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Thomas W. Hazlett |
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twhazlett@yahoo.com |
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Nov. 21, 2003 * National Press Club |
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Simple, obvious, and wrong. |
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Burden of proof |
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Marketplace |
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Regulation |
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Retail rate control regime switches |
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Jan. 1, 1987: Decontrol (federal pre-emption) |
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May 1, 1993: Re-regulation (1992 Cable Act) |
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Nov. 10, 1994: Decontrol (‘going forward’) |
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March 31, 1999: Decontrol (1996 Telecom Act) |
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Wholesale rate controls |
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1972: Leased access |
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1987: VDT |
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1996: OVS |
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“Open access” for cable modems? |
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Regulation of rates ineffective |
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price data alone |
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Quality
adjustments complicated |
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Price per channel |
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Price per audience rating point |
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Price of entrant exceeds that of incumbent (DBS) |
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Output Responses to rate changes |
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price increases under deregulation (87-88) |
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price reductions under re-regulation (93-94) |
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Rate regulation supported by broadcasters |
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NAB’s 1993 proposal for $4.52 price cap |
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Telcos favored cable rate regulation |
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Programmers lobbied against controls (and
succeeded in ‘going forward’) |
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Because rates for the most popular tiers of
service have risen more than 40 percent (three times the rate of inflation)
since deregulation, and because the bills would allow the public to
challenge prices, the legislation should provide consumers with long
overdue rate relief. |
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[O]nly ivory-tower free-market ideologues like
Mr. Hazlett would expect Congress to correct all the policy imperfections
involving the industry. |
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-- Gene Kimmelman, CFA |
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N.Y. Times (Sept. 7,
1990) |
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Notes