Antitrust and Trade Regulation Commons^™

Law And The Open Internet, Adam Candeub, Daniel Mccartney

Federal Communications Law Journal

The FCC has issued a new set of Internet access regulations and policies (namely Preserving the Open Internet Broadband Industry Practices, Report and Order, FCC 10-201, rel. Dec. 23, 2010), which would prohibit broadband service providers like AT&T or Comcast from discriminating against unaffiliated content providers. The FCC's proceedings, and the network neutrality debate, concentrate on two economic questions: (1) whether to broadband service providers can or will steer traffic to affiliated content limiting consumer access, and (2) how to preserve the Internet's capacity for creativity and innovation. Yet despite the prominence of economics in the debate, economic theory cannot …

Reforming Retransmission Consent, Meg Burton

Federal Communications Law Journal

Under the retransmission consent regulations of the 1992 Cable Act, broadcasters and cable providers must negotiate with one another for permission to retransmit a broadcast signal over a cable system. While the majority of such negotiations are resolved amicably, there has been a growing trend of negotiations resulting in signal blackouts that harm consumers. In March 2010, cable providers filed a Petition for Rulemaking with the FCC arguing that the current regulations are outdated and asking that the FCC alter the regulations to curb harmful negotiation tactics employed by broadcasters. Broadcasters replied that the retransmission consent scheme is working as …

Assessing Competition In U.S. Wireless Markets: Review Of The Fcc’S Competition Reports, Gerald R. Faulhaber, Robert W. Halm, Hal J. Singer

Federal Communications Law Journal

The FCC's 14th and 15th Annual Wireless Competition reports review a wide variety of evidence, both direct (how firms and customers behave) and indirect (industry concentration measures) in making its competitive assessment. The reports are silent on how to interpret this evidence. In contrast, modem antitrust analysis relies far more on direct evidence. In failing to put more weight on the relevant direct market evidence to reach an informed competitive assessment, the 14th and 15th reports invite erroneous conclusions about the state of competition in wireless markets. The authors are concerned that these erroneous conclusions eventually could adversely influence regulatory …

Survival Of The Standard: Today’S Public Interest Requirement In Television Broadcasting And The Return To Regulation, Drew Simshaw

Federal Communications Law Journal

The notion that broadcasters must broadcast in the public interest has always been a requirement; exactly how this requirement is met has taken many forms. This Note examines the history of the public interest requirement in broadcasting-from vagueness to regulation to good faith and presumptions of compliance-and considers the appropriate direction for the public interest requirement's future. The deregulation of the 1980s served a valuable purpose at the time by lifting burdens and sparking innovation. It is time to examine those innovative methods of ascertaining the needs of our communities and providing desired programming, in order to determine ways in …

Consumer Watchdog: The Fcc’S Proposed Rulemaking To Help Consumers Avoid Bill Shock, Cameron Robinson

Federal Communications Law Journal

This Note discusses the proposed rulemaking by the FCC in order to empower consumers against "bill shock." Bill shock is described as what a consumer experiences when he or she receives a bill for his or her cellular phone that is much higher than expected, usually on account of roaming charges. This Note will argue in favor of rulemaking by the FCC and explain how the consumer will be empowered against the confusion of the current system.

Antitrust Review Of The At&T/Tmobile Transaction, Allen P. Grunes, Maurice E. Stucke

Federal Communications Law Journal

In August 2011, the United States brought a landmark antitrust lawsuit to prevent the merger of two of the nation's four largest mobile wireless telecommunications services providers, AT&T Inc. and T-Mobile USA, Inc. But why are so many elected officials asking the Obama administration to intercede in the Department of Justice's lawsuit to force a settlement? Why are they approving a merger that would likely lead to higher prices, fewer jobs, less innovation, and higher taxes for their constituents? Does it have anything to do with the money they are receiving from AT&T and T-Mobile? This Article examines the recent …

