McCain Prepares to Hand the Internet Over to Comcast, Verizon, AT&T

by: Matt Stoller

Wed Aug 13, 2008 at 16:39


Yesterday, if you listened closely, you could hear the sound of John McCain selling off the internet to his campaign backers, the cable and telecom interests.  After being shocked by a 3-2 vote punishing Comcast for illegal behavior at the FCC, cable interests are freaking out and using every tool at their disposal to reinstitute discipline among wavering Republicans.

The cable and telecom pushback started with former telecom lobbyist and current FCC Commissioner Robert McDowell, who is desperate to become Chairman of the FCC under a McCain administration, launching a salvo against internet freedom, claiming that net neutrality would lead to censorship of the internet and requirements that bloggers and sites like Google offer 'equal time' to different views.  This incoherence was quickly picked up by the Drudge Report, all to be timed with the coming release of McCain's technology policy, which is slated to come out this week or next.  McDowell, who of the five FCC Commissioners is by far the most favorable to cable, did this at the Heritage Foundation.  He even warned his side that there are more dissident conservatives like Kevin Martin getting ready to come out for net neutrality, a clear sign they know they are losing this fight and need to reframe their strategy.

McDowell denounced net neutrality under the guise that it's intertwined with the Fairness Doctrine, which he says Obama will reimpose.  McDowell wouldn't actually explicitly say that  net neutrality and the Fairness Doctrine are the same thing, means, because he knows he'd get laughed out of the room, but he implied it.  Here's his statement.

Matt Stoller :: McCain Prepares to Hand the Internet Over to Comcast, Verizon, AT&T
"Then, whoever is in charge of government is going to determine what is fair, under a so-called 'Fairness Doctrine,' which won't be called that - it'll be called something else," McDowell said. "So, will Web sites, will bloggers have to give equal time or equal space on their Web site to opposing views rather than letting the marketplace of ideas determine that?"

Google is one of the strongest proponents of net neutrality, and there's no way in hell that company would support a policy that placed content regulations on their business.  But who is actually censoring our communications networks?  Verizon, for one, which refused to allow a text message from NARAL to be sent to their members, citing its 'unsavory' and controversial nature.  AT&T, for another, which censored a web-casted Pearl Jam concert when the lead singer shouted out anti-Bush statements.  And Comcast, which not only was caught illegally blocking file sharing by its customers, but has a history of blocking political ads on its cable service that criticize politicians company executives have given money to.

And lo and behold, these are the same companies that are seeking a McCain Presidency, as Amanda Terkel notes in her piece on McCain's tech policy.

The current campaign cycle is also shaping up to be lucrative. U.S. Telecom Association president and CEO Walter B. McCormick Jr., Sprint CEO Daniel R. Hesse, and Verizon chairman and CEO Ivan G. Seidenberg have each raised between $50,000 and $100,000 for McCain's campaign. AT&T executive vice president for federal relations Timothy McKone has raised at least $500,000.

Add to that list the Alison H. McSlarrow and Kyle E. McSlarrow, both of whom work for cable and telecom interests and both of whom have raised more than $50k for McCain.

What's really going on is that this week or next, McCain is going to release his technology policy, and he's looking for cover from business allies, as his policy was written by the telecom lobbyists running his campaign and libertarian Michael Powell, who used his FCC position to garner lucrative business opportunities within the tech and telecom worlds.  McCain will talk - just as Bush did in 2004 when he called for universal broadband by 2007 - about how every American needs broadband, but his plan - just like Bush's - will do nothing to achieve it.  What his plan will do is eviscerate consumer protections on the internet, allowing for censorship by private interests like Comcast, Verizon, and AT&T who have already demonstrated that they have and will engage in censorship of political speech for business and political reasons.

That's what is going on here, and FCC Commissioner Robert McDowell is the point person in the propaganda campaign.  Now, the question is not substantive, it's whether this campaign will work to persuade people that up is down, that black is white.  I don't think it will.  Organized interests understand, and elite actors understand, that Comcast is full of lying scumbags trying to restrict the behavior of their users.  That's why Republican Kevin Martin realized he had to punish Comcast.  And the base of this campaign is solidly pro-net neutrality; the issue is the most important protection for Silicon Valley, a powerful political constituency.

More to the point, the question next year will pivot away from arcane discussions about issues like net neutrality and towards something the public does understand, through an alliance called, appropriately enough, Internet for Everyone.

This is something we're ready to fight on.  Obama isn't going to reimpose the Fairness Doctrine, which is content regulation on talk radio, because he's smart and the Fairness Doctrine is fundamentally about government regulation of a public commons unfairly given over to private actors.  Rather, what Obama will seek is to give the public airwaves back to the public, now that we have the technology to allow anyone to broadcast digital signals without interfering with anyone else, like wifi.  There will be broad fights over media consolidation and ownership structures, universal broadband, and the future of news, mobile phones, the mobile economy, copyright, movies, and the way we communicate and define ourselves.

Obama is firmly with us on most of this.  McCain?  Well he just wants to use this stuff to get campaign contributions, and his allies at Comcast, Verzion, and AT&T want to use it to censor an internet they are intent on controlling.


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I'm sure glad (0.00 / 0)
Somebody made McCain aware of the internet...

blech.

