Tuesday, February 5, 2013
Tuesday, February 5, 2013

Scared of Susan?

A few weeks ago former Obama administration technology advisor Susan Crawford released her book Captive Audience: The Telecom Industry and Monopoly Power in the New Gilded Age. A wonky book, from an academic publisher, it has attracted a flurry of responses, that if one digs one layer below the surface are from authors whose institutions are connected to the very industry the book critiques.

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Scared of Susan?

POSTED: Wednesday, January 30, 2013, 9:33 AM

A few weeks ago former Obama administration technology advisor Susan Crawford released her book Captive Audience: The Telecom Industry and Monopoly Power in the New Gilded Age. A wonky book, from an academic publisher, it has attracted a flurry of responses, that if one digs one layer below the surface are from authors whose institutions are connected to the very industry the book critiques.

Across the internet, a seemingly disconnected series of reviews appeared attacking the book, the author, and her premise – that giant telecom companies are bad for consumers and bad for the internet. The reviews were rounded up on the blog of Broadband for America, an advocacy group whose purported aim is “ensuring every American citizen has high quality access to the Internet.”

BFA cited reviews from American Enterprise Institute fellow Nick Schulz in the Wall Street Journal; NetCompetition chairman Scott Cleland in The Daily Caller; Free State Foundation president Randolph May; and Information Technology and Innovation Foundation fellow Richard Bennett.

Each of these critiques cited by Broadband for America comes from organizations that have ties to the telecom industry, either through membership or direct contributions. Broadband for America is tied directly to the industry as well - Comcast, Time Warner Cable, AT&T, and Verizon are all part of their “coalition.”

Discussions of who finances our public policy process often focus on lobbying disclosure statements and campaign finance filings. The attacks on Susan Crawford are indicative of another layer that is all too often ignored: the funding of research and editorial efforts that are often directed by the same K-street firms that lobby lawmakers.

Reviews of Captive Audience that have no connection to any lobbying group take a strikingly different tone. In Time, for example, business and technology reporter Sam Gustin writes:

"Crawford’s book is the most important volume to be released in the last few years that describes the sad — some might say embarrassing – state of the U.S. telecommunications market. Reasonable people can and do disagree about policy solutions, but the facts are not in dispute. Americans have fewer choices for broadband Internet service than millions of other people in developed countries, yet we pay more for that inferior service. The reason for that, according to Crawford, is that U.S. policy makers have allowed a small number of highly profitable corporate giants to dominate the market, reducing competition and the incentives for these companies to improve service and lower prices."

Captive Audience’s aim is to explore not just the sorry state of the broadband internet market, but also the ways in which the big telecom companies have gamed the market and the regulatory agencies to ensure huge profits at the expense of competition and innovation. It is for this reason the volume of attacks on the book from those with connections to the industry reveals a certain skittishness. Crawford’s potential to draw back the curtain and reveal to consumers the raw deal they are getting, is what the telcom companies fear most.

