Congress recently mandated that the Federal Communications Commission (FCC) make additional spectrum available through a novel incentive auction designed to transition television broadcast spectrum to mobile use. The FCC’s task is to adequately compensate television broadcasters for relinquishing their spectrum while ensuring such spectrum is rapidly transitioned to mobile uses that benefit consumers nationwide.
This will be the most challenging and complex auction design the FCC has ever attempted. The FCC cannot avoid the complexity inherent in this unique auction design, but it
can emphasize simplicity and exercise restraint when considering the other service rules that will govern this new spectrum. To maximize its opportunity for success in this daunting circumstance, the FCC should leverage proven policies wherever possible.
Successful spectrum policies are critical to sustaining innovation, economic growth, and global competitiveness in the mobile era. Today, consumer demand for tablets and smartphones is straining the limits of mobile Internet capacity, which is threatening our nation’s lead in mobile innovation. The quickest and least costly way to increase mobile network capacity is to add spectrum, and the incentive auction is how the FCC intends to bolster our spectrum resources. The continued success of the mobile Internet thus depends on the success of the incentive auction, and the auction’s success depends on policy decisions that must be made by the FCC. Continue reading →
When the smoke cleared and I found myself half caught-up on sleep, the information and sensory overload that was CES 2013 had ended.
There was a kind of split-personality to how I approached the event this year. Monday through Wednesday was spent in conference tracks, most of all the excellent Innovation Policy Summit put together by the Consumer Electronics Association. (Kudos again to Gary Shapiro, Michael Petricone and their team of logistics judo masters.)
The Summit has become an important annual event bringing together legislators, regulators, industry and advocates to help solidify the technology policy agenda for the coming year and, in this case, a new Congress.
I spent Thursday and Friday on the show floor, looking in particular for technologies that satisfy what I coined the The Law of Disruption: social, political, and economic systems change incrementally, but technology changes exponentially.
What I found, as I wrote in a long post-mortem for Forbes, is that such technologies are well-represented at CES, but are mostly found at the edges of the show–literally. Continue reading →
Daniel Lyons, assistant professor at Boston College Law School, discusses his new Mercatus Center Working Paper, “The Impact of Data Caps and Other Forms of Usage-Based Pricing for Broadband Access.” Describing the system most of us are used to as an all-you-can-eat version of internet access, Lyons explains why it might make more sense for Internet Service Providers (ISPs) to transition to usage-based pricing, a type of metered model for broadband.
According to Lyons, the fixed costs of building up a broadband network are so great that any attempt to create an equitable cost distribution that can recoup these costs forces lighter users to subsidize heavier users. These types of flat rate payment programs often can be a barrier to low-income users. Instead, Lyons advocates for a usage-based system. In response to concerns about possible anti-competitive behavior by ISPs, Lyons further proposes that enforcement of policy transparency among ISPs might be an appropriate role for government.
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Why do mobile carriers sell phones with a subscription? My roommate and I were debating this the other night. Most other popular electronics devices aren’t sold this way. Cable and satellite companies don’t sell televisions with their video service. ISPs don’t sell laptops and desktops with their Internet service. Bundling phones with mobile service subscriptions is pretty unique. (The only mass-market analogs I can think of are satellite radio and GPS service.)
Why might this be? Continue reading →
There’s been a resurgence in interest in non-contract (prepaid) phone plans and MVNOs in tech reporting lately, which makes sense given recent market dynamics. Prepaid subscriptions number over 100 million, are now 25% of the mobile subscriber market, and Ars Technica recently reported that post-paid subscriptions declined for the first time ever in mid-2012. Prepaid is definitely attracting people other than the usual lower-income folks, students, and the tech-savvy, who have the patience (or need) to navigate the hurdles prepaid sometimes presents. The prepaid market has come a long way since Adam wrote about Straight Talk three years ago, and as one of the newest customers of Straight Talk—an MVNO that leases their networks from the Big Four carriers—I’d like to weigh in on these prepaid market challengers.
This post is mostly inspired by a conversation I had with a telecom expert at a recent event. I asked her if she thought Americans would, like the Europeans have, shift towards prepaid in the next few years. I was optimistic but she didn’t think Americans would go to a prepaid model anytime soon. (She did say, however, that some carriers would prefer we switch to a prepaid model.) So why hasn’t the US market shifted towards prepaid plans like much of the world? I suspect if we polled economists, carriers, and tech writers, most would agree that prepaid is a better model. It’s almost always cheaper to use a prepaid plan and you can avoid a two-year contract. So why hasn’t there been even more adoption of prepaid? I offer a few possibilities from the demand side (there are likely supply-side issues too, but let’s save that for another day). Continue reading →
Looking for a concise overview of how Internet architecture has evolved and a principled discussion of the public policies that should govern the Net going forward? Then look no further than Christopher Yoo‘s new book, The Dynamic Internet: How Technology, Users, and Businesses are Transforming the Network. It’s a quick read (just 140 pages) and is worth picking up. Yoo is a Professor of Law, Communication, and Computer & Information Science at the University of Pennsylvania and also serves as the Director of the Center for Technology, Innovation & Competition there. For those who monitor ongoing developments in cyberlaw and digital economics, Yoo is a well-known and prolific intellectual who has established himself as one of the giants of this rapidly growing policy arena.
