event, to more of sideshow status.

Overall, this hearing was slightly more balanced than its House counterparts. Chairman Innouye continued his very measured and balanced approach, in that he said things that each side wanted to hear.

Be sure to read Dick Armey's succinct analysis and perspective on net neutrality in his op ed: "Spare the Net."

• I am a big fan of Former House Majority Leader Dick Armey -- he is one of the true free-marketeer giants of our era.