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Contents
Table of Materials
Copyright Permissions
Preface
xvii
xxi
xxiii
Introductory
Materials
Chapter One · Introduction to Telecommunications Regulation
§ 1.A. Communications as a “Regulated Industry”
§ 1.A.1. Justifications for Regulation
§ 1.A.1.a. Market Failure Justifications
§ 1.A.1.b. Additional Justifications
§ 1.A.2. Basic Regulatory Tools
§ 1.A.3. The Challenges of Regulation
§ 1.B. A Policy Analysis Framework
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4
5
6
10
11
14
16
Chapter Two · Telecommunications Policy in Institutional Perspective
Introduction
§ 2.A. The Institutional Dimensions of Telecommunications Policy
§ 2.B. The Federal Communications Commission
§ 2.C. Regulatory Integration Under the 1934 Act
§ 2.D. Institutional Structure and the FCC
§ 2.E. The FCC in a Functional Perspective
§ 2.E.1. Command and Control
§ 2.E.2. Rulemaking versus Adjudication
§ 2.E.3. Licensing
§ 2.E.4. Norm Entrepreneur
§ 2.E.5. Standard Setting
§ 2.F. The Statutory and Broader Institutional Context
§ 2.F.1. The Structure of the 1934 Act
§ 2.F.2. Other Relevant Statutes and Agencies
§ 2.F.3. FCC Discretion and Its Constraints
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CONTENTS
part one
Spectrum
Chapter Three · Regulating the Spectrum
Introduction
§ 3.A. Defining Spectrum
§ 3.A.1. Characteristics of Radio Waves
§ 3.A.2. Transmitting Through the Air
§ 3.A.3. Transmitting Using Wires
§ 3.A.4. Signal Modulation
§ 3.A.5. Newer Wireless Technologies
§ 3.A.6. The Spectrum as a Resource
§ 3.B. A Brief History of Early Spectrum Regulation
§ 3.C. Rationales for Regulation
§ 3.C.1. Scarcity/Interference
Coase, Why Not Use the Pricing System in the Broadcast Industry?
§ 3.C.2. Consumer Preferences
§ 3.D. An Overview of Spectrum Management
§ 3.E. Regulatory Tradeoffs and Allotment
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Chapter Four · Zoning the Spectrum
Introduction
§ 4.A. Models of Spectrum Control
Spectrum Policy Task Force Report
§ 4.B. Implementing Flexibility
Redevelopment of Spectrum to Encourage Innovation in the Use of
New Telecommunications Technologies
§ 4.C. Dedicating Spectrum to Unlicensed Uses
Benkler, Some Economics of Wireless Communications
§ 4.D. Approaches to Unlicensed Access
§ 4.D.1. White Spaces
Unlicensed Operation in the TV Broadcast Bands and Additional Spectrum
for Unlicensed Devices Below 900 MHz and in the 3 GHz Band
§ 4.D.2. Spectrum Sharing
President’s Council of Advisors on Science and Technology,
Realizing the Full Potential of Government-Held Spectrum to Spur
Economic Growth: Executive Summary
Amendment of the Commission’s Rules with Regard to Commercial
Operations in the 3550–3650 MHz Band
§ 4.E. Spectrum Leasing and Private Commons
Promoting Efficient Use of Spectrum Through Elimination of Barriers to
the Development of Secondary Markets
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79
Chapter Five · Structuring and Assigning Licenses
Introduction
§ 5.A. License Renewal and Transfer
§ 5.A.1. License Renewal
§ 5.A.1.a. Early History
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§ 5.A.1.a.1. The Shuler Case
§ 5.A.1.a.2. The Brinkley Case
§ 5.A.1.a.3. The Judicial Response
§ 5.A.1.b. More Recent Developments
§ 5.A.2. License Transfer
§ 5.A.2.a. Format Changes
Changes in the Entertainment Formats of Broadcast Stations
§ 5.A.2.b. A Reversal, and a Reversal of That Reversal
FCC v. WNCN Listeners Guild
§ 5.B. License Assignment via Merit-Based Hearings
§ 5.B.1. Comparative Hearings
§ 5.B.1.a. Basic Comparative Hearing Criteria
Policy Statement on Comparative Broadcast Hearings
§ 5.B.2. Licensing Case Study
Applications of Simon Geller for Renewal of License of WVCA-FM and
Grandbanke Corporation for Construction Permit
