Mike McCurry Joins AT&T’s Campaign for a Monopoly Internet

Former Clinton press secretary Mike McCurry is now part of an AT&T backed “coalition” working on a huge public interest rip-off. AT&T, as we know, is opposed to an open, competitive, and democratic Internet. Now they have used their clout to get McCurry–named as the coalition “co-chair”– to be a part of their “Hands Off the Internet” front group. AT&T wants to make sure that no “network neutrality” safeguards are enacted by Congress. McCurry’s role is to help snare Democrats over to the wrong-side—that being the position that will hurt everyone but AT&T, Verizon, Comcast and a few others.

Ironically, McCurry’s work on behalf of AT&T will ultimately harm many of the non-profit and public interest clients who work with Grassroots Enterprise and the Public Strategies Group. Among the clients listed at McCurry’s various firms include the ACLU, the Campaign for Tobacco Free Kids, Sierra Club (MoveOn.org is listed on Grassroots Enterprise website claiming that the firm’s leadership team played a key role with the group). If McCurry’s “coalition” has its way, there will be a threat to civil liberties as a few control the Internet (hello, ACLU); more targeted ads promoting unhealthy lifestyles targeted to kids (please take note, Tobacco-Free Kids); an explosion of commercialism and consumption that will further wreck the environment (the Sierra Club and other such groups should be outraged); and an Internet where only big bucks will ensure you can sway voters (which should alarm MoveOn and all other groups concerned about the future of the Internet in politics).

When Mr. McCurry comes calling on Members of Congress, they should be forewarned. If McCurry, AT&T and company have their way, our country’s hopes for a more just and informed society will be threatened. Such an outcome may be profitable for a very few, but ultimately will harm the many.

PS: McCurry’s Public Strategies Group has represented SBC (now AT&T) for years, helping them build a more powerful telecom monopoly.

Congress Does a Corrupt ‘96 Telecom Act Re-run

The same `big telecom money buys itself special interest legislation’ that created the 1996 Telecom Act give-away is now in play again. A congressional wrecking crew—under the guise of “updating” our nation’s telecom laws—will do even more damage to our media system. Ten years ago, Congress gave us more consolidation in the cable, broadcast TV/radio, and telecom sectors. It sparked an unprecedented shopping spree where newspapers, TV/radio stations, telephone, and cable companies were bought and sold at dizzying speed. Freed by Congress from any constraint, cable rates soared. We have no policy so Americans can readily receive a diverse array of news and culture beyond the narrow confines of the show-biz, ad-supported media industry. The 96 Act failed to ensure low-income and rural Americans would have residential access to the Internet; nor were there any policies promoting diverse ownership of programming content in cable and satellite networks (esp. by persons of color). Behind closed doors, the GOP and media moguls like Rupert Murdoch, Robert Wright of GE and executives from many companies stuck a private deal that became the 96 Act.

Now, they are doing it again. Taking in huge sums of money from phone and cable companies, Congress is permitting the Internet and new digital networks to fall under greater control of phone and cable monopolies; they are killing off the last vestige of localism—municipal franchising for community communications; permitting wide-spread discrimination against lower-income Americans by allowing phone companies to only serve the most affluent. Congress will also set the stage for even more media consolidation (think phone companies buying TV stations or a broacast network and a Comcast/Google merger), higher rates for all communications services (wired and wireless), and a commercial culture for the U.S. dominated by the most powerful special interests (especially major entertainment and advertising companies).

Everything Congress is about to do is against the public interest. Isn’t time we all said—as we were advised to do by the late Paddy Chayefsky in Network, to scream (and advocate) from the rooftops: we’re mad as hell and we aren’t going to let you wreck our media system anymore!

AT&T’s Project

On the heels of the defeat yesterday in the House Telecom and Internet Subcommittee (23-8) that would have helped ensure the Internet remain an open and non-discriminatory highway, it may be useful to look more closely at AT&T’s broadband plans. AT&T, Verizon, Comcast and other giants were the victors in yesterday’s defeat of the Markey “network neutrality” amendment. A number of Democrats joined with the GOP committee majority to kill off the open Internet safeguard. Just take a peak, by the way, at the end of this post to see how much cable and telecom money has been taken by some of the folks who supported the Telco/cable agenda yesterday.

