Advertisement

Review of Industrial Organization

, Volume 55, Issue 4, pp 625–646 | Cite as

Economics at the FCC 2018–2019: Competition, Broadband Deployment, and Transaction Review

  • Babette BoliekEmail author
  • Kim Makuch
  • Catherine Matraves
  • Aleks Yankelevich
Article
  • 34 Downloads

Abstract

The U.S. Federal Communications Commission is responsible for regulation in the communications marketplace and for management of the nation’s non-federal radio frequency spectrum. During the past year, Commission economists contributed to the analysis of competition in the communications marketplace as presented in the Commission’s first Communications Marketplace Report. In addition, Commission economists examined issues in the broadcast television industry and performed general and limited analyses of the effects of both national broadcast group size and local market concentration on retransmission fees. Commission economists also evaluated the current Form 477 data collection and helped to develop proposals that would improve the current data collection as well as establish a new data collection that would advance the Commission’s universal service goals. Finally, Commission economists evaluated the likely competitive effects that would be associated with the proposed T-Mobile-Sprint transaction.

Keywords

FCC Telecommunications policy Communications Marketplace Report Retransmission fees Broadband deployment Form 477 T-Mobile-Sprint transaction 

Notes

Acknowledgements

We thank all of the economists at the Federal Communications Commission who contributed to the proceedings that are discussed in this essay. We note that the opinions expressed herein are those of the authors and do not represent those of the Federal Communications or any other members of its staff, or of the University of Pepperdine or any other members of its staff.

