President Obama Putting Net Neutrality At Risk?

by: Chris Bowers

Fri May 01, 2009 at 16:26


( - promoted by Chris Bowers)

There is a disturbing possibility that President Obama has put his excellent open media and network neutrality platform at risk with his latest--and last--Democratic FCC appointment, Mignon Clyburn.

There are five seats in the FCC, and "only three commissioners may be members of the same political party." For the next five years, the FCC will have a 3-2 Democratic majority, once the remaining Republican open seat has been filled. That makes this appointment by President Obama the key swing vote that will largely determine FCC policy and regulation over the next five years.

The reason Mignon Clyburn is such a worrying pick is that she is the daughter of South Carolina Representative James Clyburn, who has an anti-Net Neutrality record:

In 2006, Representative Clyburn voted against H. Amdt. 987 to ensure that network neutrality clauses be added to the Title VII of the Communication Act of 1934. The amendment required all broadband service provides to "operate its broadband network in a nondiscriminatory manner so that any person can offer or provide content, applications, and services through, or over, such broadband network with equivalent or better capability than the provider extends to itself or affiliated parties, and without the imposition of a charge for such nondiscriminatory network operation."

While Mignon might not have the same views as her father, what we do know about her ranges from unclear to unpromising:

Here's what we do know.  Clyburn serves on the South Carolina public service commission (which is considered very pro-Bell).  She is virtually unknown by knowledgeable telecom people.  And, she seems to have focused more on energy issues than telecom, if early accounts are to be believed.  Plus, Verizon and the cable trade association are very happy.  All in all, not good.

And check out this creepy comment that appeared below the Washington Post story on Clyburn's appointment:

At Sprint Nextel, we believe that Mignon Clyburn would bring experience, deep policy understanding and the perspective of a state utility commissioner to the FCC. We have worked with her in South Carolina where she has served on that state's Public Service Commission and we look forward to working with her again on any number of issues including restoring competition to the failed special access markets that are stifling broadband deployment in our country.

John Taylor
Public Affairs
Sprint Nextel Corp.

Feel reassured about the new deciding FCC vote on net neutrality and open media yet? This is a dangerous and risky appointment by President Obama that will need extensive clarification in the coming days and weeks leading up to her confirmation hearing. It seems possible that more information will be revealed that will demand a withdrawal of the appointment.

Media is one of the five most dominant ideological institutions in our country (work, school, worship, and family / demography being the other four). Also, the rise of self-publishing and social networking options created by the network netural Internet has created a cultural explosion that is both unparalleled in human history and helped turn the country in a largely progressive. This may sometimes seem like a wonky boutique issue, but over the long-term it is as essential to the progressive movement, and indeed an improved world, as any other area of policy.

Chris Bowers :: President Obama Putting Net Neutrality At Risk?

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To most of the public though it won't be obama's fault ... (4.00 / 2)
... becoz he just appoints these people.  Just like it's not obama's fault that his economic team has completely whored itself out to wall street.  and it is not obama's fault that his chief of staff is the most decietful democrat in dc and hence the blue dogs still shit all over our lawn.  and it's not obama's fault that his attorney general thus far has not done anything about the bush administration's lawlessness except to cover it up or endorse their tactics of concealment.  

to some folks it's never obama's fault which is part of the reason why these things keep happening and these sort of people rise to power within his administration while progressives in congress can't even get him to return their calls.  Next it won't be obama's fault when he appoints the wall street shill summers that has been wrong about just about every goddamn thing about the economy ... or else he's lied ... including derivatives, deregulation, free trade, the housing bubble, the tarp bailout, etc., etc., etc. to be the head money machine operator at the fed.

Z


as far as pressuring him not to appoint her ... (4.00 / 2)
.. if the secretary of treasury, who also heads the irs, doesn't lose his nomination when he lied on his income taxes then what exactly can take this woman down?  it'll be just like geithner in that if the republicans don't create a ruckus becoz the nominee serves big business interests, then who exactly is going to kiabosh her nomination?  

You could point to rizzo but I've alwasy felt that the notion that netroots took him down was always an internet legend.

Z


[ Parent ]
Daddy (4.00 / 4)
Jim Clyburn is the de facto boss of the South Carolina Democratic Party.  Obama's smashing win there, particularly among African Americans,was with Iowa his key win.  He owes Clyburn perhaps more than any other politician in the country.  Sure, maybe he could have paid back in another way but he already offered Clyburn a cabinet spot and got turned down.  This offer to Mignon Clyburn was the obvious next spot because of her role in South Carolina on the Public Service Commission.  Too bad she wasn't handed FERC.

Critical to the continued existence of democracy (4.00 / 4)
Knowing Obama's neo-liberal credentials, I've long doubted his commitment to net neutrality. Destroying neutrality is crucial to privatizing the public commons and the web is the commons writ large and neo-liberalism is committed to destroying the commons.

This should be an issue where a very broad coalition should be possible across several ideological lines. All but the authoritarian ones, anyway.