But to the point about how AT&T and others are about to do the U.S. Internet great harm. AT&T (then SBC) laid out its digital vision in a September 14, 2005 document to the FCC as part of a proceeding on how “IP-Enabled Services” should be governed (“IP” meaning Internet Protocol, the basic communications structure of the Internet and many digital networks). Not surprisingly, AT&T told the FCC (on page 3) that there should be no public policies governing its “Project Lightspeed” service because it has a “architecture similar to the architecture used by customers to access the Internet.” AT&T then went on to say that its “switched, point to point, IP networks are purposefully designed and ultimately capable of allowing customers to access a wide variety of video and other content on a “on-demand basis.” The service will enable users to obtain “Internet-sourced data” and also gain access to “voice, video and data services.” (see p. 20).

But a few pages later in the 35-page document, AT&T reveals what is an outrageous policy “bait and switch” canard. While it says (on p. 24) that its “purpose in deploying this point-to-point two way network is to provide subscribers with maximum flexibility in customizing what they see and when they see it,” they also say (my bold) that “the ultimate breadth and scope of such on-demand capabilities will be a function of a number of factors, including arrangements with content owners and other programming vendors…”

In another words, the so-called Internet that AT&T will deliver us will be based on who can pay them the most money to have their content included in Lightspeed’s (video) service. AT&T is saying to the FCC and Congress: `don’t require us to have any policy safeguards, because we’re the Internet. Don’t “regulate” the Internet.’ But at the same time, AT&T is making clear (through a document only read by a few lawyers) that it doesn’t intend to give us the Internet at all—just a very profitable closed system where it can charge users and content providers ever-escalating fees. For more, read the “The Impact and Legal Propriety of Applying Cable Franchise Regulation to IP-Enabled Video Services.” [Filed by SBC. WC Docket No. 04-36, September 14, 2005].

PS: Follow the Telco-cable money to the House Telecom Subcommittee. Just look at who is contributing to Subcommittee chairman Upton; Rep. Stearns; Rep.Gonzelaz; and Rep. Wynn.

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The White House and FCC Connection: New Giveaway to Big Media

The Bush Administration and the U.S. newspaper, broadcasting and telecommunications industry are now involved in subtle conversations/negotiations about media ownership policies that will likely have an impact on journalism. The newspaper and broadcast lobby wants the Administration’s help to over-turn what’s left of the media ownership safeguards. This week, FCC Chairman Kevin Martin told a meeting of the powerful newspaper publishers lobby, that he—like his predecessor Michael Powell—was ready to hand them their key political objective: the scuttling of the broadcast-newspaper cross-ownership rule. That policy has helped ensure that one company in a community couldn’t simultaneously operate the two most important sources of information: TV channels and the daily paper. The rule has also protected newspapers from being swept up into ratings-driven/show-biz focused TV industry empires. If the cross-ownership rule is axed, expect even less serious print reporting and more tabloid/infotainment TV-business models for dailies.

Mr. Martin clearly doesn’t have the facts with what’s causing the crisis in U.S. journalism today. Nor can we expect either Martin or his Commission to actually honestly investigate what is happening with journalism. His speech to the publishers was lifted from their lobbying playbook, including the absurd notion that allowing one company to operate several TV stations and the daily paper can bring “a significant increase in the production of local news and current affairs…” Media consolidation and cost-cutting to please Wall Street has led to this crisis. Additional consolidation will further weaken the last vehicle currently capable of sustained and meaningful serious journalism: the daily newspaper (we believe it’s too early to say whether online journalism will evolve into a permanent robust alternative in the near term.)

In another example of Martin (and the GOP) currying favor with big media, the chairman published an op-ed in the Financial Times that declared once again his support for the Telco/cable monopolies stance that they should be able to fully control the future of the high-speed Internet in the U.S.

Martin’s zealous advocacy for the telephone, cable, broadcast, and newspaper industry certainly reflects the view of the Bush White House. The chairman’s wife, Catherine Martin, is Deputy Assistant to the President and Deputy Communications Director for Policy and Planning (before that she was key aide to Vice President Cheney; prior to her White House position she was an aide to then Texas AG John Cornyn (now a U.S. Senator). We have a difficult time believing that whatever Kevin Martin is doing has not been vetted by the White House (just as the Clinton Administration did with its FCC agenda).

