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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) | |
