The Department of Justice filed comments today with the FCC in the National Broadband Plan proceeding here. It’s great to see a focus on competition. Some highlights:
1. Fine-grained pricing/subscription data will be important to understanding the state of high-speed Internet access competition. DOJ recommends that the FCC go beyond information about infrastructure and availability to look closely at actual pricing.
2. Re-allocation of spectrum makes sense. But the “foreclosure value” to market-powerful incumbents of buying that spectrum – and keeping their competitors from buying it – may exceed its market value. So DOJ very gently (with lots of caveats) suggests that the highest value use for new spectrum may actually be to make it available for license by new rivals.
3. Better information for consumers will help. “Up to” advertised speeds may be misleading, as the Commission has already recognized. Bundles can be impenetrable for price-comparison purposes. The FCC could help by promoting standardized information provision – akin to nutrition labeling. But don’t overdo it.
4. The FCC should monitor closely those markets that have just one or two high-speed Internet access providers. Price regulation may not make sense for residential Internet access services, unless (perhaps) affordability is an important factor for consumers. We don’t know yet how strongly correlated affordability is with adoption.
These are careful and thoughtful comments. It’s important that DOJ’s Antitrust Division have an active and continuing relationship with the FCC, because competitive concerns should be at the heart of the country’s national broadband planning.