Statewide Cable Franchising: Expand Nationwide Or Cut The Cord?, James G. Parker

Federal Communications Law Journal

In the name of increasing competition in the cable television market, Congress passed the Telecommunications Act of 1996. While this eliminated the barriers to entry using federal law, it did not change the nature of municipality-based cable system monopolies. In an effort to expand competition more quickly and efficiently, the phone companies (Verizon and AT&T) successfully supported legislation in at least twenty-five states that permits a single state application to compete statewide. This Note explores the varying approaches taken in the laws passed to date, analyzes the outcomes flowing from those implemented plans, and provides recommendations of the best practices …

Are You Ready For Some Football?: How Antitrust Laws Can Be Used To Break Up Directv's Exclusive Right To Telecast Nfl's Sunday Ticket Package, Ariel Y. Bublick

Federal Communications Law Journal

There is almost no question that football has become modem America's pastime. Football has never been more popular, and every Sunday people are clamoring to watch as many games as possible. The Sunday Ticket package allows viewers to watch any National Football League ("NFL") game being played at any given time. However, the NFL has only granted DirecTV the right to air the Sunday Ticket package, denying this excellent service to a majority of television viewers. By limiting the reach of the Sunday Ticket package, the NFL may be in violation of antitrust laws. This Note begins by explaining antitrust …

How Elevation Of Corporate Free Speech Rights Affects Legality Of Network Neutrality, Barbara A. Cherry

Federal Communications Law Journal

In Citizens United v. Federal Election Commission (2010), the U.S. Supreme Court overruled a century of precedent to hold that corporations must be treated identically to natural persons with regard to political speech. This Article describes how the Court's decision is a radical departure from history that mirrors the FCC's flawed analysis in its classification of broadband Internet access services as an information service with no separable telecommunications component subject to common carriage regulation. Overall, the combinatorial effect of Citizens United and the FCC's classification of broadband access service as an information service is to elevate the constitutional free speech …

A Policy Framework For Spectrum Allocation In Mobile Communications, T. Randolph Beard, George S. Ford, Lawrence J. Spiwak, Michael Stern

Federal Communications Law Journal

With the National Broadband Plan's promise of an additional 500 MHz of spectrum for commercial purposes, the question of how to allocate those resources among competing uses and users will dominate the communications policy debate over the coming years. In this Article, the Authors provide a theoretical analysis of some of the relevant tradeoffs involved in allocating spectrum among service providers, with a particular focus on incumbent exclusion rules such as spectrum caps. Two key assumptions center the analysis: (i) more firms implies lower prices (i.e., Cournot competition); and (ii) more spectrum permits more advanced services due to greater capacity …

Overwhelmed By Big Consolidation: Bringing Back Regulation To Increase Diversity In Programming That Serves Minority Audiences, Caridad Austin

Federal Communications Law Journal

This Note addresses diversity in the media and the need for regulation that will enhance programming so that it is inclusive of minority audiences. It begins by analyzing the historical development of diversity in the media through landmark cases, such as Metro Broadcasting, Inc. v. Federal Communications Commission, and it addresses the consolidating effects of the Telecommunications Act of 1996 and the FCC's 2003 Report and Order. It argues that despite technological growth, the FCC's open market regulatory approach of the last three decades has resulted in a lack of diverse perspectives in the media and that the FCC needs …

The Internet Ecosystem: The Potential For Discrimination, Dick Grunwald

Federal Communications Law Journal

Symposium: Rough Consensus and Running Code: Integrating Engineering Principles into Internet Policy Debates, held at the University of Pennsylvania's Center for Technology Innovation and Competition on May 6-7, 2010.