But as we proceed into the 2006 election, it will be interesting to look at how both the newspaper and broadcast TV news operations treat the Bush agenda. Will it be—as it was during the run up to the war in Iraq—a subtle quid pro quo: you waive the rules and we’ll waive the flag?

PS: Here’s the link that will take you to the great speech given by FCC Commissioner Copps at the Freedom to Connect conference on Tuesday.

FCC Commissioner Michael Copps: Save the ‘Net

Commissioner Michael Copps give the opening keynote speech today at the Freedom to Connect conference. Copps is that rare high-ranking government who places the interests of the average person over the country’s wealthy elite (such as the phone, cable, and broadcast lobby). Copps has continually been in the forefront defending the public interest on both the media consolidation and broadband communications issues. His full speech won’t be online today, but here’s an excerpt (thanks to business2blogs.com):

“I think this is one of the most important dialogues taking place in the country. We view the Internet as a place of freedom and openness, a place where anyone with a good idea can develop a business plan with global reach. But news reports have sounded the warning bell where new broadband toll bridges may restrict services like VOIP or your ability to watch videos over the Web. The more concentrated that network providers get, the easier it will be for them to become gatekeepers. We cannot let that happen. If that occurs history will not forgive us, nor should it.

We still have a long way to go to secure the future of the Internet. Network providers are saying Websites should pay for broadband. This misses the mark because Website content is what makes network providers’ services valuable in the first place. It seems to me they want to double dip [by charging both consumers and Websites for the same content]. If providers with bottleneck control can erect tolls that inverts the entire democratic network of the Internet. It makes the pipe intelligent and the end-user dumb. It artificially constrains the supply of bandwidth.

Braodband is going be one of the drivers of our economy, so we need to get our national policy right. More I important we need to get a national policy. It is not just about a better Internet, this is about a better America.”

Rep. Joe Barton and Co. destroy “Community Communications”

The Barton-Hastert-Rush bill has been concocted by telephone industry lobbyists (with some recent help by the cable industry) to remove any scintilla of oversight the public might have over broadband communications. It reflects how corrupt so many lawmakers are in the nation’s capital—and how the big money from special interests easily buys them off. It also illustrates how the same tired communications lobbying pleas–heard most recently when the Telecommunications Act of 1996 was passed–conveniently provides political cover for a huge giveaway. Just free us from rules designed to protect the public, claim (fill in the blank) the Bells, cable, or broadcasters, and the country will be awash in jobs, better health care, and competition. These are really code words for: get ready for an even bigger monopoly over communications.

The Bells want to string out their wires in the most affluent neighborhoods of the country—all so they can profit from what they know will be a IPTV gold mine: pay-per-view movies, on-demand TV programming, and interactive advertising. They also wanted to unleash their broadband business model that will give us the pay-as-you-surf Infobahn: that’s why they oppose “network neutrality” safeguards.

However, the U.S.’s last remaining form of local control over communications—known as cable TV franchising—has stood in the way. Cable TV was supposed to be a “community communications” service. That’s the way it was sold to the U.S. back in the 1960’s and 1970’s. Each community would have the ability to ensure that the powerful medium of cable broadband (yes—it was called that even back then) would serve the local public interest. Cable companies were required to negotiate an agreement with local government before they could offer service, called a franchise. This process permitted local government to obtain communications services that would be especially beneficial for their residents. So cities have been able to negotiate for their schools to be connected to the Internet. They were able to negotiate for networks that connected all their public buildings, important for city services and public safety. Finally, local franchises permitted cities to negotiate for communications services that provided for public, educational and governmental public access channels.

And it’s now about to be swept away. It was never perfect—far from it. The cable lobby used its vast resources to buy off politicians at the local, state, and national level. A system meant for local service became, as we know, primarily a medium for national programming and advertising. But the concept of local public oversight over multichannel communications services has remained an important one.

Smart communities around the country began negotiating for pieces of cable’s broadband capacity. Not just a few channels for public access, but a modest portion of bandwidth that could deliver a multitude of local digital communications services. Cities had asked for their broadband networks to be operated under an “open access” or “network neutrality” regime. More importantly, cities had the political leverage of the franchise to ensure that cable companies couldn’t “redline” against low-income neighborhoods.

