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January 07, 2010 07:34 PM UTC

America's Great Socialist Past

  • 11 Comments
  • by: JO

For almost four centuries, technology has been the great non-ideological driver of Western history, starting with the steam engine. In two key areas, transportation and communications, American economic history, at least since the mid-19th century, has been written as a partnership between government and privately-financed technological expansion. Examples include the building of transcontinental railroads (government giveaways of public lands and providing armed guards–U.S. Cavalry–for European settlers partnered with privately financed building of railroads); the telephone network (government approval of a monopoly, AT&T, in exchange for strict regulation); and radio and television (government regulation of bandwidth to enable privately owned broadcasters to operate in parallel).

Now we are in the midst of a new revolution of equal or greater magnitude–digital communication of everything, including the substitution of communication for transportation–but where, oh where, is the guiding hand of government to represent what’s best for the society if not for individual entrepreneurs? This is an issue close to anyone reading this post–within arm’s length if you’re using a laptop–yet one seldom discussed in any forum.

I’m referring, of course, to the Internet, and in particular the issues surrounding its transmission. Chances are that many users of ColoradoPols.com subscribe to Comcast in order to receive the   Internet. Some of you may also receive broadcast video signals from Comcast, or some other cable TV provider, and as described in today’s NYT, “In a Clash Over Cable, Consumers Lose.” ( http://www.nytimes.com/2010/01… )

Of course, broadcast television is yesterday’s technology. It makes much more sense for all video to be retrieved, and many “broadcast” channels–notably those of PBS, among many others–can already be viewed this way. Does it make sense for a handful of private cable companies, operating with monopolies granted long before the Internet emerged as the new communications technology, to single-handedly control the terms and conditions of Internet delivery? Should a company that depends on subscriber fees to finance broadcast video also be allowed to restrict the number bits downloaded by an Internet subscriber? Should one company be allowed to set the cost of having Internet access in the homes of school children whose education will increasingly be delivered, and dependent upon, digital transmissions? Is this not like saying “public libraries” should be privatized, with prohibitive (to some) fees to check out books?

Presently, Comcast is battling the FCC in court in a dispute over its right to limit the volume of downloads for its standard monthly fee. This case clearly illustrates the principle involved: Comcast’s determination to protect its broadcast video revenues from Internet downloads (notably, of movies) by focusing on a marginal portion of that business.

My question is: should an issue as central to the advance of digital technology be decided in court? The United States, where the Internet was invented with the help of the government (DARPA), has already fallen far behind other countries (notably Japan and Korea) in terms of average transmission speed via broadband. Surely it is in our national interest to retake the lead in a technology that will have such a key impact on so many aspects of our lives in a reduced-carbon future. (One example: widespread substitution of video conferencing for personal visits, thereby eliminating the need for a substantial amount of energy spent on business travel in particular, both local and long-distance).

Where, I wonder, are our elected representatives on this issue? Where is the proposed legislation to establish clear guidelines to (a) insist that providers upgrade transmission of broadband to speeds about 3 or 4 times today’s average; (b) limit fees for access to a level affordable by most households, and by any household with a student under age 18; (c) separate the delivery medium (i.e. coaxial cable and the servers behind it) from the content medium. This last is of particular relevance with the acquisition of NBC network television by the country’s largest cable company, Comcast.  

I’ve carried on about this previously, and on at least one occasion heard back from Jared Polis, who I suspect has a particular expertise and knowledge of the issues involved, acknowledging the issue. But I haven’t seen news of proposed legislation to advance the next generation of intrastructure expansion.

Comments

11 thoughts on “America’s Great Socialist Past

  1. I’m not sure I get the title, but I agree that this is an important issue, and it would be better if it was solved legislatively rather than judicially–though it does seem like the courts end up solving this kind of matter more often than not.

    I would add another issue to this, especially related to Comcast, of whom I am a subscriber for both internet and cable TV: we need to get better regulation of rates that companies like Comcast charge their customers. Currently, I am getting utterly screwed by Comcast, and I will be calling them in the next few weeks to try to haggle my rate down. The way that they do things right now is that they offer a cheap introductory rate, and then over the course of your time as a customer, your rates go up and up and up. I am full convinced that if they had it their way, they would be charging me hundreds of dollars a month for basic cable and internet.

    To combat this, I can call Comcast and say, “hey, you guys are charging me ridiculous amounts of money, I’m switching to one of your competitors,” and supposedly they’ll offer me a cheaper rate. The only reason I haven’t done it already is that I’m swamped with work–and I need Comcast’s services to do that work.

    With Comcast getting ready to merge with NBC, JO you’re exactly right that net neutrality is an even bigger issue than it’s been before. We need to keep the pressure on our elected officials, because you know Comcast is doing the same.

    1. Not to get off the subject, but “a partnership between government and privately-financed technological expansion” would fit at least some definitions of “socialism.” The last quarter of the 19th century might seem to some as the heyday of unbridled capitalism, but much of it–most notably expansion of the railroads–wouldn’t have happened without the active participation of government.

      1. That makes sense. I think a better definition of socialism is where the Government IS the industry, but I think I see where you’re getting at.

        If your definition is correct, though, then Eisenhower is one of the great socialists of the 20th century because of his desire to fund private R&D with government money. Of course, the marginal tax rate on top earners under Ike was something in the realm of 90%+, so maybe it’s more true than I thought it was.

        1. …and the Really Big One: Defense Spending (or, to quote Ike: “the military-industrial complex”).

          Some variation of “democratic socialism” has been the norm for 2 or 3 generations, here and in W. Europe. “Socialism” doesn’t mean “communism.” Nut cases who accuse Obama of “leading the country into socialism” merely display their profound ignorance–of the meaning of “socialism” and of American history.

