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by: Jewell Corkery

MagazineWriting COMM461

Jewell Corkery
Penn State
GPA 3.69


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Class Notes
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This 0 page Class Notes was uploaded by Jewell Corkery on Sunday November 1, 2015. The Class Notes belongs to COMM461 at Pennsylvania State University taught by Staff in Fall. Since its upload, it has received 9 views. For similar materials see /class/233041/comm461-pennsylvania-state-university in Communication at Pennsylvania State University.

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Date Created: 11/01/15
Chapter One The Law of Unintended Results The United States has displayed long standing leadership in ICE markets as exempli ed by its incubation and privatization of the Internet Ironically such best practices leadership does not currently exist for access to broadband wired and wireless networks or for the government stewardship possibly needed to stimulate widespread installation of such networks Simply put the United States has lost much of its competitive and comparative advantages in ICE markets in light of reduced or eliminated efforts to promote digital literacy and the ability of ICE equipment and service providers to thwart effective and necessary government oversight The United States government in particular the Federal Communications Commission FCC has contributed to a toxic environment rife with politics partisanship results driven decision making and corporate cronyism Active players in the regulatory and judicial process understand the prudence in making sizeable 39 in J39 39 J r A research 1 clever lawyers creative economists and ubiquitous lobbyists Far too many consumers lack the motivation or appreciation that they could get far more for their money if they tried harder to acquire digital literacy rather than rely on the generosity of the suppliers the public interest safeguards provided by government and marketplace competition that may not exist at the level heralded by both suppliers and government These truly are the best and worst of times Unprecedented technological change provides the potential for substantial enhancements to one s quality of life as well as in civil society 2 Yet at every turn politics or pragmatism forge a policy compromise that makes it possible for stakeholders in the regulatory process to extract government accommodations that shortchange the public There are times when I feel as though two parallel but mutually exclusive ICE environments exist In one world the FCC and various regulated operators claim the ICE sectors operate competitively and effectively so much so that the Commission should pursue additional deregulatory initiatives Curiously in this robustly competitive environment some stakeholders continue to secure govemmentsanctioned nancial subsidies and they clamor for more government initiatives to create incentives for investment in next generation networks In the other world recognized by only a few independent observers the lack of significant competition supports the ongoing need for government oversight leadership and effective strategies to promote greater progress in the installation of next generation broadband networks The two world views clash most abruptly in wireless telecommunications If one accepts the conventional wisdom cellular telephone companies devote sleepless afternoons competing innovating and sharpening their pencils to mark down rates As cellphones increasingly provide a third screen which augment and provide an alternative to television sets and computer monitors wireless carriers have extraordinary incentives to invest in next generation networks that will expand the reach and scope of services no doubt also increasing wireless carriers average return per user ARPU a measure of the average monthly revenues generated subscribers But the reality of the current cellular telephone business belies conventional wisdom The industry has become so concentrated that in 2008 four national carriers shared over 88 of the market in the United States 3 The advertisements for these companies appear to evidence robust competition but little difference exists in terms of actual cost per minute of use Indeed most advertisements champion how the service actually works can you hear me now or how new or existing subscribers can get a handset for little or nothing in exchange for a two year service commitment with early termination penalties reduced if at all by the magnanimous sum of 5 per month Remarkably in a nation that commercialized the Internet and has exhibited best practices in many ICE market


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