§ 5.B.3. Special Considerations for Racial Minorities and Women
§ 5.B.3.a. Minority Preferences before Adarand
Metro Broadcasting, Inc. v. FCC
§ 5.B.3.b. Preferences for Women
§ 5.B.3.c. Adarand (Metro Broadcasting Overruled)
§ 5.B.3.d. Equal Employment Opportunity Regulations
Lutheran Church–Missouri Synod v. FCC
§ 5.C. Transition to Assignment via Auctions
§ 5.C.1. Reform of the Licensing Process
Formulation of Policies and Rules Relating to Broadcast Renewal Applicants,
Competing Applicants, and Other Participants to the Comparative
Renewal Process and to the Prevention of Abuses of the Renewal Process
§ 5.C.2. Lotteries and Auctions
Using Auctions to Select FCC Licensees
§ 5.C.3. Initial Assignment by Auction
Implementation of Section 309(j) of the Communications Act —
Competitive Bidding for Commercial Broadcast and Instructional
Television Fixed Service Licenses
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136
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part two
Regulating Monopoly — The Case of Telephony
Chapter Six · Early Telephone Regulation through Divestiture
Introduction
§ 6.A. Telephone History
§ 6.B. Infrastructure
§ 6.B.1. Telephone System Vocabulary
§ 6.B.2. Telephone Economics
§ 6.C. Telephone Regulation
§ 6.C.1. Categories of Regulation
§ 6.C.2. Who Regulates
§ 6.D. Precursors to Divestiture
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§ 6.D.1. Competition in CPE
Huber, Kellogg & Thorne, Federal Telecommunications Law
§ 6.D.2. Competition in Long Distance Telephony
§ 6.D.3. Communications and Computer Convergence
§ 6.E. Breaking Up Bell: The 1984 Divestiture
§ 6.E.1. The MFJ
United States v. American Telephone & Telegraph Co.
§ 6.E.2 Discussion of the Government’s Theory
Chapter Seven · Control of Telephone Monopolies
Introduction
§ 7.A. Rate Regulation
§ 7.A.1. Rate of Return Regulation
§ 7.A.2. Price Cap Regulation
§ 7.A.3. Rate Regulation as Markets Become Competitive
§ 7.B. The Telecommunications Act of 1996
§ 7.B.1. Introduction
§ 7.B.2. The Local Competition Provisions
Implementation of the Local Competition Provisions in the
Telecommunications Act of 1996
§ 7.B.3. Jurisdiction to Implement the 1996 Act: Local Competition,
National Regulation
United States Telecom Ass’n v. FCC [USTA II]
§ 7.C. Unbundling, Interconnection, and Line-of-Business Regulation
Under the 1996 Act
§ 7.C.1. Identifying UNEs
§ 7.C.1.a. Iowa Utilities Board
AT&T Corp. v. Iowa Utilities Board
§ 7.C.1.b. After Iowa Utilities Board
United States Telecom Ass’n v. FCC [USTA II]
§ 7.C.1.c. FCC Response to USTA II
Unbundled Access to Network Elements: Review of the Section 251
Unbundling Obligations of Incumbent Local Exchange Carriers
§ 7.C.2. Pricing Network Elements
Verizon Communications Inc. v. FCC
§ 7.C.3. Interconnection
§ 7.C.4. BOC Line of Business Restrictions
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part three
Multichannel Video and Broadcasting
Chapter Eight · Multichannel Video Foundations
Introduction
§ 8.A. Paying for Television
Coase, Why Not Use the Pricing System in the Broadcast Industry?
§ 8.B. Why Regulate? Are There Natural Monopolies?
§ 8.C. Why Regulate? Implications for Broadcast
Besen & Crandall, The Deregulation of Cable Television
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Establishment of Rules and Policies for the Digital Audio Radio Satellite
Service in the 2310–2360 MHz Frequency Band
§ 8.D. Who Regulates Cable Television?
§ 8.E. Promoting Competition in MVPD Markets
Alliance for Community Media v. FCC
Chapter Nine · Shared Content
Introduction
§ 9.A. Individual Programs
§ 9.A.1. Compulsory Copyright Licenses
§ 9.A.1.a. Cable Television
§ 9.A.1.b. Direct Broadcast Satellite
§ 9.A.2. What Constitutes a Performance under Copyright Law?
American Broadcasting Companies, Inc. v. Aereo, Inc.