References

  1. American Cable Association. (2018). Petition to Deny of American Cable Association. Applications of Tribune Media Company and Sinclair Broadcast Group for Consent to Transfer Control of Licenses and Authorizations, MB Docket No. 17-179. https://www.fcc.gov/ecfs/filing/106200685618890.
  2. American Television Alliance. (2019). Comments of the American Television Alliance. 2018 Quadrennial Regulatory Review, MB Docket No. 18-349. https://www.fcc.gov/ecfs/filing/104291827503588.
  3. Baker, A., Brennan, T., Erb, J., Nayeem, O., & Yankelevich, A. (2014). Economics at the FCC, 2013–2014. Review of Industrial Organization,45(4), 345–378. (at 346–353).CrossRefGoogle Scholar
  4. Chipty, T., & Snyder, C. (1999). The role of firm size in bilateral bargaining: A study of the cable industry. The Review of Economics and Statistics,81(2), 326–340.CrossRefGoogle Scholar
  5. Common Cause, Public Knowledge, United Church of Christ, and Sports Fan Coalition. (2019). Petition to Deny of Common Cause, Public Knowledge, United Church of Christ, and Sports Fan Coalition. Applications of Tribune Media Company and Nexstar Media Group, Inc. for Consent to Transfer Control of Licenses and Authorizations, MB Docket No. 19-30. https://www.fcc.gov/ecfs/filing/1031924427034. Retrieved 5 Sept 2019.
  6. DISH. (2017). Petition to Dismiss or Deny of Dish Network L.L.C., Exhibit D Declaration of Janusz A. Ordover and Exhibit E Declaration of William P. Zarakas and Jeremy A. Verlinda. Applications of Tribune Media Company and Sinclair Broadcast Group for Consent to Transfer Control of Licenses and Authorizations, MB Docket No. 17-179. https://www.fcc.gov/ecfs/filing/1062081457069. Retrieved 5 Sept 2019.
  7. DISH. (2019). Petition to Deny of Dish Network Corporation. Applications of Tribune Media Company and Nexstar Media Group, Inc. for Consent to Transfer Control of Licenses and Authorizations, MB Docket No. 19-30. https://www.fcc.gov/ecfs/filing/1031842167256. Retrieved 5 Sept 2019.
  8. Eisenach, J. A. (2014). Delivering for television viewers: Retransmission consent and the U.S. market for video content. NERA Economic Consulting. https://www.nera.com/content/dam/nera/publications/2014/PUB_Retransmission_Consent_0714.pdf. Retrieved 5 Sept 2019.
  9. Farrell, J., & Shapiro, C. (2010). Antitrust evaluation of horizontal mergers: An economic alternative to market definition. The BE Journal of Theoretical Economics, 10(1), 1–45.Google Scholar
  10. Federal Communications Commission (FCC). (2011). AT&T and T-Mobile Bureau Staff Analysis and Findings. https://docs.fcc.gov/public/attachments/DA-11-1955A2.pdf. Retrieved 5 Sept 2019.
  11. Federal Communications Commission (FCC). (2014a). AT&T/Leap Transaction Order. https://www.fcc.gov/document/attleap-transaction-order. Retrieved 5 Sept 2019.
  12. Federal Communications Commission (FCC). (2014b). Mobile Spectrum Holdings Report and Order. https://www.fcc.gov/document/mobile-spectrum-holdings-report-and-order. Retrieved 5 Sept 2019.
  13. Federal Communications Commission (FCC). (2016). Spectrum Frontiers Report and Order and Further Notice of Proposed Rulemaking. https://www.fcc.gov/document/spectrum-frontiers-ro-and-fnprm. Retrieved 5 Sept 2019.
  14. Federal Communications Commission (FCC). (2017a). Amendment of Section 73.3555(e) of the Commission’s Rules, National Television Multiple Ownership Rule, MB Docket No. 17-318, Notice of Proposed Rulemaking. https://docs.fcc.gov/public/attachments/FCC-17-169A1.pdf. Retrieved 5 Sept 2019.
  15. Federal Communications Commission (FCC). (2017b). Strategic Plan 20182022. https://www.fcc.gov/about/strategic-plans-budget. Retrieved 5 Sept 2019.
  16. Federal Communications Commission (FCC). (2017c). 2010/2014 Quadrennial Regulatory Review, MB Docket No. 09-182 and 14-50, Order on Reconsideration and Notice of Proposed Rulemaking. https://docs.fcc.gov/public/attachments/FCC-17-156A1.pdf. Retrieved 5 Sept 2019.
  17. Federal Communications Commission (FCC). (2018a). 2018 Quadrennial Regulatory Review, MB Docket No.18-349, Notice of Proposed Rulemaking. https://docs.fcc.gov/public/attachments/FCC-18-179A1.pdf. Retrieved 5 Sept 2019.
  18. Federal Communications Commission (FCC). (2018b). FCC Adopts First Communications Marketplace Report. https://www.fcc.gov/document/fcc-adopts-first-consolidated-communications-marketplace-report-0. Retrieved 5 Sept 2019.
  19. Federal Communications Commission (FCC). (2018c). FCC Establishes Pleading Cycle for T-Mobile/Sprint Transaction. https://www.fcc.gov/document/fcc-establishes-pleading-cycle-t-mobilesprint-transaction. Retrieved 5 Sept 2019.
  20. Federal Communications Commission (FCC). (2018d). Description of Transaction, Public Interest Statement, and Related Demonstrations. Submitted by T-Mobile and Sprint. https://ecfsapi.fcc.gov/file/10618281006240/Public%20Interest%20Statement%20and%20Appendices%20A-J%20(Public%20Redacted)%20.pdf. Retrieved 5 Sept 2019.
  21. Federal Communications Commission (FCC). (2018e). Joint Opposition of T-Mobile US, Inc. and Sprint Corporation. Submitted by T-Mobile and Sprint. https://ecfsapi.fcc.gov/file/109171182702890/FINAL%20Joint%20Opposition%20091718%20(Public).pdf. Retrieved 5 Sept 2019.
  22. Federal Communications Commission (FCC). (2018f). Response to Information Request by T-Mobile US, Inc. Submitted by T-Mobile. https://ecfsapi.fcc.gov/file/1090587489537/2018-09-05%20FCC%20Information%20Request%20vFINAL–REDACTED.pdf. Retrieved 5 Sept 2019.
