ISBN-10:
026264066X
ISBN-13:
2900262640663
Pub. Date:
03/30/2007
Publisher:
MIT Press
Digital Crossroads: American Telecommunications Policy in the Internet Age / Edition 1

Digital Crossroads: American Telecommunications Policy in the Internet Age / Edition 1

by Jonathan E. Nuechterlein
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  • Product Details

    ISBN-13: 2900262640663
    Publisher: MIT Press
    Publication date: 03/30/2007
    Edition description: Older Edition
    Pages: 702
    Product dimensions: 6.00(w) x 1.25(h) x 9.00(d)

    About the Author

    Jonathan E. Nuechterlein is chair of the telecommunications practice at the international law firm of WilmerHale. He served as Deputy General Counsel of the Federal Communications Commission from 2000 to 2001 and as Assistant to the Solicitor General from 1996 to 2000.

    Philip J. Weiser is Dean of the Law School, Thompson Professor of Law and Telecommunications,
    and Founder and Executive Director of the Silicon Flatirons Center for Law, Technology, and
    Entrepreneurship at the University of Colorado Boulder. From 2009 to 2010, he was Deputy Assistant
    Attorney General, and from 2010 to 2011, he was a Senior Adviser on Technology and Innovation at the
    National Economic Council in the White House under President Obama.

    Table of Contents


    Acknowledgements     xiii
    Preface to the Paperback Edition     xv
    Preface     xxix
    The Big Picture     1
    Economic Principles     3
    Network effects and interconnection     4
    Economies of scale and density     10
    Monopoly leveraging and the concept of "information platforms"     16
    Convergence     23
    Introduction to Wireline Telecommunications     31
    A Primer on Wireline Technology     32
    Transmission pipes: loops and transport     33
    The basics of wireline transmission     33
    The fiber glut     36
    Regulatory distinctions among transmission pipes     38
    Switches     39
    Circuit switches     40
    Packet switches     42
    Traditional Telephone Rate Regulation     45
    The basics of price regulation     45
    The regulatory compact     46
    Dual jurisdiction     47
    Access charges     49
    Tariffs     50
    Price caps     51
    Introduction to universal service policies     52
    Wireline Competition Policy Before 1996     55
    Telecommunications equipment manufacturing     57
    Long distance competition and the AT&T consent decreee     60
    Competitive access services     64
    The first steps towards "local exchange" competition     66
    Wireline Competition Under the 1996 Act     69
    The Objectives     69
    The Wireline Competition Provisions     74
    A taxonomy of carriers and services     76
    Addressing network effects: interconnection and collocation     79
    Addressing scale economies: "network elements" and "resale"     80
    Leasing an incumbent's network elements     80
    Reselling an incumbent's retail services     84
    Procedures for implementing the local competition provisions     85
    Addressing monopoly leveraging concerns: section 271     88
    UNEs and the "Impairment" Standard     91
    Network element entry strategies     92
    The rise and fall of UNE-P     98
    The early terms of the UNE-P debate     39
    The Triennial Review Order and USTA II     102
    The aftermath of USTA II     105
    Loop-transport combinations     108
    A Primer on Internet Technology     115
    The Basics     115
    From analog to digital     115
    Modularity and layering     118
    The logic of the Internet     121
    E-mail and the World Wide Web     125
    The Internet's Physical Infrastructure     128
    Beginnings     129
    The Internet backbone     131
    The last mile: from narrowband to broadband     134
    The chicken-and-egg problem     134
    The business market     138
    The mass market     140
    Monopoly Leveraging Concerns and the Internet     149
    The History and Economics of Monopoly Leveraging Concerns in the Internet Marketplace     151
    The Computer Inquiries     151
    Monopoly leveraging concerns in a broadband world     155
    Three Proposals for Addressing Monopoly Leveraging Concerns     158
    Multiple ISP access     159
    "Net neutrality" and the end-to-end principle     168
    The asserted need for Net neutrality rules     171
    The potential costs of Net neutrality rules     174
    Wireline broadband unbundling rules     179
    The terms of debate     179
    Line sharing     182
    Next generation networks     184
    VoIP and Proposals for "Horizontal" Regulation     191
    Introduction to VoIP      191
    The Regulatory Treatment of VoIP Services     197
    IP-to-IP services     198
    PSTN-to-PSTN services     200
    IP-to-PSTN services: the basics     201
    IP-to-PSTN services: classification and jurisdiction     204
    VoIP, "Horizontal" Regulation, and Title I     209
    Calls for a layers-oriented model of regulation     209
    Title I, Title II, and forbearance     213
    The contours of the FCC's ancillary jurisdiction     216
    The Spectrum     225
    Revolution in the Air     227
    The Basics of Traditional Spectrum Regulation     231
    Allocation     233
    Assignment     235
    Beyond Command-and-Control     239
    Property rights     242
    The Easter Bunny wins the Breakness     243
    Controversy in the transition     245
    Commons: Einstein's cat in the age of the mouse     251
    From theory to practice     257
    Mobile Wireless Services     261
    The Basics of Cellular Technology     262
    The Regulatory Landscape     267
    Categories of wireless telephony licenses     267
    The general deregulation of wireless telephony     270
    Interoperability Among Wireless Networks     274
    Wireless-Wireline Competition and Regulatory Parity Questions     281
    Number portability     283
    "Enhanced 911" mandates     287
    Intercarrier Compensation     291
    The Crazy-Quilt of Intercarrier Compensation Schemes     293
    Access charge arbitrage scandals-and their origin in regulatory artificiality     293
    The ISP reciprocal compensation controversy     296
    Intercarrier compensation and VoIP     303
    Intercarrier compensation rules for wireless and transiting carriers     306
    The Economics of Intercarrier Compensation Reform     308
    The economic logic of the "terminating access monopoly"     310
    The antiregulatory solution: freedom to deny interconnection     313
    The highly regulatory solution: calling-network-pays     315
    The moderately regulatory solution: bill-and-keep     319
    Intercarrier Compensation Reform and the 1996 Act     324
    Universal Service in the Age of Competition     333
    The Political and Economic Dynamics of Universal Service     334
    Universal Service Funding Mechanisms     339
    The basics     339
    The case of "rural" carriers     344
    Universal Service Contribution Mechanisms     348
    Universal Service in a Broadband World     352
    Competition in the Delivery of Television Programming     357
    The Basics of Television Programming Delivery     360
    Regulation of Relationships Among Video Distribution Platforms     363
    Retransmission consent     363
    Must carry     365
    Satellite retransmission of broadcast signals     367
    The program access rules     369
    Regulation of Relationships Between TV Programming Producers and Distributors     371
    Broadcast networks     372
    Cable television     375
    Restrictions on Ownership of Television Broadcast Stations     378
    Telecommunications Standards, Technological Transitions, and Digital Television     385
    An Overview of Telecommunications Standards     387
    The era of Bell and Sarnoff     387
    Current standard-setting institutions     389
    The economics of standard-setting and the role of the FCC     392
    The Digital Television Case Study     395
    The development effort     396
    The deployment effort     398
    Digital must carry and the statutory 85% threshold     400
    Content providers and digital rights management      402
    The Future of Telecommunications Policy     407
    Digital Juggernaut     409
    First Principles of Institutional Reform     411
    Four values for managing competition policy     411
    Judging Congress     413
    The antitrust alternative     414
    The FCC in Transition     419
    Determinacy     419
    Relations with reviewing courts     421
    Relations with the states     422
    Relations with coordinate merger review authorities     423
    Neutrality     426
    Humility     428
    The Pricing of Network Elements     431
    The basics     431
    Historical cost     433
    Forward-looking cost     435
    Where forward-looking and historical costs diverge     440
    Varieties of forward-looking cost methodologies     443
    Prospects for revisions to TELRIC     448
    Enforcement Mechanisms Under the 1996 Act     455
    The FCC's enforcement apparatus     455
    Enforcement of interconnection agreements     458
    Statutory Addendum     461
    List of Notable Commentaries     493
    Table of Authorities     513
    Notes      533
    Index     643
    Glossary of Acronyms     667