This Article explores how the emerging Internet architecture of "cloud computing," content distribution networks, private peering and data-center services can simultaneously foster a perception of "unfair" network access while at the same time enabling significant competition for services, content, and innovation. A key enabler of these changes is the emergence of technologies that lower the barrier for entry in developing and deploying new services. Another is the design of successful Internet …

Revisiting The Regulatory Status Of Broadband Internet Access: A Policy Framework For Net Neutrality And An Open Competitive Internet, Lee L. Selwyn, Helen E. Golding

Federal Communications Law Journal

A decade of broadband access deregulation has landed the FCC at a legal deadend. After the D.C. Circuit's Comcast decision, the FCC finds itself unable to enforce its "net neutrality" goals. To reassert its jurisdiction over "net neutrality," the FCC proposes to reclassify broadband Internet access as a Title II "telecommunications service" while continuing to forbear from most other facets of common carrier regulation. The FCC's current dilemma results from an unfortunate combination of unverified predictive judgments associating deregulation with investment; overly optimistic assessments of competition in the consumer broadband market; the abandonment of the "bright line" between transmission and …

Pacifica Reconsidered: Implications For The Current Controversy Over Broadcast Indecency, Angela J. Campbell

Federal Communications Law Journal

In 2009, the Supreme Court upheld the FCC's finding in Fox TV Stations v. Federal Communications Commission that the broadcast of "fleeting expletives" violated a federal law prohibiting the broadcast of indecency, but remanded the case for consideration of the broadcast networks' claims that the FCC action violated the First Amendment. On remand, the Second Circuit found that the FCC's prohibition against "fleeting expletives" was unconstitutionally vague. It is widely expected that the Supreme Court will review this decision and that the networks will ask the Court to reconsider its 1978 decision in Pacifica Foundation v. Federal Communications Commission. This …

Deliberative Democracy On The Air: Reinvigorate Localism-Resuscitate Radio's Subversive Past, Akilah N. Folami

Federal Communications Law Journal

There has been considerable scholarship exploring the need to breathe deliberative life back into the localism standard by requiring broadcasters to include more meaningful local news and public affairs programming, pursuant to the public interest obligations imposed on radio licensees. There has been little scholarly attention, if any, however given to broadening understandings of localism to include music and popular cultural expression for the purpose of furthering deliberative discourse in particular, rather than solely for entertainment purposes. This Article focuses on a particular moment in radio and America's cultural history that was rife with struggles over constructions of identity, and …

Vertical Separation Of Telecommunications Networks: Evidence From Five Countries, Robert W. Crandall, Jeffrey A. Eisenach, Robert E. Litan

Federal Communications Law Journal

The widespread adoption of mandatory unbundling in telecommunications markets has led to growing interest in mandatory "functional separation," i.e., separation of upstream network operations from downstream retail operations. Since 2002, vertical separation has been implemented in five OECD countries: Australia, Italy, New Zealand, Sweden, and the United Kingdom. In 2008, the International Telecommunications Union noted "a tremendous amount of interest" in functional separation around the world; and, in April 2009, the European Parliament held its second reading on a new regulatory framework that embraces functional separation as an "exceptional measure." While the U.S. does not currently require unbundling of broadband …

Internet Governance And Democratic Legitimacy, Oliver Sylvain

Federal Communications Law Journal

Even as the Internet goes pop, federal policymakers continue to surrender their statutory obligation to regulate communications in the first instance to extralegal nongovernmental organizations comprised of technical experts. The FCC's adjudication of a dispute concerning a major broadband service provider's network management practices is a case in point. There, in the absence of any enforceable legislative or regulatory rule, the FCC turned principally to the transmission principles of the Internet Engineering Taskforce, the preeminent nongovernmental Internet engineering standard-setting organization. This impulse to defer as a matter of course to such an organization without any legal mechanism requiring as much …

Advancing Consumer Interests Through Ubiquitous Broadband: The Need For A New Spectrum, Meredith Attwell Baker

Federal Communications Law Journal

Comprehensive and long-term spectrum reform can play a critical role in the FCC's development of a National Broadband Plan and in its consideration of Open Internet rules. More efficient and intensive use of the nation's spectrum resources would help provide a path to greater broadband deployment, competition and innovation for all consumers. Wireless and mobile technologies hold great promise to offer consumers new services to complement, extend, or even replace existing broadband offerings. A comprehensive review of the nation's spectrum policy is, therefore, necessary to ensure that wireless and mobile broadband services are not hamstrung by outdated rules or command-and-control …

