Why You Should Regret LightSquared's Setbacks

from the competition-is-good dept

Mon, Feb 20th 2012 8:01pm — Derek Kerton

LightSquared is a new wireless carrier that has been trying to launch a wholesale 4G network across the USA. Funded by private equity firm Harbinger Capital, it sought to re-purpose satellite communication frequencies to build a nationwide cellular-satellite hybrid network, and then re-sell the network capacity to other brands. In January 2011, the FCC, eager to foster new competitors in the mobile space, gave LightSquared the green light to launch using their spectrum with one provision - that their network equipment NOT interfere with GPS signals and devices. Well, over a year has come and gone, and despite incredible effort and wrangling, the independent testing keeps indicating that LightSquared's terrestrial towers are not compatible with GPS device use. As such, the FCC has basically rescinded LightSquared's request to launch service on their 1.5GHz L-Band spectrum.

Note that, while LightSquared DID knock out GPS devices, it was not LightSquared that transmitted on the GPS frequencies, but rather the GPS devices that sloppily "listen" to the adjacent LightSquared frequencies. The GPS chipsets were generally cheaply made with inadequate filtering. That said, who is at fault is irrelevant: it remains LightSquared's problem to solve if they want to launch their network. A long history of spectrum policy states that new entrants must not mess up the existing radio devices.

What we've lost here is the chance to have a truly innovative wireless carrier which would have stimulated competition, energized the vendor community, and provided a white-label network for MVNOs. LightSquared had, in fact, signed up dozens of partners who would offer LTE wireless services as cellular companies, CE makers, and store brands like Best Buy, for example, who could sell connectivity in a bundle with laptops. Maisie Ramsay over at Wireless Week explains how a vast community of over 30 technology vendors have also lost a valuable path to market.

What strikes me, as someone who works with wireless carriers (LightSquared included), is that we may lose one of the scrappiest players out there. And markets thrive when a scrappy player stirs up the pot. Hutchison Whampoa stirred up the UK markets when it launched 3G in 2003, Free is currently doing the same in France. In the USA, we have regional players like Metro PCS, but nothing at the national level. My role at the Telecom Council of Silicon Valley is right where innovators meet with the telcos, and it was gratifying to see the tornado of new ideas, vendors, and possibilities that came about with a new network. Without legacy systems nor legacy thinking, lots of great ideas are free to emerge.

For now, with LightSquared's options dwindling, we may have to have to look elsewhere for new competition and open creativity. The WiFi space is fairly promising, as the spread of hotspots continues to soar, and new versions (802.11ac) promise greater range and throughput. Chipsets are cheap, and billions of WiFi devices have been produced. Republic Wireless exemplifies the possibilities of leveraging WiFi in mobile phones to the limit. Lots of people are hoping that the "white spaces" frequencies in between TV channels will be offered up to a WiFi variant, which will mean low-frequency spectrum that penetrates walls and buildings much better than today's WiFi. I like what the US carriers have done with the (globally) early launch of LTE, but there's no doubt that with increased competition we'd have a more dynamic market.

Filed Under: competition, gps, interference, spectrum, wifi, wireless
Companies: lightsquared

74 Comments

Getting Past The Uncanny Valley In Targeted Advertising

Overhype

from the from-creepy-to-useful dept

Fri, Feb 17th 2012 7:39pm — Mike Masnick

A few years back we talked about how the concept of the "uncanny valley" could be applied to targeted advertising. Of course, the general concept of the uncanny valley is usually discussed in the field of robotics. It's the notion that people are comfortable with robots that clearly look like robots, but at a point where they become too similar to humans, but not actually human-like, people feel rather uncomfortable. However, if a robot appears fully human, then people go back to being comfortable with them -- even to the point of identifying with them and feeling empathy for them. The problem is the area where they're "too human" but just different enough to just... feel "off" that somehow makes it "creepy." As we noted the same thing really was kind of true for targeted advertising. As advertising gets more "targeted" it seems to creep people out, because they feel like they're being spied on.

