Tom Wheeler

What is the agenda that provides hope and opportunity for Americans in a new digital-based economy? So far, much of the campaign focus on the new economy has been reduced to a misleadingly simple “break ‘em up!” solution for Big Tech.

At present, 34 states (and the District of Columbia) have introduced some kind of open internet legislation.

5G will be a physical overhaul of our essential networks that will have decades-long impact. Because 5G is the conversion to a mostly all-software network, future upgrades will be software updates much like the current upgrades to your smartphone. Because of the cyber vulnerabilities of software, the tougher part of the real 5G “race” is to retool how we secure the most important network of the 21st century and the ecosystem of devices and applications that sprout from that network.

Throughout the world, ink is being spilled and electrons exercised in a frenetic focus on fifth generation wireless technologies, or 5G. The 5G discussion, with all its permutations and combinations, has grown to resemble an elementary school soccer game where everyone chases the ball, first in one direction, then another. There are five often misunderstood facts to know about 5G:

A year ago, the Trump Federal Communications Commission announced a proposal to reallocate C-band spectrum for 5G. With much fanfare, the FCC trumpeted a plan to outsource to the satellite companies the process of auctioning these airwaves. Rather than the kind of open and transparent auction process the agency has followed since the first spectrum auction in 1994, the Trump FCC declared it would be “faster” to embrace what they called a “marketplace approach” in which the licensees took over the job traditionally done by the FCC.

Technology-driven changes—like those we are presently experiencing—produce demands for security and stability that pose a threat to liberal democracy and capitalism. Across the world, autocrats are on the rise because they claim they can deliver answers; symbols such as Brexit or the Wall pose as solutions; and old economic “isms” are reborn as “new” solutions.

There can be little doubt that the major digital companies have gained a level of economic control akin to the industrial barons of the Gilded Age. It is important to take steps to introduce much needed competition into the digital marketplace. Clearly, a more active review of mergers is necessary, even when the acquired company is comparatively small.

Facebook CEO Mark Zuckerberg’s call for new rules for the Internet is a start. The four proposals he makes open the door to a meaningful discussion about the effects of internet capitalism. Now what is needed is a similar look at the issues underlying the market dislocations caused by a handful of internet companies. As significant as Zuckerberg’s proposals are, it is important to recognize they deal with the effects of internet commerce more than their causes: the business model of internet companies.

American technology companies today find themselves in a conundrum Oscar Wilde identified: “There are only two tragedies in life: one is not getting what one wants, and the other is getting it.” The tech companies—both networks and the platform services that ride on them—have run the table in Washington as multiple government agencies and Congress repeatedly walked away from regulatory oversight. The result has been the digital companies’ discovery of Wilde’s second tragedy. 

With Democrats in control of the House of Representatives, at least one chamber of Congress could be poised to meaningfully update consumer and competition protection rules for the internet age. In doing so, they would be well advised to follow Republican Theodore Roosevelt’s efforts in the industrial age. Today, the internet barons are making the rules for the new economy. Roosevelt’s admonition is simple: There must be a “still higher power” that makes rules for the protection of the public interest.