If a market
has many facilities-based competitors, the justification for regulatory
oversight abates and the invisible hand of the marketplace can do wonder for
consumers. Few would disagree with that
premise.
The problem
lies in whether competition exists right now, not something hypothetical, or
prospective. Sponsored economists, serving
incumbent carriers, have long argued that regulators should start disbanding on
the prospects of future, “contestable markets,” because the process of
disengaging may take a long time.
I prefer to
see quantifiable, empirical evidence that competitors, operating their own
installed networks, seek to serve the same consumer population right now. FCC Chairman Ajit Pai has a more liberal
standard leading to an unequivocal conclusion that wireless and wireline
network operators robustly compete already.
Having reached that conclusion, it then follows that the FCC can announce
“Mission Accomplished” and proceed to eliminate any and all regulatory
safeguards in place to remedy, or abate market shortcomings.
Is the
broadband marketplace robustly competitive?
Do consumers readily and frequently choose between and among wireless
and wireline broadband carriers? Here’s
my litmus test: when broadband consumers cut the wireline cord at home and rely
solely on their “unlimited” wireless subscriptions, we will have reached the Promised
Land. Put another way, wireless and
wireline technologies will compete as “functional equivalents” when consumers
shut down their Wi-Fi wireless routers at home and remove smartphone instructions
to look for and switch to Wi-Fi networks.
Why bother if the wireless subscription provides the same bit rate, data
allowance and performance?
Just now, who
other than sponsored researchers and FCC Commissioners believe that wireless
networks offer the same bitrate, data allowance and performance as wireline
networks? These two technologies complement
and augment, rather than offer a substitute.
If you don’t
believe me, consider what the wireless carriers write in their service
contracts. The transmission bit rate—even for 4G service--does not match
wireline speeds. Wireless carriers warn
that even advertised transmission speeds may decline under real world demand. Even
so called unlimited wireless plans have soft usage caps triggering throttled 2G
service when a power user requires service from a congested tower, or simply
exceeds a 20-30 Gigabyte cap. Wireline broadband service typically has no cap
and in markets where carriers like Comcast have introduced caps, the allowance
ranges up to 1 Terabyte (1000 Gigabytes). Bear in mind that wireless carriers
throttle video streams, because their networks cannot operate as robustly as
wireline networks having no such limitation.
Yet again,
I am reminded that there are lies, damn lies and statistics. But now even the statistics can be falsified
to support a party line.