Broadband Competition Policy

As the Federal Communication Commission (FCC) continues to gather input into the National Broadband Plan it will report back to Congress in February, competition policy remains among the most contentious issues. In addition, the Chairman on Monday announced his intention to codify the FCC's existing four open Internet principles, along with two additional principles to prohibit discrimination against particular Internet applications and content and ensure that providers are transparent about network management practices.

Some consumer advocates call for a return to common carrier regulation, while others argue that strict rules to ensure network neutrality (non-discrimination) would go far enough. More market-oriented economists argue that broadband competition is robust and rising - and that any additional common carrier obligations would reduce consumer welfare.

When the Clinton FCC closed shop, a majority of broadband users still relied on dial-up Internet access over common carrier telephone lines. Thousands of ISPs competed thanks to line-sharing rules that permitted them to lease access to the local Bell company 'last mile' infrastructure at wholesale rates (including higher-capacity DSL connections). In 2002 the FCC declined to apply common carrier regulation to cable broadband and in 2005 ended mandatory line-sharing for DSL, adopting what it called "facilities-based competition" that requires each new entrant to build its own network infrastructure. While today most homes and businesses have at most a choice between one phone and one cable provider, wireless broadband offerings (both WiMax and future 4G services from AT&T and Verizon Wireless) may provide a viable substitute for many consumers.

Our panel represented four different perspectives on how much regulation -- and what type -- is most likely to spur broadband competition, innovation and consumer welfare. Should the FCC restore a degree of common carrier regulation? Would the sort of strict network neutrality rules apparently favored by President Obama and his FCC Chairman be enough? Or should the FCC preserve the status quo -- or perhaps deregulate further? 
Brown Bag Lunch (drinks provided)

Participants

Featured Speakers
Ben Scott
Policy Director, Free Press
Dismantling Digital Deregulation: Toward a National Broadband Strategy

Everett Ehrlich
President, ESC Company
Former Under Secretary Economic Affairs, Commerce Department

Mark Cooper
Research Director
Consumer Federal of America
Comments of Consumer Federation of America on National Broadband Plan

Robert Atkinson
President
Information Technology & Innovation Foundation
The Role of Competition in a National Broadband Policy

Moderator
Michael Calabrese
Director, Wireless Future Program
New America Foundation