A perfect example of that is seen in this recent NYTimes Magazine piece, talking about the details of how Target mines its purchasing data to figure out who's pregnant and when they're due. And it's not because they're buying diapers or something like that:

The only problem is that identifying pregnant customers is harder than it sounds. Target has a baby-shower registry, and Pole started there, observing how shopping habits changed as a woman approached her due date, which women on the registry had willingly disclosed. He ran test after test, analyzing the data, and before long some useful patterns emerged. Lotions, for example. Lots of people buy lotion, but one of Pole's colleagues noticed that women on the baby registry were buying larger quantities of unscented lotion around the beginning of their second trimester. Another analyst noted that sometime in the first 20 weeks, pregnant women loaded up on supplements like calcium, magnesium and zinc. Many shoppers purchase soap and cotton balls, but when someone suddenly starts buying lots of scent-free soap and extra-big bags of cotton balls, in addition to hand sanitizers and washcloths, it signals they could be getting close to their delivery date.

As Pole's computers crawled through the data, he was able to identify about 25 products that, when analyzed together, allowed him to assign each shopper a "pregnancy prediction" score. More important, he could also estimate her due date to within a small window, so Target could send coupons timed to very specific stages of her pregnancy.

But, of course, Target then appears to have run into the "uncanny valley" problem of having just enough info to target ads... but doing so in a way that feels creepy:

"If we send someone a catalog and say, 'Congratulations on your first child!' and they've never told us they're pregnant, that's going to make some people uncomfortable," Pole told me. "We are very conservative about compliance with all privacy laws. But even if you're following the law, you can do things where people get queasy."

About a year after Pole created his pregnancy-prediction model, a man walked into a Target outside Minneapolis and demanded to see the manager. He was clutching coupons that had been sent to his daughter, and he was angry, according to an employee who participated in the conversation.

"My daughter got this in the mail!" he said. "She's still in high school, and you're sending her coupons for baby clothes and cribs? Are you trying to encourage her to get pregnant?"

The manager didn't have any idea what the man was talking about. He looked at the mailer. Sure enough, it was addressed to the man's daughter and contained advertisements for maternity clothing, nursery furniture and pictures of smiling infants. The manager apologized and then called a few days later to apologize again.

On the phone, though, the father was somewhat abashed. "I had a talk with my daughter," he said. "It turns out there's been some activities in my house I haven't been completely aware of. She's due in August. I owe you an apology."

Target appears to have recognized just how creepy this appeared -- and once they discovered that the reporter was working on this story they cut off his access to the researcher and wouldn't talk to him at all, other than to make bland PR statements about "delivering outstanding value," and, later, to try to convince him not to publish his story.

However, there are indications that Target tried to cross the uncanny valley.... by making the extremely targeted advertising appear more "life like" by not being "too perfect." That is they still sent targeted ads, but mixed them in with unrelated ads, so people wouldn't realize how targeted they were:

"We have the capacity to send every customer an ad booklet, specifically designed for them, that says, 'Here's everything you bought last week and a coupon for it,' " one Target executive told me. "We do that for grocery products all the time." But for pregnant women, Target's goal was selling them baby items they didn't even know they needed yet.

"With the pregnancy products, though, we learned that some women react badly," the executive said. "Then we started mixing in all these ads for things we knew pregnant women would never buy, so the baby ads looked random. We'd put an ad for a lawn mower next to diapers. We'd put a coupon for wineglasses next to infant clothes. That way, it looked like all the products were chosen by chance.

"And we found out that as long as a pregnant woman thinks she hasn't been spied on, she'll use the coupons. She just assumes that everyone else on her block got the same mailer for diapers and cribs. As long as we don't spook her, it works."

I'm sure that this disturbs some people, who may sense that there's "trickery" going on here, but I'm not sure that's the case. It seems like this actually creates something rather useful. After all, perfectly targeted ads actually provide useful information in that it's ads/deals/coupons targeted for exactly what we need, such that we'll actually save money on the key things we want. That's a benefit to consumers. But if it's done in a way that doesn't feel as creepy, then there aren't those lingering concerns of being tracked -- and that seems a more reasonable fear.

