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Submitted by Scott Cleland on Thu, 2013-12-12 18:18
A new European study from Britain’s Office of Communications tries to argue that the EU’s wireless regulation approach is better than America’s. The New York Times’ clever headline on the report sees right through it: “Europeans pay less for mobile use, but at a cost."
In Europe, regulators regularly lower prices and roaming rates for political purposes, ignoring the market economics or economic sustainability of their regulatory approach. The EU’s politics-of-the-moment interest in lower prices, based more on operating costs than total costs that fund long-term investments in infrastructure, ultimately harms consumer value.
Submitted by Scott Cleland on Tue, 2013-12-10 17:54
FCC staff just muffed an easy opportunity to advance the IP transition on the FCC’s timetable in the National Broadband Plan.
Apparently FCC staff missed the big picture here.
1. On November 25th, AT&T proposed a baby step forward in the IP Transition.
AT&T did not propose any change in special access rates. AT&T simply proposed that its special access contract term-lengths, synch up with the FCC’s own goals for when the IP transition should be complete.
Instead of promoting investment certainty -- by respecting its own IP transition timetable that the private sector has come to rely on for infrastructure investment planning -- FCC staff announced an unnecessary five-month investigative delay.
Submitted by Scott Cleland on Thu, 2013-10-31 18:09
Please don’t miss my new white paper: A Modern Vision for the FCC: How the FCC Can Modernize its Policy Approaches for the 21st Century (here/PDF).
NetCompetition Capitol Hill Event:
Submitted by Scott Cleland on Mon, 2013-10-21 17:19
If you are interested in learning the linchpin issue to watch to discern whether the FCC’s competition policy will be modern or nostalgist directionally, don’t miss my Daily Caller Op-ed: “The Modern FCC Competition-Policy Linchpin” – here.
Modernization Consensus Series
Part 1: Implications of Google's Broadband Plans for Competition and Regulation - Part 1 Modernization Consensus Series [1-28-13]
Submitted by Scott Cleland on Mon, 2013-10-14 19:41
Just like the wisdom that one cannot make a silk purse from a sow’s ear; one cannot make “modern” FCC policy from obsolete communications law.
Apparently that is not stopping Former FCC Chairman Reed Hundt and Greg Rosston from trying in their new white paper: “Articulating a Modern Approach to FCC Competition Policy.”
Their paper contrives: “three different competition policy approaches: the classicrole of regulating terms and conditions of sale, the modernrole of using various tools to create largely deregulated, multi-firm, competitive markets, and the laissez-faire approach of believing that unregulated markets, even if monopolized, will produce the best outcome.”
5 BIG Implications from Court Signals on Net Neutrality – A Special Report -- Part 34 FCC Open Internet Order SeriesSubmitted by Scott Cleland on Fri, 2013-09-13 12:54
Economic rationality, competition, and broadband pricing freedom are the big winners, and common carrier-like net neutrality was the big loser, if the Appeals Court panel decides Verizon v. FCC as expected.
Monday’s intense tag-team grilling of the FCC’s lawyer by Judges Tatel and Silberman left most observers thinking the Court will decide it is illegal for the FCC to impose common-carrier-like regulation on broadband providers -- regardless of what else they decide.
Submitted by Scott Cleland on Mon, 2013-09-02 21:18
September 9th looks to be a challenging day for the FCC.
For many good reasons, the FCC will face a skeptical D.C. Circuit Court of Appeals panel Monday in oral arguments for Verizon vs. FCC. The FCC will be defending its Open Internet order which mandated neutrality.
Overall the court will be skeptical because the FCC largely ignored the law, Congress, the facts, and the Constitution. Essentially, the FCC made up an industry problem that does not exist in order to repurpose itself for the Internet age. Simply, the FCC is not asking for slack from the court (i.e. Chevron Deference), it’s basically asking for carte blanche to grant itself unbounded authority going forward.
Verizon enjoys the advantage in this case because it need prevail in only one of its several strong challenges to the FCC’s order, while the FCC must convince the court to completely reject all of Verizon’s arguments.
Specifically, why will this court be skeptical here?
Submitted by Scott Cleland on Tue, 2013-08-20 17:30
Information may want to be free, but physical networks are costly.
Few proponents of net neutrality appreciate the trillions of dollars of investment it has taken to build and upgrade the Internet’s vast and varied infrastructure that we all enjoy today. Simply, the Internet is not free of cost.
Economical policies have made the Internet universal and have enabled users to access the content, apps, and devices of their choice – what net neutrality is supposedly all about. On the other hand, uneconomical policies that discourage economic growth, return-on-investment, or respect for property can have unintended consequences and can threaten the proverbial goose that lays the golden eggs.
Arbitrary Spectrum Policy – My Daily Caller Op-ed & Part 11—Government Spectrum Waste Fraud & Abuse SeriesSubmitted by Scott Cleland on Fri, 2013-06-28 16:16
Please see my latest Daily Caller op-ed: "Arbitrary Spectrum Policy” -- here.
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Government Spectrum Waste Fraud and Abuse Research Series
Submitted by Scott Cleland on Tue, 2013-06-25 18:06
Just when the pending 600 MHz “incentive” FCC auction looks like it could not get more unworkably complex than a reverse, “incentive,” auction with looming FCC bidder limits, T-Mobile proposes to add a “dynamic” twist where the rules would then change as the auction goes along depending on how much bidders bid relative to a government-estimate that may or may not have any basis in economic reality.
To use a diving metaphor, this is like a synchronized diving event with unknown dozens of divers that first must do a “reverse” back flip to “incentivize” another set of divers right behind them to then do a front flip, but only if the particular diver before them does a reverse back flip that individually gets a good enough score to make a follow-on dive possible, and then if that happens for some of the diver teams, any follow-on dives would then be scored “dynamically” depending on a random target score of the previous dive, which would then determine if said diver can dive again or not.
That’s essentially the latest T-Mobile “dynamic spectrum rules” proposal for the 600 MHz auction that T-Mobile just proposed and released to reporters.
It can and does get worse.
The economist behind the T-Mobile proposal was Deputy FCC Economist when the FCC was nano-implementing the 1996 Telecom Act and came up with TELRIC pricing and UNE-P. UNE-P was an elaborate FCC ruse to get around the plain language of the Telecom Act and get a 50-60% resale discount for all telecom services (a platform) for CLECs, rather than the ~20% platform resale discount methodology in law.