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Research: Broadband Reclassification Credibility

By 14 June 2010 No Comment

The Broadband Credibility Gap
Phoenix Center for Advanced Legal & Economic Studies
George S. Ford, Lawrence J. Spiwak
June 2010

Authors Ford and Spiwak review the new issues created that put the Federal Communications Commissions legal authority to regulate the Internet into question after the Comcast v. FCC case.   The FCC will move forward with what they have called a “Third Way” in which broadband would be reclassified in order to gain some authority in what has been referred to as “Title II Lite”.

Ford and Spiwak employ game theory to analyze regulatory classification.  And they believe that they show that “light touch” regulation is not a realistic goal and would take far more self-control than the commission has shown itself capable.  The authors also employ a model to analyze the effects of reclassification on investment and believe that “strong” regulation would be a disincentive to investment.  As a third step, the authors have evidence of the negative impact to investment from various financial markets.  And finally, they note that the Comcast decision does not remove all FCC authority over broadband.  They believe the FCC must simply make better arguments for regulation under various Titles.

You can find the paper here.

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