Filed Under: advertising, creepy, target ads, uncanny valley
Companies: target

55 Comments

How The Megaupload Shutdown Has Put 'Cloud Computing' Business Plans At Risk

Business Models

from the that's-not-a-good-thing dept

Fri, Feb 17th 2012 1:07pm — Mike Masnick

As you recall, last month's SOPA/PIPA protests were followed the very next day by the US government shutting down Megaupload. While there have been plenty of discussions about the wider implications of the January 18th anti-SOPA/PIPA protests, there's been less analysis about the wider impact of the Megaupload case. Lawyer Philip Corwin has a long (really, really long) article suggesting that the longer term impact will come more from the Megaupload shutdown... and not in a good way.

It is however the viewpoint of this article that the Megaupload indictment will likely be seen in the long run as having a more significant impact on Internet business models and innovation than the withdrawal of PIPA and SOPA — and this would be the case even if those bills had been enacted in some combined form.

The article covers a lot of ground (much of which you'll already be familiar with, if you read Techdirt regularly). But the gist of it is that the details of the indictment significantly blur the lines between what is civil and and what is criminal copyright infringement, and also rely on multiple, very common practices for various cloud service providers. While the US government cheers on the fact that other cyberlockers are changing how they operate, there's significant fear that this will massively alter the "cloud computing" landscape, in that it creates a tremendous amount of uncertainty, where services with perfectly legitimate intent can be accused of criminal activities based on very questionable claims. Perhaps the most ridiculous is the catch-22 situation in which Megaupload got blamed for trying to hide the infringing activity on its site. If it had left it up, it would have been accused of facilitating or inducing infringement, but by making it hard to find, it's accused of conspiracy to hide the activity.

Megaupload removed the search feature on its website, which had previously been of assistance to those looking for infringing content. The indictment alleges that this was done to disguise the company's willful infringement, much of which was purportedly facilitated by other "linking" websites operated by unrelated third parties. But if the search feature had not been removed, wouldn't that have been cited as evidence of facilitating infringement? Similarly, the indictment notes that "browsing the front page of Megavideo.com does not show any obviously infringing copies of any copyrighted works; instead, the page contains videos of news stories, user generated videos, and general Internet videos in a manner substantially similar to Youtube.com", but then cites "the most-viewed videos in the Entertainment category on Megavideo.com… has at times revealed a number of infringing copies of copyrighted works that are available from Mega Conspiracy-controlled servers" as evidence of knowing facilitation of commercial infringement.

Damned if you do, damned if you don't.

But the bigger fear is about the kinds of businesses that are put at risk under the vague standards used in the indictment. The article talks about popular services like Dropbox, which could be accused of many of the things in the Megaupload indictment. It also talks about YouTube, and how -- if these kinds of enforcement actions were popular five years ago -- we might not have had a YouTube any more:

A recent New Yorker profile of YouTube's evolution makes one wonder if the "YouTube Conspiracy" might not have been criminally targeted if this enforcement tactic was being employed when it launched in 2005, especially since e-mails between its principals indicated a deliberate toleration of infringing content to build traffic — e-mails that bear a distinct resemblance to some of those reproduced in the Megaupload indictment.

Instead, as Corwin points out, YouTube "has become a treasured piece of contemporary Americana."

For all the talk of how SOPA and PIPA were bad for changing the way the internet would have to work, it's worth noting the very very real impact of the Megaupload takedown on the potential development of various new services and business models. The risks and uncertainty increased massively on January 19th, and not in a good way for anyone.

Filed Under: business models, cloud computing, copyright, fraud, legal risk
Companies: megaupload

109 Comments

Congrats, US Government: You're Scaring Web Businesses Into Moving Out Of The US

Failures

from the destroying-business dept

Fri, Feb 17th 2012 11:05am — Mike Masnick

The federal government has been paying lip service to the idea that it wants to encourage new businesses and startups in the US. And this is truly important to the economy, as studies have shown that almost all of the net job growth in this country is coming from internet startups. Thankfully some politicians recognize this, but the federal government seems to be going in the other direction. With the JotForm situation unfolding, where the US government shut down an entire website with no notice or explanation, people are beginning to recognize that the US is not safe for internet startups.

Lots of folks have been passing around this rather reasonable list of activities for US-based websites:

Today's sysadmin todo list:

0. Get corporate membership with EFF.

1. Identify all applications with user-generated content.

2. Move all associated domains to a non-US based registrar.

3. Migrate DNS, web serving and other critical services to non-US based servers.

4. Migrate yourself to a non-US controlled country.

I'm sorry for US sites and users. Your government is hell-bent on turning the internet into a read-only device like TV, easily regulated and controlled. The population will be required to sit quietly and keep their eyes glued on the screen so they don't miss the ads, with any infringers deemed terrorists and pedophiles and thus deserving of summary punishment by DHS squads.

