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KATHY GILL

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Trust Us, We're Corporations

Thu Aug 5, 2010 3:53 AM EDT
technology, google, verizon, fcc, net-neutrality, fubar
By Kathy Gill
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That's the message underlying the news that Verizon and Google have reached their own "self regulation" -- an agreement that violates the spirit, and perhaps the letter, of net neutrality.

Net neutrality is, for the internet, akin to what happens on telephone networks: AT&T can't treat an incoming call from Verizon any differently than it treats one from its own subscriber. With net neutrality, the anti-discrimination ethic has been focused on bits. In other words, the carriers -- the infrastructure owners -- should not be able to block, slow down or speed up the bits based on their points of origin or destination.

This is also how the electric grid works:

A useful way to understand this principle is to look at other networks, like the electric grid, which are implicitly built on a neutrality theory... The electric grid does not care if you plug in a toaster, an iron, or a computer... The electric grid worked for the radios of the 1930s [and] works for the flat screen TVs of the 2000s. For that reason the electric grid is a model of a neutral, innovation-driving network.

This concept of neutrality is an old one, dating to the Roman Empire and early English common law. "Common" in those days was akin to being "open to the public;" common law applied to innkeepers, shipowners, ferrymen, surgeons and the like.

By common law, common carriers were 1) required to serve upon reasonable demand, any and all who sought out their services; 2) held to a high standard of care for the property entrusted to them; and 3) limited to incidental damages for breach of duty.

Flash forward to the 20th century. The U.S. Supreme Court ruled that a telegraph company is a common carrier. As such, it could not discriminate: it had to offer its services to its competitors. It is that discriminatory principle that is threatened by the Google/Verizon agreement as leaked to the press.

To make this marriage of convenience seem like an even worse idea, it comes as the FCC seeks to develop a policy on net neutrality. You see, Congress has ducked its responsibility to the consumer by repeatedly refusing to take up the issue of net neutrality. On the other hand, Congress was quite willing to act on the intellectual property concerns of Hollywood and the RIAA.

At least nine times in the last seven weeks — including Wednesday, with another meeting scheduled for Thursday — a group that includes Google, Verizon, AT&T, Skype, cable system operators and a group called the Open Internet Coalition has met with top F.C.C. officials to discuss net neutrality and the agency's legal basis for regulating Internet service.

Cable and telephone companies want free rein to sell specialized services like "paid prioritization," which would speed some content to users more quickly for a fee. Wireless companies, meanwhile, want no restrictions on wireless broadband, which they see as a different technology than Internet service over wires.

Many content providers — like Amazon, eBay and Skype — prefer no favoritism on the Internet or they want to be sure that if a pay system exists, all content providers have the opportunity to pay for faster service.

The back rooms and halls of the FCC are not where these discussions should be taking place. They need to see the light of day. Haven't recent events (Wall Street's CDOs, unscrupulous mortgage bankers, BP) shown us that blind trust in mega-corporations is a misplaced act of faith?

Google has more than one reason to be talking to Verizon: there's both YouTube and Android. It's important to remember that Google's tentacles have a long reach. Will a deal like this tarnish Google's "do no evil" pledge?

Should Google be able to buy a faster delivery for its YouTube content? What does that potentially mean for YouTube's competitors, from Blip.tv to Brightcove? What does it mean for the mobile phone market? Is subsidizing YouTube and Android with revenue from search any different from Microsoft subsidizing its xBox and internet efforts with revenues from its Windows operating system monopoly?

In the case of net neutrality, I'm skeptical that the Verizon/Google marriage is good for anyone other than the two parties. How bad it is for everyone else has yet to be determined. Trust Verizon to "not harm consumers"? Not a chance.

The old joke used to be, "I'm from the government and I'm here to help you." Today it's, "Trust us, we're corporations; what's good for our bottom line is good for yours, too!"

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  • Public Discussion (28)
Kathy Gill

This first appeared at TheModerateVoice. I've been writing about net neutrality for a Long Time.

  • 7 votes
Reply#1 - Thu Aug 5, 2010 3:54 AM EDT
1623 yankee

Trust Us, We're Corporations

NOT, NOT, NOT!!!!!!!!!!!!!

