Author Archives: George Ford

Last month, Larry Spiwak and I released a paper entitled Tariffing the Internet: Pricing Implications of Classifying Broadband as a Title II Telecommunications Service. In this paper (and companion op-ed), we set out to answer a critical question—how exactly does reclassifying broadband as a Title II, common-carrier telecommunications service protect the Open Internet?  Despite the millions of comments filed in the FCC’s Open Internet Docket, this most basic question has yet to be asked much less answered.  If the Commission does reclassify, then the agency must design, implement and administer a particular set of rules that achieves the desired goal and is consistent with the …
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Yesterday, the Phoenix Center held a Teleforum to present our paper Tariffing the Internet: Pricing Implications of Classifying Broadband as a Title II Telecommunications Service and to discuss its implications with a series of experts. (We hope to post the video of the event on the Phoenix Center’s Phoenix Center’s YouTube Channel shortly.)  To summarize the paper, we show that if the Federal Communications Commission uses Title II common carrier telecommunications regulations to protect the “Open Internet,” then all edge providers (e.g., Google, Netflix, and your personal website) will be required to make direct payments to Broadband Service Providers (“BSPs” like Comcast, AT&T and Verizon) …
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As most of you know, the FCC will implement its first-ever incentive auction for wireless spectrum. In this auction, television broadcasters will (hopefully) offer for sale—and wireless carriers (among others) will offer to buy—spectrum in the 600 MHz band. The FCC will serve as the auctioneer. It’s all voluntary. How much spectrum gets traded depends on the prices offered by the wireless industry and the prices required by the broadcasters. Ideally, the auction will transfer a significant amount of spectrum to the mobile wireless industry and generate lots of revenue with which to buy stuff (like a new public safety network, E911 upgrades, and a …
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Late last year I had the pleasure of participating in an event on Spectrum Auctions put together by the New America Foundation.  I’ve blogged about the event before, but when it was recently reported that T-Mobile’s CFO, Braxton Carter, stated that consolidation in the mobile wireless sector was inevitable (“It’s not a question of if, it is a question of when”), I was reminded of an interesting anecdote provided by one of the event’s other participants—former FCC Chairman Reed Hundt.     Specifically, Chairman Hundt was recounting his experience in designing and implementing the first PCS spectrum auctions back in the 1990s.  (Watch the first video …
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Last December, I authored a blog entitled Price, Profit, and Efficiency: Mark Cooper’s Bungled Analysis.  Using basic economics, my blog describes in detail why a report authored by Mark Cooper from the Consumer Federation of America (“CFA”) entitled Comparing Apples to Apples:  How Competitive Provider Services Outpace the Baby Bell Duopoly — Municipal Wireline and Non-Baby Bell Wireless Service Providers Deliver Products that are More Consumer-Friendly reached a conclusion that was not supported by economic theory.  Mark’s argument was that AT&T and Verizon charge higher prices and earn higher profits than do Sprint and T-Mobile and that such an outcome prescribes “a really good suspicion …
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Last month, I was generously invited to join a panel put together by the New America Foundation (“NAF”) at a Capitol Hill event entitled Spectrum Auctions: Promoting More Mobile Market Competition . . . or Less?  (For those interested, video of my panel is available here.)  It was an honor to participate, and kudos to Michael Calabrese from NAF for putting together a great event.  On the panel, I was joined by Mark Cooper (Consumer Federation of America), Fred Campbell (Competitive Enterprise Institute), and Peter Cramton (professor at the University of Maryland).  I found the discussion interesting, informative, and mostly civil.  The variance in the …
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Aujourd’hui ce qui ne vaut pas la peine d’être dit, on le chante.   This line, from Le Barbier de Séville, is translated as, “Nowadays what isn’t worth saying is sung.”  International comparisons of broadband services certainly fall into this category, and this week the New America Foundation is singing again with a 2013 update to its 2012 Cost of Connectivity Report.  While New America’s 2013 Report has garnered some glowing accolades in the press (see, e.g., here and here), the hard reality is that New America’s 2013 Report continues to commit all of the numerous technical errors I highlighted in my earlier blog critiquing …
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In a recent article, Washington Post technology reporter Timothy Lee suggested that “broadband speeds were stagnating in the United States”, resulting in “slow innovation and poor customer service.” Comcast—the nation’s largest broadband service provider—begged to differ, and provided Mr. Lee with hard evidence indicating that the opposite was true. While Mr. Lee subsequently admitted his error and conceded that “Comcast’s service really has been getting faster”, Mr. Lee attempts to use the same data to argue that Comcast is “acting more and more like a monopolist.” Specifically, Mr. Lee contends that these data reveal that Comcast is “focus[ing] on maximizing its own profits, without worrying …
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Last week, the Phoenix Center released my Perspective entitled Will Bidder Exclusions Increase Auction Revenue?  A Review of the Arguments, which assessed the arguments being made about the revenue consequences of excluding AT&T and Verizon from the upcoming broadcast spectrum incentive auction.  While a number of parties have claimed that such exclusions can enhance auction revenues, I show in my Perspective that the economic theories they rely upon do not support the claim.  In fairness, Sprint, T-Mobile, and others are quick to note that they are not proposing to exclude the two most successful carriers completely, but rather are proposing they be subject to a …
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