Hopefully the internet will route around the damaged segment, and the rest of us can continue to enjoy the amazing interactivity it has brought our society.

What's amazing is the "what's the big deal?" attitude the government has taken to all of this. For most of us, this situation is shocking. The US government should never be able to flat out shut down a business with no notice or explanation, only to say "sorry" a couple days later. It's done this in the past and insisted that it would be more careful in the future. So far, it doesn't appear to be living up to that promise. While these may be "mistakes," the wider impact should be frightening to federal officials. They're now actively scaring startups away from US businesses at a time when they should be doing exactly the opposite.

Filed Under: censorship, entrepreneurship, seizures, startups, takedowns
Companies: jotform

200 Comments

A 4G iPad Requires A Sensible Shared Data Plan

Wireless

from the cellular-operators-losing-the-battle-for-connected-devices dept

Fri, Feb 17th 2012 12:01am — Derek Kerton

The Apple rumor mill is spinning at full speed again, with word of a new iPad release in March. This would be on schedule for Apple, so the real speculation is around exactly what improvements this iPad will feature. The Wall Street Journal, normally not the town gossip, wrote that the upcoming iPad would feature a smaller 8-inch screen, and would be LTE-enabled. LTE is the latest, fastest network technology available from Verizon, AT&T, and other network operators. But the intention here is not to pile on to the speculation of what Apple might deliver. The intention is to speculate instead as to what the carriers might have up their sleeves with respect to an LTE tablet pricing plan.

When the LTE iPad hits the market, expect to see it sold with a "shared data plan", or a plan that is connected to a smartphone plan, and share a common pool of MB of traffic per month. Verizon, in particular, has hinted that just such plans will be emerging soon. Lowell McAdam said in December that such plans would emerge "sometime in 2012" to accommodate the increasing number of people with multiple mobile Internet devices. Such devices include smartphones, laptops, tablets, and others. More and more, subscribers are adding devices, and are getting frustrated at having to open a separate account, with a ~$50/month price, just because they choose to browse on their tablet instead of their smartphone. Most customers, rightly, assume that it should make little difference to the operator whether they access the net on their tablet, laptop, or phone. This is just a substitution of the access device. Because of the current punitive billing, owners of multiple connected devices are defecting from the cellular game, and instead opting to use Wi-Fi only on laptops and tablets...and liking it!

Research from The NPD Group has shown how the attach rates (portion that sign on to cellular service) for cellular-ready tablets have been less than stellar, and decreasing over time. In April 2011, NPD says that 60% of tablets only connected via Wi-Fi, but by December 2011, that number had jumped to 65%, showing how Wi-Fi has been winning out over the more expensive and contract-laden cellular offerings. Tablets like the Kindle Fire are sold as Wi-Fi only, contrasting with the earliest Kindles which all had cellular radios embedded. The carriers are at extreme jeopardy of losing the connected device market (and embedded market and M2M) simply because they have lagged in offering the kinds of flexible plans that make sense.

Once a trend away from cellular connection takes hold, it becomes harder to stop. Wi-Fi networks will respond with increased capacity and increased hotspots, OEMs will respond with more Wi-Fi-only devices, and consumer behavior will respond by considering tablets as "portable" Wi-Fi devices, not fully mobile like smartphones. The strategic cost to the carriers is significant. While the trend won't be stopped, it is certain that carriers could retain significance by offering pooled data plans at sensible bundled prices. This means selling data to a consumer, not to a consumers specific device. And what better way to launch such a new pricing plan than with a device that the market has proven to love - a new iPad?

So whatever the shape of the new iPad, and the fantastic new features that fanbois laud while naysayers explain how they were just repurposed from other devices, we should fully expect an LTE iPad with a new kind of cellular pricing model, which drives up the attach rate, increases device utility at a reasonable price, and creates greater carrier loyalty and long-term gains. If Verizon and AT&T do this right, we could all win.

