Economic analysis takes as its defining performance benchmark the pursuit of increases in welfare (efficiency). Competition is merely one of a variety of means of achieving the efficiency end, especially in industries where the underlying economic circumstances predispose them towards greatest efficiency when competition (in the form of many market participants) is restricted. Typically, regulatory intervention in these industries is justified by the imperative to increase efficiency. Competition law and industry-specific regulation provide two competing means of intervention whereby the pursuit of efficiency can be enhanced. The challenge is in determining how to allocate responsibility for governance of industry interaction between these two institutional forms. Whilst competition law can govern interaction in most industries, where the underlying economic conditions are sufficiently different, industry-specific regulation offers advantages. However, its weakness is the risk of capture, leading to the subjugation of the efficiency end to the pursuit of other objectives (e.g. competition – the means – as an end in itself). But if the regulatory institution could be bound in some way to pursue an efficiency objective, could the risk of capture be averted?
Broadband
High-speed data connections, or broadband, are critical to the economy. Our work on broadband covers a wide range of topics, including the digital divide, wireline and wireless provision, spectrum, net neutrality, competition, and more.
Research Papers
DTV coupon program mainly benefits retailers, not consumers
TPI vice president for research and senior fellow Scott Wallsten finds that the government’s DTV coupon program has increased the price of digital-to-analog converter boxes by $21-$34, meaning that the subsidy is primarily benefiting retailers rather than consumers. The $40 coupons made available to all households means that consumers pay $0 for any retail price less than $40 for eligible boxes, thus diminishing price competition among retailers.
Testimony and Filings
Testimony for FCC en banc hearing at Carnegie Mellon University on broadband and the digital future
Thank you for inviting me to testify today. I will make the following points. Broadband deployment and growth in the United States is strong, and we compare favorably to the rest of the world, despite conventional wisdom. There is no crisis and no apparent market failure. We can take the time to come up with an intelligent national broadband policy to ensure continued investment and innovation in this critical infrastructure.
Press Releases
“Free” Broadband Requirement in AWS-3 Spectrum Auction is a Step Backward, Lenard argues in FCC Comments
Technology Policy Institute president and senior fellow Thomas Lenard filed comments today with the Federal Communications Commission on its proposal to auction the 2155-2175 MHz band (AWS-3) subject to rules that would require the winner to offer a basic tier of free wireless broadband service that virtually the entire U.S. population could access. The service conditions are similar to those contained in a 2006 application by M2Z to obtain this spectrum for free.
Testimony and Filings
Lenard Files Comments With FCC on AWS-3 Spectrum Auction
Technology Policy Institute president and senior fellow Thomas Lenard filed comments today with the Federal Communications Commission on its proposal to auction the 2155-2175 MHz band (AWS-3) subject to rules that would require the winner to offer a basic tier of free wireless broadband service that virtually the entire U.S. population could access. The service conditions are similar to those contained in a 2006 application by M2Z to obtain this spectrum for free.
Press Releases
June 9th Event: Transatlantic Perspectives on Broadband Policy
Transatlantic Perspectives on Broadband Policy, Inter- versus Intra-Platform Competition, A Centre for European Policy Studies-Technology Policy Institute Event, Monday, June 9, 2008, 8:30-11:00 AM, National Press Club, Washington, D.C.