John McCain opposes the GI Bill.


personally, (4.00 / 1)
i'm thrilled that a man who is "aware of the internet" yet doesn't actually use a computer (though he hopes to begin doing so soon) is going to offer his plan for the future of the world wide webs and stuff. i say this as someone who is both aware of all internet traditions and genuinely interested in seeing just how bad his awesome plan will actually be.

those folks at verizon and comcast and the rest have invested heavily in this doofus. let's see what they get for their money.

It's time:the albany project.


A lot of social conservatives don't want corporations controlling the internet, either (0.00 / 0)
If the Obama campaign is smart, they will make a big deal about this. Maybe Obama can get some prominent Republicans and businessmen (I think Bill Gates is on board) who are for net neutrality?



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Sorry, didn't finish my thought (0.00 / 0)
I meant to say:
Maybe Obama can get some prominent Republicans and businessmen (I think Bill Gates is on board) who are for net neutrality appearing with him in campaign ads.

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[ Parent ]
The Left (And a lot of the Right).... (0.00 / 0)
...are hopelessly wrong on this issue.

So-called "net neutrality" would be the worst possible outcome. Why? Because it creates government involvement in the internet.  There's nothing good at all that can come from that. And the possibilities for bad are endless, big brother, freedom of speech issues, slower advance of internet technologies such as higher broadband speeds, etc.

Matt, this is one issue where McCain is correct, albeit accidentally, and for many of the wrong reasons.


Re: Government and the Internet (4.00 / 1)
Did not the government create the internet to begin with?  Seems like if the telecom industry had their way all those bad possibilities you listed would happen just the same.

[ Parent ]
Exactly! (0.00 / 0)
Right on brainfreeze!

[ Parent ]
You have no idea.... (0.00 / 0)
...what you are talking about.

Bits are bits.  It shouldn't matter what they are.  You shouldn't be charged any differently.  Whether you are downloading a music video, a school paper on particle acceleration, a computer program or porn...data is data.

Prohibit government involvement in the internet? Uh, dude, how do you think it got started?  There was a lot of government involvement.  Big Brother, freedom of speech issues. slower advance of technologies....all are still problems with big corporations controlling access. We have them now.  It will only get worse without net neutrality.   The idea that Republicans are some how in favor of less government is false.  It's bigger now under W than it has ever been.  Clinton made more cuts in one term than all of W's 8 years. If the internet providers control everything, who do they answer to?  You and me?  No - their stock holders.  Their bottom line is money, not equality.

Besides, net neutrality doesn't mean government involvement.  It just means data is data.  You cannot limit the flow of different kinds of data.  You can't have one price for one type and another price for another type.  That is wrong.  Sure you can charge by the bit, but that is not limiting or controlling it due to content.

Net neutrality is key to the survival of the "free" internet.  It does not mean government control.  In fact, it's very hands-off - but for everyone - including ISPs.  You may not restrict the flow of data by it's content.  That is net neutrality.

McCain and you have no concept of net neutrality.  McCain is the least qualified person to be the next president.


[ Parent ]
Right on! (4.00 / 1)
What the OpenLeft crowd doesn't realize (and I'm with them on most issues, but work daily with small ISPs so I know the industry's guts from the inside) is that you simply cannot regulate the Internet and expect it to work.  The whole reason that it got to where it did is because it was treated, legally, as an unregulated computing service.  The servers literally dragged the access along with it.  So McDowell (who's not a bad guy like Martin; he's a business-type Republican but not from the wingnut branch) is technically right; if what we now call "Internet" is regulated, then the servers are too.  Obviously that's a reducto-ad-absurdum point, but it's valid.

The correct answer is SO MUCH SIMPLER.  The Internet worked very well during the Clinton years because there was a clear separation of content and carriage.  The FCC's Computer II and Computer III rules were still in effect (they were lifted in 2005, which immediately lit the "neutrality" fires).  Under those rules, the entire Internet was treated as content, but the telephone company lines were common carriage.  So anyone could create an ISP and use phone company DSL to sell it.  And many did -- thousands of independent ISPs sprung up in the 1990s.  Mike Powell and Kevin Martin put most of them out of business, though some valiantly hang on.

The fix is simple.  Undo the FCC's revocation of Computer II.  Require incumbent LECs to permit any ISP on any of their networks, including fiber to the home.  Under Computer II, telco-owned ISPs had to purchase the raw telecom service (DSL, for instance, or even dial-up phone lines) from their parent companies on the same terms that independent providers did.  So if Verizon Online uses Verizon-telco wire (glass or copper), they have to buy it from the same tariff that any other ISP can buy from.  Then the ISP has a true market incentive to decide what should be carried and what should be limited or blocked (spam, or whatever it decides costs too much to carry for the price plan) or charged extra for.  

This was the rule before 2001.  It worked.  The Bells made a deal with the FCC, perform illegal wiretaps in exchange for revoking those rules.  That damage must be undone.  But direct content regulation is a simple, and wrong, answer to a complex question.


[ Parent ]
Yup! (0.00 / 0)
> The fix is simple.  Undo the FCC's revocation of Computer II.  
> Require incumbent LECs to permit any ISP on any of their
> networks, including fiber to the home.

Fiber to the home should be practically mandatory and on the cableco and telecos dime.  We (the US govt.) already gave them tons of money to do this and they completely aborted their job to bring true high speed to the home.  Not only should they go back to the way it was, they should break up the cablecos and telcos AGAIN!!! Let's see some REAL competition!

I'm with 'ya fgoldstein !!


[ Parent ]
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