Filed Under: 4g, data plans, ipad, wireless
Companies: apple, verizon

42 Comments

Would Steve Jobs Have Approved? Artist Offers His Apple Monologue, Performance Rights, For Free

Culture

from the it's-good-to-share dept

Thu, Feb 16th 2012 7:55pm — Glyn Moody

As sales of its products soar, and its share price continues to climb, Apple has come under increasing scrutiny because of the working conditions in the Chinese factories where its iPhone and iPad are manufactured. This has led Apple's CEO, Tim Cook, to announce recently that the Fair Labor Association will be conducting audits of Apple’s final assembly suppliers, including Foxconn factories in China.

That tension between the undeniably desirable products and the not-so-glamorous conditions under which they are made powers a monologue by Mike Daisey, entitled "The Agony and the Ecstasy of Steve Jobs," which we discussed last month, and described by the New York Times as:

a mind-clouding, eye-opening exploration of the moral choices we unknowingly or unthinkingly make when we purchase nifty little gadgets like the iPhone and the iPad and the PowerBook.

The NYT also has an interview with Daisey in which he makes clear his view that, for all the shiny-toy ecstasy Apple's leader purveyed to the world, Jobs could have done better: This is someone who had an opportunity to transform the world with these devices and then did. He started as someone whose devices were forged out of piracy, and today it’s the most locked-down computer company in the world. As a capitalist I’m sure that it’s very attractive. But if we’re talking about him as an artist, I’d say that he completely lost track of his ideals.
Given that jaundiced view of "the most locked-down computer company in the world", it perhaps shouldn't be too much of a surprise to discover that Daisey the artist is trying to stay true to his own ideals by opening up his work to everyone, not just to download, but to perform: after nearly 200 performances, the monologuist Mike Daisey was to release a theatrical transcript of his latest one-man show, “The Agony and the Ecstasy of Steve Jobs,” through his Web site, mikedaisey.blogspot.com. It will be free to download and in a rare twist, if an aspiring performer should want to mount a production of the show, Mr. Daisey will not ask for payment.
Rare indeed. Given Jobs' allergic reaction to letting people 'do what they want' without significant limits or tollbooths, would he have approved?

Follow me @glynmoody on Twitter or identi.ca, and on Google+

Filed Under: china, mike daisey, monologue, production, working conditions
Companies: apple, foxconn

14 Comments

DailyDirt: Robots Inspired By Nature

(Mis)Uses of Technology

from the urls-we-dig-up dept

Thu, Feb 16th 2012 5:00pm — Michael Ho

Biomimicry for robot design is a fascinating area of research, and all kinds of interesting robots are being developed that almost look like natural creatures. Here are just a few more examples of machines that are adopting biologically-inspired features.

Robot researchers in Switzerland are copying the physiology of bats, grasshoppers and locusts to create robots that are more efficient at moving around. Swarms of these kinds of robots are going to be pretty scary looking... [url]
Lockheed Martin is developing an unmanned aircraft called the Samarai and looks like a foot-long maple seed -- with propellers attached. These remote-controlled aircraft can hover in place and come equipped with video cameras for surveillance missions. [url]
The exoskeleton of an African desert scorpion isn't smooth, but covered with microscopic bumps that protect it from sandblasting winds. This discovery could help helicopters fly in the desert for longer periods of time, since adding some grooves to smooth steel surfaces can reduce erosion by up to 20%. [url]
To discover more interesting robotics-related content, check out what's currently floating around the StumbleUpon universe. [url]

By the way, StumbleUpon can recommend some good Techdirt articles, too.

Filed Under: biomimicry, drones, locomotion, robots, scorpion
Companies: lockheed martin

4 Comments

How Do We Know That Piracy Isn't Really A Big Issue? Because Media Companies Still Haven't Needed To Change As A Result Of It

Business Models

from the calling-their-bluff dept

Thu, Feb 16th 2012 10:00am — Glyn Moody

One of the positive outcomes of the debate that has raged around SOPA/PIPA is that more people have looked at the facts, rather than listened to the rhetoric, surrounding piracy. In particular, the copyright industries' hitherto unchallenged claim that piracy is destroying their business is finally being challenged – not least by reports like "The Sky is Rising" that consolidate industry figures to show that things are really looking pretty good across the board.

