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Tradeoffs of 'Restoring Internet Freedom'

24 Pages Posted: 20 Jun 2016 Last revised: 3 Sep 2017

Kendall J. Koning

Michigan State University - College of Communication Arts and Sciences

Aleksandr Yankelevich

Michigan State University - Quello Center

Date Written: September 2, 2017

Abstract

We examine the extent to which the Federal Communications Commission's 2015 Open Internet Order prevents anti-competitive and discriminatory pricing. We show that by refraining from regulating interconnection agreements and by allowing Internet service providers to engage in "zero rating," the FCC left room for welfare diminishing pricing practices. Thus, the current rules may not be as effective as their proponents would have them seem, and in certain instances, their reversal could have socially positive, albeit second-best, pricing effects. These are important to consider as the FCC again debates net neutrality in its ongoing "Restoring Internet Freedom" proceeding.

Keywords: Broadband Internet Service Provider, Download Caps, Federal Communications Commission, Interconnection, Internet Regulation, Network Neutrality, Open Internet, Price Discrimination, Restoring Internet Freedom

JEL Classification: K23, L13, L23, L42, L51

Suggested Citation

Koning, Kendall J. and Yankelevich, Aleksandr, Tradeoffs of 'Restoring Internet Freedom' (September 2, 2017). Quello Center Working Paper. Available at SSRN: https://ssrn.com/abstract=2797366

Kendall J. Koning

Michigan State University - College of Communication Arts and Sciences ( email )

East Lansing, MI 48824
United States

Aleksandr Yankelevich (Contact Author)

Michigan State University - Quello Center ( email )

406 Communication Arts Building
404 Wilson Road
East Lansing, MI 48824-1212
United States

HOME PAGE: http://aleksyankelevich.com/

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