Center for Science, Technology  & Public Policy   Humphrey Institute  of Public Affairs <ul><ul><ul><ul><li>Steve Kelley <...
The Center’s Mission <ul><li>To improve people’s lives by advancing the application of science and technology to solve pub...
Telephone Regulation <ul><li>Federal (interstate) and state (intrastate) </li></ul><ul><li>Regulated monopoly until 1980s ...
Regulation Varies by Acronym <ul><li>Incumbent local exchange company ILEC </li></ul><ul><li>Regional Bell Operating Compa...
Minnesota is Diverse <ul><ul><ul><li>Humphrey Institute </li></ul></ul></ul>
Universal Service <ul><li>Voice service available to everyone </li></ul><ul><li>Common good arguments related to safety an...
Telephone Cross Subsidies <ul><li>Long Distance to Local – Access Charges </li></ul><ul><li>Metropolitan to Rural – Unifor...
Payments to Government <ul><li>Sales and corporate income tax </li></ul><ul><li>Property taxes </li></ul><ul><li>Universal...
Wireless <ul><li>Cellular telephone </li></ul><ul><ul><li>Primarily federal regulation </li></ul></ul><ul><ul><li>States h...
Cable Television <ul><li>Federal, state and local regulation </li></ul><ul><li>Minnesota uses a city-based model with some...
Cable-City Relationships <ul><li>Cities issue franchises </li></ul><ul><li>Franchise fee payments of up to 5% of gross rev...
State Franchise Option <ul><li>Other states have adopted state level franchises </li></ul><ul><li>Pushed by telcos </li></...
Satellite TV and Internet <ul><li>Federal regulation </li></ul><ul><li>Competes in part with cable </li></ul><ul><li>Advan...
Internet <ul><li>Federal regulation </li></ul><ul><li>Information service </li></ul><ul><li>No common carrier obligation  ...
1996 Act <ul><li>Telecommunications service </li></ul><ul><li>Cable service </li></ul><ul><li>Information service, includi...
Non-discrimination <ul><li>Heritage of common carrier approach </li></ul><ul><li>Applicable only to telcos with respect to...
Government as Purchaser <ul><li>Telecommunications Access Grants example </li></ul><ul><li>City ownership and operation pe...
Odd Ducks <ul><li>Open video system </li></ul><ul><ul><li>1996 Act </li></ul></ul><ul><li>Telecommunications purchasing co...
Net Neutrality <ul><li>Congress and FCC have not set rules on Internet service </li></ul><ul><li>Discrimination against cu...
Universal service <ul><li>Is broadband now a public good so that it should be treated the way telephone was? </li></ul><ul...
Convergence <ul><li>Triple play providers regulated at multiple levels </li></ul><ul><li>For some things, FCC may be too d...
Upcoming SlideShare
Loading in...5
×

Minnesota Telecommunications Background

779

Published on

Presented by Steve Kelley to the Minnesota Broadband Task Force on Oct 24, 2008. A nice overview of telecommunications policy since the 1980’s.

Published in: Technology, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
779
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
21
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Transcript of "Minnesota Telecommunications Background"

