Steve Jobs died today after a long battle with cancer. He was 56. Founding NeXT would have been enough to turn anyone into a cult hero in his field. Acquiring Lucasfilm’s Graphics Group and turning it into Pixar would have made anyone a respected business leader.
But for Steve Jobs, those were feathers in his cap called Apple, the company he co-founded with Steve Wozniak, and then later saved from extinction by returning to lead it again. He led Apple to its point today as the most valuable corporation in America, measured by public market capitalization. To do that, Jobs had to beat Microsoft and he had to beat IBM. He won in the end.
Far from just a visionary, people from Apple have always said he was a hands-on leader, who had a personal stake in the success of the company and of the products he helped create. Apple ][. Macintosh. NextStep. iMac. MacOS X. iPod. iPhone. iPad. Jobs leaves behind an incredible legacy, and his death will be felt by his industry, and the world. RIP.
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So, LightSquared. Some say that in some nebulous way, the firm is getting unreasonable and possibly illicit support from the Obama administration. I still don’t see it though, especially after listening in on a briefing of LightSquared’s today.
The briefing discussed in depth the issues LightSquared has had with GPS manufacturers. LightSquared that they’re trying hard to be a “good neighbor” and have worked with the FCC to address all issues, to the point of giving up half their spectrum voluntarily, and standing ready to invest $50 million to help GPS makers fix the issues. Because LightSquared does claim that the only issues left involve “precision” GPS which, by design, listen on LightSquared’s spectrum.
LightSquared points out that this is legal. You can listen to whatever you want. The problem is, legally you have no leg to stand on if you receive ‘interference’ by the legitimate holder of the spectrum you’re listening to. That said, they’re still working on a solution so everyone can benefit.
Now obviously this is their side of the story. If there’s a detailed rebuttal of these claims available, I’d love to hear it and link to it in Tech at Night. I’m interested in finding the truth of this matter. We need spectrum, desperately, but I want to go into this knowing the facts.
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So, Net Neutrality has been published. Now nothing can stop Verizon’s lawsuit over the illegal power grab. Remember: the FCC has tried this before, when they went after Comcast. They lost. It’s not unreasonable to expect them to lose again.
Meanwhile, federalism continues to be trashed as Puerto Rico jumps into the game. They don’t want to pay taxes but they want to block our free market. Lovely. If only AT&T could get territories dismissed even as it tries to dismiss the anti-competitive lawsuits of its competitors.
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Regulation, Regulation, Regulation. We’re faced with it, and now the regulators are going Presidential on us and claiming executive privilege at the FCC. You want to know how they’re coming up with their marching orders for America? Too bad. Just ask watchdog StimulatingBroadband.com.
You want a laugh? George Soros-funded front group Free Press is suing the FCC… because Net Neutrality isn’t enough of a power grab. Incredible.
Jay Rockefeller is defending Net Neutrality, meanwhile, against Kay Bailey Hutchison’s withering attacks, and push for a Congressional Review Act repeal of the regulations.
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Up late tonight. Spent the better part of the last 8 hours setting up my new computer*. Lots of data to transfer around and all that. But fortunately there aren’t many new developments lately to talk about, so let’s go.
I’m going to start with LightSquared. Out of the blue, it’s been repeatedly claimed that LightSquared is “the next Solyndra,” and that some nebulous form of corruption is somehow benefiting the company. Is it possible? Certainly. But I’d like to see some proof that LightSquared received actual benefits from the Obama administration, as Solyndra got free money from the government in the form of loan guarantees.
No, I won’t accept proof that Barack Obama is a bad guy as proof that LightSquared had something going on. I’m playing the role of skeptic on this particular issue, because I don’t want it to be true. I want America to get more spectrum used for 4G wireless Internet, and I want us to have more national networks supplying 4G wireless Interent. LightSquared coming online would give us both, as LightSquared CEO Sanjiv Ahuja has said.
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November 20. That’s the day the Obama administration has chosen to regulate the Internet after what even The Hill calls “a partisan vote” at the FCC to pass the Net Neutrality regulations. I’m hoping Verizon and/or MetroPCS will sue and win a stay before that date, though I don’t know how likely that is for a court to act that strongly.
I’ve said much about the House and its strong opposition to Barack Obama’s regulatory overreach, but Senators are unhappy as well. Kay Bailey Hutchison is ready to fight. It looks like she will push to get the Senate to go forward with using the Congressional Review Act, as the House already did, to repeal Net Neutrality.
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I’ve basically got three topics for tonight’s edition. It’s sad that two of them are government antitrust actions. I suppose elections do have consequences, and one key consequence of Barack Obama’s election is corporatist selection of winners and losers in the marketplace.
The third main topic: Alleged corruption. I’m still playing the role of skeptic on accusations that the Obama administration is playing favorites in favor of LightSquared, the firm that has been caught in a regulatory quagmire over GPS issues it may have found a workaround for.
I want more 4G competition, but I also welcome Darrell Issa giving the LightSquared/Obama matter some oversight. I’d love to have a clear answer to this question. I can’t support fake competition brought about by corruption. I reject Obama propping up Sprint Nextel and if it turns out that Obama is propping up LightSquared then I reject that as well.
Which brings us to the next topic: AT&T and T-Mobile against the Department of Justice.
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I’d like to start off tonight’s edition by saying that I enjoy some of the pushback I’ve been getting in this Tech at Night series. It’s fun when someone comes here, telling me I’m all wet, then ending up admitting they’re enamored of the whole Obama regulatory apparatus. It feels good to have my pro-liberty, pro-growth, small-government positions validated like that. So to the multifaceted George Soros astroturf machine I say this: keep it coming.
And of course, one of their key talking points is that wireless competition is in danger. Consider that Radio Shack says you have nine options, and Cellular South, a carrier you might never have heard of, is suing AT&T now, while budding 4G national competitor LightSquared answers accusations it’s buying favors from Obama. It’s hard to see how the DoJ lawsuit is anything but an attempt to prop up Sprint Nextel, and hard to disagree with T-Mobile thinking its deal with AT&T will proceed on the merits.
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We’ve lost some battles lately. That’s what happens when we let a radical Democrat become President. We let Patrick Leahy’s America Invents Act pass, imposing on America a Euro-style patent system that rewards lawyering, not being the first to invent something. We let the FCC pass an illegal Net Neutrality power grab, and that will have to go to court soon.
We’re even seeing some nominally Republican-run states get on big government bandwagon against AT&T, sadly joining in the effort by the Obama administration and Sprint Nextel to hinder competition and pad Sprint’s bottom line. What are Ohio and Pennsylvania doing there? Come on.
But at least we’re on track to get meaningful 4G competition. Some question the firm’s ties with the Obama administration, but I welcome progress toward LightSquared launching its network. Unlike Obama and Holder, trying to prop up Sprint, I actually want competition and lower prices.
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Competition, growth, and innovation are all important for the American wireless Internet market. We need more, better, and cheaper service if we’re going to move in large numbers to wireless Internet, as some are predicting. This means competition and growth in the 4G sector is vital to our future economic health.
And that, in a nutshell, is why I think it’s essential that the government stay out of the way and allow the AT&T/T-Mobile deal to proceed. Obviously now it’s too late to prevent a lawsuit, since it’s already happened, but dropping the suit would be better than proceeding on the current anti-competitive path.
That’s the one fact that more and more evidence is bringing to light: stopping the merger is the anti-competitive act, not the merger itself. Both Sprint Nextel and the Department of Justice are threatening competition, hindering us from moving beyond the 4G duopoly of Verizon and Sprint Nextel.
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