Universal Service In The United States: A Focus On Mobile Communications, Steven G. Parsons, James Bixby

Federal Communications Law Journal

The concept of universal service, providing affordable telecommunications to all citizens, has a long and changing history in the United States. Prior to the Telecommunications Act of 1996, efforts to achieve universal service were largely based on a complex web of implicit subsidies to basic landline local exchange residential service. The Act expanded and codified the concept of universal service and made the subsidies largely explicit. This Article evaluates the possible economic rationales for subsidizing voice communications and find them lacking. This Article argues that the weak rationale for subsidizing basic voice communications makes it critical that U.S. universal-service policy …

Network Neutrality Between False Positives And False Negatives: Introducing A European Approach To American Broadband Markets, Jasper P. Sluijs

Federal Communications Law Journal

Network neutrality has become a contentious issue both in Europe and the United States. Regulators on both sides of the Atlantic face digital divides in their society, and are confronted with potentially conflicting policy goals-to incentivize private investment in next-generation broadband while maintaining "neutral" and competitive broadband networks.

This Article compares nascent American and European network neutrality policy in terms of regulatory error costs. Emerging markets, such as broadband, are more likely to be affected by regulatory errors, and these errors have graver consequences in emerging markets than in regular markets. U.S. telecommunications policy traditionally has advanced a trial-and-error approach …

Creating Effective Broadband Network Regulation, Daniel L. Brenner

Federal Communications Law Journal

The Internet is central to the business and pastimes of Americans. Calls for increased regulation are ongoing, inevitable, and often justified. But calls for "network neutrality" or "nondiscrimination" assume with little hesitation federal agency competence to give predictable and accurate meaning to these terms and create regulations to implement them. This Article's chief contribution to Internet policy debate is to focus attention on the likelihood of successful FCC Internet regulation-a key assumption of some advocates.

The Article analyzes three characteristics that hobble the FCC, which is the likeliest federal agency to provide prescriptive rules. First, the record for the agency …

Viewpoint Diversity And Media Ownership, C. Edwin Baker

Federal Communications Law Journal

A recent technically sophisticated study of the impact of media mergers on viewpoint diversity that found the impact is contextually variable should be entirely irrelevant to proper policy debates about regulation of media ownership. This Article examines the real reasons to oppose concentrated ownership and considers how the recent study went wrong.

The Role Of Theory And Evidence In Media Regulation And Law: A Response To Baker And A Defense Of Empirical Legal Studies, Daniel E. Ho, Kevin M. Quinn

Federal Communications Law Journal

We thank Professor Baker for a stimulating response to an Article in which we offered empirical evidence of editorial viewpoint diversity in the face of media consolidation. We appreciate his praise of the Article as "apply[ing] innovative statistical techniques" and as "far superior methodologically to most empirical studies" he has seen. At the same time, Baker "denies the policy relevance" to our Article because empirical evidence is "entirely irrelevant" to the field of media regulation under his preferred normative theory. Baker argues sweepingly that the legal academy's increased willingness to consider the perspectives of quantitative empiricists and positive theorists is …

Who Needs Tickets? Examining Problems In The Growing Online Ticket Resale Industry, Clark P. Kirkman

Federal Communications Law Journal

The Internet has dramatically changed the methods by which people purchase tickets to events. In the past decade, the secondary ticket market has grown exponentially, and today the online ticket resale industry is valued at approximately $4 billion. Although there are consumer benefits to this industry growth, some of the industry practices have precipitated a consumer backlash. This was typified in 2007 when many parents, hoping to purchase tickets to the Hannah Montana "Best of Both Worlds Tour," watched as tickets sold out online in only a few minutes or less. Coupled with this episode was the Ticketmaster v. RMG …