          HOWEVER, let us not wander too far from the main point: government oversight of key infrastructure has always been critical. It seems to be missing in the case of broadband Internet (as well as 3G broadcast Internet to handheld devices, i.e. cellphones), in part because “cable TV” sounds like a branch of entertainment (like, say, “movie theaters”), whereas it has evolved into something much more fundamental.

          In my view, government has seriously lagged in this regard, possibly because both parties have been dominated for the past 30 years by corporatist interests. The innovation is still there (Google and Apple to name two…is there any comparable Asian company? European?). What’s seriously lacking is the participation of government to assure the successful and rapid deployment of the requisite infrastructure to virtually everyone. Comcast–a company of zero innovations, even in their own sphere–ain’t gonna accomplish that!

  2. NOT!  Another Bubba Myth, “We’re number, um, mayb 20?”

    Speaking of which, “20” is the mb/sec for download speeds in Japan.  Finland has rolled out a cellular data system capable of that, too.

    It’s also much, much cheaper in most of the world.

    American providers only move after others have, and then charge way too much.  SMS text messages cost essentially nothing to transmit; they fit between the voice packets.  But what a profit center.  T-Mobile used to charge a nickel.  OK, I can live with that. Then a dime.  Now, 20 cents.  The alternative is to buy a package of some number or unlimited for up to $10/mo.

    Actually, there is another alternative: Don’t use it.  I don’t.  

  3. Does it make sense for a handful of private cable companies, operating with monopolies granted long before the Internet emerged as the new communications technology, to single-handedly control the terms and conditions of Internet delivery?

    No.

    Should a company that depends on subscriber fees to finance broadcast video also be allowed to restrict the number bits downloaded by an Internet subscriber?

    No.  Not unless they want to become a regulated utility like water.  Sure, water is more basic to biological existence, but information is crucial to opportunity and creativity.

    Should one company be allowed to set the cost of having Internet access in the homes of school children whose education will increasingly be delivered, and dependent upon, digital transmissions?

    No. Imagine MIT putting every course they offer on-line for free (they have) but no one could get to it?

    Is this not like saying “public libraries” should be privatized, with prohibitive (to some) fees to check out books?

    More or less, yes.

    See Aurora, CO  (we don’t need no stinkin’ libraries)

    (a) insist that providers upgrade transmission of broadband to speeds about 3 or 4 times today’s average;

    Is this something municipalities could tackle through franchise agreements? Has anyone anywhere?

    You are 100% correct that because it is self-defined and often mistakenly perceived as “entertainment” it has been unaddressed or under addressed. In fact, it is as much like the interstate highway system as public libraries.

    1. …there is no organized resistance to the current arrangement, or citizens’ lobby for change, whereas the cable companies are well endowed w/ lobbyists.

      Such a citizen’s group could easily come up with three planks for their platform: Net Neutrality; Greater Bandwidth; Regulated Costs within Reach of All. The first plank would probably start by separating content providers from the network, lest someone like Comcast feel its pay-streaming-video service via cable was threatened by Internet-based services such as Netflix, Amazon, and a growing number of others. (Actually, there is a court case on this topic pending; see below.)

      In any case, it is a classic example of the shortcomings of the federal government as the protector of the national interest as it has evolved in the era of PACs. The only options of which I’m aware are alternative technologies (such as fiber optic access via telcos–limited in coverage, limited bandwidth, and also fairly expensive–or over-the-air 3G networks–expensive). I’ve thought to organizing a neighborhood shared-access to a dedicated T1 or T2 line–an expensive, complicated process that seems more daunting than it’s worth and that, in any case, doesn’t address the larger social need for a comprehensive, up-to-date digital communications network that reaches every household, urban, suburban, and rural.

      I believe, btw — and I welcome any better informed comments — that localities, such as counties, may have granted the original cable franchises two or three decades ago, but that regulation of cable companies is now the exclusive domain of the FCC, based on the television side of their business and without regard to the Internet (although the FCC has tried, and been challenged in court by Comcast, to enforce net neutrality; an important case that is pending and could well point towards future directions in this area). In any case my efforts to identify anyone in county government responsible for my local cable provider, Comcast, turned up no one.

        1. Basic thought was: bring the line into one house likely to remain in the same hands indefinitely, then to a splitter with ethernet lines going to adjacent houses/apartments. How feasible, in terms of stringing ethernet, distance, number of simultaneous users, multiple uses within other households… not my area of expertise at all! At first glance, seems like it might work better in an apartment or condo complex, controlled by the property manager, than in a suburban neighborhood. I’ve seen hotel rooms with ethernet connections (rather than WiFi), so I suppose that might be the model.

  4. JO, you have absolutely nailed it.

    This is one area that is vital to our nations’s (meaning our kids’) future.

    Ubiquitous access to the internet for information is the most vital strategic initiative we could pursue.  Much to our surprise at this stage in our lives, both my wife’s and my livelihood now depend on it.

    As both a Qwest (internet) and Comcast (TV) user, I can attest to the (lack of) service, reliability (internet – yes, cable – who are you kidding?) and pricing (internet – pretty decent, cable? – yeah, right).

    I’m no expert, but it seems that a metro-area WI-FI infrastructure would be pretty cheap to establish.  

    That’s around 54mbits with current technology, and it is rapidly getting faster and cheaper.

    Wired technology is not really needed, and the startup costs are pretty steep.

    Overcoming the duopoly of Qwest/Comcast (apologies to Dish Network – not a player here) to get our state and local governments to strike out and establish this key infrastructure should be the first priority.

    I know federal monies were allocated in the stimulus bill.  Where is the money and how can we get our share?

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