Agencies

alternative to traditional phone companies and cable operators remains uncertain, Justice said, calling developments so far only “mildly encouraging.” The filing was the department’s first in the main docket the commission has set up to take comment on the National Broadband Plan and was authored by the Antitrust Division. NTIA also filed at the FCC “on the proper balance between regulation and market forces in the Internet environment,” which it said is informed by the Justice Department letter. “Wireless may be a very attractive alternative for consumers who greatly value mobility and for consumers who do not place much value on the highest speeds (e.g., consumers who do not want advanced services, such as HD video streaming),” the department said. It warned, “we do not yet know … whether wireless broadband offerings will be able to exert a significant degree of competitive constraint on cable modem, DSL or fiber optic-based services.” Emerging 4G services may offer “an alternative sufficient to lead a significant set of customers to elect a wireless rather than wireline broadband service,” the department said. It cited the success of Clearwire, which has begun WiMAX service in about 25 markets, and Verizon Wireless’s commitment to begin offering LTE technology this year. “Within the next several years, however, the limits of wireless broadband will be tested, including the actual delivered speeds, adequacy of in-building coverage, and ability of the networks to accommodate large numbers of users,” Justice said. “In addition, unanswered questions remain as to whether these services will be offered at prices and on terms that make them attractive to wireline users.” Justice also stressed the importance of “transparency” in broadband offerings, so subscribers know what they're getting for their money. “The Commission is uniquely situated to ensure more effective public disclosure of such data and should use its authority to do so,” the filing said. “To the extent is does so, private parties, non-profits, and researchers can creatively use such information to provide not only greater awareness of the options available, but also valuable insights and analyses.” Justice also warned against imposing regulation too quickly even in markets that are not currently competitive. “Although enacting some form of regulation to prevent certain providers from exercising monopoly power may be tempting with regard to such areas, care must be taken to avoid stifling the infrastructure investments needed to expand broadband access,” Justice said. The department said it’s not “especially helpful” for the FCC to develop “some abstract notion” of whether broadband markets are competitive. The filing is signed by Christine Varney, assistant attorney general in charge of the Antitrust Division, Philip Weiser, deputy assistant attorney general and former professor of law and telecommunications at the University of Colorado, Gene Kimmelman, chief counsel for the division and former lobbyist for Consumers Union, and others. NTIA picked up on many of Justice’s arguments in a separate letter to the FCC. “The economics of providing wireline broadband Internet access service suggest that market forces alone may not produce additional entry,” NTIA said. “A key question looking forward is whether emerging ‘fourth generation’ wireless services will have price and performance characteristics that might make them a viable alternative to wireline services for a significant number of customers.” The next few years “will test the limits of wireless broadband, including the adequacy of in-building coverage and the ability of wireless networks to accommodate large numbers of data-intensive users,” NTIA said.