  1. 1. Center for Science, Technology & Public Policy Humphrey Institute of Public Affairs <ul><ul><ul><ul><li>Steve Kelley </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Senior Fellow and Director </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Center for Science, Technology and Public Policy </li></ul></ul></ul></ul><ul><ul><ul><ul><li>University of Minnesota </li></ul></ul></ul></ul><ul><ul><ul><ul><li>[email_address] </li></ul></ul></ul></ul><ul><ul><ul><ul><li>www.hhh.umn.edu/centers/stpp/index.html </li></ul></ul></ul></ul>
  2. 2. The Center’s Mission <ul><li>To improve people’s lives by advancing the application of science and technology to solve public problems. </li></ul><ul><ul><ul><li>Humphrey Institute </li></ul></ul></ul>
  3. 3. Telephone Regulation <ul><li>Federal (interstate) and state (intrastate) </li></ul><ul><li>Regulated monopoly until 1980s </li></ul><ul><li>Price, QoS and availability regulation </li></ul><ul><ul><li>Alternative regulation </li></ul></ul><ul><ul><li>Universal service, duty to serve </li></ul></ul><ul><ul><li>Common carrier </li></ul></ul><ul><li>Sales tax and assessments for universal service and public safety </li></ul><ul><ul><ul><li>Humphrey Institute </li></ul></ul></ul>
  4. 4. Regulation Varies by Acronym <ul><li>Incumbent local exchange company ILEC </li></ul><ul><li>Regional Bell Operating Company RBOC – Qwest is an ILEC </li></ul><ul><li>Large providers (50,000 access lines) </li></ul><ul><li>Small providers, mostly rural, have less regulation </li></ul><ul><li>Small private, cooperative and municipally owned </li></ul><ul><ul><ul><li>Humphrey Institute </li></ul></ul></ul>
  5. 5. Minnesota is Diverse <ul><ul><ul><li>Humphrey Institute </li></ul></ul></ul>
  6. 6. Universal Service <ul><li>Voice service available to everyone </li></ul><ul><li>Common good arguments related to safety and economic development </li></ul><ul><li>Federal universal service fund </li></ul><ul><li>Explicit subsidies for low income and disabled customers </li></ul><ul><li>Implicit (hidden) subsidies </li></ul><ul><ul><ul><li>Humphrey Institute </li></ul></ul></ul>
  7. 7. Telephone Cross Subsidies <ul><li>Long Distance to Local – Access Charges </li></ul><ul><li>Metropolitan to Rural – Uniform price (Large carriers like Qwest) </li></ul><ul><li>Business to Residential </li></ul><ul><li>Universal Service Fund </li></ul><ul><ul><li>High cost companies </li></ul></ul><ul><ul><li>Schools, libraries, and hospitals </li></ul></ul><ul><ul><ul><li>Humphrey Institute </li></ul></ul></ul>
  8. 8. Payments to Government <ul><li>Sales and corporate income tax </li></ul><ul><li>Property taxes </li></ul><ul><li>Universal service fund contributions </li></ul><ul><li>Minnesota cents/line charges </li></ul><ul><ul><li>Lifeline services TAP $.07 and TAM $.06 </li></ul></ul><ul><ul><li>Public safety $.65 </li></ul></ul><ul><ul><ul><li>Humphrey Institute </li></ul></ul></ul>
  9. 9. Wireless <ul><li>Cellular telephone </li></ul><ul><ul><li>Primarily federal regulation </li></ul></ul><ul><ul><li>States have minimal business regulations; cannot regulate price </li></ul></ul><ul><ul><li>Cities and counties have limited say on tower location </li></ul></ul><ul><li>Less regulated wireless, e.g. WiFI </li></ul><ul><li>911 charge applicable </li></ul><ul><ul><ul><li>Humphrey Institute </li></ul></ul></ul>
  10. 10. Cable Television <ul><li>Federal, state and local regulation </li></ul><ul><li>Minnesota uses a city-based model with some cities forming multi-city commissions </li></ul><ul><li>Some states have adopted state level franchise models </li></ul><ul><li>No price regulation </li></ul><ul><li>No universal service or common carrier requirements; area served requirement </li></ul><ul><ul><ul><li>Humphrey Institute </li></ul></ul></ul>
  11. 11. Cable-City Relationships <ul><li>Cities issue franchises </li></ul><ul><li>Franchise fee payments of up to 5% of gross revenue </li></ul><ul><li>QOS regulation by city or commission </li></ul><ul><li>Institutional networks </li></ul><ul><li>PEG and area served regulation </li></ul><ul><li>No legal monopoly; arguable monopolies in fact </li></ul><ul><ul><ul><li>Humphrey Institute </li></ul></ul></ul>
  12. 12. State Franchise Option <ul><li>Other states have adopted state level franchises </li></ul><ul><li>Pushed by telcos </li></ul><ul><li>Address franchise fee, PEG, and area served in various ways </li></ul><ul><li>Proposed in Minnesota </li></ul><ul><li>Study due this January </li></ul><ul><ul><ul><li>Humphrey Institute </li></ul></ul></ul>
  13. 13. Satellite TV and Internet <ul><li>Federal regulation </li></ul><ul><li>Competes in part with cable </li></ul><ul><li>Advantage in rural areas </li></ul><ul><li>Sales tax </li></ul><ul><ul><ul><li>Humphrey Institute </li></ul></ul></ul>
  14. 14. Internet <ul><li>Federal regulation </li></ul><ul><li>Information service </li></ul><ul><li>No common carrier obligation </li></ul><ul><li>Sales tax </li></ul><ul><li>Certain schools, libraries and rural hospitals benefit from federal subsidy </li></ul><ul><li>Service rules/Net neutrality </li></ul><ul><ul><ul><li>Humphrey Institute </li></ul></ul></ul>
  15. 15. 1996 Act <ul><li>Telecommunications service </li></ul><ul><li>Cable service </li></ul><ul><li>Information service, including electronic publishing </li></ul><ul><li>Legacy definitions – 1980s or before </li></ul><ul><li>ISPs are information services </li></ul><ul><li>Providers now providing all three </li></ul><ul><ul><ul><li>Humphrey Institute </li></ul></ul></ul>
  16. 16. Non-discrimination <ul><li>Heritage of common carrier approach </li></ul><ul><li>Applicable only to telcos with respect to their traditional services, e.g. access to CLECs and competing ISPs </li></ul><ul><li>Cable cos. and cellular cos. can exclude other providers </li></ul><ul><ul><ul><li>Humphrey Institute </li></ul></ul></ul>
  17. 17. Government as Purchaser <ul><li>Telecommunications Access Grants example </li></ul><ul><li>City ownership and operation permitted with a supermajority (65%) vote </li></ul><ul><ul><ul><li>Humphrey Institute </li></ul></ul></ul>
  18. 18. Odd Ducks <ul><li>Open video system </li></ul><ul><ul><li>1996 Act </li></ul></ul><ul><li>Telecommunications purchasing cooperative </li></ul>
  19. 19. Net Neutrality <ul><li>Congress and FCC have not set rules on Internet service </li></ul><ul><li>Discrimination against customers not permitted (Comcast-BitTorrent case) </li></ul><ul><li>Quality of service and pricing </li></ul><ul><li>Volume caps or pricing </li></ul>
  20. 20. Universal service <ul><li>Is broadband now a public good so that it should be treated the way telephone was? </li></ul><ul><li>Where would the subsidies come from? </li></ul><ul><li>Overall subsidies vs. user specific subsidies </li></ul><ul><ul><ul><li>Humphrey Institute </li></ul></ul></ul>
  21. 21. Convergence <ul><li>Triple play providers regulated at multiple levels </li></ul><ul><li>For some things, FCC may be too distant </li></ul><ul><ul><li>Individual consumer complaints – city or state </li></ul></ul><ul><ul><li>National uniformity has advantages </li></ul></ul><ul><li>States and cities may have lesser regulatory role as technology continues to change </li></ul><ul><ul><ul><li>Humphrey Institute </li></ul></ul></ul>
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×