Dev.SN

Angry Jesus writes:

Ezra Klein of Vox.com interviews Susan Crawford about treating the internet as a utility. Crawford is the author of Captive Audience: The Telecom Industry & Monopoly Power in the New Gilded Age. Former Special Assistant to president Obama on Science, Technology and Innovation Policy, she may well be the Telecomm Lobby's enemy #1.

From the interview:

We need a public option for internet access because internet access is just like electricity or a road grid. This is something that the private market doesn't provide left to its own devices. What they'll do is systematically provide extraordinarily expensive services for the richest people in America, leave out a huge percentage of the population and, in general, try to make their own profits at the expense of social good.

When it comes to fiber penetration - that's the world class kind of network we should have - we're behind Sweden, Estonia, Korea, Hong Kong, Japan. A whole host of other developed countries. We should be looking the rest of the world in the rearview mirror. Instead, for more than 77% of Americans, their only choice for a high capacity connection is their local cable monopoly. So just as we have a postal service that's a public option for communications in the form of mail, we also need public options in every city for very high-capacity, very high-speed fiber internet access. That way we'll make sure and we can compete with every other nation in the 21st century.

What happens is that we deregulated this entire sector about 10 years ago and the cable guys already had exclusive franchises across across the country. They were able to very inexpensively upgrade those to pretty high-speed internet access connections. Meanwhile the telephone companies have totally withdrawn. They have copper line in the ground and it's expensive for them to build and replace it with fiber. Because of both deregulation and sweeping consolidation in the cable industry we've ended up on this plateau where for about 80% of Americans their only choice for a high-capacity internet access connection is their local cable monopoly.

In a sense I'm trying to have it both ways. This is by nature a monopoly. It really makes sense to have one wire going to your house. The problem is we've gotten stuck with the wrong wire. We've got a cable wire and it should be fiber and it should be then shared by lots of competitors. That's what drives prices down. If you hand the one company the ability to control that market they'll just reap their rewards and price discriminate and make lots of profits.