Julius Genachowski’s Speech at CTIA…

May 22nd, 2012 | Posted by George Ford in Broadband Credibility Gap | Data Roaming | Federal Communications Commission | Incentive Auctions | Incumbent Exclusion Rules | Industry Structure and Market Performance | Interoperability | Law and Economics | Merger Review | Mobile Broadband | Net Neutrality | Regulation | Spectrum | Spectrum Caps | Spectrum Exhaust | Wireless - (Comments Off)

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?

May 8th, 2012 | Posted by George Ford in "Over the Top" Services | AllVid | Broadband Credibility Gap | Data Roaming | Employment | Federal Communications Commission | Industry Structure and Market Performance | Interoperability | Investment | Jobs | Law and Economics | Net Neutrality | Regulation | Regulatory Reform | Set-top Boxes | Spectrum | Spectrum Caps | Wireless - (Comments Off)

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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Data Roaming, Spectrum Auctions, and the Widening of the Broadband Credibility Gap…

January 31st, 2012 | Posted by Larry Spiwak in Broadband Credibility Gap | Data Roaming | Federal Communications Commission | Incentive Auctions | Incumbent Exclusion Rules | Net Neutrality | Regulation | Regulatory Reform | Spectrum | Spectrum Exhaust | Wireless - (2 Comments)

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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