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Submitted by Scott Cleland on Wed, 2006-12-06 18:59
Very interesting! Yahoo in an ex parte report by James Hedlund, Director of Yahoo! Communications Policy, after its meeting with the advisors of FCC Chairman Martin and the other commissioners, distancedÃ‚ Yahoo from the more radical stance of Google and Moveon.org's Save the Internet.Ã‚
The operative part is:
Yahoo! Yahoo appears to be aware that principles are principle and that mugging a merger and extorting special conditions is a bad way to make public policy. A tip of the hat to Yahoo is deserved. Consider it tipped.
Submitted by Scott Cleland on Wed, 2006-12-06 18:21
I continue to be amused at Google's "do as I say, not do as I do" way of doing business.Ã‚ As the online champion of regulating anyÃ‚ "non-neutral" behavior by others, it is instructive to keep a close eye onÃ‚ the "non-neutral" thingsÃ‚ Google does in the market.
USA Today had a great article today, "Google offer takes on Paypal."Ã‚ Google is using its market leading dominance of the search market, 45% share and growing per Source Media Matrix, to leverage itself into other markets like online transactions, in very non-neutral ways. Some interesting quotes from the USA Today article:
So what is the point? Google routinely uses its market leverage (or is it market power?) inÃ‚ the online ad market it dominatesÃ‚ "toÃ‚ buy share" or compete in a way that another company can't. This would be perfectly kosher, if, Google was not alsoÃ‚ the champion for making this type of typical Google market behaviorÃ‚ illegal for broadband carriers, most of whom have dramatically less broadband share than Google has in its dominant market of search.
Submitted by Scott Cleland on Tue, 2006-12-05 18:50
Today Microsoft launchedÃ‚ a new program for telecom operators, carriers, software vendors and developers called "Connected Services Sandbox."Ã‚ Ã‚ According to Microsoft "the sandbox will encourage the creation of "managed network mash-ups" in which Microsoft's Web services are combined with telecom services so Microsoft can fulfill its ambition of offering its software as a service model over the Internet.
Has anyoneÃ‚ at Microsoft thought this through? As IÃ‚ explained in my recent open letter to Bill Gates and Steve Ballmer,Ã‚ Microsoft'sÃ‚ hamhandedness in Washington has already resulted inÃ‚ MicrosoftÃ‚ being subject to the FCC's net neutrality principles and regulatory jurisdiction.Ã‚ This new endeavor is just another example in a long litany of Micosoft Internet businesses that are not neutral and discriminate for commercial gain.
How is their sandboxÃ‚ neutral? Let me quote directly from Microsoft's own press release which is pretty incriminating:Ã‚ "BT will have early exposure, visibility andÃ‚ access to the winning services including the ability to test and deploy the prototype services." Ã‚
Submitted by Scott Cleland on Mon, 2006-12-04 19:14
Like a mugger whoÃ‚ cries foulÃ‚ whenÃ‚ his victim manages to wriggle free fromÃ‚ their well-planned ambush and pummeling, net neutrality proponents are now crying foul thatÃ‚ Chairman Martin is excercising his legal authority to engageÃ‚ Commissioner McDowell to vote to break the 2-2 impasse and vote on either approving or disapproving the AT&T-Bell South merger.Ã‚
Can you believe the unmitigated gall of net neutrality proponentsÃ‚ playing the "victim" when they were really the muggerÃ‚ here? I guess we should not be surprisedÃ‚ then when theseÃ‚ same folks impugn the integrity andÃ‚ ethicsÃ‚ ofÃ‚ public servants whoÃ‚ have assiduously followed the legal, procedural, and political processes.Ã‚ Any fair-minded person should be disturbed at the "ends justify the means"Ã‚ tactics of many net neutrality proponents in this proceeding.Ã‚ Ã‚ Ã‚
Submitted by Scott Cleland on Mon, 2006-12-04 17:41
The NYT continues its leading coverage of the search business with its article today on Ask.com "The Retooling of a search engine." The article describes what I call IAC's discrimination and gatekeeper plan to turn around Ask.com and to make it a more popular and valauable search engine.Ã‚
Barry Diller, the headÃ‚ of IAC, has shrewdly collected many popular Internet sites, like Ticketmaster, Citysearch, HSN (Home Shopping Network) LendingTree.com, Evite, and Match.com, and ihas said publicly that they will more tightly integrating these popular sitesÃ‚ with Ask.com's search engine. This is a classic gatekeeper model, whichÃ‚ creates value by skewing search results to their home-owned sites. Now this is also called vertical integration, which is legal and has many benefits for consumers. To be clear, I believe vertical integration like this is just fine.
