2014 provided fertile soil for those interested in policy research. So with New Years rapidly approaching, I want to uphold tradition and use our last blog post of the year to highlight what we at the Phoenix Center thought to be the most interesting policy issues of 2014 and to provide some select examples of where we believed we added constructively to the debate. Spectrum Availability and Allocation While spectrum policy is always complex, the debate again boiled down to the fundamental questions: how do we free up more spectrum; and once we do, how do we allocate it? For example, one of the early …
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In his recent keynote speech at the CTIA show in New Orleans, Federal Communications Commission Chairman Julius Genachowski reiterated his (and the industry’s) concern that the “demand for mobile services is on pace to exceed the capacity of our mobile networks” and, therefore, we must “tackle the capacity challenge.” The Chairman has previously foretold of a future where spectrum exhaust could make “consumers […] face slower speeds, more dropped connections, and higher prices.” Plainly, spectrum exhaust remains a key challenge for both mobile service providers and policymakers. The Chairman also took the chance in his CTIA speech to challenge what we and others have said …
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What is the effect of regulation on investment?  At a high level of abstraction, it is impossible to say.  Rate-of-return regulation, for example, is criticized by economists for possibly encouraging too much investment—a principle known as the Averch-Johnson Effect.  On the other hand, if a firm fears that the regulator will alter the rules in a way that reduces the ability to earn profits on large, long-term capital investments, then the incentive to make such investments is reduced.  Importantly, the issue is not, as some claim, just about “regulatory uncertainty.”  There could be great uncertainty about future rule changes, but if the expectation is that …
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As I noted in my January 17th blog post, FCC Chairman Julius Genachowski is complaining loudly that the bill now pending before the House Energy & Commerce Committee would unduly constrict the agency’s ability to condition any voluntary incentive auction for much-needed beachfront broadcast spectrum.  Recently, former FCC Chairman Reed Hundt came to his protégé’s defense, noting that: no one will benefit if Congress insists on telling the FCC—as the House bill does—who is eligible to bid or how the auction should be conducted. To have an efficient, fair, unpoliticized, neutral, pro-market auction the FCC should continue to be an auctioneer that is above political …
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