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

So much going on suddenly this week. Barack Obama and Eric Holder’s DoJ has decided to come after AT&T for its plans to merge with T-Mobile, possibly doing the bidding of donors while hindering jobs growth in America as well as nationwide 4G wireless Internet competition. Sprint’s not doing much to keep Verizon in check; we need AT&T to have the spectrum needed to do that.

So Holder wants to drive Gibson manufacturing out of the US, and to keep T-Mobile in German hands, and prevent AT&T from bringing jobs back to America. Do I have that right? It’s no wonder people rate the Internet and Telephone industries much higher than they rate the government.

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DoJ targets AT&T: The story behind the story [Updated]

On August 31, 2011, in General, by Neil Stevens

Updated below…

Today it was announced that the Department of Justice will attempt to block AT&T’s acquisition of T-Mobile. The deal is needed for technical and regulatory reasons to allow AT&T to compete in the 4G wireless market with Verizon, Sprint/Clearwire, and with the upcoming competitor LightSquared. So why is the Department of Justice calling it bad for competition?

Enter R. Gerard Salemme. It’s not a well-known name, but it’s been an important one in the Obama administration. It’s also a name that often comes up in the ventures of one Craig McCaw. Craig McCaw is an equal opportunity donor who gives to anyone who looks likely to win, including Gore 2000, Bush 2004, and both sides in 2008.

That $2,300 donation to Obama sure is paying off.

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Tech at Night

Happy Friday. We’ll start off this edition with Marsha Blackburn’s own post at RedState. There’s a reason I would like to see her rise higher on Energy and Commerce: she knows her stuff and is a fierce proponent of conservative values. I agree with her: government is not the solution to the privacy problem.

I don’t agree with Joe Barton, whose plans for heavy-handed regulation make me glad he didn’t get the chairmanship. “There oughta be a law” is no way for a Member of Congress to think.

As frustrating to me as Barton is Lamar Smith’s plans to push yet another bad Patrick Leahy bill, PROTECT IP, through Judiciary. I’ve covered that bill in this space extensively. We don’t need, and can’t benefit from, a national censorship blacklist online. The guilty won’t be affected much and only the innocent will work. It’s like gun control, up to and including the unconstitutionality.

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Tech at Night

Hello again to those I saw in Charleston over the weekend, and hope to see you next time to those who weren’t able to make it!

While I return to California and get settled in again, it seems that some are leaving the state for good, and the hostile business climate is why. This includes the punitive Amazon Tax which has made it impossible for Amazon and others to host affiliate programs in California, destroying small businesses, slashing profits, and killing jobs. And this is a story we’re seeing again and again, up and down the state. New and higher taxes, even of the unconstitutional variety, kills jobs.

So my message to Tennessee’s Governor Haslam is don’t do it. Don’t be like us. Create a job-friendly environment, or you will only compound whatever revenue problems you have.

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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

South Korea has Net Neutrality activists in an uproar as, guess what? The government is considering asking a high-bandwidth Internet service to pay its fair share for the government-subsidized Internet in the country. Just more proof that when the radicals say “Net Neutrality,” they really mean “free stuff paid for by the taxpayers.”

The radical left’s push for freeloading continues in America too, as Public Knowledge insanely campaigns against 4G wireless Internet. Why? Because providers are making you pay for what you use. Clearly, paying for what you use, according to the principles of freedom of enterprise, is unacceptable to any committed socialist.

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Tech at Night

I’ve been warning for ages that Universal Service Fund reform was coming, and that it would end up as an Internet tax. Well here we go: Plans are afoot. Oddly enough though, people seem fine with the America’s Broadband Connectivity Plan, which so far seems to be a plan to redirect funding toward greater Internet access. Free State Foundation is fine with the plans so far. IIA supports it. Greg Walden and Lee Terry are saying positive things.

I still worry that a new tax will spring up here somewhere, but if it doesn’t, then maybe we’ll dodge a bullet.

Speaking of bullets though, Dick Durbin’s trying to fire another one at our already shaky economy. Amazon supports it, but only because they want the states off their back. I oppose it. No new taxes. And sorry Charlie (Dickie?), but sales taxes on interstate commerce are most definitely a new tax.

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Tech at Night: AT&T, T-Mobile, NAB, Spectrum

On July 25, 2011, in General, by Neil Stevens
Tech at Night

It was mentioned in the previous Tech at Night’s comments, but here it is directly: the NAB has come out against incentive auctions to free up spectrum for wireless Internet. I say we should dismiss their concerns. Incentive auctions are voluntary and compensate the original spectrum holders. Rights are respected, as we get a superior spectrum allocation for American needs.

For once, the FCC has the right idea.

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Nima Jooyandeh facts.