Learning Objective
Have a good answer to the question, What is the role of Government in regulating markets?
Given the interconnectedness and substitutability of the different telecommunications technologies, understand the public interest implications of various uses and the role of the government in regulating markets and competition in the area
This is an overarching objective that shapes the consideration of all of the following TCOs. As each of the different telecommunication technologies are examined in the course, this perspective should form the debate. Ultimately, by the end of the course, students should have a command of the several sides of the issues regarding the nature of the public interest in telecommunications and the arguments underlying the various policy approaches to its regulation.
Specific foundational materials on this TCO are presented in Sessions One and Nine in the Sample Syllabus—in the regulatory overview and the arguments pro and con the FCC. The topic outline for TCOs A and B are presented together under TCO B.
TCO B
Given governmental ownership and licensing of the broadcast spectrum, identify and describe the goals and methods of the FCC in allocating and distributing this resource
Regulatory Overview
Pre-1934
1934 Act
Broadcast and Spectrum Regulation
History of Broadcast
Radio Act of 1927
The FRC
Shuler and Brinkley Cases
Electromagnetic Spectrum
Encoding, Transmitting, Receiving
Allocation of Spectrum
Arguments pro and con re: Broadcast Regulation
Market Model
Special Interests
Nature of Broadcast as a Public Good
Methods of Regulation
FCC
Goals of the FCC in Regulating Broadcast
Methods of FCC Regulation of Broadcast
License Hearings
Initial Assignments
Comparative Hearings
Preferences
License Renewals
License Transfers
Auctions
Reform of the License Process
Comparison of Lotteries, Auctions, and Comparative Hearings
Competition in Broadcasting
Television Networks
Relationship Among the Major Networks
Relationship Between Networks and Independent Program Suppliers
Ownership Restrictions
TCO C
Given First Amendment principles regarding the regulation of content, understand the public trustee obligations imposed on broadcasters in the form of the fairness doctrine and limitations on indecency, violence, and children’s programming
Concepts of “Public Trustee”
The Fairness Doctrine
Origins
Nature of its requirements
Indecent Broadcasts
Televised Violence
Media Filters
V-Chip
Ratings Systems
Children’s Television
Programming and Advertising
FCC Rules and Policies
TCO D
Given the natural monopoly tendency of telecommunications technologies like cable and telephony, understand the policies underlying governmental regulation and the methods employed to constrain prices
Cable Basics
The Nature of a Natural Monopoly
Early History of Cable Regulation
Jurisdictional Question of Who Should Regulate
Rate Regulation
Cable Act of 1992—FCC Summary
Post-1992 Regulation
Local Franchise Agreements
Relationship between Cable Rates and Franchise Fees
PEG and leased access channels
TCO E
Given the close relationship of broadcast spectrum with cable and direct satellite, understand the principles governing copyright and licensing, syndication, and must-carry and retransmission consent
The Broadcast/Cable Relationship
The Copyright Act of 1976
Focus on Program Content
Copyright and Compulsory Licensing
Syndicated Exclusivity and Network Nonduplication
Focus on Broadcast Signal
Must-Carry and Retransmission Consent under the Cable Act
Turner I and II
Structural Limitations Under the Cable Act of 1992
Vertical Integration
Horizontal Concentration
Direct Broadcast Satellite
Early History of Regulation
Modern Regulation
Primetime Case
Satellite Home Viewer Improvement Act of 1999
TCO F
Given the historical origins and development of the telephone system, understand the conditions that gave rise to the Bell monopoly, the issues that led to ultimate divestiture, and the terms of the Bell breakup
Telephone Regulation
Early Telephone Regulation
Common Carriage and Antitrust Issues
Jurisdiction to Regulate
Telephony as Monopoly
Precursors to Divestiture
Competition in Customer Premises Equipment
Competition in Long Distance
Communications/Computer Convergence
Rate-of-Return Regulation
Divestiture of Bell
Terms and Conditions of the MFJ (modified final judgment)
TCO G
Given the need for broad Federal regulation of telecommunications, understand the basic provisions of the Telecommunications Act of 1996 and its effect on local competition, line-of-business restrictions, universal service, and access charge reform
Issues Post Divestiture
Introduction to issues of
Rate regulation reform
Implementation of line of business restrictions
Redefining universal service
Telecommunications Act of 1996
History and Historic Nature of the Act
Local Competition
Approach to enhance entry and competition
BOC Line-of-Business Restriction
Terms for Removing Restrictions
Universal Service and Access Charge Reform
Redefinition of Universal Service
In Response to Local Competition Changes
In Response to the Internet and Other Advanced Technologies
Relationship Between Universal Service and Access Charge Reform
TCO H
Given that regulation of the Internet is in a nascent stage of development, understand the nature of the Internet and the policy arguments relating to how it should be regulated and by whom
History and Architecture of the Internet
Regulation of the Internet
Basic Principles and Policy Arguments For and Against Regulation
Content Regulation of the Internet
Indecent Communications by Telephone
Indecent Communications over the Internet (Reno v. ACLU)
Why the FCC?
[Wrap back to earliest questions raised in the course]
Compare and Contrast the Various Perspectives
FCC Report
Huber
Sunstein
Krattenmaker