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Mercatus Gathers Experts to Debate Mobile Competition

WASHINGTON, May 19, 2011 – The Mercatus Center, a market orientated research center located at George Mason University, gathered key industry insiders to discuss how the Federal Communications Commission analyzes market competition in the wireless industry on Wednesday.

“The FCC needs to look beyond just the numbers to determine if competition is actually occurring,” said Thomas Hazlett, professor of law & economics at George Mason University School of Law. “The Commission should take into account the analysis conducted by Wall Street to see how the financial market views the mobile market.”

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WASHINGTON, May 19, 2011 – The Mercatus Center, a market orientated research center located at George Mason University, gathered key industry insiders to discuss how the Federal Communications Commission analyzes market competition in the wireless industry on Wednesday.

“The FCC needs to look beyond just the numbers to determine if competition is actually occurring,” said Thomas Hazlett, professor of law & economics at George Mason University School of Law. “The Commission should take into account the analysis conducted by Wall Street to see how the financial market views the mobile market.”

Robert Frieden, professor of telecommunications & law at Pennsylvania State University, agreed with Hazlett’s suggestion that the FCC should expand their competition analysis to include the findings from the consumer shopping experience.

“The Commission should send out a secret shopper to see how the competition between the mobile providers actually affects consumer choice,” Frieden said. “My research has found that the four major carriers currently offer the same price for the same set of services which shifts competition from service to hardware choice.”

To further hardware choice and availability Frieden along with Harold Feld, Legal Director at Public Knowledge, advocated the implementation of the Caterfone ruling for the mobile market. The 1968 FCC ruling allows consumers to connect their choice of devices to the telephone network, so long as those devices do not harm the network. Feld and Frieden would like consumers to be able to connect their choice of devices to a mobile network as long as the device is technologically compatible.

Feld also suggested that the Commission breakdown competition between rural and urban areas.

“Those of us who live on the coast or near the major population centers have a plethora of choices when it comes to mobile providers but in large parts of rural America those choices dwindle down, sometimes to just a single option,” Feld said.

Rahul Gaitonde has been writing for BroadbandBreakfast.com since the fall of 2009, and in May of 2010 he became Deputy Editor. He was a fellow at George Mason University’s Long Term Governance Project, a researcher at the International Center for Applied Studies in Information Technology and worked at the National Telecommunications and Information Administration. He holds a Masters of Public Policy from George Mason University, where his research focused on the economic and social benefits of broadband expansion. He has written extensively about Universal Service Fund reform, the Broadband Technology Opportunities Program and the Broadband Data Improvement Act

FCC

FCC Institutes ACP Transparency Data Collection

The FCC stated that it will lean on the newly mandated broadband nutrition labels.

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Photo of people working on computers, cropped, in 2011 by Victor Grigas

WASHINGTON, November 23, 2022 – The Federal Communications Commission last week adopted an order that mandated annual reporting from all providers participating in the Affordable Connectivity Program, a federal initiative that subsidizes the internet-service and device costs of low-income Americans.

The FCC order establishing the ACP Transparency Data Collection, not released until Wednesday, requires ACP-affiliated providers to disclose prices, subscription rates, and other plan characteristics on yearly basis. The FCC stated that it will lean on the newly mandated broadband nutrition labels, which, it says, will ease regulatory burdens for providers.

The FCC created the Transparency Data Collection pursuant to the statutory requirements of the Infrastructure, Investment and Jobs Act of 2021. The commission adopted a notice of proposed rulemaking in June.

Earlier this year, T-Mobile endorsed the nutrition-label method of collection. Industry associations including IMCOMPAS and the Wireless Internet Service Providers Associations warned the FCC against instituting excessive reporting burdens.

“To find out whether this program is working as Congress intended, we need to know who is participating, and how they are using the benefit,” said Chairwoman Jessica Rosenworcel.  “So we’re doing just that.  The data we collect will help us know where we are, and where we need to go. We’re also standardizing the way we collect data, and looking for other ways to paint a fuller picture of how many eligible households are participating in the ACP.  We want all eligible households to know about this important benefit for affordable internet service.”

Although the ACP is highly touted by the FCC, the White House, and industry experts, there is evidence the fund has been exploited by fraudsters, according to a watchdog. In September, the FCC Office of Inspector General issued a report that found the ACP handed out more than $1 million in improper benefits. In multiple instances, according to the OIG, the information of a qualifying individual was improperly used for hundreds of applications, achieving payouts of hundreds of thousands of dollars.

Last month, Rep. Frank Pallone, D-N.J., contacted 13 leading internet service providers, requesting details on alleged fishy business practices connected to the ACP and its predecessor, the Emergency Broadband Benefit Program.

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Broadband's Impact

Federal Communications Commission Mandates Broadband ‘Nutrition’ Labels

The FCC also mandated that internet service provider labels be machine-readable.

