Antitrust & Competition Policy

Consensus FCC Reforms for the Next President

by on September 10, 2008 · 3 comments

I’ve had the opportunity to be involved in the planning and organization of several conferences this fall, including one exciting event, entitled “Consensus FCC Reforms and the Communications Agenda,” which I have organized in my capacity as Assistant Director of the Information Economy Project at George Mason University. Consensus FCC Reforms

You can read more details about the event at the Information Economy Project web site, but the basic gist is that, in spite of controversies swirling over issues such as Network Neutrality, media ownership and universal service, some policy observers believe that a range of reforms may attract bi-partisan consensus.  These opportunities may be more likely to be realized if identified prior to the November 2008 election.

We’ve been fortunate enough to have a stellar cast of participants, including two former chairmen of the Federal Communications Commission – William Kennard, who served under President Clinton, and Michael Powell, who served under President George W. Bush. Theyll be speaking about substantive issues for consensus, and their discussion will be moderated by Amy Schatz, a reporter for The Wall Street Journal.

But we’ll also be talking about procedural issues — questions of agency structure, rules, and the day-by-day practices and operations to do much to impact the telecom polity. That panel, which features chief staffers for almost all of the recent FCC chairmen, will be moderated by me.

Here’s the full program:.

8:30 a.m.         Welcome by Thomas W. Hazlett, Professor of Law and Economics, GMU

Panel I:           Improving Procedures at the Federal Communications Commission
8:40 a.m.
Peter Pitsch, chief of staff to Dennis Patrick, FCC Chairman, 1987-1989
Robert Pepper*, former chief, Office of Plans and Policy, FCC, 1989-2005
Ken Robinson, senior legal advisor to Al Sikes, FCC Chairman, 1989-1993
Blair Levin, chief of staff to Reed Hundt, FCC Chairman, 1993-1997
Kathy Brown, chief of staff to William Kennard, FCC Chairman, 1998-2001

Moderator: Drew Clark, Assistant Director, Information Economy Project

Panel II:          A Cross-Partisan Agenda for Telecommunications Policy Reforms
9:45 a.m.
William Kennard, Chairman, FCC, 1997-2001
Michael Powell, Chairman, FCC, 2001-2005

Moderator: Amy Schatz, Reporter, The Wall Street Journal

When: Tuesday, September 16, 2008, 8:30 a.m. – 11 a.m.
Where: National Press Club, 529 14th St. NW, 13th Floor, Washington, DC

Admission is free, but seating is limited. See IEP Web page: http://iep.gmu.edu.
To reserve your spot, please email Drew Clark: iep.gmu@gmail.com.

About the Information Economy Project:
The Information Economy Project at George Mason University sits at the intersection of academic research and public policy, producing peer-reviewed scholarly research, as well as hosting conferences and lectures with prominent thinkers in the Information Economy. The project brings the discipline of law and economics to telecommunications  policy. More information about the project is available at http://iep.gmu.edu.

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Google Chrome & the Coming Antitrust Suits

by on September 2, 2008 · 11 comments

Google is entering the browser wars today (if any such war still exists) with the launch of Chrome, its new web browser.  I’m glad to see more competition in browsers as I think—and I hope everyone else agrees with me—that Firefox is the only real game in town. I know that Internet Explorer is more popular, but that seems to only be because it is shipping with every Windows PC and because many enterprise web applications require IE’s non-standard browser. Firefox is preferred browser for anyone who works with the web regularly and has bothered to compare browsers.

One implication of this foray by Mountain View into the browser arena is that—should Chrome be at all successful—they will soon be accused of using their supposed search monopoly to squeeze out competition from IE and Firefox. That is assuming that anything in Chrome favors Google’s search, like making it the default search engine for the browser, which I’m sure it will be.

It’s funny to think that Microsoft, the poster-child from antitrust suits, could be the one launching such a suit. Just a few short years ago we saw Microsoft scoffing at the very notion of antitrust or monopoly power, arguing that it in no way used its market share to its own advantage. Now we see Redmond lashing out against Google as a monopolist. At a recent conference I had the unpleasant experience of watching a panel on online advertising devolve into a fight between the Microsoft and Google reps over whether Google was a search and advertising monopolist.