§ 9.A.3. Syndicated Exclusivity and Network Nonduplication
§ 9.B. Programs Grouped into Signals
§ 9.B.1. Retransmission Consent
Amendment of the Commission’s Rules Related to Retransmission Consent
Amendment of the Commission’s Rules Related to Retransmission Consent
§ 9.B.2. Must-Carry
§ 9.B.2.a. First Amendment Challenges to Cable Must-Carry
Turner Broadcasting System, Inc. v. FCC [Turner I]
Turner Broadcasting System, Inc. v. FCC [Turner II]
§ 9.B.2.b. DBS Carry One, Carry All
§ 9.C. Programming Delivered à la Carte
§ 9.D. The FCC’s Role in Digital Copyright Policy
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358
362
364
part four
Antitrust and Structural Regulation of Media
Chapter Ten · Structural Regulation of Media
Introduction
§ 10.A. Structural Regulation of Broadcasting
§ 10.A.1. Television Networks and Vertical Integration
Schurz Communications, Inc. v. FCC
§ 10.A.2. Ownership Restrictions
Prometheus Radio Project v. FCC [Prometheus I]
2006 Quadrennial Regulatory Review — Review of the Commission’s
Broadcast Ownership Rules and Other Rules Adopted Pursuant to
Section 202 of the Telecommunications Act of 1996
§ 10.B. Structural Regulation of Cable Providers
§ 10.B.1. Judicial Review of the FCC’s Cable Ownership Rules
Time Warner Entertainment Co. v. FCC [Time Warner II]
Comcast Corp. v. FCC
§ 10.C. Regulation of Vertical Foreclosure by MVPDs
§ 10.C.1. The Initial Program Access Rules
§ 10.C.2. Extensions of the Program Access Rules
§ 10.C.3. Expansion of the Program Access Theory
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§ 10.C.3.a. Extension of the Program Access Rules to DirecTV
General Motors Corp. and Hughes Electronics Corp., Transferors, and
the News Corp. Ltd, Transferee, for Authority to Transfer Control
§ 10.C.3.b. MVPD Access to Buildings
National Cable & Telecommunications Ass’n v. FCC
§ 10.C.3.c. Extension of the Program Access Rules to Terrestrially
Distributed Programming
Review of the Commission’s Program Access Rules and Examination of
Programming Tying Arrangements
Cablevision Systems Corp. v. FCC
§ 10.D. MVPD Non-Discrimination Obligations
Comcast Cable Communications, LLC v. FCC
§ 10.E. Spectrum Caps
Policies Regarding Mobile Spectrum Holdings: Expanding the Economic
and Innovation Opportunities of Spectrum through Incentive Auctions
§ 10.F. Choice
§ 10.F.1. Is More Always Better?
Sunstein, The First Amendment in Cyberspace
Posner, Bad News
§ 10.F.2. What Could the FCC Do About It?
Waldman et al., The Information Needs of Communities:
The Changing Media Landscape in a Broadband Age
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453
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482
482
Chapter Eleven · Antitrust and Merger Review
487
Introduction
487
§ 11.A. Merger Enforcement and Telecommunications Regulation
488
§ 11.A.1. Background on Merger Policy
488
Applications of Comcast Corp., General Electric Co., and
NBC Universal, Inc. for Consent To Assign Licenses and Transfer
Control of Licensees
490
§ 11.A.2. The SBC/Ameritech Proceeding
491
Applications of Ameritech Corp., Transferor, and SBC Communications, Inc.,
Transferee, for Consent to Transfer Control of Corporations Holding
Commission Licenses and Lines Pursuant to Sections 214 and 310(d) of
the Communications Act and Parts 5, 22, 24, 25, 63, 90, 95 and 101 of
the Commission’s Rules
492
Separate Statement of Commissioner Harold Furchtgott-Roth
Concurring in Part, Dissenting in Part
496
§ 11.A.3. Reconsidering the FCC’s Merger Review Process
501
§ 11.A.4. The FCC’s Own Institutional Reforms
501
§ 11.A.5. The Elusive Effort to Restrict the Scope of FCC Merger Review
503
Statement of the Department of Justice Antitrust Division on Its Decision
to Close Its Investigation of XM Satellite Radio Holdings Inc.’s Merger
with Sirius Satellite Radio Inc.
505
Commission Approves Transaction between Sirius Satellite
Radio Holdings Inc. and XM Satellite Radio Holdings, Inc.