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Federal Communications Commission Chairwoman Jessica Rosenworcel

WASHINGTON, November 18, 2022 – The Federal Communications Commission on Thursday afternoon ordered internet providers to display broadband “nutrition” labels at points of sale that include internet plans’ performance metrics, monthly rates, and other information that may inform consumers’ purchasing decisions.

The agency released the requirement less than 24 hours before it released the first draft of its updated broadband map.

The FCC mandated that labels be machine-readable, which is designed to facilitate third-party data-gathering and analysis. The commission also requires that the labels to be made available in customers’ online portals with the provide the and “accessible” to non-English speakers.

In addition to the broadband speeds promised by the providers, the new labels must also display typical latency, time-of-purchase fees, discount information, data limits, and provider-contact information.

“Broadband is an essential service, for everyone, everywhere. Because of this, consumers need to know what they are paying for, and how it compares with other service offerings,”  FCC Chairwoman Jessica Rosenworcel said in a statement. 

“For over 25 years, consumers have enjoyed the convenience of nutrition labels on food products.  We’re now requiring internet service providers to display broadband labels for both wireless and wired services.  Consumers deserve to get accurate information about price, speed, data allowances, and other terms of service up front.”

Industry players robustly debated the proper parameters for broadband labels in a flurry of filings with the FCC. Free Press, an advocacy group, argued for machine-readable labels and accommodations for non-English speakers, measures which were largely opposed by trade groups. Free Press also advocated a requirement that labels to be included on monthly internet bills, without which the FCC “risks merely replicating the status quo wherein consumers must navigate fine print, poorly designed websites, and byzantine hyperlinks,” group wrote.

“The failure to require the label’s display on a customer’s monthly bill is a disappointing concession to monopolist ISPs like AT&T and Comcast and a big loss for consumers,” Joshua Stager, policy director of Free Press, said Friday.

The Wireless Internet Service Providers Association clashed with Free Press in its FCC filing and supported the point-of-sale requirement.

“WISPA welcomes today’s release of the FCC’s new broadband label,” said Vice President of Policy Louis Peraertz. “It will help consumers better understand their internet access purchases, enabling them to quickly see ‘under the hood,’ and allow for an effective apples-to-apples comparison tool when shopping for services in the marketplace.”

Image of the FCC’s sample broadband nutrition label

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FCC

FCC to Establish New Space Bureau, Chairwoman Says

‘The new space age has turned everything we know about how to deliver critical space-based services on its head.’

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Photo of FCC Chairwoman Jessica Rosenworcel, via fcc.gov

WASHINGTON, November 3, 2022 — The Federal Communications Commission will add a new space bureau that will modernize regulations and facilitate innovation, Chairwoman Jessica Rosenworcel announced Thursday.

The new bureau is intended to facilitate American leadership in the space economy, boost the Commission’s technical capacity, and foster interagency cooperation, Rosenworcel said, speaking at the National Press Club.

“The new space age has turned everything we know about how to deliver critical space-based services on its head,” Rosenworcel said. “But the organizational structures of the [FCC] have not kept pace,” she added.

The space economy is “on a monumental run” of growth and innovation, the chairwoman argued, and the FCC must remodel itself to facilitate continued growth. Rosenworcel said the commission is currently reviewing 64,000 new satellite applications, and she further noted that 98 percent of all satellites launched in 2021 provided internet connectivity. By the end off 2022, operators will set a new record for satellites launched into orbit, she said.

The FCC will not take on new responsibilities, Rosenworcel said, but the announced restructuring will help the agency “perform[] existing statutory responsibilities better.” In September, Rep. Cathy McMorris Rodgers, R–Wash., warned the FCC against overreaching its statutory mandate and voiced support for robust congressional oversight – a position reiterated by House staffers Wednesday.

“The formation of a dedicated space bureau within the FCC is a positive step for satellite operators and customers across the United States,” said Julie Zoller, head of global regulatory affairs at Amazon’s satellite broadband Project Kuiper, on a panel following Rosenworcel’s announcement.

“An important part of [Rosenworcel’s] space agenda is ensuring that there is a competitive environment in all aspects of that space,” said Umair Javed, the chairwoman’s chief counsel, during the panel. “So we’ve taken action to update our rules on spectrum sharing to make sure that there are opportunities for multiple systems to be successful in low Earth orbit.

“We’ve granted a number of experimental authorizations to companies that are doing really new…things,” Umair continued.

The FCC in September required that low–Earth orbit satellite debris be removed within five years of mission completion, a move Rosenworcel said would clear the way for new innovation.

In August, the FCC revoked an $885 million grant to SpaceX’s Starlink satellite-broadband service. FCC Commissioners Brendan Carr and Nathan Simington criticized the reversal, and Starlink has since appealed it.

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