  23. Federal Communications Commission (FCC). (2018g). Petition to Deny of DISH Network Corporation. Submitted by DISH Network Corporation. https://ecfsapi.fcc.gov/file/108271088719800/REDACTED%20DISH%20PTD%20Sprint%20TMO%208-27-18.pdf. Retrieved 5 Sept 2019.
  24. Federal Communications Commission (FCC). (2018h). Comments of Communications Workers of America. Submitted by Communications Workers of America. https://ecfsapi.fcc.gov/file/10827275801503/CWA%20T-Mobile-Sprint%20Comments%208-27-2018.pdf. Retrieved 5 Sept 2019.
  25. Federal Communications Commission (FCC). (2018i). Reply of DISH Network Corporation. Submitted by DISH Network Corporation. https://ecfsapi.fcc.gov/file/103127405997/REDACTED%20-%20DISH%20Reply%20TMO%20Sprint%2010-31-18.pdf. Retrieved 5 Sept 2019.
  26. Federal Communications Commission (FCC). (2018j). Petition to Deny of Free Press. Submitted by Free Press. https://ecfsapi.fcc.gov/file/10830804104889/18082902-4.pdf. Retrieved 5 Sept 2019.
  27. Federal Communications Commission (FCC). (2019a). FCC Improves Broadband Mapping. https://www.fcc.gov/document/fcc-improves-broadband-mapping-0. Retrieved 5 Sept 2019.
  28. Federal Communications Commission (FCC). (2019b). Chairman Pai Formally Recommends Approval of T-Mobile/Sprint Merger. https://docs.fcc.gov/public/attachments/DOC-359080A1.pdf. Retrieved 5 Sept 2019.
  29. Federal Communications Commission (FCC). (2019c). For Transfer of Control of Tribune Media Company to Nexstar Media Group, Inc., and Assignment of Certain Broadcast Licenses and Transfer of Control of Certain Entities Holding Broadcast Licenses. MB Docket No.19-30, Memorandum Opinion and Order. https://docs.fcc.gov/public/attachments/FCC-19-89A1.pdf. Retrieved 5 Sept 2019.
  30. Federal Communications Commission (FCC). (2019d). Comments in Response to Public Notice. Submitted by DISH Network Corporation. https://ecfsapi.fcc.gov/file/10328746015488/DISH%203-28-19%20Comments%20WT%2018-197%20-%20REDACTED.pdf. Retrieved 5 Sept 2019.
  31. Federal Communications Commission (FCC). (2019e). Commitments Letter. Submitted by T-Mobile and Sprint. https://ecfsapi.fcc.gov/file/10520302189557/Redacted%20FCC%20Commitments%20Ex%20Parte%20(05.20.2019).pdf. Retrieved 5 Sept 2019.
  32. Federal Communications Commission (FCC). (2019f). Memorandum Opinion and Order, Declaratory Ruling, and Order of Proposed Modification. https://docs.fcc.gov/public/attachments/FCC-19-103A1.pdf. Retrieved 5 Sept 2019.
  33. Kwerel, E., LaFontaine, P., & Schwartz, M. (2012). Economics at the FCC, 2011–2012: Spectrum incentive auctions, universal service and intercarrier compensation reform, and mergers. Review of Industrial Organization,41(4), 271–302.CrossRefGoogle Scholar
  34. NCTA—The Internet and Television Association. (2019). Comments of NCTA—The Internet and Television Association. 2018 Quadrennial Regulatory Review, MB Docket No. 18-349. https://www.fcc.gov/ecfs/filing/10430773200857. Retrieved 5 Sept 2019.
  35. Nevo, A., Turner, J. L., & Williams, J. W. (2016). Usage-based pricing and demand for residential broadband. Econometrica,84(2), 411–443.CrossRefGoogle Scholar
  36. Nexstar Media Group and Tribune Media Company. (2019). Declaration of Jeffrey Eisenach, PhD. Applications of Tribune Media Company and Nexstar Media Group, Inc. for Consent to Transfer Control of Licenses and Authorizations, MB Docket No. 19-30. https://www.fcc.gov/ecfs/filing/10529706508911. Retrieved 5 Sept 2019.
  37. S&P Global. (2019a). Total broadcast retransmission & virtual sub carriage fee projections, 2006–2024.Google Scholar
  38. S&P Global. (2019b). Broadcast Station Database.Google Scholar
  39. Shapiro, C. (1995). Mergers with differentiated products. Antitrust,10, 23.Google Scholar
  40. Sinclair Broadcast Group and Tribune Media Company. (2017). Applicants’ Consolidated Opposition to Petitions to Deny, Exhibit E Declaration of Gautam Gowrisankaran. Applications of Tribune Media Company and Sinclair Broadcast Group for Consent to Transfer Control of Licenses and Authorizations, MB Docket No. 17-179. https://www.fcc.gov/ecfs/filing/10823871104223. Retrieved 5 Sept 2019.
  41. Stahl, J. C. (2016). Effects of deregulation and consolidation of the broadcast television industry. American Economic Review,106(8), 2185–2218.CrossRefGoogle Scholar
  42. U.S. Congress. (2018). Consolidated Appropriations Act, 2018. Division P-RAY BAUM’S Act of 2018. https://docs.house.gov/billsthisweek/20180319/BILLS-115SAHR1625-RCP115-66.pdf. Retrieved 5 Sept 2019.
  43. U.S. Department of Justice. (2019). Justice Department Settles with T-Mobile and Sprint in Their Proposed Merger by Requiring a Package of Divestitures to Dish. https://www.justice.gov/opa/pr/justice-department-settles-t-mobile-and-sprint-their-proposed-merger-requiring-package. Retrieved 5 Sept 2019.
  44. U.S. Department of Justice and Federal Trade Commission. (2010). Horizontal Merger Guidelines. https://www.ftc.gov/sites/default/files/attachments/merger-review/100819hmg.pdf.

Copyright information

© This is a U.S. Government work and not under copyright protection in the US; foreign copyright protection may apply 2019

Authors and Affiliations

  1. 1.Pepperdine UniversityMalibuUSA
  2. 2.Federal Communications CommissionWashingtonUSA

Personalised recommendations