Tech at Night

Sorry if you missed Tech at Night on Friday. I was under the weather. But I’m back, and with so much to review.

How about legislation, good and bad? Well, mostly bad.

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Tech at Night

Net Neutrality goes to court. Great news, too: Verizon’s preferred venue won the lottery, and the Net Neutrality fight will happen in the DC Circuit Court of Appeals. This is, of course, the same circuit that slapped down Net Neutrality last time in Comcast v FCC.

Oh, but here’s a big surprise. Despite the FCC claiming previously that “We look forward to defending our open Internet framework in court,” they’re actually doing everything they can not to have to defend it in court by attempting to get Verizon’s appeal dismissed. So much for that day in court.

As for Sprint Nextel, even as they sue claiming competition will be impaired if T-Mobile and AT&T join up, their own strategy update presentation admitted the truth. See the 9:46AM slide, showing the growth rate of the year-on-year net postpaid subscribers across the top four providers. In 2010, Sprint was the only one to accelerate, while AT&T saw the biggest drop in its growth. In the first half of 2011, Verizon and Sprint are accelerating, while would-be deal makers AT&T and T-Mobile look on pace to notch their third and fifth (respectively) years of slower growth.

Yes, that’s right. Sprint’s gaining subscribers at a faster clip, and is trying to keep the laggards from combining to keep the pressure (and 4G prices) up. And they’ve gotten the Barack Obama/Eric Holder Department of Justice to help, using your taxpayer dollars.

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As I’ve previously covered, the Department of Justice is suing AT&T, claiming its planned merger with T-Mobile USA harms competition in America. My retort has been market reactions to the lawsuit suggest it is the lawsuit that is anti-competitive, benefiting the existing national 4G duopoly: Sprint Nextel and Verizon Wireless.

That Sprint Nextel is jumping in with its own lawsuit now ends all doubt: the AT&T/T-Mobile deal would increase competition, benefiting buyers of high speed wireless service, to the detriment of the current duopoly which would be faced with tougher competition.

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Tech at Night

This is one of those weeks when all the important stuff happens at once, and there’s much to cover. I’ll start with the big national story. As I previously covered, The Eric Holder/Barack Obama Justice Department is coming after AT&T, using its own odd brand of economics to claim that the merger with T-Mobile would make the wireless market less competitive. When in fact, as history has shown with deals like Sprint/Nextel, prices are only going to come down as the market gets more competitive.

But, nonsensical as it is, the Obama administration is pressing on with the same tired thinking that gave us zero net job creation last month, and downward revisions in prior months. So let’s sweep around and look at what’s going on, what others are saying both about the news and about the prognosis, beyond the Culture of Corruption aspect I already covered.

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Tech at Night

The free market of Internet access, driven by constantly improving technology and heightening competition, is a driver of job creation and economic growth. Even Julius Genachowski, Obama’s FCC Chairman, has to admit that. This is just one reason we fight FCC power grabs.

So when the government starts talking about new regulations in emerging fields such as “cloud computing”, just say no.

And when Steve Chabot makes silly comments about wireless competition without daring to take an actual stand on the issue of the day, just sigh and ignore him. It’s a simple question, Steve. Government action, or free market. Pick a side or hush.

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Tech at Night

Hello. Yes, I’m late again. But I’m genuinely starting to have fun with OpenGL ES 2. So Tech at Night got to wait a bit. Sorry!

Anyway, as I usually do when I have a link to a RedState article, I’ll start tonight with it. RedState Insider suggests cutting the budget while implementing better policy by eliminating the Agriculture Department’s venture into tech subsidy, the Rural Utilities Service. We don’t need to spend billions to have government compete against the private sector. Even if we wanted it, and we don’t, we simply can’t afford it.

What’s the USDA doing in tech policy anyway?

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Tech at Night

Good evening. Or Good morning on the East Coast, as it’s unfortunately approaching 5am there as I start tonight’s edition. A big story is that the House Judiciary Committee will get into the game of watching the FCC, following in the footsteps of the Energy and Commerce, and Oversight committees. Commissioner Robert McDowell and Chairman Julius Genachowski are among those set to testify before Bob Goodlatte’s Competition subcommittee. I’m somewhat troubled by this, because Goodlatte seems to be looking for a government solution to a non-existent problem.

Hopefully Commissioner McDowell will set Goodlatte straight that we need a hands-off approach to the Internet, not creative reasons to increase regulation of a critical center of growth for our economy.

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Tech at Night

Good evening. I’m not seeing anything huge as we pass the middle of the week. But, you never know what will become important, so let’s take a look at what caught my eye so far this week.

Even as Mary Bono Mack seeks to legislate on the news, or at least introduces a bill to make people feel better, Apple explains that the “location tracking” story was a non-story all along, just as I predicted. It was all about making GPS faster, and there was no real privacy issue.

Oh, yes. ICE is from the government, and it’s here to help. That is, if you’re a big copyright holder, but not if you’re a small patent holder.

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Tech at Night

Remember when I seemed to write about Net Neutrality four times a week, which was really something when I was only posting three times? Well, the AT&T/T-Mobile deal is probably going to get that much discussion for now.

Of course there’s nothing new yet. Discussion is all there is until government actually starts acting. My job is to find the interesting discussion, I suppose. So let’s start with Douglas Holtz-Eakin at NRO, who makes very well the key thing we all must remember when it comes to the wireless market: size isn’t what matters. Competition matters. And as I’ve been saying from the start, taking the sick man in T-Mobile and combining him with the #2 firm only helps competition by putting pressure on the high-flying, LTE-deploying #1 Verizon.

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Tech at Night

After that flurry of activity online, we seem be having a bit of a slow Friday. It’s no wonder: we have a long fight ahead with respect to the AT&T/T-Mobile deal, a process that Mike Wendy calls Legalized Extortion. And when property rights are made contingent on acceptance of a goverment-dictated consent degree, it’s hard to argue with the thrust of Wendy’s point.

Scary thought for all users of SecurID, after the RSA breakin: What if SecurID has a backdoor? If it does, then there could be real danger ahead for all its users.

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Nima Jooyandeh facts.