July 10, 2007

Capitalism

Venomous Kate of the Damn-Near Perfect Ass blogged:

With television channels moving over to digital broadcast, the 700 MHz spectrum is up for grabs.

[...]

Handset manufacturers in the U.S. have, it turns out, have been stripping Wi-Fi capabilities from mobile phones at the request of the major cellular carriers. That’s not the case in Europe, where cell phone owners can hop on Wi-Fi “hot spots” to surf the web for free. Here, in the land where capitalism is king, such innovations have been resisted by the communications industry because they would ultimately affect their bottom line.

The FCC is hoping to change all that.

A couple of things about this.

First, free wi-fi sounds wicked cool.

Second, I am terrified by the FCC's involvement in anything, but it may shock you that I actually support the FCC's function of dividing up the airwaves to those who would claim them -- except I don't like their treatment of the airwaves with licenses. The better approach would be to treat them like property much like land in the western US prior to settlements. Therefore, I do not support the FCC's proposal to force the next owner to allow free wi-fi on it.

Third, I want to clear up the implication that it is some sort of flaw in Capitalism that drives mobile phone carriers strip the Wi-Fi capabilities out of phones. That isn't the case. That decision is actually a foolish decision on the part of mobile phone carriers who could attract more users by offering phones with that capability. That they haven't realized the opportunity here reflects poorly on them alone not on Capitalism. It is a free economic system that makes this an opening for potential competitors.

Of course, that bandwidth has to be open for free use first, which although cool should be the prerogative of whoever comes to own it.

Posted by Flibbertigibbet at July 10, 2007 12:16 PM | TrackBack
Comments

I think it sounds like a great idea as well. Though it is not a flaw in Capitalism, I think it is a unfortunate consequence of our society that we find ourselves behind the times technologically because of the choices of large companies who take it upon themselves to provide the communication networks our country depends on. There are so many people who want to keep moving forward, but unfortunately, the bureaucracy of Capitalism stifled it.

(I am not support fascism, though in agreeing with the FCC, I almost feel just as guilty . .)

Posted by: Scott at July 10, 2007 12:55 PM

Be careful not to mistake the "bureaucracy of Capitalism" and the "bureaucracy of tyranny" which is the FCC. The telecommunications industry and the television media industry are both highly regulated (which translates to high cost) businesses.

The reason why these companies have made such short-sighted decisions is not in the least clear. It would be a mistake to assume they do so maliciously.

It would be better not to support the FCC and instead advocate letting companies operate freely (but still not criminally) and see what they do. Dollars to donuts you'd get better, cheaper service. That's the way of Capitalism!

Posted by: Flibbert at July 10, 2007 01:50 PM
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