TechCrunch has been mistakenly cheerleading the FCC lately. Earlier this month they said that FCC regulation of the internet would be “a huge win for consumers.” This article makes the usual error (as with health care, or bailouts) of asking for a government answer to a problem without realizing that the cause of the problem is government manipulation in the first place. The last line of that article blames the lack of competition on the monopolies held by the ISPs in many areas of the country. Of course, in a truly free market, there is no such thing as a monopoly. The reason these ISPs, like Verizon and AT&T, are the only players in certain markets is that these monopolies are government created. There is too much regulation for starting a telecom business and laying new fiber. These ISPs are protected from competition because regulations keep competitors out.
And today, they are applauding more government interference because the FCC says they want to tackle bill shock.
The FCC is taking a stand against absurd phone bills. The regulatory agency is requesting public comment on a new initiative that will force wireless carriers to notify consumers about high charges, like unanticipated roaming or data fees.
“We are hearing from consumers about unpleasant surprises on their bills,” Joel Gurin, FCC Chief of the Consumer and Governmental Affairs Bureau said in a press release today. “This is an avoidable problem. Avoiding bill shock is good for consumers and ultimately good business for wireless carriers as well.”
If you go over your minutes, or are charged for texting too much, you have a couple of obvious options; use the services less, or upgrade to a better plan. Unfortunately, many people use a third option of complaining to the government and asking to be rewarded for their mistakes.
I guess I look at my phone bill a little differently. The “bill shock” I see is the 25% increase in cost due to “municipal and state telecommunications taxes.” And those costs will only increase with more government regulators to pay. It’s similar to the “paycheck shock” I feel when I see federal, FICA, Medicare, and state deductions.
I’m Not Shocked
TechCrunch has been mistakenly cheerleading the FCC lately. Earlier this month they said that FCC regulation of the internet would be “a huge win for consumers.” This article makes the usual error (as with health care, or bailouts) of asking for a government answer to a problem without realizing that the cause of the problem is government manipulation in the first place. The last line of that article blames the lack of competition on the monopolies held by the ISPs in many areas of the country. Of course, in a truly free market, there is no such thing as a monopoly. The reason these ISPs, like Verizon and AT&T, are the only players in certain markets is that these monopolies are government created. There is too much regulation for starting a telecom business and laying new fiber. These ISPs are protected from competition because regulations keep competitors out.
And today, they are applauding more government interference because the FCC says they want to tackle bill shock.
If you go over your minutes, or are charged for texting too much, you have a couple of obvious options; use the services less, or upgrade to a better plan. Unfortunately, many people use a third option of complaining to the government and asking to be rewarded for their mistakes.
I guess I look at my phone bill a little differently. The “bill shock” I see is the 25% increase in cost due to “municipal and state telecommunications taxes.” And those costs will only increase with more government regulators to pay. It’s similar to the “paycheck shock” I feel when I see federal, FICA, Medicare, and state deductions.