The Secret History of the Telephone Network
24th August 2014
The history of telecommunications is a long story of progressives and populists demanding “public interest” regulations that produce and protect monopolies, followed by progressive and populist demands for regulations to fix the problems that their earlier regulations created. At each step, activists were coached and coaxed by the political and business interests in question.
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Progressives today are traveling the well-worn policy path of trying to fix old mistakes by making new ones. They demand competition while promoting municipal public utility broadband systems. “Open access creates competition,” they claim, never minding that the unbundling requirements that force providers to lease their systems to competitors only create “competition” by turning an existing provider into a de facto monopoly. The goals of the modern net neutrality movement—which in effect seeks to prevent Internet Service Providers from providing anything but lowest-common-denominator service—might as well adopt the same early slogan of monopoly-era AT&T: “One System, One Policy, Universal Service.”