Adding an interesting new dimension to the discussion about the FCC’s most recent power grab, Ars Technica recently ran an article discussing the FCC’s role in the history of television. Based on what the author has written, I should think it impossible for anyone who believes in limited government to read the article without getting upset. The story paints the entire television scene as the product of government central planning, built on the hubris of a once obscure government agency with a modest charter, and riddled with one policy failure after another. This inept agency is the same one that now purports to have taken control of the Internet in the face of Congressional opposition, impending Congressional action, and a court which already struck down this power grab once. God save the Internet if these fools get their way.
The story begins, modestly enough, with radio signals. Back when radio was first being invented, the number of radio frequencies available was nowhere near the number of frequencies that we have today. With broadcasters wanting to get into the business of broadcasting on what was then a rather limited spectrum, it suddenly became important to have some way for them to share the air without stepping on each others’ signal. Somehow, the government ended up owning the airwaves, and the FCC (then called the Federal Radio Commission) was chartered to parcel them out to interested parties. The FCC accomplished this by keeping ownership of the airwaves and granting licenses for their use. With that decision, America’s first command and control economy was born.
From that point forward, the FCC has been in the business of choosing broadcasting winners and losers. The agency began by granting licenses to nonprofit organizations, colleges, churches, and the like. There was no advertising model back then, and organizations profited from having radio stations by using them to promote their particular causes. That all changed when the FCC decided that advertising driven, for-profit radio was the wave of the future. By giving higher priority in obtaining/renewing licenses to for-profit “commercial” radio, the FCC ejected nonprofit “propaganda” radio from the market (and, thus, from existence).
The FCC has been in the pocket of commercial radio broadcasters ever since. Time and again, the FCC has conspired to kneecap or completely destroy technology which would tend to compete with its chosen winners.
In one early example, AT&T wanted in on the radio game. They devised a technology which would allow for broadcast over its telephone network; essentially, it’d be like cable TV for radio. The FCC kept AT&T away by offering them a monopoly over telephone service in exchange for killing their cable radio plans, then made it illegal for anyone else to ever try cable radio again. Many years later, the FCC would try to do the same thing with cable television. They would ultimately fail — today, most people watch TV over cable or satellite — but they effectively froze the technology for decades and continue to impose requirements designed to make the life of non-broadcast providers as difficult as possible.
Then, of course, there are the technology requirements. Back in the earlier days of television, signals were sent on various channels of VHF or UHF frequencies. Because of the different cost structures involved, UHF failed spectacularly. The FCC, under the control of a chairman who couldn’t find anything on TV he wanted to watch, changed UHF licensing requirements to include a mandate for “better” programming. He also got Congress to mandate UHF receivers on all televisions, since most at the time didn’t have one. UHF still failed, and the FCC chairman, if he were alive, would probably still be lamenting the thousands of channels available on cable which still have almost nothing worth watching.
More modern mis-innovations also abound. The CableCARD program is such a disaster that almost nobody even knows it exists. The V-chip is only slightly less useless. And the digital TV mandate was only “successful” (for the 10% of TVs that aren’t hooked up to cable or satellite) after being delayed for months an heavily subsidized by the government with taxpayer dollars. Future possibilities also include mandating FM tuners in cell phones; technology almost guaranteed to blend in perfectly with the scrap heap of waste generated by the FCC.
In sum, the FCC promotes technology nobody wants and kills technology that’s actually useful. The economic model is textbook command and control; even the idea of private property doesn’t exist in the FCC’s world.
The FCC has quietly been one of the most destructive bureaucracies in the history of America. They are living proof that Marxism can take hold in America if the people are not vigilant. They have selected winners and losers, they have decided which business models live and which models die, and they have almost always chosen wrong. These are the people who want to take over the Internet: Bumbling bureaucrats who have never made a correct decision, but who believe themselves to be the ultimate arbiters of an entire sector of the economy.
Tags: net neutrality