The phone companies were horrified that they would actually have to provide unique public service for each of the communities they intended to pump out digital dollars from. They were frightened that local community leaders might actually be able to hold their networks accountable to serve the community. So they used their deep pockets to push through favorable state legislation and now, it appears, in the Congress (take a look at Joe Barton and Dennis Hastert’s top contributors).

We are about to lose all this, especially the important principle of community communications. It is to be replaced by a “national franchise” that doesn’t provide the public with any leverage to ensure their cities receive what should be substantial benefits in the digital age. Under the bill, communities won’t be able to obtain any help to ensure they are networked and connected. Public access “channels”—supposedly the public’s voice—won’t have the capacity to remain a vital form of communications in the broadband era. Under the proposed law, the cable industry will also be able to soon escape from their current franchises. The bill does next-to-nothing to address the dangers to the public as both the phone and cable industry transform the broadband Internet into a bigger digital gravy train (the so-called network neutrality issue).

Both the cities and the public interest community haven’t really fought the Barton bill with the ferocious opposition it requires. Some public interest groups have decided to offer a form of trade-off, mistakenly believing that they can win support for network neutrality safeguards by giving the Bells a national franchise. They are naive if they believe such a deal would occur. More importantly, we are giving away an important principle: the right of communities to ensure the public benefits from broadband communications.

It’s true that the Bell-backed lobbying effort seems unstoppable. But the concept of “community communications” is even more necessary, in my opinion, in this new era. We will be awash with all kinds of national services—and connected to international ones. But if our digital transformation isn’t designed to benefit real people where they live—what’s it good for?

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Aren’t You Ashamed–Rep. Bobby Rush?

Rep. Bobby Rush (D-Il.) is the lone Democrat on the House Telecommunications Subcommittee sponsoring the Barton-Hastert broadband media monopolization bill of 2006. A former “activist,” Rush now appears to be siding with his long-time “top contributors” SBC (# 4) and Verizon (#18). Rush’s support has enabled House Commerce Chair Joe Barton to claim his bill has bi-partisan backing, reports Broadcasting & Cable magazine. The Barton-Hastert-Rush bill weakens the ability of communities to ensure that the broadband digital media environment truly addresses issues of inclusion, discrimination, public service, and opportunity. SBC (now AT&T) has an important presence in Chicago, so it’s not suprising that they could readily “reach out and touch” a local pol. But it’s shameful that Rep. Rush has helped give political cover to big telecommunications lobbying interests. It should be noted that Rep. Rush has also received money from the cable lobby–but ultimately they also stand to benefit from the Barton giveaway bill (we will turn to the bill in our next post).

For too long, politicians on both sides of the aisle have allowed themseleves to be no more than puppets for the media lobby. The list of Democrats who–like Rep. Rush–have placed the interests of the media monopoly over their constituents–is a sad commentary in itself. But in the the case of Rep. Rush, he may be taking AT&T’s dollars–but it makes no sense.

Annenberg Center’s Net Neutral Principles: Not Enough to Protect our Digital Future in U.S.

The folks at USC’s Annenberg Center have crafted some “principles” on network neutrality. We have to say at the outset we always have strong reservations about positions taken by academic institutions that take huge amounts of media and communications industry cash. Places like Annenberg/USC and UCLA are also always loath to really take on their Los Angeles show-biz industry neighbors. Perhaps that’s why their “principles” don’t really adequately protect the Internet’s future. We also wonder how they developed such proposals, as their website doesn’t reveal who made up the “group of senior communications experts” who met to hash them out in February. We do see that one of the people at Annenberg crafting the principles is Simon Wilkie, who has been helping the folks at the Progress and Freedom Foundation turn over our media system to their communications monopolist supporters.
The good news is that Annenberg did come out in support of a “basic access” broadband lane for the public. But at 1.25 Mb/s, it’s insufficient to offer the public meaningful access to the emerging world of digital communications. We also believe that their suggestion that the public lane be re-evaluated every four years is inadequate. It’s likely whatever is originally recommended will become frozen in time, especially as the Bells and cable industry work their political magic in D.C. The public deserves an open lane where full-motion video and other multi-media content can be readily received—that would be at least 3Mb/s. Any principle should call for regular, annual broadband speed “check-ups.” This way the public lane doesn’t become a one-way street.

