From the Financial Times – “The power of the US cable barons must be challenged”

By Media Reform Coalition / Monday April 14, 2014 Read More
With much of the UK press still opposed to any progressive measures to combat concentration of media ownership, journalists and campaigners in the US are starting to notice the vast monopoly in the cable television sector. An article by Edward Luce in the Financial Times, available here, argues that “no one in Washington seems to have the will to stop industry moguls from tightening their grip on the internet.” With continued attempts at applying the idealogy of the market to UK media, it is encouraging that even the FT is concerned about the effects of concentration on the media’s democratic role.

Imagine if one company controlled 40 per cent of America’s roads and raised tolls far in excess of inflation. Suppose the roads were potholed. Imagine too that its former chief lobbyist headed the highway sector’s federal regulator. American drivers would not be happy. US internet users ought to be feeling equally worried. Some time in the next year, Comcast’s proposed $45.2bn takeover of Time Warner Cable is likely to be waved through by antitrust regulators. The chances are it will also get a green light from the Federal Communications Commission (headed by Tom Wheeler, Comcast’s former chief lobbyist).

The deal will give Comcast TWC control of 40 per cent of US broadband and almost a third of its cable television market. Such concentration ought to trigger concern among the vast majority of Americans who use the internet at home and in their work lives. Yet the backlash is largely confined to a few maverick senators and policy wonks in Washington. When the national highway system was built in the 1950s, it provided the arteries of the US economy. The internet is America’s neural system – as well as its eyes and ears. Yet it is monopolised by an ever-shrinking handful of private interests.

So can anything stop the cable guy? Possibly. US history is full of optimistic examples. Among the dominant platforms of their time, only railways compare to today’s internet. The Vanderbilts and the Stanfords had the regulators in their pockets. Yet their outsize influence generated a backlash that eventually loosened their grip.

For the most part, electricity, roads and the telephone were treated as utilities and either publicly owned, or regulated in the public interest. The internet should be no exception. Much like the progressive movement that tamed the railroad barons, opposition to the US internet monopolists is starting to percolate up from the states and the cities. It is mayors, not presidents, who react to potholed roads.

Full article available here