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49

www.read-wca.com

Wire & Cable ASIA – May/June 2015

From the Americas

Yet, as soon as Mr Wheeler announced plans for strong

net-neutrality rules, on 4

th

February, broadband stocks

jumped, and they have stayed buoyant.

One baffled telecom analyst told the

New Yorker

: “I think it

just shows you that the market doesn’t really understand

these issues.”

Mr Wu suspects otherwise. He wrote: “The theory of

the wisdom of crowds suggests that the markets have

noticed something. The broadband industry hates

net neutrality, but its existence has always had a huge

and unnoticed upside: selling broadband is a great

business.”

In fact, according to the analyst at a loss for an

explanation, the margins are north of 97 per cent. Stated

simply, a strong net-neutrality rule locks in the status

quo for the most profitable segment of cable industry

business.

As for the future, the Columbia law professor is dubious

about the assumption that the new rules will be met with

fierce and protracted litigation- “perhaps decades of it,

warn the greatest doomsayers.”

It is true that most serious regulation is immediately

challenged in court. And Verizon and AT&T have both

already threatened to sue.

But Mr Wu noted that, given the jump in stock prices,

filing a lawsuit will technically be suing to invalidate

rules that seem to have created billions of dollars of

shareholder value for the broadband providers.

Again, suing the FCC tends to annoy the agency, before

which both AT&T and Comcast have mergers pending.

Sprint has already said that it doesn’t mind net-neutrality

regulation.

And, wrote Mr Wu: “It is hard to imagine a smaller

company really wanting to bother.”

Getting real, a British fake-news

comedian prods Americans into

taking a side – his – in the net

neutrality debate

A scant year before the Federal Communications

Commission acted on net neutrality few outside the

telecom community had ever heard of it, despite extensive

news coverage.

Tom Wheeler, appointed to lead the FCC by President

Obama in 2013, was mulling over new rules to allow

broadband companies to provide “fast lanes” that would

enable content providers to offer streamlined Internet

connections to customers willing to pay.

Mr Wheeler, a former top lobbyist for the cable and

wireless industries, seemed favourably disposed to the

idea. But the policy debate, which exercised the agency and

the telecom industry, left the American public unmoved to

the point of indifference.

Then, last June, the host of HBO’s ‘Last Week Tonight

with John Oliver’ took an interest. In a segment that has

been viewed over eight million times on

YouTube

, the

Birmingham-born comedian, now based in New York,

accomplished something extraordinary.

Making abstruse subject matter entirely intelligible and ably

arguing his own pro-neutrality position, he also contrived

to actively engage the general public in a topic that he

pronounced, “boring even by C-SPAN standards.”

The reference is to the Washington-based cable and

satellite TV network that covers proceedings of the

federal government in real time. But Mr Oliver’s approach

was anything but static. He drew first blood from

Mr Wheeler:

“Yes, the guy who used to run the cable industry’s

lobbying arm is now running the agency tasked with

regulating it. That is the equivalent of needing a babysitter

and hiring a dingo. ‘Make sure they’re in bed by eight,

there’s 20 bucks on the table for kibbles, so please don’t eat

my baby.’”

‘I am not a dingo’

The Cambridge-educated Mr Oliver urged his viewers

to contact the FCC. They did, by the tens of thousands

over the next few days, flooding the agency with comments

and crashing its website. Millions followed suit, the vast

majority demanding net neutrality.

What

Time

magazine termed “the Oliver effect” was not lost

on Mr Wheeler, who told reporters: “I would like to state for

the record that I am not a dingo.”

Writing just before the FCC decision was announced, the

New York editor of the

Christian Science Monitor

, Harry

Bruinius, recalled that the agency was poised to pass – with

Mr Wheeler’s yea vote – “what seemed unthinkable” less

than a year before.

It is incontrovertible that Mr Oliver’s performance

contributed importantly to stopping the ‘fast lanes’ long

sought by the companies in command of USA Internet

infrastructure.

Aram Sinnreich, a professor of communication and

information at Rutgers University (New Jersey), told

Mr Bruinius: “John Oliver absolutely helped turn the

tide in the net-neutrality debate.” (“Net Neutrality’s

Stunning Reversal of Fortune: Is It John Oliver’s Doing?,”

26

th

February)

What that tide brought in was the reclassification of

high-speed broadband service as a basic public utility:

a common service akin to phone lines, water pipes or

the energy grid, and therefore a kind of protected and

regulated public good.

It was a stunning victory for the advocates of net

neutrality – and an incidental acknowledgment of the

influence that can be wielded by a brilliant funnyman

with a cause.

Dorothy Fabian

Features Editor