Subject to Conditions
508
§ 11.A.6. The Comcast/NBCU Proceeding
510
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Applications of Comcast Corp., General Electric Co. and NBC
Universal, Inc. for Consent to Assign Licenses and Transfer Control
of Licensees
§ 11.B. Antitrust in a Regulatory Thicket
Verizon Communications Inc. v. Law Offices of Curtis V. Trinko, LLP
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522
part five
The Internet
Chapter Twelve · Introduction and Evolution
§ 12.A. The History and Architecture of the Internet
§ 12.A.1. Basic Characteristics
§ 12.A.2. Network Elements
§ 12.A.3. Packet Switching and Addressing
§ 12.A.4. Services
§ 12.A.5. Layers
§ 12.B. Initial Principles of Internet Policy
A Framework for Global Electronic Commerce
Communiqué on Principles for Internet Policy-Making: OECD High Level
Meeting on the Internet Economy
NTIA Announces Intent to Transition Key Internet Domain Name Functions
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543
Chapter Thirteen · Universal Service: From Telephony to Broadband
§ 13.A. Origins of Universal Service Policy
§ 13.B. Equity and Efficiency in Subsidizing Universal Service: Ramsey
Pricing versus Distributional Policy
§ 13.C. Universal Service After Divestiture
§ 13.D. Universal Service After the 1996 Act
§ 13.D.1. Access Charge Reform
§ 13.D.2. Intercarrier Compensation Reform
In re FCC 11-161
§ 13.E. Broadband Universal Service
Federal-State Joint Board on Universal Service
National Broadband Plan: Connecting America
In re FCC 11-161
§ 13.F. A New Blank Slate: The IP Transition
Technology Transitions
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562
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567
578
578
Chapter Fourteen · Broadband Jurisdiction and Structural Regulation
Introduction
§ 14.A. The Ancillary Jurisdiction Doctrine and the Past as Prologue?
United States v. Southwestern Cable Co.
FCC v. Midwest Video Corp. [Midwest Video II]
§ 14.B. Regulatory Characterization of Broadband Services
AT&T Corp. v. City of Portland
National Cable & Telecommunications Ass’n v. Brand X Internet Services
§ 14.C. Net Neutrality
§ 14.C.1. The Broadband Internet Access Marketplace
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National Broadband Plan: Connecting America
§ 14.C.2. Net Neutrality Policy (and Jurisdiction, Again)
Appropriate Framework for Broadband Access to the Internet Over
Wireline Facilities
Service Rules for the 698–746, 747–762 & 777–792 MHz Bands
Comcast Corp. v. FCC
Verizon v. FCC
§ 14.D. Voice over Internet Protocol
Minnesota Public Utilities Commission v. FCC
Nuvio Corp. v. FCC
American Council on Education v. FCC
§ 14.E. “Over the Top” Online Video Competition
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668
part six
Direct Regulation of Content
Chapter Fifteen · Direct Regulation of Content Deemed Valuable
Introduction
§ 15.A. The Fairness Doctrine and Related Obligations
§ 15.A.1. Tornillo and Red Lion
Miami Herald Publishing Co. v. Tornillo
Red Lion Broadcasting Co. v. FCC
§ 15.A.2. The FCC Abandons the Fairness Doctrine
§ 15.A.2.a. The Fairness Doctrine Report
Inquiry into the Commission’s Rules and Regulations Concerning
the General Fairness Doctrine Obligations of Broadcast Licensees
§ 15.A.2.b. Syracuse Peace Council
§ 15.A.3. The Personal Attack and Political Editorial Rules
§ 15.A.4. Political Broadcasting
Request of ABC, Inc. for Declaratory Ruling
§ 15.A.5. The Scarcity Rationale in Other Media
Time Warner Entertainment Co. v. FCC
Time Warner Entertainment Co. v. FCC
§ 15.B. Children’s Television
Children’s Television Programming and Advertising Practices
Policies and Rules Concerning Children’s Television Programming
Policies and Rules Concerning Children’s Television Programming
Chapter Sixteen · Direct Regulation of Content Deemed Harmful
Introduction
§ 16.A. Indecency
§ 16.A.1. Regulation of Broadcast Indecency
FCC v. Pacifica Foundation
Action for Children’s Television v. FCC [ACT III]
Complaints Against Various Broadcast Licensees Regarding Their Airing
of the “Golden Globe Awards” Program
FCC v. Fox Television Stations, Inc.
FCC v. Fox Television Stations, Inc.
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§ 16.A.2. Regulation of Cable Indecency
§ 16.A.2.a. Denver Area
Denver Area Educational Telecommunications Consortium, Inc. v. FCC
§ 16.A.2.b. Playboy Entertainment
United States v. Playboy Entertainment Group, Inc.
§ 16.A.3. Regulation of Indecency via Telephone
Sable Communications of California, Inc. v. FCC
Regulations Concerning Indecent Communications by Telephone
§ 16.A.4. Regulation of Internet Indecency
Reno v. ACLU
Ashcroft v. ACLU [Ashcroft II]
ACLU v. Mukasey
§ 16.B. Violent Programming
Violent Television Programming and Its Impact on Children
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832
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843
Epilogue
Chapter Seventeen · Why an FCC?
Introduction
A New Federal Communications Commission for the 21st Century
Huber, Abolish the FCC and Let Common Law Rule the Telecosm
Lessig, It’s Time to Demolish the FCC
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855
856
859
864
Statutory Appendix
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Conceptual Index and Telecommunications Glossary
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