Wall Street Journal: Broadbandits, Thomas Hazlett

broadbandits

We should be celebrating an anniversary this month: One year ago, in August, the Federal Communications Commission voted to deregulate residential broadband services. Never heard of it? Well, I’m not proposing a parade; but this victory for freer markets undermines the current proposal to re-regulate the Internet via “net neutrality.” First, the broadband situation. Under the “open access” mandate, the federal government used to be the ultimate arbiter of what telephone companies could charge independent broadband providers to use their own physical infrastructure, such as wires and cables and other network components. But reformers argued that depriving the telcos of the power to set prices and cut customized business deals meant they could not attract the investment they needed for critical but very costly improvements to these networks.  Full article available at wsj.com.  http://online.wsj.com/article/SB115533922506533851-search.html.  Also available by [PDF Download] on Prof. Hazlett’s faculty page.

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