FC: Beware Joe Lieberman's broadband-industrial-policy, CEI says

From: Declan McCullagh (declanat_private)
Date: Fri May 31 2002 - 11:35:03 PDT

  • Next message: Declan McCullagh: "FC: Newsbytes, R.I.P."

    ----- Forwarded message from Richard Morrison <rmorrisonat_private> -----
    
    From: "Richard Morrison" <rmorrisonat_private>
    Subject: CEI's Weekly Commentary:  Lieberman on Broadband
    Date: Fri, 31 May 2002 13:10:09 -0400
    
    CEI C:\SPIN 
      This issue:  One Small Two-Step for Political Man:  Joe Lieberman on
    Broadband 
     
        This week's c:\spin, on broadband policy, is by James Gattuso
    <http://www.heritage.org/staff/gattuso.html> , Research Fellow in
    Regulatory Policy, The Heritage Foundation <http://www.heritage.org/> ,
    May 31, 2002.
     
    As a rule of thumb, one should be wary of anyone in Washington invoking
    President Kennedy's call to land a man on the moon.   For the past 40
    years, every rhetorician worth his salt has called for a Kennedyesque
    national program to meet their favored goal.   Senator Joe Lieberman did
    that with gusto this week, invoking not just Kennedy, but Eisenhower and
    Lincoln too, in favor of a broadband industrial policy.
     
    Lieberman, who is expected to introduce legislation on the topic next
    week, is but the latest player in an increasingly crowded Senate
    broadband debate.  Senators Breaux and Nickles introduced a "regulatory
    parity" bill <http://www.senate.gov/~breaux/releases/2002430907.html>
    last month, followed by a subsidy plan by Senator Hollings
    <http://www.senate.gov/~hollings> .  John McCain
    <http://mccain.senate.gov/>  is also expected to join the fray soon.
     
    Lieberman's 54-page report
    <http://www.senate.gov/~lieberman/press/white_paper/broadband.pdf>  is
    certainly comprehensive.  The major theme:  government should adopt a
    national policy for making broadband a priority.  In so doing, Lieberman
    - a 2004 presidential hopeful -- implicitly scores the Administration
    for not presenting its views on broadband, proposing to require it to do
    so within six months.  Fair enough - the White House has been
    conspicuous by its silence <http://www.cei.org/gencon/016,02839.cfm>  on
    broadband regulation. 
     
    Going further, the report argues for a policy declaring broadband to be
    a key technology of the future.   At every turn, it exudes certainty
    over the future of this technology.  It declares broadband to be a
    "necessary condition" for improvement in the IT industry.  It says the
    technology "will" transform commerce.  Its growth "will" be
    demand-driven.  The benefits "will" be greater than we expect.   Based
    on this, Lieberman proposes a series of steps to subsidize the
    technology, ranging from tax credits, loans and grants to spending on
    research. 
     
    There's certainly reason to be bullish on broadband - I am too.  It does
    have terrific potential.  But a little humility is called for.  Can
    anyone, especially government, flatly say this or that technology
    definitely will be successful and in what way?    Government-proclaimed
    technologies of the future that flopped are numerous.   Does anyone
    remember video dial tone telephone service?  Can you say HDTV?   The
    fact is that consumer technologies are notoriously unpredictable.  To
    pretend otherwise is to indulge in Hayak's fatal conceit
    <http://www.hayekcenter.org/hayekbib/bibcw1.html> .  
     
    Making broadband an officially favored technology has its practical
    drawbacks <http://www.cei.org/gencon/016,02223.cfm>  as well.  Even if
    we aren't concerned about distorting investments away from other
    promising technologies, subsidies will likely end up favoring one type
    of broadband technology over another - regardless of how many times
    neutrality is pledged. (Slower-speed satellite broadband systems, for
    example, are unlikely to receive equal favor).
     
    Forswearing industrial policy, however, doesn't mean government can't do
    anything to help broadband.  The choice isn't between subsidizing and
    ignoring this potentially critical service.  Why not look toward
    removing government barriers to its development?  
     
    On this score, the Lieberman report does make some worthwhile
    suggestions - such as limiting local right-of-way fees and providing
    more spectrum for wireless providers.  But, on most issues, Lieberman
    performs an awe-inspiring politician's dance, discussing the topic,
    grimly intoning how important it is, then moving on without stating a
    position. (Kids, don't try this at home:  only professionals should
    attempt that kind of two-step).
     
    A glaring case in point: in one section, the key issues of competition
    and the history of FCC regulation are discussed extensively and the
    various pending proposals outlined.  "We cannot avoid debate over
    competition," the report reminds us.  It then goes on to avoid the
    debate over competition, not even hinting at a position.         
      
    That's a shame.  In a report focused on the need for leadership on
    broadband policy, Senator Lieberman shuns it in the areas where it is
    most needed. 
     
     
    C:\SPIN is produced by the Competitive Enterprise Institute. 
    
    ----- End forwarded message -----
    
    
    
    
    -------------------------------------------------------------------------
    POLITECH -- Declan McCullagh's politics and technology mailing list
    You may redistribute this message freely if you include this notice.
    To subscribe to Politech: http://www.politechbot.com/info/subscribe.html
    This message is archived at http://www.politechbot.com/
    Declan McCullagh's photographs are at http://www.mccullagh.org/
    -------------------------------------------------------------------------
    Like Politech? Make a donation here: http://www.politechbot.com/donate/
    -------------------------------------------------------------------------
    



    This archive was generated by hypermail 2b30 : Fri May 31 2002 - 12:31:40 PDT