The Jeff Pulver Blog: Shift Happened: How Might a Democrat-Controlled Congress Affect Media, Internet, Communications and Entertainment?

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November 09, 2006

Shift Happened: How Might a Democrat-Controlled Congress Affect Media, Internet, Communications and Entertainment?

So, I feel a little like Rip Van Winkle. I leave America one day in late October and return early November to the dawning of a new political era. Although I was only out of America for two weeks, the beginning of an epic change in the way in which government views and governs the Internet and communications may have occurred in my absence.

I must confess a little delinquency on the policy front the last few months. Frankly, I have been so monomaniacally focused on Internet video and my international ventures, that I have not kept close tabs on Beltway politics, particularly as it relates to VoIP regulation. To some extent, I had given up on America and the prospect that it would develop a regulatory framework that might enable Internet entrepreneurs. In my mind, other countries have been supplanting the US as the havens for Internet innovation. The midterm election, however, has reminded me that, in a democracy, there is always room for a rethink, a do-over, an opportunity for a dramatic policy shift when the national consciousness wakes up and recognizes that its policies might be leading the nation down a backward-heading path. Admittedly, it is like changing the course of a massive ocean liner, but it is doable if we have the courage of our conviction and the will to participate and engage government. Could we use the shifting balance of power as a vehicle to change the trajectory of Internet and communications policy in America? At a minimum, we should stop to think about the policy implications of the change in the balance of power on voice and VoIP, in particular, and on all media, Internet, communications and entertainment (MICE) applications, services and technologies, more broadly.

The shifting of the balance of power from Republicans to Democrats on Capitol Hill will likely have dramatic consequences on US foreign military/diplomatic policy and on domestic social policy. We will see no end of pundits speak to the dramatic and subtle effects of the power shift. So far, however, I haven't seen too much about the effects of the power shift on the evolving media, Internet, communications and entertainment industry.

Perhaps the responsibility falls to us -- the emerging entrepreneurs, innovators, and potential thought-leaders in this community -- to figure out what the shifting political makeup means to the ever-morphing world of the Internet, communications, media, and entertainment.

I know most of us are pretty green in political and lobbying circles, but as Congress, regulators, and governments around the globe place their critical gaze on us as we revolutionize the ways in which the Internet is used to deliver communications and entertainment, we had better start to care and engage and be proactive with government. For these reason, I ask for your thoughts on what the election results might mean for our community, and what we might do to anticipate and engage legislators and policymakers in the most effective manner possible. My first thought is that folks join the VON Coalition, which has been fight for the rights of voice application providers for 10 years, and is now well-positioned to take its knowledge and extend it to video and other Internet-delivered applications, content and services.

My first relatively obvious observation is that the shift in power tips the balance to the Net Neutrality forces and puts the Bells on the defensive for the first time since passage of the "96 Telecom Act" as they continue their efforts to obtain video franchising relief. Perhaps this means there is a potential compromise in the works - video franchising relief for a more meaningful iteration of Net Neutrality?

But is it all good news for the Internet voice/video/media/entertainment disruptors? I know, given the vast resources devoted on all sides of the debate to Net Neutrality, one might conclude that Net Neutrality is the only issue that matters, but it is not. While the Internet application providers and users might win on the Net Neutrality front, I harbor no great expectations that the Democrats will be any less paternalistic than their Republican corollaries on the social issues affecting the Internet and communications, particularly the inertia pushing traditional emergency response, lawful intercept, and now indecency statutes and regulations on Internet applications, without any serious regard for the deleterious effects on innovation and progress.

Bottom line, however, is that I no longer expect Congress to pass any significant, Internet-affecting, legislation this year. I, however, do expect that the FCC might try to fill the breach and try, itself, to move on video franchising reform, universal service contribution methodology and access charge reform, and continuing down the path of imposing traditional telecom- and broadcast-like regulation on Internet applications, while further deregulating the transmission media. I also expect that many of the battles might move back to the states as Congress becomes less fertile turf for the traditional carriers.

But, how much time does this FCC have before a Democrat-controlled Congress gets increasingly critical of the current FCC and its recent efforts at media consolidation, Bell and cable and other access provider deregulatory efforts and Internet regulatory efforts? I suspect that the festering conflicts will boil and erupt between the now-Democrat-controlled Congress and the Republican FCC. There will be a reckoning, and I expect Mr. Martin will be called to the Hill to answer a few questions. Report has it that soon-to-be- Chairman Dingell has already suggested that the AT&T/BS merger application slow down, while folks consider the antitrust implications a little more thoroughly before the rush to judgment.

And, Ed Markey as Chairman of the Telecom and Internet Subcommittee. It is no secret how instrumental Mr. Markey has been in holding the line and defending the Internet and communications innovators and enthusiasts.

I also want to point to one small victory for the forces of Internet communications. Probably not on too many people's radar, Gil Gutknecht, the Minnesota Representative who proposed applying access charges, universal service and state rules to VoIP without any consideration of the consequences on innovation or technological progress, was defeated. While other issues were in play in that race, I nonetheless understand that innovative VoIP tools were used to help unseat him. I'd like to think that the Internet communications industry played some recognizable role in his defeat and that there should be a lesson learned that this emerging industry is becoming a force with which to be reckoned.

Tags: Net Neutrality, FCC, VoIP, Jeff Pulver

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Posted by jeff on November 9, 2006 01:12 AM | Permalink

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Posted by: 升降机 at July 14, 2008 05:53 AM

The only way to have Net Neutrality without gobs of regulation is to cleanly seperate Content from Transport.

If BellCableCo don't want to be in the Pipe business then we should use the government to horizontally divest BellCableCo into a regulated Transport Monopoly and unregulated Content businesses.

Or if that is unpalitable, then active government support (financial and protective regulations) for Municipal Fiber (Layer 1 Transport only)

Then there is no longer an incentive to bottleneck the last mile and there can be open markets for content. Layer 1 Transport is mainly a right-of-way, "men in trucks" physicla plant problem and funding can be handled the same way that roads and sewers are handled. Conduit and fiber have depreciation lifetimes of 10's of years and so fit into Municipal bonds and technological capabilities of municipalities.

Posted by: Robert J. Berger at November 10, 2006 12:43 PM

Let's hope things get better in DC. The Republicans were supposed to be pro-business...unfortunately that meant pro-BIG-business with Big Oil and Old World Telcos as the biggest of the big, with very little understanding of competition or innovative technologies. Let's hope clear heads prevail at the FCC and the USF funding methodology is not changed on a knee-jerk reaction to "make it simpler" by passing a tax on free services...which by the way are the ultimate "Universal Service". I was really disappointed to see the VON Coalition speak out in favor of a numbers-based funding framework. I know AT&T is a member, but didn't realize they had THAT much influence...

Posted by: Craig Walker at November 10, 2006 03:38 AM

Do you really think the democrats are going to force net neutrality on the RBOCs when their response is likely to be a refusal to continue investing in the pipes as long as they have to allow competitors to use them for fee.

Posted by: Mark Fidrich at November 9, 2006 08:36 AM

While you are trying to influence Congress & the FCC, I wonder if someone is out there representing VoIP interests at the The ITU Plenipotentiary Conference which is taking place now to Nov 24. World Telecom Policy is set there....

Posted by: Moshe Maeir at November 9, 2006 07:15 AM