In Order to Have a Free Market, You Need to Have Choices

One of the great things about a “Free Market” is that if you don’t like the company you are getting services from, you can always go somewhere else. 

Well, except if you’re dealing with Internet Service Providers and live in North Carolina.  Then you’re pretty much screwed.  You see, Governor Bev Purdue says that she will neither sign nor veto H.129.  Now for those who do not know, H.129 is a bill that would put restrictions on cities that currently provide internet service to its citizens (Wilson, Salisbury, Morganton, Davidson, and Mooresville), and would significantly hinder any efforts by other cities to pursue their own municipal internet services. The obvious winners in this action are Time-Warner cable and AT&T, who have spent a lot of money improving their services, er, buying politicians, er, let’s just say, they’ve spent a lot of money over this. 

Some of the provisions in H.129 state that cities:

• Shall provide nondiscriminatory access to private communications service providers on a first-come, first-served basis to rights-of-way, poles, or conduits owned, leased, or operated by the city unless the facilities have insufficient capacity for the access and additional capacity cannot reasonably be added to the facilities.
• Shall not use city resources that are not allocated for cost accounting purposes to the city-owned communications service  to promote city-owned communications service in comparison to private services or, directly or indirectly, require city employees, officers, or contractors to purchase city services
• Shall not subsidize the provision of communications service with funds from any other noncommunications service, operation, or other revenue source, including any funds or revenue generated from electric, gas, water, sewer, or garbage services.
• Shall not price any communications service below the cost of providing the service, including any direct or indirect subsidies received by the city-owned communications service provider and allocation of costs associated with any shared use of buildings, equipment, vehicles, and personnel with other city departments.

The bill ensures that companies like Time Warner Cable and AT&T will continue to be the dominant players in most North Carolina markets, even with higher pricing and speeds that often lag far behind what cities themselves can provide for its residents.

Never mind the fact that these municipalities decided to vote to band together and provide its own municipal services.  And why did they do that?  Because the Internet service providers were dragging their feet and underserving the market.  The community did not have a choice that was fast and inexpensive, so they created one.  And because they are offering their community an alternative that is better, the telecoms run and pay off politicians to curtail it. Because as we all know, municipalities should not have an “unfair advantage” over the private sector.  In this case the unfair advantage is a service that is better, faster and cheaper.  You know, those same arguments that are used when a government decides to outsource a municipal service to a private company. 

Funny how that works.

Protecting IPs From Whom?

It may be summer soon, but there is a chill in the air.  Legislation known as the “Protect IP Act” has been introduced in Washington.  Basically it is the successor to the Combating Online Infringements and Counterfeits Act that made its way through congress back in November. 

This is how the bill would work.  The U.S. Department of Justice would receive the power to seek a court order against an allegedly infringing Web site, and then serve that order on search engines, certain Domain Name System providers, and Internet advertising firms–which would in turn be required to "expeditiously" make the target Web site invisible.

Needless to say, Google is not happy.  The bill would also make Google, which makes most of its profits from its online advertising products, stop serving ads or sponsored links to those sites deemed as infringing. To quote Executive Chairman Eric Schmidt on Wednesday:

"If there is a law that requires DNSs [domain name systems] to do X, and it’s passed by both houses of Congress and signed by the president of the United States and we disagree with it, then we would still fight it.”

…

"If it’s a request, the answer is we wouldn’t do it. If it’s a discussion, we wouldn’t do it”

…

"So, ‘let’s whack off the DNS.’ OK, that seems like an appealing solution but it sets a very bad precedent because now another country will say ‘I don’t like free speech so I’ll whack off all those DNSs.’ That country would be China.”

As my dad used to say, those are fightin’ words.  And in many ways he is correct, because the main thrust of this is not the Pirate Bay and similar sites, as one might suspect, but rather Wikileaks. 

You see, under this law, leaking information such as governmental cables or embarrassing and/or damaging bank information showing rampant fraud and the like is basically distributing copyrighted material, and therefore subject to the takedown.  See how that works? Do not think for a minute that any of that was lost upon the members of congress who see the site as something they would like to see go away, and soon.

Of course the MPAA had words to fire back, seeing that they basically wrote the bill for the esteemed members of congress.  Michael O’Leary, an executive vice president for MPAA, in a statement:

“Is Eric Schmidt really suggesting that if Congress passes a law and President Obama signs it, Google wouldn’t follow it? As an American company respected around the world, it’s unfortunate that, at least according to its executive chairman’s comments, Google seems to think it’s above America’s laws. And the notion that China would use a bipartisan, narrowly tailored bill as a pretext for censorship is laughable, as Google knows, China does what China does.”

That last part may be true.  But if China does it, does that mean that we must follow their example?

Micronokia?

