Slashdot Mirror
FCC To Loosen Wireless Ownership Rules
jgaynor writes: "The FCC on Thursday voted to remove the existing restriction on how many frequencies a single wireless provider can own in any one location. While this is a blow for consumers who want more cell bandwidth and services like data or video - they could end up getting hosed as this might knock some smaller players out of the market and decrease competition, raise prices, etc. Excite has coverage; CBS Marketwatch does too."
normally I strenuously object to allowing government interference in business-related arenas, but this is no good at all for Joe Consumer.
A decent analogy might be an imaginary world where air is bought and sold on the market. There's a limited supply of the stuff to begin with, and without regulation large players can just buy up all the "air blocks".
Now, I know that technically the analogy is critically flawed because we all need air to survive, and we don't "need" cell phones. However, one could easily argue that (at least for most countries) telecommunications technologies (and by natual wireless technology) plays a critical role in economies both local and national in scope.
There's a limit to the spectrum available for wireless device use. Yes, competing companies can "use" frequencies owned by competing networks, but they have to pay more (and charge the consumer more) for this capability ("roaming" off your home network incurs charges).
This is probably more a bad thing than good. You can't really make the argument that consumers can still fight with their wallets, because doing so would require moving to a geographic region where the dominant players have lesser influence. I don't know about anybody else, but I'm not prepared to move because I dislike my mobile provider. It seems to me this gives the big guys a huge chance to shaft their customers. It's the ultimate "my way or the highway" scenario.
Plus, this may have more far-reaching implications than we realize. Wireless devices (meaning those other than just phones) are beginning to be common these days. How great is the chance that development on these devices could be somewhat stifled if they don't "play along" with the bigger companies that own certain frequency ranges? Sounds like a pretty far-reaching consequence to me.
Once one entity controls a large percentage of a certain service/market, it starts cancelling "unprofitable" offerings and raising prices on the rest. Prime examples are the CLEC and independent ISP markets: now that the Baby Bells have driven the independents out of the market, DSL is disappearing and prices are going up.
sPh