  • 4 votes
Reply#2 - Thu Aug 5, 2010 4:53 AM EDT
Luther28

We have witnessed the result of self regulation by Corporate America, it has left our Country in ruins. Until the interests of the population are placed before those of the special interests and corporations our demise will continue. Our employment market, economy and government are the net result of forty years of trust in corporations.

  • 7 votes
Reply#3 - Thu Aug 5, 2010 7:02 AM EDT
Sick'N'Tired'Of'It

Exactly.

Yes, I trust them.

I trust them to trash the economy of my country and place millions into starvation and homelessness in order to better their bottom line.

I trust them to refuse much needed medical treatment to the sick after they have taken their money on the promise of giving them medical treatment.

I trust them to ship all of our jobs overseas because it's cheaper for them while still getting tax breaks for "providing jobs."

I trust them to buy off our politicians so that we are the ones that pay when they screw up- while they give out multimillion dollar bonuses to themselves.

I trust them to get people killed and screw up the environment because they couldn't "afford" to be required to make sure that they were drilling with even a modicum of safety in mind.

Oh yeah, I trust them.

  • 3 votes
#3.1 - Fri Aug 6, 2010 1:04 PM EDT
Reply
Remote Viewer

Excellent article, Kathy. thanks! It makes the issues very clear. We should all know better than to trust the corporations. Profit is their only motive, and the consequences be damned. Far greater transparency is needed here, and much more vigilance.

  • 7 votes
Reply#4 - Thu Aug 5, 2010 7:02 AM EDT
krishna-167929

Excellent article, Kathy. thanks! It makes the issues very clear. We should all know better than to trust the corporations. Profit is their only motive, and the consequences be damned. Far greater transparency is needed here, and much more vigilance.

Exactly!

  • 4 votes
#4.1 - Thu Aug 5, 2010 3:04 PM EDT
Reply
Wizeguy

In the case of net neutrality, I'm skeptical that the Verizon/Google marriage is good for anyone other than the two parties.

I'm waiting for the BIG GOVERNMENT blasters to come after this article.

Haven't recent events (Wall Street's CDOs, unscrupulous mortgage bankers, BP) shown us that blind trust in mega-corporations is a misplaced act of faith?

Business has already proved that they can't be trusted to regulate themselves. From what I have read about this is the lobbying is fierce. Genachowski and the FCC need to stand up to the coporate bullies.

  • 3 votes
Reply#5 - Thu Aug 5, 2010 7:58 AM EDT
Kathy Gill

Thanks very much, folks. Here's hoping that some techies chime in -- there is quite a technical endorsement of my concerns over at TMV.

  • 2 votes
Reply#6 - Thu Aug 5, 2010 2:13 PM EDT
Kathy Gill

This morning, Verizon asserts that the NYTimes article is wrong but says not a word about the Bloomberg, WashingtonPost or Politico stories, which were the basis for my response.

Google’s Eric Schmidt “declined to confirm” the Verizon deal yesterday, but it also sounds as though he did not deny it:

“We’re trying to find solutions that bridge between sort of the ‘hard-core Net neutrality or else’ view and the historic telecom view of no such agreement,” Schmidt told reporters on the sidelines of the Techonomy conference…”

And what, exactly, does “hard-core Net neutrality” mean? In 2006, Schmidt wrote:

Today the Internet is an information highway where anybody – no matter how large or small, how traditional or unconventional – has equal access. But the phone and cable monopolies, who control almost all Internet access, want the power to choose who gets access to high-speed lanes and whose content gets seen first and fastest. They want to build a two-tiered system and block the on-ramps for those who can’t pay.

But the leaked agreement describes a two-tiered system based on payment.

  • 1 vote
Reply#7 - Thu Aug 5, 2010 3:39 PM EDT
Kathy Gill

Although Schmidt did not deny the reports yesterday, Google Public Affairs is denying them today on Twitter:

@NYTimes is wrong. We've not had any convos with VZN about paying for carriage of our traffic. We remain committed to an open internet.

    Reply#8 - Thu Aug 5, 2010 3:41 PM EDT
    One Miscreant

    The back rooms and halls of the FCC are not where these discussions should be taking place. They need to see the light of day.

