Is the FCC Pushing for Free Wireless Internet???

Outgoing Federal Communications Commission Chairman Kevin Martin is pushing for action in December on a plan to offer free, pornography-free wireless Internet service to all Americans, despite objections from the wireless industry and some consumer groups.

The proposal would allow for a pornography-free, wireless Internet service (free of charge), which would be part of a proposal to auction off a chunk of airwaves.  The winning bidder would be required to set aside a quarter of the airwaves for a free Internet service.   Mr. Martin wants the company that buys the airwaves to devote at least 25% of the spectrum to free Internet access for 95% of the country.  The no-cost Internet service also would be smut-free for users under 18.  Adult users could opt out of the filter blocking pornographic content.

The winner could establish a paid service that would have a fast wireless Internet connection.  The free service could be slower and would be required to filter out pornography and other material not suitable for children.

Consumer advocates have objected to the FCC's proposed pornography filter, while the wireless industry has objected to the entire free Internet plan.  To address concerns about the filter, the FCC is proposing that adults could opt out and access all Internet sites.

T-Mobile USA, in particular, has raised concerns.  The Deutsche Telekom AG unit paid about $4 billion a few years ago for nearby airwaves and has complained that the free wireless Internet plan will likely result in interference for consumers of its new 3G wireless network.  The FCC dismissed the company's interference concerns this fall, although T-Mobile disagreed with that finding.

Mr. Martin’s proposal raises several key issues such as the following:

1.        Pornography vs. Free Speech

2.       Public Good vs. Private Enterprise

3.       Price Discrimination:  Free Service vs. Paid Service

Pornography vs. Free Speech

The issue of banning the access to pornographic web content to protect minors raises several issues regarding the general public and its right to free speech.  Pornographic website operators as well as adult customers should, under constitutional law, have the right to offer and view these web sites at their pleasure.   Regardless as to whether the wireless service is offered by the government or a private enterprise, access to content should not be limited.  As a subscriber to a private service, I, as an individual, must take responsibility for monitoring my child’s use of the internet, not the government. 

Public Good vs. Private Enterprise

Offering free internet to the public is an unprecedented statement on our society and the significant role that the internet plays within.  The move would shift the internet from a private service to a public utility.  Similar the utility that pubic roads, highways, and public restrooms provide, the internet will now provide a technological utility for all citizens.  Private enterprise does not favor the shift from for profit wireless access to free access.  Free wireless service ultimately reduces the economic rents that private enterprises can collect from their proprietary service offerings. 

Price Discrimination:  Free Service vs. Paid Service

Private enterprise may be able to create a differentiated product offering which would allow them to collect rents on their existing wireless services.  For starters, the private service provider can offer a better (i.e. faster) wireless service to its paying customers as compared to the free service sponsored by the government.  The customer would ultimately be able to self select between services based on his/her preferences.  Second, private businesses could provide better customer service as compared to the public wireless service which could further differentiate the product. 

Overall, the free wireless internet debate is interesting and represents the significance of technology in our society. 

http://online.wsj.com/article/SB122832671930476269.html?mod=googlenews_wsj

http://www.reuters.com/article/marketsNews/idUSN0334842220081203

http://online.wsj.com/article/SB122809560499668087.html

Comments

[Philip John]

Free wireless internet is good, but pornography is not. Why push more porn to an already porn-saturated Americans. It is true the nation is degenerating in their pursuit of irresponsible freedom and irrational pleasure, but a total degeneration may be necessary until when America loses its prime position in the world and be at the mercy of its enemies. Many agencies (within and without) are indirectly or directly involved in this great fiendish plot (unknowingly or knowingly) including the FCC.

[Keith Friedman]

Peter - Interesting post. You do a good job of laying out some of the key issues. I've thought about this and have to admit wavering back and forth on the issue. Many of us now think of the internet as a necessity that we couldn't live without. However, this is far from the truth. It is still a luxury and a convenience. I struggle to think of services we gain from the internet that cannot still be obtained the old fashioned way. I can envision a day where that is no longer the case but in the meantime it would be hard to take the internet providing business out of the private sector. I expect there will be a day when this changes to some very specific sites being accessible to everyone for free (such as government sites) and all other content is only accessible through methods similar to today. Difficult to predict though.