Eldar Murtazin strikes again.  According to a post from the Russian, Microsoft and Nokia will enter talks next week to discuss the potential for the American software giant to purchase the Finnish company’s mobile arm. That means smartphones.  He went on to say that both side are in a hurry to complete the deal and that it could close by the end of the year.  While the rumor may seem to some as a strain on reality, Murtazin is usually more right than wrong.  Also,  after Murtazin’s post came out, Mark Squires, UK Communications Director for Nokia, issued a no comment:

We typically don’t comment on rumors. But we have to say that Eldar’s rumors are getting obviously less accurate with every passing moment.

Which, for many, means that Murtazin must have struck a nerve somewhere. 

So the question is why?  Why not?  Nokia market value is 33 billion and the company has been in profit since 1996. Taking away 9-10 billion cash after debt it sums to 23 billion. Microsoft could give its own shares to the Nokia owners and not to use any money. They would get for 23 billion a company that sells every third mobile phone on this planet plus 1/2 of the Nokia Siemens Networks (worth billions) and Navteq Corp..

After all, Microsoft is sitting on a ton of cash as well.  While people cringed at the 8.5 billion spent for Skype, the fact is, Microsoft had the cash to throw around. 

You also have to think of the patents that Microsoft would get, along with two more mobile operating systems to use/pilfer. 

So why the rush?  Because if as planned, Nokia starts to sell phones with Windows Phone 7 on them and sales start to pick up, Nokia becomes more expensive.  Better to do it now, if you’re going to do it. 

It is going to be fun to see how this plays out.

Weekend Wrap Up–Bad Moves Edition

It has been a busy week, at least if your job is spinning jaw-dropping stupid stunts.

Bad Move Number One.  I think that people have a right to talk about “conflict of interest” in an honest way when you approve one of the largest mergers in US history, then four months later go to work for the company you approved the merger for.  Meredith Attwell Baker, one of the two Republican Commissioners at the Federal Communications Commission decided to take a lobbying position at Comcast. But, as we all know, one did not have anything to do with the other. 

Bad Move Number Two.  You know it’s a bad move to plant smears on your corporate opponent when the PR company you hired to do so suddenly says “Wait a minute, this isn’t right”.  But Facebook went ahead and did it anyway.  Really, Zuck?  Do you really feel that people are going to leave Facebook for whatever the flavor of the month Google is pitching to be relevant in the social market? 

Bad Move Number Three.  Rupert Murdoch decided to create his own version of Wikileaks, called “Safehouse”.  Yeah, I know, it took me a while to stop laughing on this one.  Of course, unlike Wikileaks, if the heat gets to be too much (you know like someone asks “who sent you this?”), they will sell you down the river to the authorities.  Really, the man is known for spreading lies concerning just about everyone on the planet and we are supposed to believe that if it is posted in “Safehouse” then it must be true?  They say that two positives don’t make a negative.  Yeah.  Right.

Bad move Number Four.  Something that really has something to do with technology, although it doesn’t look like it on the surface.  The political season is once again upon us and unfortunately, we are going to have to put up with political ads.  So far, we have a tie for what are the worst political ads ever, and we have only just begun, so the only place you’ll see them is either on “Web Soup” or the internet.  Really, Newt Gingrich has no reason to be turning out this cheese.  He has been in the game too long to think that this pile of excrement is actually good for him.  But Dan Adler’s ads are starting off by being, well, different.  And by Different, I mean just WTF?  I mean, Patty Duke, in the Muscle Beach weight lifting area telling constituents “Dan Adler gets sh*t done.” and a second ad that makes as much sense as the first.  I don’t know whether the guy is serious or is trolling the southern half of California. BTW, his campaign manager is Sean Astin, he of LOTR fame and Patty Duke’s son.  So there is no excuse for these either.

Just remember, folks, technology is a tool.  Unfortunately, so are many people. 

Skip Skype-ing Away

Well, Microsoft spent around 8 Billion (with a “B”) and bought internet voice company Skype last night. What is amazing is that while most people actually think that Skype and Microsoft is a better fit than Skype and Google or Skype and Facebook (the other two suitors), the deal was somehow the worst possible move that Microsoft could have done.  Doomed, I tell you.  Doomed.

I will give the fact that Microsoft’s acquisitions have not fared well.  How this is different from every other large company out there is beyond me, but let us forget that Google’s failure rate is fastly approaching that of AOL and that Apple has tasted the sour taste of failure as well.  This is about Microsoft, so we must go through the storyline that everything that Microsoft touches turns to lead.  Even when it doesn’t.

So what does Microsoft get for 8 billion dollars?  663 million total users, although most users are not active callers.  However, according to Paolo Pescatore, an analyst at CCS Insight in London. In voice services, “Skype has certainly set the benchmark and gained a lot of traction.”  Skype is a well known player.  It’s technology is fairly mature.  And unlike previous acquisitions where the question “What are you going to do with it now you have it?” was met with awkward pauses, the answers came fast and furious.  Skype on Windows Phone, Skype in Outlook, Skype in X-Box, and Skype with Lync, Microsoft’s corporate telephony services.  There are a lot of places in the Microsoft world where Skype could be used. 

