Netflix

Please don’t miss my latest Daily Caller op-ed entitled “America’s Upside Down Cyber-Priorities.”

• It spotlights the national travesty of the government prioritizing net neutrality openness to the detriment of cybersecurity and a more secure Internet.

Everyone should have the freedom to innovate and compete in America, the land of opportunity.

There should be no innovation or competition double standard where government politically picks winners and losers by rigging competition via denying some companies the freedom to innovate and compete spectrally while granting it to their competitors.

With radio spectrum, America has created different but symbiotic spectrum models. One is licensed spectrum where spectrum for exclusive use is auctioned to the highest bidder. The other is unlicensed spectrum where anyone is free to share the same spectrum if they play nice and do not interfere with other spectrum sharers’ use. These models have never been either/or; they have always been free and open to use separately or together to maximize innovative, commercial, and competitive opportunity.    

I.  Summary

Google’s market capitalization has approached a half trillion dollars as its stock hit an all time high, because of a positive quarterly profit surprise and because Google’s new CFO signaled that “Google cost discipline” may no longer be an investment oxymoron.

The market appears to be ignoring that Google’s legal status as a corporation changed in 2Q15 to an FCC Title II regulated common carrier that is subject to very strict and preemptive behavioral non-discrimination requirements to mitigate potential abuse of market power on Google’s network -- per the FCC’s new Open Internet Order which reclassified Internet infrastructure as Title II common carriage regulated to enforce strict net neutrality.

This analysis of Google’s many new common carrier liabilities has four parts: I) the investment and regulatory relevance of Google being a common carrier; II) the evidence of Google being a major Internet access player via the surprising size of its Internet infrastructure, communications, traffic carriage, and market power; III) a listing and explanation of Google’s many new FCC common carrier liabilities, including nine potential net neutrality violations, three privacy, and three transparency; and IV) a conclusion about what this could mean for Google and its valuation going forward.

Please don't miss my latest Daily Caller op-ed -- "For Smartphone Users, Spectrum is Speed."

• It spotlights how the Administration/FCC strong bias for wireline Internet over wireless Internet conflicts with what consumers want.

Imagine if one company out of the Fortune 500, #474 with ~$6b in revenues, and 2,000 employees, representing about .03% of U.S. GDP, and .06% of the population, comprised 36% of all the vehicle traffic going in one direction on our interstate highway system on any given day.

Now imagine that one company’s lobbying was instrumental in convincing the government to grant that company’s business model the right to commercially use the highway system forever for free, by not ever having to pay a standard gas tax or private highway tolls, like other businesses or people do to pay for the relative wear and tear that their usage causes on the highway systems.

Imagine further that the government justified this special one-way highway traffic treatment, by saying it would be better and fairer for everyone if the companies that use and profit most from using the most one direction of the highway system never had to pay for that delivery benefit – that consumers should subsidize their commercial use and profits in “perpetuity.”

The company’s situation you just imagined is Netflix’. The government agency is the FCC. And the perverse government arrangement is the FCC’s mandate of a permanent zero price for all Internet downstream traffic.  

Please don’t miss my latest Daily Caller op-ed: “FCC’s Title II Trifecta Gamble.”

• It explains why the FCC’s Title II trifecta bet politically and legally could not be more risky.

What is the Internet?

Simple question, one would think the FCC could give a simple, straight and accurate answer when talking to their international regulatory counterparts, but they won’t.

That’s because they don’t want them to regulate the Internet like the FCC just has regulated the Internet in its Open Internet Order.

To try and justify regulating just the ISP-telecommunications-side of the Internet, but not regulating the Silicon-Valley-telecommunications-side of the Internet, the FCC’s, diplomatic message is as hypocritical as it is embarrassing: ‘do as we say, not as we do.’ (Translation: Adopt America’s Silicon-Valley-industrial-policy as your country’s policy.)   

The FCC has lost its credibility internationally because to claim that they are not regulating the Internet, the FCC must torture the definition of “the Internet” beyond recognition.

America’s international counterparts get the joke, they weren’t born yesterday.

And the joke is the FCC’s spin.

Please don’t miss my latest Daily Caller op-ed, “FCC Changed “Can-do” Internet into “Can’t-do” Internet.”

• It puts into perspective how the FCC’s assertion of Title II utility regulation of the Internet changes the ethos of America’s Internet.

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FCC Open Internet Order Series

Part 1: The Many Vulnerabilities of an Open Internet [9-24-09]

The FCC’s just operative Open Internet Order, with its classification of broadband as Title II common carriage and vague Internet conduct standard, sets ISPs up for FCC “gotcha” or contrived regulation and enforcement.

FCC Commissioner O’Reilly exposed the FCC’s “gotcha!” game: “I will be vigilant in resisting any attempts by the agency to act as a referee enforcing rules known to none of the players and made up along the way.”

And the FCC’s Enforcement Chief, Travis LeBlanc, tacitly admitted to playing the contrived “gotcha!” game in an article with the National Journal entitled: “The FCC’s $365 Million Man.”

The appellate process will only get tougher for the FCC’s Title II Open Internet Order from here, which means both legal and electoral uncertainty over the permanence of the FCC’s net neutrality authority will only grow as the appellate process plays out and the 2016 Presidential election approaches.

Simply, do the FCC and its congressional supporters essentially cash in and keep their net neutrality gains long term for consumers in bipartisan net neutrality legislation now, or do they double down by waiting and maybe losing it all in either the Supreme Court or the 2016 Presidential election?

From their current position of relative strategic negotiating strength, an operative Open Internet Order empowering the FCC to enforce protection of net neutrality, the FCC and its congressional supporters, need to take stock of their situation and ask themselves if they want to lock-in their bright-line net neutrality protections now and permanently protect consumers against blocking, throttling, and paid prioritization, in bipartisan legislation?

Or do they want to roll both the court and electoral dice that their relative strategic negotiating position will improve from here and risk losing most all their net neutrality gains and authority, in the next 18-24 months to an ultimate court loss in the Supreme Court or to a Republican elected President in 2016, who would likely overturn the Order in 2017?