Reverse Auctions And Universal Telecommunications Service: Lessons From Global Experience, Scott Wallsten

Federal Communications Law Journal

The United States now spends around $7 billion on universal service programs-subsidies intended to ensure that the entire country has access to telecommunications services. Most of this money supports telecommunications service in "high cost" (primarily rural) areas, and the High Cost fund is growing quickly. In response to this growth, policymakers are considering using reverse auctions, or bids for the minimum subsidy, as a way to reduce expenditures. While the United States has not yet distributed funds for universal service programs using reverse auctions, the method has been used widely.

First, reverse auctions are akin to standard government procurement procedures, …

A Fundamental Misunderstanding: Fcc Implementation Of U.S. Wto Commitments, Laura B. Sherman

Federal Communications Law Journal

In bilateral and multilateral trade agreements, the United States has agreed to open the market for telecommunications services to foreign service suppliers, an obligation implemented by the FCC since 1998. In contrast, the United States has made no commitments with respect to broadcasting services or broadcast licenses. This article clarifies the different treatment of telecommunications services and broadcast services in U.S. trade obligations and FCC orders.

An Evaluation Of The Proposals In The Fcc's Intercarrier Compensation Reform Docket Related To Tandem Transit Services, John R. Harrington, Ronald W. Gavillet, Matt D. Basil, Melissa L. Dickey

Federal Communications Law Journal

As part of its Intercarrier Compensation Reform Docket, the Federal Communications Commission (FCC) has received many proposals advocating for the adoption of regulations relating to tandem transit services. As transiting affects virtually every carrier in the telecommunications industry, including traditional CLECs, cable telephony providers, wireless carriers, and even traditional ILECs, the industry is sharply divided over which, if any, of those proposals should be adopted. This Article provides an in-depth look at the issues dividing the industry, and the various proposals before the FCC. The Authors then hypothesize that the FCC should follow the lead of several state commissions who …

The Riaa, The Dmca, And The Forgotten Few Webcasters: A Call For Change In Digital Copyright Royalties, Kellen Myers

Federal Communications Law Journal

Emerging webcasting technology is playing an increasing role in modem society. The ease of use of webcast technology has brought about an increased user base as well as an increased viability for small webcasting businesses. However, the mix-tape genre of independent Internet radio has been financially and legislatively abused as a forerunner of rapidly advancing digital technology and concerns over protecting copyright royalties. This Note argues for a revision of the DMCA to provide a middle ground between protecting copyrighted works and allowing the continued existence of Internet radio.

Paying The Price For Sports Tv: Preventing The Strategic Misuse Of The Fcc's Carriage Regulations, David Hutson

Federal Communications Law Journal

Cable companies and sports leagues have embarked upon parallel courses of vertical integration by creating and acquiring interests in cable sports networks. Cable companies carry regional sports networks (RSNs) on basic cable tiers. Some league-owned networks have sought high prices for carriage on basic tiers, causing some cable companies to balk because of the price increase they would have to pass on to consumers. The 1992 Cable Act prohibits cable companies from discriminating in carriage terms between affiliated and nonaffiliated networks. Cable companies that own RSNs are, therefore, left vulnerable to discrimination complaints by league-owned networks. This Note argues that …

Business Solutions To The Alien Ownership Restriction, Greg Snodgrass

Federal Communications Law Journal

The alien ownership restriction on broadcast licenses has had a profound effect on the entertainment industry over the past few decades. While the origins of the restriction were based on national security fears that no longer apply, the restriction is unlikely to be repealed without significant lobbying. Given the unlikelihood of repeal, this Note concludes that entertainment conglomerates should apply a two-pronged approach to overcome the barrier imposed by the ownership restriction. First, conglomerates should build powerful nonbroadcast superstations. Second, conglomerates should push the FCC to gradually loosen its application of the restriction. While this is not a perfect solution, …