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Too Much Platform Competition?

by on August 19, 2008 · 30 comments

How much platform competition is too much competition? For example, what is the optimal number of mobile operating systems or video game consoles that will spur competition and innovation in those respective sectors?

It is an interesting business question, but it also has some policy implications since some might propose laws or regulations to remedy a perceived lack of platform competition in various sectors. After all, many people would answer the above question by saying that there is never such a thing as too much competition. The more platforms the better. But there can be costs associated with too much competition. Let’s consider those two case studies mentioned above: mobile operating systems or video game consoles.

Mobile Operating Systems
As my colleague Berin Szoka has pointed out, we are witnessing the rapid proliferation of mobile operating systems, especially on the open source front. So, we’ve got Apple’s iPhone platform, Microsoft’s Windows Mobile, Symbian, Google’s Android, the LiMo platform, and OpenMoko.

One one hand, all this platform competition sounds great. But as Ben Worthen of the Wall Street Journal’s “Business Tech Blog” points out in a piece today:
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A Debate About Data Confidentiality and the Forthcoming ‘Broadband Census for America’

by on August 8, 2008 · 3 comments

A recent post to Dave Farber’s [IP] list:

WASHINGTON, August 8 – I’d like to take a moment to respond to some of the issues raised by the recent e-mail of Brett Glass.

With respect to the issue data confidentiality, it’s important to separate out several issues here:

(1) The names of carriers and the locations in which they offer services, by ZIP code.

(2) The number of subscribers that carriers have in a particular ZIP code.

The Form 477 of the Federal Communications Commission requires carriers to submit both types of information to the FCC.

I agree that category (2) may well be confidential information. I do not think that category (1) can be considered confidential.

The web site that I run, http://BroadbandCensus.com, is an attempt to combine information about broadband from various sources. In addition to “crowdsourcing” data from internet users, we are combining public information from the FCC’s Form 477, publicly available information about carriers and where they offer services, as well as from states and localities. Since we launched BroadbandCensus.com in January 2008, We have had thousands of internet users tell us the names of their providers, where those providers are offering service, and they’ve taken our beta speed test.

It is important to note that Form 477 data released by the FCC does not include the names of the carriers. The FCC recently ordered carriers to begin to provide information on the census tract level (a unit slightly smaller than a ZIP code). However, unless the FCC changes its policy, consumers will still not be able to obtain carrier information from the agency.

Hence, the data we have from the FCC is extremely limited.

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Dish Network ponders merger with DirecTV

by on August 7, 2008 · 11 comments

Just as the 505-day XM Sirius antitrust saga comes to a bittersweet end, reports have resurfaced that a new satellite merger may be in the works. Dish Network is floating the idea of merging with competitor DirecTV. Dish Network and DirecTV, the two largest satellite television providers in the U.S., tried to merge back in 2001. Antitrust officials ultimately blocked that merger, concluding that it would hurt competition in television programming. Naturally, a renewed merger attempt would likely encounter similar obstacles, according to industry observers.

This time around, though, the deal may have a better shot of surviving regulatory scrutiny, buoyed by the approval of the XM-Sirius merger. Compared to 2001, competition among video providers is thriving, and there are more alternatives to satellite television than ever before. Many consumers can now choose from a multitude of terrestrial television providers—phone companies are rapidly rolling out IPTV-based video services like FiOS TV and U-Verse, and cable overbuilders like RCN are gaining momentum in densely populated areas.

In addition, a growing number of viewers are shunning traditional television services entirely, turning to a la carte substitutes like the iTunes episode store, Netflix, and Xbox Live Marketplace. With an $8.99 per month subscription to Netflix, it’s possible to stream instantly a video library eclipsing that available on cable or satellite TV. Ad-supported video websites like Hulu and Comedy Central, which offer hundreds of archived TV shows on the Web for free, may soon render the television channel obsolete.

Dish Network’s talk of a potential merger comes on the heels of the company’s first ever quarterly loss of subscribers, and that may just be the tip of an iceberg. Until recently, television subscribers were largely content with watching programs on a predefined schedule, but on-demand services are changing that. As viewers come to expect the ability to watch any show anytime, without bothering to record it in advance, the lack of bidirectionality inherent in Direct-Broadcast Satellite is a glaring deficiency that cable and telecom firms will exploit at every juncture. Unless satellite providers can negotiate arrangements with broadband carriers, or succeed in building wireless networks with newly acquired spectrum, Dish and DirecTV face a bleak future, especially if they are unable to trim costs and enhance content choice.