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Comments  (17)
  • 0 like this / 0 don't   •   Posted 10:19 AM, 01/30/2013
    Comcast and Verizon=Monopoly!! there are soo many fish in the waters that they don't care if you leave and go to their competitor. Since there will be someone leaving the other company to go to them.
    ONLYinPhilly
  • 0 like this / 0 don't   •   Posted 10:25 AM, 01/30/2013
    I don't need to read a book or listen to the corporate interests to know that I pay $50/month for broadband that is no faster than it was a decade ago.
    sla6yer
  • 0 like this / 0 don't   •   Posted 10:29 AM, 01/30/2013
    The monopolies were enabled by the Telecommunications Act that Bill Clinton signed. Don't forget to mention that. RIGHT! It's Bush's fault.
  • 0 like this / 0 don't   •   Posted 10:36 AM, 01/30/2013
    Don't forget the "Universal Service Fee" on your phone bill that puts computers in schools.
    uncle meat
  • 0 like this / 0 don't   •   Posted 10:35 AM, 01/30/2013
    "ways in which the big telecom companies have gamed the market and the regulatory agencies to ensure huge profits at the expense of competition and innovation." And there you have it in a nutshell. With millions of subscribers, there is no need for it to be as expensive as it is.
    dee99999
  • 0 like this / 0 don't   •   Posted 10:49 AM, 01/30/2013
    Take a look at your cell phone bill and see how much you pay in taxes. Susan's former boss sure has no problem getting his cut from these evil companies.
    smfree31
  • 0 like this / 0 don't   •   Posted 11:18 AM, 01/30/2013
    it's surprising that the book even got published. What she is talking about is no secret but it's something that no one wants told. Why do you think Brian Roberts gave so much money to Obama?
    Trident252
  • 0 like this / 0 don't   •   Posted 12:08 PM, 01/30/2013
    The Tonner's only option for internet service is Comcast. Why would they price their service fairly if they have no competition and aren't regulated? How many yachts do the Roberts need?
    hunglikeaton
  • 0 like this / 0 don't   •   Posted 12:13 PM, 01/30/2013
    we have the 7 or 8th slowest boardband service in the world in this country
    RichH
  • 0 like this / 0 don't   •   Posted 12:33 PM, 01/30/2013
    Deregulate the telecommunications industry, that will make things cheaper, oh wait, nevermind.
    rmg154
  • 0 like this / 0 don't   •   Posted 12:38 PM, 01/30/2013
    Business does not charge what the product is worth. They charge what the market will bear. If there is limited supply there is also the chance of benign collusion.
    wfs0868
  • 0 like this / 0 don't   •   Posted 12:44 PM, 01/30/2013
    As someone who does business frequently in many European countries, I can say with certainty that a typical telecom package includes: internet at 50-100Mbps, satellite tv, domestic AND international phone calls, all for $30-45 (yes, unlimited phone calls are included in that fee!), depending on the country. The telecoms are private companies, letting competition work for the consumer.

    My colleagues who work in the Asia-Pacific countries say that the services are even better and cheaper over in that part of the world.

    Comcast, Verizon, etc. charge as much as they do (for the poor service) because they don't have to do any better. No competition, and most Americans don't realize just how behind in technology this country is.

    And don't even get me started on the excellent cell phone service in Europe...
    Alan Anderson
  • 0 like this / 0 don't   •   Posted 6:46 PM, 01/30/2013
    My only choice is Comcast since Verizon is not in my area. I do not care for a dish hence I have no choice
    c7079
  • 0 like this / 0 don't   •   Posted 8:56 PM, 01/30/2013
    The "Universal Service Fee" was enacted to subsidize small telephone companies replacement of their central offices. Before long distance competition you could only use AT&T and every office connected you to them when you dialed "1". Some may remember having to dial an 800 number and entering a billing code to use MCI. It should do your heat goood to knwo you helped Alltell and GTE to modernize. That being completed teh fee never disappeared. Instead it was repurposed to pay for other government desires. Internet in schools, PCs for the poor, etc. Look at your telephone bill. Look at all teh charges for recovery and expansion of their networks that are being passed on to us by teh phone companies. They used to pay for this from their basic revenues at one time.
    Bob Calvin
  • 0 like this / 0 don't   •   Posted 10:26 PM, 01/30/2013
    The telecoms are a prime example of businesses in a mixed (part free, part controlled) economy. Their existence hangs on the decisions of politicians and regulators even more than on customers, so it is not surprising if they lobby, partly in self-defense, partly to gain an unfair advantage, which is how the mixed economy game is played. But Americans no longer understand how a competitive economy is supposed to work, so they don't understand that the answer to the problems of the telecoms, along with the rest of the mixed economy, is not more regulation, not less regulation, but NO regulation. Freedom works.
    Phillip Schearer


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About this blog
Ari Rabin-Havt is host of The Agenda, a nightly national radio program airing on SiriusXM 127. He is also a senior adviser to Media Matters and was on the faculty of the George Washington University Graduate School of Political Management. He is co-author of "The Fox Effect: How Roger Ailes Turned a Network into a Propaganda Machine" and has served as an adviser to Senate Majority Leader Harry Reid, former Vice President Al Gore, the Democratic National Committee and worked on John Kerry's presidential campaign. Reach Ari at TheAgendaAri@gmail.com.

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