Of course, analysts at Bloomberg couldn’t resist pointing out that “Microsoft’s backing of Skype may be seen as a threat by wireless carriers such as AT&T Inc. and Verizon Wireless because it could cut into voice revenue.”  Funny how the introduction of Apple’s Face Time wasn’t met with the same dire predictions.  After all, Apple is the market right now.  Microsoft is a far distant third.  One also tends to forget that Skype is available right now on Apple and Android products.  Yet the sky is falling only when Microsoft is in the room.  Funny, that. 

The question I have is the execution of the plan.  If this is going to work and really scare people, it will need to be done quickly.  No two years later-this will have to hit the ground running within the next six months.  Maybe not everything, but movement will need to be shown.  The good points are that Microsoft has now become the clear leader in video communication and that Skype’s leader, Tony Bates is staying along for the ride.  Microsoft says it will be exciting times ahead.  I certainly hope so. 

The Good-Bye Blog

Derek Miller, a Canadian technical writer, passed away Tuesday at the age of 41, after a battle with colorectal cancer.  I say this because he blogged about his life and fight in a way that few have. Miller started blogging in 1997, long before it was fashionable to do so.  His site has been on my favorites list for about four years. “The Last Post”, just before his death is one of honesty and love.  It is casual covering of the last twenty years, telling us what life for him was like.  And it is touching without being maudlin, much like his posts concerning his battle with cancer.  It is, what blogging is at its best: a way to reach out and touch people’s lives in a friendly way. 

Miller’s last post covers a lot of ground and gives the best reason of all for enjoying the moment while you are still here to do so:

It turns out that no one can imagine what’s really coming in our lives. We can plan, and do what we enjoy, but we can’t expect our plans to work out. Some of them might, while most probably won’t. Inventions and ideas will appear, and events will occur, that we could never foresee. That’s neither bad nor good, but it is real.

  His voice will be missed.

On Through The Night

I travel.  A lot.  I’m that level just below road warrior. Call it road kill.  Life has changed since the golden days of flying, when everyone dressed to the nines, real food was served on airline china and flight attendants were called stewardesses.  Yeah, those days are gone.  Flying has become a commodity for all the right and wrong reasons.  Today we are shuffled like cattle, squeezed into seats made for munchkins and made to deal with our fellow man on a forced basis.   Anyway, I just finished up a one-connect red-eye from hell.  And so, since I’m feeling somewhat cranky as a result, I wish to remind some of my fellow travelers about a couple of those little rules about traveling in the 21st century.  I do this especially since the travel “silly season” is upon us, where everyone out there who does not have a clue, purchases an overpriced seat to go to that overpriced dream place for a too short a period of time.

First, you know those rules the TSA has about liquids?  Yeah, they are an idiotic pain in the butt, and that’s putting it mildly.  But do us all a favor.  Tell it to your congressman.  Tell it to the President. Tell it to someone who can actually change things.  Do not tell the TSA agent. They do not care that the twenty-four ounce bottle of shampoo you have to carry on retails for seventy-five dollars and contains the placentas of genetically engineered blue-eyed fruit bats.  And neither do the rest of us waiting in line.  The rules, no matter how Kafkaesque they may seem are not going to change just because you think they magically do not apply to you.  Become an activist  - on your own time.

Next up, I know that the airlines are scumbags for charging for checked bags.  But really, do you have to pack up the plantation like the Beverly Hillbillies and try to stuff it into three oversized bags and then try to  pretend they are two carry-ons?  You are traveling on an airplane, not escaping the Bolsheviks.  Learn to pack lightly.  Here’s a useful tip.  Take everything you want to take for your trip and the night before you leave, cut that pile in half.  It actually works.

When you are on vacation, you buy stuff.  Do yourself a huge favor – See if the place you bought your stuff from will ship to your home.   Less things to try to keep track of.  And less things you have to pack on the way home.

The flight attendants are there to prevent me from strangling your progeny and stuffing their lifeless body into the overhead bins.  You can help too.  I do not care that your precious is an honor student; all I care about is that your precious keeps kicking the back of my seat.  Be aware that this is a tiny place we are stuck in for the next two to five hours.  I do not want to kill anyone.  So stop making it so tempting to do so.

And yes, sometimes a flight attendant can be a real b*tch.  They have to be when they put up with people like you.   There is a saying: “How best to act a King, when always treated like a King”.  The service industry has a habit of treating even the most petty tyrant with respect.  Try to do the same for the flight attendant.

The point to this is simple; we are fellow travelers in a confined space for a short period of time.  Travel is not about you; it is about the journey itself.  Be aware there are other people around you and act accordingly.  Smile to each other.  The food isn’t great, if there is any, the coffee lukewarm and the conversation minimal at times.  That is the way of the road.  Be a warrior, but be a gentle one.