Mark Cuban on net neutrality: FCC can’t protect competition

6 Comments

As someone who takes her cues on net neutrality from Gigaom’s resident expert Stacey Higginbotham or, failing that, John Oliver, this is hard to admit: Mark Cuban may have a point on why the proposed net neutrality regulations may be a cure that’s worse than the disease.

If adopted, he maintained, these regs will open the door to more confusion, more litigation and more overall turmoil, none of which will serve consumers well. Before you throw your device at the wall, just give him a listen. Cuban, the serial entrepreneur who started out as a VAR before founding Broadcast.com which sold to [company]Yahoo[/company] in a $5.7 billion stock deal in 1999. He is now owner of the Dallas Mavericks, co-star of Shark Tank and CEO of of AXS TV  and interestingly a star of new AT&T commercials. The hyphens just keep coming.

Here’s his gist on net neutrality. He doesn’t think the big bad ISPs have behaved all that badly, or all that differently, than they ever have, so why all the hubbub now?

“It’s not like [company]AT&T[/company] and [company]Comcast[/company] have recently become super big companies and changed their actions… One of the tenets of net neutrality is that no legal website should be discriminated against. Well, name me one that has been.” He also pretty much dismisses [company]Netflix[/company] claims that it in fact faced such discrimination.

He sees competition ramping up in both in wired and wireless access — if these markets are so foreclosed why is Google doing broadband? Why is “AT&T going out of its traditional TV markets where they have U-verse to compete with Comcast and Google? That’s one layer. On the other layer you have mobile, with [company]Cablevision[/company] going into Manhattan where [company]Verizon[/company] and AT&T have broadband wireless and putting together an unwired wifi network for $30 a month’

His point is that there is competition, although it may not be the competition we would all like to see.

Cuban is clearly worried about one, well two mega players and neither one is a big ISP. “I would rather see national competition for [company]Google[/company] than no competition for Google. If you put a lid on Time Warner and Comcast and Google just keeps adding more and more markets, who’s going to compete with them?”

Google and [company]Apple[/company] constitute a huge countervailing force for all the ISPs because of their mobile might. “The fastest growing access for Internet is mobile. Who controls access to mobile? Google and Apple. The far greater risk is if Apple decides that the Comcast app is not right, Comcast won’t be able to reach most of its market to give access to its own broadband. Kind of crazy but it’s a possibility.” For the record, he isn’t recommending regulation to stop that either.

His point isn’t that Comcast or Time Warmer or insert-your-least-favorite cable provider here) are so great — he admits they are not — it’s just that the FCC its regulations are ill equipped to deal with fast-changing technologies. The public would be better served to let the cable companies duke it out with each other and, perhaps more to the point, with far scarier competitors including Google and Apple.

He starts about 10 minutes in. But here is the kill shot: Do you really want the same organization (the FCC) that took 8 years to deal with Janet Jackson’s Wardrobe Malfunction at Super Bowl XXXVIII to be the gating factor in the internet? Ummmm, maybe not.

Listen to the whole thing to find out how you, too, can get in touch with Cuban, such a shy and reserved guy, to ask your own questions on net neutrality; whether the NBA is seeing diminishing returns on data analytics; and why the heck the Celtics let the Mavs steal Rajon Rondo. Whatever.

Businessman and TV personality Mark Cuban speaks onstage at TechCrunch Disrupt at Pier 48 on September 8, 2014 in San Francisco, California.

Businessman and TV personality Mark Cuban speaks onstage at TechCrunch Disrupt at Pier 48 on September 8, 2014 in San Francisco, California.

In our intro section, Jonathan Vanian and I discuss all (or a bunch anyway) of this week’s Kubernetes news — where Mirantis was latest into the pool, working with Google to bring the cluster management framework to OpenStack clouds, joining HP and a raft of other tech vendors endorsing the open-source framework. Interestingly, Spotify blazed its own trail,  Helios as opposed to Kubernetes for its own workloads.

Oh and we wonder what is up, exactly, with HP’s cloud now that Marten Mickos has stepped back from his leadership job — after just six months.

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Hosts: Barb Darrow, Derrick Harris and Jonathan Vanian

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6 Comments

Michael Elling

Why not disclose that Cuban is far from biased on the issue. AT&T and the Mavericks have significant commercial relationships. Also, Cuban appears on AT&T ads.

Jack C

It’s the same story, over and over. Greedy incumbents have only themselves to blame.

If the ISPs had behaved a tiny bit more reasonably, been a tiny bit less greedy, or treated their customers just a tiny bit more respectfully, none of this would have ever happened. Sadly, this lesson is both anathema and meaningless to how we incentivize ~short-term gains.

That the aforementioned ~monopolies, also raking in amazing profits, now seek sympathy to their concerns only underscores how little shame they have. QQ more.

jonsmirl

The cable companies aren’t duking it out with each other. It is a nice cozy oligopoly with ever increasing bills for the same service.

The end game here is total conversion of television to IPTV. And the cable companies are fighting hard against that since it will upset their monopolies.

Brett Glass

Funny how GigaOm listens to the famous Mark Cuban, but not actual ISPs and engineers who are in the business of serving broadband customers every day.

Thomas Kelo

This is the first time GigaOm has shared anything that I have seen that was critical of Net Neutrality rules — they have otherwise been very supportive of them.

I appreciate them finally sharing this.

Comments are closed.