Submitted by Scott Cleland on Fri, 2006-12-01 18:05
When I learned that Google was rushing in late in the process to demandÃ‚ a net neutrality amendment on theÃ‚ Michigan franchise reform legislation, the image that came to mind was that of a spoiled child seeing people building a sandcastle on the beach and running through the sand castle cackling with glee at the attention they could get from destroying others hard work.
I continue to marvel at the undisciplinedÃ‚ naivete and brat-ishnessÃ‚ of this $150 billion 8 year old company called Google. Like a spolied child that has gotten used to getting everything they scream forÃ‚ because of over-indulgent market parents who never said no, this company truly behaves like they think the world revolves around them and their demands.
Submitted by Scott Cleland on Thu, 2006-11-30 12:59
Cisco hasÃ‚ tremendous wisdom and clarity of thought on net neutrality,Ã‚ which Microsoft could greatly learn from. Mr. Chambers and his Cisco team "get" the netÃ‚ neutrality debate.Ã‚ And they should. Problably more than any one single company Cisco has done more to enable the phenomenon that is the Internet today. Does anyone think for a minute that Cisco wants to kill the goose that laid the Golden egg called the Internet? It is relevant to disclose here that I tried toÃ‚ recruit Cisco to join NetCompetitionÃ‚ and they declined because they reasoned their interests were much broader, straddling the tech and com sectors andÃ‚ not simply a broadband perspective.
Submitted by Scott Cleland on Tue, 2006-11-28 18:41
Dear Mr. Gates & Mr. Ballmer,
This letter warns that Microsoft's pro-regulation strategy in Washington is backfiring and is likely to end very badly for Microsoft. Microsoft's recent decision to withdraw from the ItsOurNet Coalition during FCC consideration of the pending AT&T-BellSouth merger, offers a golden opportunity for Microsoft to objectively reevaluate whether pursuit of permanent techcom regulation remains in Microsoft's best interests, especially given the experience and changes of the last year.
Upon closer examination, it is evident that Microsoft's:
B) Pro-regulation efforts have made the company worse off than when it started pursuing net neutrality regulation.
History is repeating itself. Microsoft is on path to get wrapped around the Washington regulatory axle just as badly as Microsoft got wrapped around the antitrust axle this past decade. Why history is repeating itself is that Microsoft apparently has learned little about the huge risks Washington can present to Microsoft. Just as Microsoft's political misjudgment got the company legally ruled a monopoly and under the thumb of DOJ and EU regulators, Microsoft's political misjudgment on net neutrality regulation is now endangering the future of the web services model that Microsoft has staked its future on.
I. Microsoft's original judgment of the risk-reward trade-off was badly flawed.
A. Microsoft has much more to lose than gain from Net Neutrality. Just like it’s never smart to play with matches in windy weather when you own a forest, it’s never smart to push for permanent regulation of market power when the political winds are blowing much more regulatory and your company has more market power than any other.
Submitted by Scott Cleland on Mon, 2006-11-27 18:30
The call for net neutrality regulation, or banning Internet tiers, runs completely counter to the highly-successful, commercialÃ‚ evolution of the Internet.
A recentÃ‚ Cable World article by Paul Kagan "Paying the Piper" highlights this truth, that the "wave of the future" is bandwidth based billing. Usage-based billing is exactly opposite to one-size-fits-all net neutrality regulation.Ã‚ More usage-based billingÃ‚ better serves users becuase it allows them to buy just what they need.Ã‚ Light users pay lessÃ‚ and heavy usersÃ‚ pay more. As Kagan aptly points out, this is "a marketplace pricing solution that encourages consumers to regulate themselves." Ã‚ Ã‚
Submitted by Scott Cleland on Tue, 2006-11-21 13:09
"Charging for Google is like charging for air" this is a quote from an Oxford student at a Google encouraged "creativity session" on net neutrality.Ã‚ Ã‚ The thought embodies Google's goal to be as ubiquitous on the Internet as air is to humans. Where the metaphor crashes and burns is that Google does in fact charge for "air" --Ã‚ it justÃ‚ charges others than the user for the privilige. Google is paid byÃ‚ advertisers the equivalent of 11 cents per search discrimination result.
As one of the greatest economic thinkers of all time, the late great Milton Friedman, said: "There is no free lunch." Somebody pays for it.