Telcos: The Internet Will Collapse If The Gov't Doesn't Gives Us Lots Of Money

from the proof,-please? dept

For a while now, we've been noting that whenever you hear people warning about the impending broadband crunch, it's politicians, consultants or lobbyists. When you actually talk to technologists, they point out that there's no problem and that normal upgrades will keep everything just fine -- even without having to do any kind of traffic shaping or violation of net neutrality.

Yet, that won't stop the lobbyists, consultants and top marketing execs from claiming otherwise. A trade group heavily funded by AT&T is out yet again, warning that the internet will collapse by 2012 if "something" isn't done -- with that "something" being basically big government subsidies to the telcos. Consider it the telco bailout plan of 2009. Hell, if we're already bailing out Wall St. and Detroit, why not telcos as well?

Filed Under: bandwidth crunch, broadband crunch, exaflood, net neutrality, subsidies, telcos


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  1. identicon
    Pet Wombat, 25 Nov 2008 @ 2:41pm

    Re: What Happened to No Government Interference in Business?

    Anon: I know that Bush-bashing is a very popular occupation, unfortunately it is not that simple. If Bush and his "corprocratic cronies" were the problem, then a simple change in the administration would cure everything.

    Unfortunately, this fails to recognize the basic structure (and inherent problems) in our system of government. While the president can attempt to set an agenda through the budget proposal submitted to congress, he cannot write, propose, submit, discuss, or vote upon any legislation - that is reserved for the legislative branch. He can direct some legislation through veto (or the threat of), and can issue executive orders in certain circumstances (which are subject to congressional override). The judicial branch then often "interprets" the legislation or executive order as it applies to specific cases.

    There is, of course, the fourth branch of government - the "bureaucratic branch". As I have actually worked inside this branch I can speak with at least a little authority on this subject.

    Herein lies the problem:

    Congress wrote and passed the laws that allowed the various financial fiascos, and they are charged with providing the oversight. It is telling that Appropriations Committee chair Barney Franks (D) who co-authored the bailout without providing any restrictions, was "shocked" that executive of the failed banks were paying themselves huge bonuses with the bailout money. Congress is also who will write and pass a Telco bailout - probably with the same nebulous purpose and non-existant oversight.

    The Judicial Branch, which has repeatedly demonstrated a fundamental lack of understanding of business, economics, technology, or, well, pretty much anything they are passing decisions about, will then probably twist the law into something that agrees with the position of the largest and best-funded legal team.

    The Bureaucratic Branch will continue to do whatever they want, adopting a version of the old Chinese adage "the mountains are high and the emperor is far away". Most large corporations also know that a little "support" provided to these generally under-funded, under-appreciated clerks will get a lot of things done under the radar.

    So... nice rant, Anon, but I fail to see how this is, or will be, all Bush's fault.

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