The Federal Communications Commission (FCC) shows once again how truly apt is the ‘bureaucracy-is-cancer’ metaphor.  Cancers multiply their cells feeding off of the host organisms.  Cancer can lie in waiting for just the right conditions and then grow exponentially.  The FCC is a bureaucracy that has grown and fed off of the public and the markets for communications since 1934, a time of great unrest and change – a time that presented the right conditions for the cancer to start.

Current FCC Chairman Julius Genachowski is riding the wave of elitist liberal thought that says “we are smarter than you and therefore should control you and your activities, for your own good.”  It is the set of conditions that was ushered in by a combination of Recession and War and promises of change that swept the nation to elect a Liberal Administration and Congress.  Being unelected, but appointed by that new Liberal Administration, Mr. Genachowski has not felt the voting public’s recent rebuke of the Liberal policies that exist today in Washington, D.C.  Instead, he sees the right conditions to expand FCC control over new and powerful communications networks that we call “the Internet.”

In 2011, the FCC will spend about $325 Million and will employ 2,000 people (an average of well over $160,000 per employee).  With “only” 2,000 employees, will the FCC really be able to regulate the internet?  Or will they need a massive injection of staff and money to accomplish this job?

If you want to read a bit about Net Neutrality, I recommend both an article by Sam Gustin in Daily Finance, and one by  Craig Pirrong at Seeking Alpha.

I’m not sure I understand the issue well enough at this point to properly weigh in on the overall issue.  I do, however, wonder about the FCC and have the following questions:

Is it right to have an agency of the Federal Government, made up of entirely appointed personnel, take control of the internet?  Should they be able to basically enact laws (regulations) that will rule the organizations that provide the various components of internet service?

“It is the mission of the Federal Communications Commission to ensure that the American people have available – at reasonable costs and without discrimination – rapid, efficient, nation- and world-wide communication services; whether by radio, television, wire, satellite, or cable.”

It seems to me that the (basically) free market has already provided us with an internet at reasonable costs without discrimination.  Will imposing FCC rule and price controls really make it better?  Or will it just make government bigger and more powerful?

Another question:  When Verizon recently bid $5 Billion for a new chunk (C block) of the 700Mhz bandwidth, where did that money go?