    What People are Saying About This

    From the Publisher

    "A magnificent achievement. As someone who has been involved over the last four decades in what was once known as the 'telephone' business, I found *Digital Crossroads* an extraordinarily lucid description and explanation of the revolutionary significance of its transformation into 'telecommunications.' *Digital Crossroads* is not exactly light bedtime reading,
    but for anyone attempting to grasp these changes in our digital age, it is full of clear explanations and fair-minded assessments of the continuing regulatory issues they raise. This is a marvelous book, and well worth working through from cover to cover, as I have done."--Alfred E.
    Kahn, former Chairman of the New York Public Service Commission and Civil Aeronautics Board, and
    Advisor to President Carter on Inflation

    The MIT Press

    " Digital Crossroads brings fresh clarity to a complex subject. It is thorough, comprehensive, and insightful, and will prove invaluable to anyone trying to navigate the tumultuous changes of the digital age." The Honorable Michael K. Powell

    The MIT Press

    " Digital Crossroads is an essential read for anyone interested in the history-making changes occurring in communications, an industry at the heart of the American economy. It lucidly explains how and why public policy must change to accommodate the Internet"s revolutionary impact on the way people communicate. This book is a long-overdue voice of insight and reason in a field too often marked by simplistic, self-serving rhetoric." Jim Crowe
    , CEO, Level 3 Communications, Inc.

    The MIT Press

    "*Digital Crossroads* brings fresh clarity to a complex subject. It is thorough,
    comprehensive, and insightful, and will prove invaluable to anyone trying to navigate the tumultuous changes of the digital age."--Michael K. Powell

    The MIT Press

    "*Digital Crossroads* is an essential read for anyone interested in the history-making changes occurring in communications, an industry at the heart of the American economy. It lucidly explains how and why public policy must change to accommodate the Internet's revolutionary impact on the way people communicate. This book is a long-overdue voice of insight and reason in a field too often marked by simplistic, self-serving rhetoric."--Jim Crowe, CEO, Level 3
    Communications, Inc.

    The MIT Press

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