The lack of correlation between the level of concentration in local wireless service markets and prices for those services “invalidates” any efforts by government officials to demand market-by-market divestitures as they review the proposed AT&T, Inc., acquisition of T-Mobile USA, Inc., according to Jeff Eisenach, managing director and principal at Navigant Economics.
Speaking during a panel discussion of competition in the Internet ecosystem sponsored by the American Consumer Institute, Mr. Eisenach argued that the FCC, as a regulator of communications, naturally but incorrectly views networks as being at the center of the Internet ecosystem. Instead, he said, the four elements of the “platform” - content, network, device, and applications - “are perfect complements,” with none occupying the center of the ecosystem.
In considering competition in the wireless network in its recent report on that subject (TRDaily, June 27), the FCC views devices as using the network, but “don’t mobile wireless services use devices, too?” Mr. Eisenach said.
Like Mr. Eisenach, two other panelists at today’s event, Hance Haney, a senior fellow at the Discovery Institute, and Everett Ehrlich, former under secretary of commerce during the Clinton administration and current president of ESC Co., criticized the FCC report’s failure to find that the U.S. wireless services market is competitive.
Mr. Ehrlich said, “The iPhone competes with the networks that carry it, because ultimately you’re buying a combined experience” of service, device, and applications.
Mr. Haney suggested that it is unreasonable for the FCC, which could not achieve 100% penetration of wireline voice service after more than 70 years of regulation, to expect universal penetration by the wireless industry in far less time.
In response to a question about FCC interest in broadband adoption, Mr. Eisenach said, “I don’t see the basis for concluding that someone who makes the choice not to adopt broadband is somehow harming society.”
The fourth panelists, Nicol Turner-Lee, vice president of the Joint Center for Political and Economic Studies and director of its Media Technology Institute, argued that there are public policy goals - such as ensuring everyone has access to employment opportunities, health care, and education when information and application processes move online - that justify government interest in increasing broadband adoption, as well as deployment.
This article was previously available at Telecommunications Reports.
