Whitacre Fires Again


Ed Whitacre has fired another shot in the net neutrality war. With AT&T's gobbling up of Bell South for $37 billion he's going to have the leverage to make people pay.

Last time he said people that expected a free ride were nuts. This time he sounds more diplomatic, yet has a lot more power.

"“I think the content providers should be paying for the use of the network – obviously not the piece from the customer to the network, which has already been paid for by the customer in Internet access fees – but for accessing the so-called Internet cloud.”"

You know what that means? The Agonist might have to pay more to AT&T so you'll have access to it.

See, that's what happens when you have a monopoly. You can force people to pay for your service.

All those dreams of a meritocratic information superhighway, a marketplace where the best ideas duke it out and win? Pffftt. Ed Whitacre doesn't care. All he cares about is raising your rates. Just like Standard Oil and the rail barons, just like Gates and Microsoft (hey, the price of your OS has gone up even as the cost of RAM has gone done, didcha know that?) Ed Whitacre cares about one thing alone: money.

Only you can prevent this. Do some research, bone up on the background (also here) and then take action.

Update: Russel Shaw over at ZDNet writes, "Ed Whitacre is both the driving force and the CEO of the acquirer. He is on record at favoring a multi-tiered Internet where large broadband content vendors (such as competing VoIP providers) pay for the privileges of fast and efficient network transport. Although the Democratic minority on the FCC is likely to raise some major concerns, they are, after all, not in charge. Given that political reality, I don't see the Feds pushing the wholescale abandonment of those goals as a pre-condition to merger approval." Read it all.


Sean Paul Kelley March 5, 2006 - 8:03pm

The Agonist's liberal Sean-Paul Kelley cautions against AT&T CEO Ed Whitacre: "Last time he said people that expected a free ride were nuts. This time he sounds more diplomatic, yet has a lot more power … See, that's what happens when you have a monopoly. You can force people to pay for your service." Kelley also links to this primer explaining why consumers should resent any extra charges that telecoms impose upon Internet content providers.

http://www.slate.com/id/2137637/

Ma Bell, Resurrected?
By Bidisha Banerjee
Monday, March 6, 2006

quiet Bill March 6, 2006 - 9:33pm

via Light Reading...

As it grows in size and scope, AT&T Inc. says it will also be among those carriers building tollbooths for its last-mile broadband networks.

The telco giant's product development and sales teams are now busy designing “packet prioritization” products for sale to content providers that depend on AT&T last-mile networks to deliver services to consumers. Such products reserve a “fast lane” on AT&T's networks for the safe and speedy transit of traffic from whichever company is paying the toll.

“We're developing new IP managed services which will give content providers the high-quality, high-bandwidth transport they increasingly need to deliver video streaming and other bandwidth-intensive applications and services to their customers,” said AT&T spokesman Dave Pacholczyk in an email response to a Light Reading inquiry last week.

“I’ve got no specifics on what those product lines or those services might look like or anything,” Pacholczyk wrote. “We have had discussions with content providers, as we’ve said in the past, for these kinds of services.”

If journalism is the first draft of history, what is blogging?

Nick March 7, 2006 - 4:11pm

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