    I'm starting to have flashbacks to "Ma Bell". She was broken, then rose out of the ashes, as these companies? I wish someone would go after Comcast....

    *twitch, twitch*

    BTW-your article is well done and it drags them into the light, IMO.

    • 4 votes
    Reply#9 - Thu Aug 5, 2010 9:15 PM EDT
    Kathy Gill

    Thank you! I think your flashbacks to "Ma Bell" -- particularly early in the 20th century -- are warranted.

    • 3 votes
    #9.1 - Fri Aug 6, 2010 5:27 PM EDT
    One Miscreant

    FCC Halts Broadband Discussions Amid Google, Verizon Uproar

    The Federal Communications Commission on Aug. 5 broke off broadband policy discussions with Google, Verizon, Skype and AT&T, citing too much disagreement.

    "We have called off this round of stakeholder discussions," said FCC Chief of Staff Edward Lazarus. "It has been productive on several fronts, but has not generated a robust framework to preserve the openness and freedom of the Internet—one that drives innovation, investment, free speech and consumer choice."

    The headline leads you to believe that these talks were called off because of "an uproar". And one is left to believe that this upraor was outside this backroom negotiation.

    When really it's about the lack of agreement between them all.

    Lazarus also said all options remain on the table.

    This is a negotiation term. They will be back at it.

    • 3 votes
    #9.2 - Fri Aug 6, 2010 7:36 PM EDT
    Reply
    fghfgDeleted
    bore-head007

    Corporations are NOT socially responsible.

    • 3 votes
    Reply#11 - Thu Aug 5, 2010 11:26 PM EDT
    Kathy Gill

    Some corporations are not socially responsible.

    Some are.

    Just like some people are power-hungry and greedy and some people aren't. The psychological make-up of a corporation will reflect the psychological make-up of its leaders. That said, I have a friend who argues that the nature of corporate structure means that corporations are designed to be sociopathic in behavior.

    • 3 votes
    #11.1 - Fri Aug 6, 2010 5:28 PM EDT
    bore-head007

    That's a hell of a design plan!I can't think of too many corporations that are socially responsible these days, and if you can name some I would like to use them as examples of being just that!

    I think you may have to dredge pretty deep though,Kathy, cause off of the top of my head I can't think any. There was a time,though.

    • 2 votes
    #11.2 - Fri Aug 6, 2010 6:18 PM EDT
    Rick-525236

    Kathy - I like that "corporations designed to be sociopathic" - I can't find any flaws with that logic.

    • 2 votes
    #11.3 - Fri Aug 6, 2010 7:40 PM EDT
    krishna-167929

    I like that "corporations designed to be sociopathic" - I can't find any flaws with that logic.

    If you could (if you had that power)-- what would you replace them with?

    • 2 votes
    #11.4 - Fri Aug 6, 2010 7:57 PM EDT
    Rick-525236

    I can not think of anything else that could adequately perform the function of corporations. I do not believe that the key is to replace them; but instead to create an environment that is conducive to more social responsibility with a lessening of the importance of the concept of profit maximization.

    • 3 votes
    #11.5 - Fri Aug 6, 2010 10:32 PM EDT
    Kathy Gill

    It is the absence of responsibility -- the fact that corporations exist to minimize risk to individuals -- that my friend sees as the problem. With no realistic countervailing power to check greed, what we have is an entity without a conscience. The only "penalty" for egregiously bad behavior is monetary -- and those funds come from an insurance account.

    If we have to have mega-sized business organizations, I'd rather that they be public that private. But today, stockholders have no realistic check on the board/management. And there is a nepotism in board/management circles. See theyrule.net.

    • 3 votes
    #11.6 - Sun Aug 8, 2010 9:01 PM EDT
    Reply
    huanghuijieDeleted
    krishna-167929

    I can't think of too many corporations that are socially responsible these days,

    How many corporations do you know of ..total-- where you actually know if they are socially responsible or not? Where you actually know their policies?

    How many corporations are there ...in the U.S. alone?. Do you really know much about this topic-- or are you guessing?

    I don't claim to know much about it. Every so often we see headlines about those that aren't -- and then many people generalize that they all aren't--or that most aren't. And that's a phenomenon that often seems to get exxagerated on the Internet-- over-generalization.