Another indication of that new attitude is the incredible response elicited by an article in Forbes entitled "You Will Never Kill Piracy, and Piracy Will Never Kill You", which has received over 3600 re-tweets on Twitter, and nearly 10,000 shares on Facebook. The basic argument will be familiar enough to Techdirt readers: that the war on piracy can never be "won", and that what is needed is a change of attitude on the part of the media companies. The article concludes:

Treat your customers with respect, and they’ll do the same to you. And that is how you fight piracy.

Pretty obvious, you would have thought, although strangely it isn't to the media companies.

The author of that piece, Paul Tassi, has followed it up with "Lies, Damned Lies and Piracy." Although this has proved far less popular than the first one, I think it's better, because it offers some original insights where the other went over well-trod ground.

I particularly liked his closing thoughts:

If the industry is struggling, I just don’t see it, as their projects are getting bigger and more costly with each passing year. When a movie bombs or a show gets cancelled, no one ever says “oh, well, piracy.” Rather, it’s the quality of the product that accounts for such failures. Even with relatively high piracy rates across all forms of media, we’re still seeing blockbuster films, shows and games released at a higher rate than ever, and profits to match.

I think the media industries would love to kill piracy with a quick piece of legislation that blacks out every torrent site on the internet, but I don’t think they want to fight it so much that they’ll change their entire distribution model on a dime, which would actually go a long way toward truly competing with piracy. The reason things are the way they are is because they’re working. Despite the fact that even though yes, every piece of media is available on the internet for free somewhere, people are still buying.

There are three really key points packed in there. First, that the media industries just aren't struggling, despite their cries of woe. Secondly, what causes real financial harm to the film and music worlds are bad products that lose huge amounts of money and disappoint audiences. And finally – and most importantly – if piracy really were so life-threatening to the copyright industries, and if their bottom lines really were in danger, then they would have tried something other than begging lawmakers to protect them. The fact that they haven't, as Tassi emphasizes, means that there is no real pressure on them to do so: people still buy lots of stuff, piracy isn't really a problem, things are working.

Follow me @glynmoody on Twitter or identi.ca, and on Google+

Filed Under: business models, change, innovation, piracy

62 Comments

If People Like You And Your Work They'll Pay; If They Like Your Work, But Don't Like You, They'll Infringe

Say That Again

from the cthulhu-saves-your-games dept

Wed, Feb 15th 2012 9:54am — Zachary Knight

With the massive success of Double Fine's Kickstarter campaign (which has passed quadruple what it asked), a lot of people are commenting about just what it means to be successful in today's digital climate. Among those talking are indie game developers who are taking the time to reflect on this phenomena and how they might be able to duplicate it for themselves. One of these indie developers is Robert Boyd, the creative mind behind retro JRPGs Breath of Death VII and Cthulhu Saves The World. After a series of tweets on the topic of Double Fine's success, Robert closed with this profound statement:

If people like you and like your work, they'll buy your games. If they like your work but don't like you, they'll pirate them.

The first half of this statement is at the heart of the idea of connecting with your fans. Part of this ability to connect with your fans is to be more open and human with them. We have seen repeatedly how artists sell more of their work and scarcities associated with their work as they become more human to their fan base. As fans come to trust you and feel that they can approach you directly, even if that is through email, Twitter or Facebook, they will be far more likely to trust you enough to part with their money. This trust is one of the keys to Double Fine's success and a key to the success of any game developer. Similarly, it was seen in the way Louis CK treated his fans.

The second half of this statement is a lesson that many larger publishers, developers and others in the entertainment industry have forgotten. Because of that, they are suffering the fallout. DRM and other methods that show how little the developer or publisher trusts its fans breeds contempt within the fan community. While those consumers may still like the product, they don't like the way they are treated. This is one of the driving factors behind piracy. To top off the problem, these creators and gatekeepers set up walls between themselves and their fans. They do everything to avoid contact with fans outside carefully orchestrated scenarios. This turns fans off and decreases the amount of trust they have for these individuals and companies.