Annenberg’s principles also failed to make clear that the public lane has to have instant access into TV’s (IPTV) and mobile devices. Our digital media monopolists will use their last mile clout to transform these platforms into privatized playgrounds. We have to make sure that all service providers make it simple for users to get the digital content of their choice, and not use their control over portals and interfaces to discriminate. Annenberg would permit cable and phone companies to do whatever they pleased beyond the public lane, including “free to determine all service parameters, including performance, pricing, and the prioritization of 3rd party traffic.” As the Wizard of Oz said to Dorothy and Co., “Not so fast.” Yet to be determined is a range of content essential for the lifeblood of our Republic–and that should be free from any gatekeeper. That might be electoral content, public safety information, news/journalistic services, educational programming, and beyond. We don’t want to force such material only onto the public lane. The future of the broadband Internet requires an intensive public debate, including exposing the plans of the telephone/cable/ and other media giants to turn the digital medium into a data-collecting, ad-intensive, tollbooth. Annenberg’s principles simply won’t get us there. I think—as they say in LA—they should be sent back to the writer’s room.

PS: We do think highly of Annenberg’s Norman Lear Center—funded by the long-time show-biz industry legend. Prof. Marty Kaplan has done good work there. Unfortunately, academic efforts such as Kaplan’s are all too rare as universities seek large sums of cash from communications companies.

Tropos Opposes Net Neutrality; Links with Company that Supports Tiered Internet

Tropos is a company known for its wireless networking technology. Its products are used in many wi-fi deployments. In an example of a self-serving and wrong-thinking display, Tropos president and CEO Ron Sege came out today against a network neutrality safeguard. Sege suggested that we should allow the cable and phone giants to offer “advanced, prioritized services.” The trade-off he proposed would be for Congress to pass legislation creating more opportunities for municipal and other forms of wireless. He might have just asked them to pass the “Tropos Big Bottom Line Act of 2006” instead. Sege’s proposal would do little to ensure that the U.S. has a democratic and diverse broadband communications environment.

Tropos’s anti-net neutrality stance suggests they don’t want to anger powerful communications industry players, such as AT&T. It also appears that Tropos supports a world where “prioritized services” come to wireless. The company announced a deal this week with Allot Communications for its “NetEnforcer” product. “NetEnforcer” is just one of the score of products that enable broadband operators to know what’s in every packet. It’s a technology at the core of plans to turn the broadband Internet into a virtual tollbooth for both users and content providers.

Washington Post: Internet for Us, Not for You

Last Monday’s Washington Post editorial against a “network neutrality” policy illustrates one of the problems when media outlets have far-ranging business interests elsewhere. They usually fail to acknowledge and clearly explain their numerous conflicts of interests—conflicts that may have shaped their editorial position.

In dismissing the call for an open and non-discriminatory broadband Internet as merely the concerns of those interested in a “democratic utopia,” the Post sided with its big media phone and cable brethren. The Post did disclose, in an aside, that since it “owns both cable and Web sites” it had “commercial interests on both sides of this issue.” But the Post wasn’t really being honest with its readers. For example, the Post should have disclosed its parent company is part of the anti-network neutrality movement. The Post Co.’s cable T.V. division president sits on the board of the National Cable & Telecommunications Association; the NCTA is leading the charge against the passage of any network neutrality safeguard. Since it owns those cable systems and their broadband connections, the Post can make sure its content receives preferential treatment in those markets. Moreover, the Post-Newsweek string of TV stations have received (as a result of lobbying Congress), a free set of digital airwaves. The Post will be able to use its digital TV beachfront property to receive preferential broadband treatment in such key markets as Detroit, Houston, Miami, Orlando, Jacksonville, and San Antonio. It will use this broadband power to help give its already successful web properties, such as Washington Post Interactive and Slate, the needed boost that others won’t likely have without network neutrality rules. (In its most recent [March 7, 2006] annual 10 k report to the SEC, the Post Co. called such Net safeguards a “regulatory burden”).

The Post should also have acknowledged that it is politically supporting the rollback of the broadcast-newspaper cross-ownership safeguard at the FCC. In a world without media ownership limits and protections for network neutrality, companies such as the Post know they will come out at the top of the media food chain.