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Day 505: The XM-Sirius Circus Is Finally Over

by on August 7, 2008 · 9 comments

It’s over.   The FCC, which voted to approve the merger between satellite radio firms XM and Sirius two weeks ago, finally released its formal report on the case on Tuesday, ending the drama 505 days after the firms submitted their application to the Commission.

The episode was not the FCC’s finest hour.  The agencies once-vaunted “shot clock” — by which the FCC pledged to decide on mergers within 180 was left in shreds, with the counter going around almost three times before the circus finally ended.   Even at that, XM and Sirius managed to claw their way to approval only by making an (ever-longer) series of “voluntary” commitments:  including offering “a la carte” programming, capping prices for 36 months, making 8% of its capacity available to others to non-commercial and other entities, and extending service to Puerto Rico.   Even more was being considered when the music stopped, including a proposal to require all satellite radio receivers to have built-in HD broadcast tuners as well. (Apparently, there was concern that broadcasters would be frozen out of the audio market, in which they hold a market share of about 96 percent).

This regulatory free-for-all contrasts with the approach taken by the Department of Justice, which — after a fact-specific inquiry, approved the merger –  without conditions – five months ago. Continue reading →

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FCC Hammers Comcast For Deception and Unreasonable Internet Practices

by on August 1, 2008 · 13 comments

WASHINGTON, August 1 – The Federal Communication Commission’s enforcement action against Comcast can be seen either as a limited response to a company’s deceptive practices, or a sweeping new venture by the agency into regulating internet policy.

In ruling against Comcast on Friday, the agency ordered the company to “disclose the details of its discriminatory network management practices,” “submit a compliance plan” to end those practices by year-end, and “disclose to customers and the [FCC] the network management practices that will replace current practices.”

At issue in the decision was whether Comcast had engaged in “reasonable network management” practices when it delayed and effetively blocked access to users of BitTorrent, a peer-to-peer software program.

Although BitTorrent had already settled its complaints with Comcast, FCC Chairman Kevin Martin said that FCC action was necessary because the complaint had been brought by Free Press and Public Knowledge, two non-profit groups. The FCC did not impose a fine.

Martin said that he viewed the agency’s decision to punish the cable operator as a quasi-judicial matter: a “fact-intensive inquiry” against a specific company that it found to have “selectively block[ed]” peer-to-peer traffic.

[Continue reading “FCC Hammers Comcast For Deception and Unreasonable Internet Management“]

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From the FCC, DrewClark.com is Live…

by on August 1, 2008 · 5 comments

…to cover the hearing at which Comcast is expected to be punished for violations of Network Neutrality. Fortunately, the Federal Communications Commission did not start on time. The great thing about the Kevin Martin FCC is that you never have to worry about being late. For example, we’re live at the FCC for the 9:30 a.m. meeting:

The FCC, 9:49 a.m.

The FCC, 9:49 a.m.

I’ll be live-Twittering the event, so check back on DrewClark.com (look at the column on the right – or just go to Twitter and “follow” me) for the latest updates. Later in the day, I’ll be posting a story about the event at BroadbandCensus.com.

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There’s Plenty of Competition in Search and Plenty of Interest

by on July 28, 2008

To wit.

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CWA Wants Better Broadband Data, As Does Internet for Everyone

by on July 17, 2008 · 5 comments

WASHINGTON, July 17 – Communications Workers of America this past week teamed up with a group of telecommunications companies, cable operators and non-profit groups to push for Congress to pass broadband data legislation.

In a Friday letter and a Monday press release, the groups wrote “to express [their] strong support for Congressional action to promote greater availability and adoption of broadband high-speed Internet services.”

They want “a national policy” to encourage more broadband deployment, and they cite economic statistics about broadband’s potential.

And, as a first step, these companies and CWA want Congress to pass the Broadband Census of America Act, H.R. 3919, or the Broadband Data Improvement Act, S. 1492.

Curiously, last month another large coalition announced a similar campaign. They call themselves Internet for Everyone.

Continue reading “CWA Wants Better Broadband Data, As Does Internet for Everyone“

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