If she's really that compromised, this really needs to be broadcasted.

When plunder becomes a way of life for a group of men living together in society, they create for themselves in the course of time a legal system that authorizes it and a moral code that glorifies it.

-- Frederic Bastiat, "The Law", 1850


Sprint Nextel's position (0.00 / 0)
Chris --

I'm surprised to see you quote my comment on behalf of Sprint in your blog post about net neutrality, because my comment in the Post story doesn't mention net neutrality -- I specifically mentioned Sprint's position on Special Access, a topic which has nothing to do with Net Neutrality.

Here's a background story from Ars Technica which explains the Special Access issue for those unfamiliar with the topic.  

http://arstechnica.com/tech-po...

This fight, which Sprint has been waging at the FCC for over 7 years, pits us, other wireless companies and CLECs, business groups & consumer groups against the nation's landline phone companies -- chiefly AT&T and Verizon.

Currently the two companies control over 80% of the wireless backhaul market and they charge Sprint, T-Mobile and their enterprise purchasers monopoly rates for the special access circuits we buy from them. For example, AT&T's rate of return on these circuits was approximately 138% over their cost according to recent estimates.

Consumers feel the impact of these outrageous rates every time they surf the Internet, send an email, use their ATM or credit card, or make a wireless phone call, because these voice and data transmissions travel over special access circuits. (At Sprint, we'd much rather invest capital in offering you Sprint 4G, but we're forced to spend a fortune to buy these circuits from our two biggest competitors. The cost we pay is significant -- approximately 1/3 of our annual operating costs for every cell tower in our network goes to pay for these circuits.)

Sprint is asking the FCC to take steps necessary to fix this broken market. If the FCC acts, one recent study estimated that 132,000 jobs would be created and $14.5 billion dollars would be pumped into the economy. (That's because currently the landline phone companies overcharge approximately $23 million EVERY DAY for these circuits.)

I'd welcome the opportunity to discuss this issue with you or your other readers. Shoot me an email at john.b.taylor@sprint.com.

As for our reaction to President Obama's nomination of Ms. Clyburn, observers who are more familiar with Sprint Nextel's public policy positions and our advocacy would not be surprised to see Sprint express an interest to work with any FCC commissioner on the issue of special access reform.

We will be discussing special access in testimony before the Communications Subcommittee of House Energy & Commerce in a hearing later this week.

Perhaps I will see you or some of your readers there.

Sincerely,

John Taylor
Public Affairs
Sprint Nextel Corp.


Worst Commission in the country (0.00 / 0)
Clyburn's record is suspect because she has served on, and for a time chaired, the public utilities commission with the very worst anti-competition record in the country. And that's a tough contest, given how regulatory capture has the Bells calling the shots in many states.

On a scale of 1 to 10, where 1 is pro-competition and 10 is anti-competition, the South Carolina PUC scores about a 27.

The SC PUC led the country in declaring that "virtual NXX", the use of foreign-exchange numbers by ISPs, was not allowed.  (A lot of people still depend on dial-up, and this ruling was during the dial-up peak a decade ago.)  So if you're in a small town not local to the big city where the ISP modem banks are, you can't make a local call to your choice of ISP.  In most (not all) other states, ISPs create numbers that are local to their modems.  SC banned this, so in many cases the only dial-up ISP is the local phone company's captive one.  (BellSouth made some allowances in their territories, I think, but much of the state has other telcos who were much less forgiving.)  Or else an ISP has to go sticking modem banks in the basements of drugstores, etc., which gets tired fast.

You see statements of support coming from industry players who will have to work with her, but they're not necessarily sincere.  It's a political necessity to play nice.  Sprint has a huge problem with Special Access (aka the Middle Mile, bane of rural ISPs everywhere and the biggest reason why "neutrality" as you guys tend to advocate is literally a death sentence to rural ISPs) and hopes that she'll take a saner view of it than the old FCC did.  But they also provide wholesale dial tone to VoIP and cable providers.  (TW Cable's New York City telephone operations go through Sprint's local CLEC network.)  Clyburn's Commission refused to allow that, claiming that CLECs could not sell "wholesale" to VoIP and cable companies.  Kevin Martin's FCC, horribly anti-competitive, overturned that in 2007 as an obvious violation of rule and precedent.  

I think Obama had to make this appointment as part of a deal with Clyburn, but it should not go unchallenged once it comes up for confirmation.  At very least, bringing up the problems in her record might force her to shift some positions.

And please, don't argue about this orthodox "neutrality" crap.  Neutrality is an effect of having competition for ISPs, something that the FCC can restore easily, and should.  That's what we need Clyburn to do.  Trying to regulate all ISPs to be "neutral" is like a health care plan that simply outlaws getting sick.  It can't work.  You'll note that nobody in Europe talks about "neutrality", but all EU countries allow ISPs to use the telco wires, a right taken away by the Cheney-Rove FCC.  Hence neutrality must exist below the ISP, as common carriage, and ISPs should be allowed to function as the digital era equivalent of publishers.


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