Yoo makes two straight-forward arguments in his new book. First, the Internet is changing. In Part 1 of the book, Yoo offers a layman-friendly overview of the changing dynamics of Internet architecture and engineering. He documents the evolving nature of Internet standards, traffic management and congestion policies, spam and security control efforts, and peering and pricing policies. He also discusses the rise of peer-to-peer applications, the growth of mobile broadband, the emergence of the app store economy, and what the explosion of online video consumption means for ongoing bandwidth management efforts. Those are the supply-side issues. Yoo also outlines the implications of changes in the demand-side of the equation, such as changing user demographics and rapidly evolving demands from consumers. He notes that these new demand-side realities of Internet usage are resulting in changes to network management and engineering, further reinforcing changes already underway on the supply-side.
Yoo’s second point in the book flows logically from the first: as the Internet continues to evolve in such a highly dynamic fashion, public policy must as well. Yoo is particularly worried about calls to lock in standards, protocols, and policies from what he regards as a bygone era of Internet engineering, architecture, and policy. “The dramatic shift in Internet usage suggests that its founding architectural principles form the mid-1990s may no longer be appropriate today,” he argues. (p. 4) “[T]he optimal network architecture is unlikely to be static. Instead, it is likely to be dynamic over time, changing with the shifts in end-user demands,” he says. (p. 7) Thus, “the static, one-size-fits-all approach that dominates the current debate misses the mark.” (p. 7) Continue reading →
If the FCC had adopted the eligibility restrictions proposed by PISC in 2007, the United States would not have achieved the LTE leadership touted by current FCC Chairman Genachowski.
I was pleased to see FCC Chairman Genachowski praise the market-based policies of his predecessors in his remarks at Vox last week. He noted that the United States is currently leading the world in next generation mobile wireless services with 69 percent of the world’s LTE subscribers, which he attributes to “smart government policies.” He didn’t mention, however, that the “smart government policies” that led to America’s renewed mobile leadership were based on market principles adopted by the previous FCC. Continue reading →
Consumers should be aware that “government transparency” also applies to the data consumers voluntarily provide to the FCC when they participate in a government-run broadband measurement program.
The most egregious aspect of these broadband measurement programs, however, is that the FCC kept the public in the dark for more than a year by failing to disclose that its mobile testing apps were collecting user locations (by latitude and longitude) and unique handset identification numbers that the FCC’s contractors can make available to the public.
The Federal Communications Commission (FCC) recently announced a new program to measure mobile broadband performance in the United States. The FCC believes it is “difficult” for consumers to get detailed information about their mobile broadband performance, and that “transparency on broadband speeds drives improvement in broadband speeds.” The FCC does not, however, limit transparency to broadband speeds. Consumers should be aware that “government transparency” also applies to the data consumers voluntarily provide to the FCC when they participate in a government-run broadband measurement program. Information collected by the FCC about individual consumers may be “routinely disclosed” to other federal agencies, states, or local agencies that are investigating or prosecuting a civil or criminal violation. Some personal information, including individual IP address, mobile handset location data, and unique handset identification numbers, may be released to the public.
This blog post describes the FCC’s broadband measurement programs and highlights the personal data that may be disclosed about those who participate in them. Continue reading →
The findings and recommendations of the PCAST described above are an obvious attempt by the Administration to usurp Congressional authority and muscle it out of its constitutional jurisdiction over commercial spectrum use.
And one would expect that some in Congress would be downright angry that the Chairman of the FCC, an independent agency, is supporting a Presidential power grab.
The House Energy and Commerce Committee’s Subcommittee on Communications and Technology is holding a hearing this morning to examine how federal agencies and commercial wireless companies might benefit from more efficient government use of spectrum. The hearing is intended to address a report issued by the President’s Council of Advisors on Science and Technology (PCAST) that rejects the Constitutional role of Congress in managing our nation’s spectrum resources and neuters the FCC. The issues raised in the PCAST report should be subject to further study and not implemented through an unconstitutional Presidential memorandum. Only Congress can delegate this authority. Continue reading →
To summarize, on August 22, the FCC found it was appropriate to re-impose monopoly price cap regulations developed over twenty years ago because the FCC lacked “reliable” evidence that cable operators are competing in the special access market. On August 23, the very next day, the FCC found cable companies are “well-positioned” to compete in the special access market and are “increasingly successful” competing in that market. . . . It is impossible to reconcile these inconsistent findings.
Last week, the FCC issued two significant orders. Late Wednesday evening, the FCC issued an order suspending its pricing flexibility rules for special access services (“Special Access Order”), and on Thursday afternoon, it issued an order approving multiple transactions between Verizon Wireless and several cable companies (Comcast, Time Warner, Bright House Networks, and Cox) as well as mobile providers T-Mobile and Leap (“Verizon-Cable Order”).
The FCC addressed special access competition in both orders. One would assume two FCC findings regarding special access issued within a single 24-hour period would be consistent with one another, but that would be assuming too much. The findings in these two orders relied on evidence submitted by the same companies to reach contradictory conclusions. Continue reading →
The Technology Liberation Front is the tech policy blog dedicated to keeping politicians' hands off the 'net and everything else related to technology.