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Lead, Follow, or Get out of the Way

Here I go again, commenting on blogs. I guess I've caught the bug again. After reading two posts about broadband on MuniWireless.com - Another "victory" for US broadband: cable will win and Broadband Policy: Too Much or Too Little? - I felt compelled to weigh in with my comments, which are captured below. While I understand corporate behavior, believe it or not, I have nothing against large corporations. I believe they should operate with efficiency and keep the long-term view in mind (see my post referencing Toyota from yesterday here), but other than that, I'm all for corporations competing and winning - but it has to be on a level playing field. I just don't like it when corporations leverage their privileged access to government, and most of the big ones do just that. they do it because they can very cost-effectively put pressure on lawmakers to craft policies that favor their business interests. It's another form of competing, but one only available to deep-pocketed companies, and a practice that slows down the natural cleansing functioning of markets. In the end, they only hire lobbyists and exert undue pressure on lawmakers because we let them, and because it works.

So no, my chief complaint is not with big Telco and big Cable. No, I hold my full wrath for those public officials, elected or appointed, who once in power turn their backs on constituents, in favor of serving the interests of the big businesses who make large political contributions that will keep them in office or on the job. Too many of them have abused their power and lost sight of their oath to defend the constitution, too many have pursued policies that favor those already in power at the expense of fair competition, or at the expense of the weak and disenfranchised.

I recently ran into my professor and mentor from back when I was in the Graduate School of Government at the University of Texas, 20 years ago. His specialty was the alignment of societal, corporate, and political elites to control political outcomes. He has written extensively on this topic, and even though I know it is the way of the world and human behavior, it chaps me when I see the perverse side effects of elite control in societies, whether it's in the Third World or the First World.

My copy of Dr. John Higley's latest book, The Elite Foundations of Liberal Democracy is on its way to me from Amazon. It's likely to be pretty thick reading for the non-politcal junkie, but it is revealing to this debate. The good news - the reed of hope I cling to - is that elites respond to political pressure from the masses and to public exposure of anti-competitive private behaviors. I think it is our role as leaders promoting a more open and progressive national debate on broadband policy to bring political pressure to bear on these corporate and poliical elites, who currently manage broadband policy to serve their own interests. Only then will we see positive changes start to occur.

Here below then is my screed on Change and the Status Quo regarding Broadband Policy.

I just read this post and Gary Bolles similar post describing the discussion on broadband policy at the Tech Policy Summit (Broadband Policy: Too Much or Too Little?) - so this comment applies to both.

While I side with Jim Baller on our need for an EXPLICIT, broad-based, comprehensive national broadband policy based on a national discussion of all interested parties on this vital strategic issue, I can't help but juxtapose that idea with what I see in these two posts that is revealing of the incumbent vision, and ask the reader - which POV most closely aligns with our ideals of an open, pluralistic, democratic society?

Esme describes what can only be seen as an IMPLICIT policy of giving telecom and cable incumbents free rein and continuing an advantaged position for them - in effect, the result is a pro-corporation, anti-consumer policy. Through its inaction to promote a national discussion and seek a more balanced middle way, the government frees the large players to execute their business plans on their own timeframes. And every year of inaction to create an inclusive strategy based on a balanced discussion equals a delay in broadband options for consumers and billions more in revenue for the incumbents. This is Laissez-Faire economics on steroids. I would argue that it is not inattention by government leaders either, but a defacto government policy on broadband, just not one that most consumers should favor.

The result is predictable (if depressing): 1) a redlined telecom fiber broadband network that serves the densest, most profitable territories; 2) urban cable broadband access available wherever their cable infrastructure happens to be (dense neighborhoods, but still wider distribution than newly laid telco fiber); 3) mobile internet access from cell carriers through expensive data plans, featuring Walled Gardens of content made available to cellphones tied to one specific cell plan provider's two-year lock-in service plan, with bandwidth sufficient for email and surfing the web - a plan almost exclusively tailored for limited use by the business traveler; and 4) slow, but growing adoption by municipalities of newer technologies like Wi Fi Mesh and WiMAX, in essence a work-around for this lack of an integrated national broadband policy, but one which is constrained by lack of access to unlicensed non-line of sight spectrum, which would lower costs and increase the value of these networks.

When there is no broad-based explicit policy, as Jim promotes, there is nevertheless an implicit policy in that vacuum. We should call this one as it is, an elitist unwritten policy of corporate protectionism. Seen in this light, it's no wonder that we hear arguments in Gary's post from the ATT executive against the need for unfettered end user equipment, and from the Verizon executive against the need for a government policy on broadband.

From their perspective, after all, things are going well and according to plan. Incumbents and beneficiaries of the status quo NEVER favor change that opens up markets, lowers costs, or provides customers with more freedom and power. That would be irrational and anathema to the interests of their shareholders; I understand it, but I don't like it.

Taking care of ALL the people, not just shareholders, is the government's job. It's most efficient on issues like broadband policy when national government leaders accept the mantle of leadership and take action based on principles - sometimes they have to take action to rein in corporate behavior that does not suit the broader national interest, even if it hurts them politically. But we haven't seen that in a long while.

At least a growing number of local governments (and a few state governments) still understand their role in a democratic society - to support the welfare of all citizens. Until we see a change in attitude from our national government institutions, I'm afraid we're unlikely to see a more balanced and open national broadband policy. The status quo serves the interests and aligns with the world view of our current political and corporate leadership.

Posted on February 27, 2007 at 10:11 AM


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