Tradeoffs of 'Restoring Internet Freedom'
24 Pages Posted: 20 Jun 2016 Last revised: 3 Sep 2017
Date Written: September 2, 2017
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: Suggested Citation