Om Malik on: Shrinking consumer broadband choices?

[David Farber <dave () farber net>]

[Note:  This item comes from reader Robert Berger.  Actually, the ITU 
now rates the U.S. # 13 out of the top 15 countries in terms of 
broadband penetration.  DLH]

> From: "Robert J. Berger" <rberger () ibd com>
> Date: October 14, 2004 6:23:00 PM PDT
> To: Dewayne Hendricks <dewayne () warpspeed com>, Dave Farber 
> <dave () farber net>
> Subject: Om Malik  on: Shrinking consumer broadband choices?
>
> Shrinking consumer broadband choices?
> http://www.gigaom.com/2004/10/shrinking_consum.php
>
> FCC's decision to extend monopolistic control over the last mile
> has The Consumer Federation of America and Consumers Union all
> riled up. They are worried that lack of competition will only
> increase prices, limit choices, and result in slower
> innovation. “The FCC today took our country one giant step
> closer toward solidifying a two-company domination – the local
> cable and telephone providers -- over the consumer Internet
> market,” said Gene Kimmelman, Senior Policy Director for
> Consumers Union. “As both industries tighten their hold on
> high-speed Internet (broadband) access, consumers will see their
> choices diminish and their bills skyrocket.” “This stranglehold
> will stifle innovation as these duopolies discriminate against
> unaffiliated applications and services that in the past have
> driven the growth of the Internet and the boom in information
> technology,” Mark Cooper, Director of Research at the Consumer
> Federation of America, said. “As a result, our country will fall
> even farther behind Asia and Europe in broadband penetration.”
>
> I agree. FCC is beholden to special interest groups, and has
> lost all veneer of fairness. Michael Powell thinks that also-ran
> technologies like WiMAX and Broadband over Powerlines will
> result in competition, and once again shows that despite his
> self professed love for gizmos, he really doesn't have a grasp
> on technological realities. I think it is time that consumers
> get to elect FCC commissioners, via the local ballet. No
> political appointments for this most important body, which is
> chartered with coming up with unbiased, fair and realistic
> regulations that affect consumer lives in the future. I think
> broadband and wireless networks are going to be a key to our
> future and global competitiveness, and FCC is selling it down
> the pike. Here is a recent FCC reality check:
>
>     • In the three and a half years that Michael Powell has
>     been Chairman of the Commission, the U.S. had fallen
>     from third to eleventh in broadband adoption.
>
>     • As a result, the digital migration that Chairman
>     Powell has touted has become a migration to a massive
>     digital divide. One out of every two American households
>     with incomes above $75,000 have high-speed Internet
>     connections at home. One-out of every two American
>     households with incomes below $30,000 does not have any
>     Internet connection at home at all.
>
>     • The cause of the failure of high speed adoption is
>     clear, Americans are being overcharged by the cozy
>     duopoly of cable and telephone companies. Cross national
>     comparisons of price show that Americans pay fifteen to
>     ten times as much, on a megabit basis, as consumers in
>     Japan pay. Three years ago the price in America was
>     three or four times as high.

Archives at: <http://Wireless.Com/Dewayne-Net>
Weblog at: <http://weblog.warpspeed.com>

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