by publius
When Uncle Ted Stevens famously called the Internet a “series of tubes,” many of you foolishly ridiculed him. While cleverly disguised as senile rambling, Uncle Ted’s visionary statement illustrates why Verizon’s text-messaging drama matters. Despite all its charms and complexity, the Internet (and communications networks more generally) still rely on old pipes and wires. For that reason, the net neutrality debate is, at bottom, a debate about infrastructure. Or tubes, if you prefer.
To understand Uncle Ted’s point, imagine that Congress was debating whether to privatize the federal interstate highway system. And let’s say that Rep. Joe Barton (R-Comcast) justified privatizing our roads on the House floor by citing the rich diversity on our highways. Regulation, Barton argues, is no longer necessary because multiple trucking companies compete for our business; multiple car companies compete; etc. This argument, however, ignores an important point. We have lots of trucks and cars because there are federal laws that secure access to the highway (i.e., the underlying network infrastructure). Competition on the top “layer” cannot justify eliminating the “lower-layer” regulation that makes this competition possible in the first place.
The same principles apply to communications networks. Yes, the Internet is a richly diverse place. But that competition was made possible by underlying common carrier regulation – i.e., access to the tubes. In the old Computer Inquiries proceedings, the FCC regulated and secured access to the underlying physical networks (i.e., the highway), but left the higher-level services unregulated. Thus, when people say that the Internet’s success stems from the lack of regulation, that’s completely and utterly false. The Internet exists today because of regulation.
This then brings us to Verizon. While it’s true that Internet services (and to a lesser extent wireless services) are competitive, all of those services depend on access to underlying physical networks (wires, etc.). And old networks at that. Voice and data communications – regardless of how novel or cool they may be – ride over old copper networks that trace back nearly a hundred years. Or, they ride over cable lines that most companies built decades ago. Both sets of “tubes” were built with government subsidies and monopoly protections. And for that reason, they’re impossible for a private company to replicate. (On an aside, what makes Christopher Yoo’s arguments so absurd is that he ignores these – and other – barriers to entry and pretends alternative communication networks will sprout up like lemonade stands).
It’s true that fancy new digital fiber lines are out there. But these lines do not (generally speaking) run all the way to your house. Your house has three lines running to it – a phone line (copper), a cable line (coaxial), and an electricity line. Because the latter is not even close to ready for prime time, you can (at best) get broadband either from the phone company or the cable company.
You may know all this already – what you may not know is that wireless service (the Messiah; the One, Godot, etc.) also depends on these old wires. Wireless needs wires. True, wireless service doesn’t need wires to connect to your device. But, to connect to the larger network, wireless towers purchase access from these legacy incumbents (almost always incumbent phone companies like Verizon and AT&T who inherited the legacy monopoly copper networks). What they purchase is called “special access” and it’s likely the most important telecommunications issue you’ve never heard of. Essentially, all wireless service – from WiFi to voice to WiMax – depends on these old legacy networks to provide service (networks the wireless providers can't replicate).
The 1996 Act tried to force the old monopoly providers to open their networks. The 96 Act, though, is pretty much dead – emasculated by the DC Circuit. When it died, AT&T and MCI were forced to sell out to the big boys (SBC and Verizon) because (among other things) they couldn’t afford special access. Again, the tubes mattered. It’s also no accident that the two biggest wireless providers (Cingular and Verizon Wireless) are affiliated with the two bigger copper incumbents – they need access to the tubes. Wireless needs wires.
This is getting technical, so let’s get back to the Verizon text messaging. Yes, text messaging is competitive (though not as much as you might think). But, what really matters is not text messaging, but the underlying networks it depends on – networks controlled by Verizon. Thus, it’s not troubling that a text messaging provider refused to deal with NARAL. It’s troubling that the network infrastructure owner did. Even if it’s a dumb thing to do, they still did it. And if you own the underlying infrastructure, it’s an easy thing to do in the absence of nondiscrimination laws.
Communications networks are the lifeblood of our economy. And I, personally, think the Internets are pretty cool. There’s simply too much at stake to leave the everyday administration of the greatest invention since the printing press to companies who (quite rationally) aren’t worried about anything but the bottom line. It’s not a matter of evilness, it’s a matter of incentives and externalities.
And so the lesson is clear – leave the Internet to Verizon, and they will screw it up. And there’s too much at stake to let them do that.
[Update - non-PG-13 word changed]
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