It's often said that people will just get stuff for free if they can. But, clearly, that's not true. We've seen so many cases of content creators being supported by their fans at tremendous levels (such as the two cases mentioned above) that there's clearly more to it. And it seems that a key element is whether or not fans actually like you. Some people suggest that the disconnect with piracy is that people value the work, but won't pay for it. But a more accurate realization may be that people value the work... but don't value the creator if the creator doesn't value them. When the two sides value each other, it seems people are more than willing to pay.

Filed Under: awesome, human, infringement, likability, open, robert boyd

69 Comments

Beastie Boy Mike D Forces AT&T To Let Shareholders Vote On Net Neutrality

Wireless

from the you-gotta-fight-for-your-right-to-vooooote-on-a-net-neutrality-policy dept

Tue, Feb 14th 2012 3:58pm — Mike Masnick

Yeah, well there's a title I never thought I'd write. It seems that Mike D of the Beastie Boys, along with his wife, filmmaker Tamra Davis, and John Silva (of Silva Artist Management, one of the more forward-thinking artist management groups out there, representing a ton of big name acts), have helped to get the SEC to require telcos (mainly AT&T) to include a resolution among shareholder votes over whether or not those shareholders want the company to support wireless net neutrality concepts. Remember, the telcos have been willing to bend (a tiny bit) on wireline neutrality rules, so long as wireless rules have been exempt. So, letting shareholders vote on a resolution concerning wireless neutrality certainly could become a pretty big deal.

I've said in the past that I'm very, very wary of any net neutrality regulations from the government -- because we've all seen how that works, where the telcos take control of the process, and the end result is quite the opposite of what supporters intended. Regulatory capture can be a big deal. But... I am a big supporter in the importance of the concept of net neutrality and the principles of an end-to-end network. If it can be forced on these companies by shareholder proxy that may be the most compelling solution so far. In the past, the SEC has said this issue was not a big enough issue, and could be omitted from shareholder votes as "ordinary business matters." But, now the SEC has come around to realize that net neutrality is, in fact, a big issue, thanks in part to the letter from a group representing Mike D and the others mentioned above. The SEC responded in a pretty straightforward manner:

In view of the sustained public debate over the last several years concerning net neutrality and the Internet and the increasing recognition that the issue raises significant policy considerations, we do not believe that AT&T may omit the proposal from its proxy materials in reliance on rule 14a-8(i)(7).

Of course, who knows if enough shareholders will vote for such a thing. I could easily see a rather confused Wall Street thinking (incorrectly) that breaking the end-to-end principle would be good for business, even if it erodes network usefulness and value.

Filed Under: john silva, mike d, net neutrality, sec, shareholder vote, tamra davis, wireless

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03:58	IBM's Jeopardy Answering Computer Apparently Ready To Compete For Real (9)
Wednesday
09:52	IBM Trying To Patent Cure For Obama's BlackBerry Woes (30)
Thursday
10:05	Software Firms Overwhelmingly Against Patents (30)
Tuesday
12:16	Reminder: 'What IT Needs To Know About The Law' Webinar Tomorrow (0)
Monday
14:47	Cloud Security Webinar Now Available; Just As New Report Warns Of Cloud Security (0)
Thursday
21:53	Is Telling People To Visit A Certain Website A Denial Of Service Attack? (46)
Tuesday
12:34	New Webinar: What IT People Need To Know About The Law (29)
Thursday
13:14	UK Court Says Software Company Can Be Liable For Buggy Software (41)
Monday
12:00	Reminder: Cloud Security Webinar Tomorrow (0)
Friday
17:09	Why IT Security Guys Now Also Need To Be Legal Experts (28)
Thursday
12:27	Will Cloud Computing Lead To Patent Liability For End Users? (14)
Wednesday
17:34	Does Storing Your Documents In 'The Cloud' Mean The Gov't Has Easier Access To It? (15)
Tuesday
13:16	As More Services Move To The 'Cloud' What Does It Mean For IT Security? (26)

from the competition-is-good dept

from the from-creepy-to-useful dept

from the that's-not-a-good-thing dept

from the destroying-business dept

from the cellular-operators-losing-the-battle-for-connected-devices dept

from the it's-good-to-share dept

from the urls-we-dig-up dept

from the calling-their-bluff dept

from the cthulhu-saves-your-games dept

from the you-gotta-fight-for-your-right-to-vooooote-on-a-net-neutrality-policy dept

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