eWeek.com’s Wayne Rash made a point last weekend that competition may incentivize consumers to leave incumbent broadband providers and use the networks of new entrants. This is important for at least three reasons.
First, while Congress is ultimately responsible for the regulation of commerce, regulation of commerce can be easily translated into promotion of commerce by avoiding onerous regulatory burdens that net neutrality can impose. Congress can do this by either not passing any new legislation, or pass legislation that reaffirms that the Internet is not subject to reclassification as telecommunications. In other words, allow the market to continue working as it has over the past three decades.
Second, the Federal Communications Commission has focused too much from the very outset on regulation as opposed to competition. If the FCC were serious about promoting innovation and market entry, as well as carrying out Congress’ mandate of light touch regulation, it would have either not pursued this “third way” course of action or proposed rules that would actually aid market entry. Such an approach would have been similar to the underlying legislative philosophy of the Telecommunications Act of 1996.
Finally, consumers in the minority community, who are grossly underserved, as well as minority-owned content and broadband providers, would benefit more from a broadband framework based on competition versus regulation. A framework that encourages competition would allow for the strategic partnerships that are integral to a minority-owned firm’s ability to navigate the technical and financial barriers to the broadband and content provider markets. Unfortunately, the FCC’s third way proposal does not support these necessary partnerships.