    I myself know little about the topic.

    So I googled it-- here's one of the first things I got: 5 of the most socially responsible corporations-- so it would be inaccurate to say there are none.

    Are there others? Probably.

    What percentage are not socially responsible? I don't know-- my guess is the majority aren't. But remember-- just because you can't think of any doesn't mean that none exist.!

    • 2 votes
    Reply#13 - Fri Aug 6, 2010 7:19 PM EDT
    krishna-167929

    A while back I came across this and seeded it-- an example of a person who made a fortune (literally!) from a corporation he created-- and is doing a lot of good in the world. i don't know about other peoeple here-- but he's doing more for the planet than I have!

    Inside the Bill and Melinda Gates Foundation

    Precise effects of big charity projects can be hard to measure, especially over a relatively short period. But already two bodies that the foundation funds heavily, the Global Alliance for Vaccines and Immunisation (Gavi) and the Global Fund to Fight HIV/Aids, Tuberculosis and Malaria, have, according to the foundation, delivered vaccines to more than 250 million children in poor countries and prevented more than an estimated five million deaths.

    • 2 votes
    #13.1 - Fri Aug 6, 2010 7:23 PM EDT
    bore-head007

    krishna, All I know is what ive been seeing on the vine, and living through the wreckage of the American economy for over two years now, and I have learned much. I would guess my comment does seem to generalize, actually.

    And that, of all picks was the, I'd bet, top pick.

    He is not your run of the mill, Captain of Industry.

    • 3 votes
    #13.2 - Fri Aug 6, 2010 8:37 PM EDT
    krishna-167929

    krishna, All I know is what ive been seeing on the vine, and living through the wreckage of the American economy for over two years now, and I have learned much. I would guess my comment does seem to generalize, actually.

    And that, of all picks was the, I'd bet, top pick.

    He is not your run of the mill, Captain of Industry.

    Sorry-- I owe you an apology-- I really was too critical. i guess i am just tired of all the over generalization I see in NV discussions.

    And I think you are right-- probably the vast majority of corporations are rather greedy and not socially responsible at all. Unfortunately Gates, Warren Buffet, and a few others aren't typical-- they are the exception not the rule.

    • 2 votes
    #13.3 - Fri Aug 6, 2010 8:48 PM EDT
    bore-head007

    Yeah, I read ya! See what I mean though, about socially responsible? These exceptional people have created , and they don't forget the little people that they live amongst. Their generosity is impeccable.

    • 2 votes
    #13.4 - Fri Aug 6, 2010 8:58 PM EDT
    Kathy Gill

    Krishna -- Gates made his money the old fashioned way -- by having a monopoly which he developed through hook and crook (read a bit of history to see who actually wrote the first version of Windows software -- learn about vaporware, which helped thwart competition -- learn about those "warnings" that software just might not be compatible to create FUD around interoperability). Look at the perma-temp class action settlement for how Microsoft got around paying benefits (including stock) to thousands of employees during the heyday, when the stock was actually /worth/ something. (Disclaimer: I have friends on both sides of that stock equation.)

    Paul Allen has done more for Seattle and Portland and maybe for the University of Washington (which gave them their start).

    Yes, it's good that Gates and Allen is "giving back" but we can't ignore how Microsoft actually got that money to begin with.

    AFA Warren Buffet is concerned -- there seems to be no one quite like him in the titans of industry category. He is serious old-school.

    • 3 votes
    #13.5 - Sun Aug 8, 2010 9:04 PM EDT
    krishna-167929

    Yes, it's good that Gates and Allen is "giving back" but we can't ignore how Microsoft actually got that money to begin with.

    Good point-- there are two parts to the story-- how he made his money (not so nice, actually)-- and what he did later.

    Buffet does seem to be "in a class by himself'-- a truly unusual person.

    • 1 vote
    #13.6 - Mon Aug 9, 2010 9:11 PM EDT
    Reply
    ghgfjDeleted
    ghgfjDeleted
    Dog_Blue

    Here is a silly question, why would you trust any business beyond deliverying a goods or service that a customer has a reasonable expectation of performance from?

      Reply#16 - Sun Aug 8, 2010 12:00 PM EDT
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