Cable Industry Lies Through Its Teeth: Falsely Claims Greater Broadband Investment & Support For Net Neutrality

from the lying-liars dept

So we already had the story about AT&T's FUD claiming that all sorts of horrible things would happen if the FCC went with Title II reclassification, and now Comcast and the other cable companies are ramping up the FUD efforts. They have a "friendly" Congress person, Rep. Gene Green, passing around a letter to his colleagues, which claims that:

In the years that broadband service has been subjected to relatively little regulation, investment and deployment have flourished and broadband competition has increased, all to the benefit of consumers and the American economy.

And it hints that such investment would somehow go away with reclassification. Of course, this is all a lie. In part, because Wall Street hates capital expenditure and gets angry any time broadband providers actually invest in broadband, these companies have actually been doing everything possible to decrease how much they spend on infrastructure investment over the past five years. Even worse, they're playing stupid statistical tricks to try to hide it. Thankfully, Matthew Yglesias, over at Vox.com calls them out on this. The big cable lobbying organization, NCTA, pulls two tricks with the following chart that it uses to falsely pretend that broadband investment is increasing: First, the more obvious trick is that those numbers are cumulative -- which is what you generally do when you want to hide the actual rate of investment per year. But the rate is actually slowing down quite a bit. The second trick is more subtle. Note that there are three years between each of the first four numbers? But between the second to last one and the last one, there are four years. That's because the actual numbers would show pretty clear decline in investment, so they're fudging it by combining cumulative totals and then adding an extra year to that last number. Yglesias then used that data to calculate the actual averages showing a more accurate picture: As you can see, it certainly suggests that, as they've grown more powerful, and as real competition has decreased, investment has been cut back significantly. That fits with plenty of other evidence concerning how the major cable and telco companies have acted. That story about "greater competition" is -- as we've discussed previously -- a complete joke. That's fudging statistics in a different way, lumping in totally non-competitive wireless accounts, which can't be used as broadband replacements.

Update: NCTA has responded to Yglesias's article, claiming that "the [original] chart had a few simple errors" which it claims to have now fixed. It also posted a new chart with yearly data, which still appear to show a decline from peak investment, though NCTA tries to spin at as continued growth in investment. It does appear that there are cycles, but investment has clearly declined. In fact, this new chart appears to confirm Yglesias' point, that capital expenditure hasn't grown massively as NCTA suggested (and that's because... it hasn't).

Oh, and Comcast's now even got the gall to argue that allowing it to merge with Time Warner Cable will mean more net neutrality protection and a "faster internet." It's putting those claims in big newspaper advertisements Of course, they're being misleading. It's what they do. They're defining "net neutrality" very narrowly, based on the merger terms that were forced upon it when it bought NBC Universal. But that's got little to do with the actual net neutrality issues of today. As for a "faster internet" they mean, yeah, sure, if internet companies agree to pay extra (meaning you'll pay extra too).

I'm not exactly sure what the cable companies think they accomplish with these kinds of easily debunked claims, but it really makes them look excessively desperate.

Filed Under: broadband, cable, fcc, investment, lies, net neutrality, tom wheeler
Companies: comcast, ncta, time warner

A General Reminder For Policymakers: Don't Muck Up The Public's Ability To Use The Internet

from the a-reminder dept

I know that it's become a bit too tempting for lots of people to declare this or that tech policy issue "the next SOPA," but the response over the last few weeks to the FCC's upcoming rulemaking on "the open internet" and net neutrality certainly feels a lot closer than pretty much any previous issue. David Carr has a writeup over at the NY Times that explains the situation most succinctly -- with a truly key point being buried deep in the middle, in which he recaps the SOPA story. I'll bold the key line:

In the debate between the Beltway vs. the Valley, my money is on the Valley. Remember in 2012 when a clueless Congress lumbered into Internet regulation by coming up with SOPA and a companion bill in the Senate (the Protect I.P. Act)? The entertainment companies that backed the legislation thought it was no big deal, but then a group of Silicon Valley players — many of the same ones who are now coalescing to oppose new Internet regulations — unleashed their user base and a huge wave of protest erupted. Both bills went down hard.

In the weeks after the SOPA debacle, I was at the Sundance Film Festival and then in Hollywood, talking with entertainment executives. They looked like extras from “The Walking Dead,” with bite marks all over them. They didn’t know what hit them because they did not understand the intimate relationship that the Valley has with its customers.

Way too much digital (and real) ink has been spilled that totally missed the point concerning the SOPA battle, arguing that it was the "tech industry" or "Silicon Valley" taking on Hollywood. But, as we noted many times, that was never the situation at all. It was the users of those internet services who led the way, with the companies joining in after the fact. Many people on the other side of these battles still don't realize how much has to do with the users first. They assume, incorrectly, that it's all about lobbying dollars, but miss out on the simple fact that a large public outcry beats lobbyists every time.

In the end what matters is votes. Lobbyists win on issues where there is no public outcry because in those situations its easier to keep the lobbyists happy. But when the wider public gets activated, politicians know that votes come first, and lobbying can't stop the tidal wave of public support on an issue. And that's where those not paying attention get confused. They don't realize that many people really, really love the services that the tech industry has built. People have very positive emotional attachments to them -- and that's often because those services provide amazing connections and interactions and do so without giving people the feeling of being ripped off.

That's usually not true with things like entertainment and it's especially not true with broadband.

Yes, some people argue that because users "don't pay" for many internet services, the services don't actually have their best interests in mind, but that's just wrong. The reason these internet services are so successful is that they build great products that users love -- and they often give them away for no monetary exchange, based on alternative business models. You can argue about whether or not those business models are fair, but to argue that these companies don't try to build great products for their users is simply incorrect.

And, because of that, when there are issues where the interests of the public and these tech companies align -- those on the other side may discover just how difficult it is to play the same old lobbying game. When the public gets moving on an issue, old style lobbying games get steamrolled. Whether or not that happens with net neutrality remains to be seen, but many of the same initial ingredients are certainly in place.

Mucking with a functioning internet is just not a good idea.

We don’t want two Internets — a good one and a bad. We want the money and investment to flow toward a single infrastructure that works rapidly and efficiently, as it does in so many other countries. It should be a medium in which videos of your niece dancing to Beyonce, streaming coverage of Occupy Wall Street and “House of Cards” all play smoothly when you hit a button.

Given the mounting opposition, the F.C.C. commissioners would be well advised to delay any changes this Thursday. And if they don’t, they may end up starring in a sequel: “SOPA II: When Nerds Bite Back.”

Filed Under: broadband, fcc, net neutrality, public, sopa, tech industry