Telecommunications Policy

[Commentary] The first spectrum auctions generally assigned the chosen number of licences of predetermined size to the highest bidders, but auctions now allow a greater choice of outcomes, with bidders with existing spectrum portfolios competing, with others, for multiple lots, often in different bands. Modern auctions also contain design features expressly directed at efficiency and equity objectives. In relation to efficiency, spectrum caps or set asides for new entrants can be incorporated to combat the exercise of market power downstream. In relation to equity objectives, licence conditions may specify obligations to provide coverage in non-commercial areas, or promises of the attainment of social objectives can be given a weighting, with revenue, in the determination of winning bids. The paper provides and overview of the wide use of such tools and the consequences for the operation of the auction process. Some lessons are drawn for future spectrum auctions.

[Martin Cave is associated with the Imperial Business School, London, UK
Rob Nicholls is associated with the UNSW Business School, Sydney, Australia]

The United States needs to reimagine the basic principles of its telecommunications and information policy to fit an emerging society in which networking and intelligence are embedded into an increasing number of everyday things which constantly monitor and measure our lives. This emerging environment is an always-on, ubiquitous, integrated system comprised of the Internet of Things, Big Data, Artificial Intelligence/Intelligent Systems and the Intercloud, which act together as a single system, referred to here as the “Embedded Infosphere” (EI). This development is driving the latest stage – the third – in the evolution of U.S. communications policy. Each of the components of the EI presents unique challenges, but the greater concern is all of them acting in concert. These developments bring into focus many topics that have been outside the traditional communications policy envelope, and exceed the portfolios of existing agencies and institutions.

This article envisions a new “EI policy space,” grounded in established societal values, and built on the experience of the previous stages. There are appropriate policy responses to each of the challenges, but these responses need to be seen in a holistic perspective, as they are all interconnected. Many of the issues such as privacy, security, consumer protection, and data stewardship are common across several elements. The larger goal is to establish a framework for an integrated policy structure which can address unpredictable emergent conditions, while allowing markets to flourish without unduly burdensome regulations, restrictions or uncertainties.

It is often assumed that the Internet would threaten the survival of authoritarian regimes. Accordingly, most country-comparative studies have identified a democracy advantage in Internet diffusion. This paper revisits these technology-centric assumptions by conceptualizing the adoption of the Internet as a dynamic phenomenon with multiple phases that unfold differently depending on the political system.

It is argued theoretically, that initially, the Internet diffuses faster in democracies because of inherent innovation advantages. However, authoritarian regimes adopt the Internet at comparable rates when the economic benefits of the technology outweigh the democratization risks. Yearly cross-sectional regressions for the years 1996–2013 show that the relationship between regime type and Internet diffusion varies temporally as authoritarian regimes have caught up considerably. Since 2013, there are no significant differences between democracies and authoritarian regimes anymore and monarchies even outperform democracies.

It is often assumed that the Internet would threaten the survival of authoritarian regimes. Accordingly, most country-comparative studies have identified a democracy advantage in Internet diffusion. This paper revisits these technology-centric assumptions by conceptualizing the adoption of the Internet as a dynamic phenomenon with multiple phases that unfold differently depending on the political system.

It is argued theoretically, that initially, the Internet diffuses faster in democracies because of inherent innovation advantages. However, authoritarian regimes adopt the Internet at comparable rates when the economic benefits of the technology outweigh the democratization risks. Yearly cross-sectional regressions for the years 1996–2013 show that the relationship between regime type and Internet diffusion varies temporally as authoritarian regimes have caught up considerably. Since 2013, there are no significant differences between democracies and authoritarian regimes anymore and monarchies even outperform democracies.

During the last decades, the widespread growth of information and communication technologies (ICT) has posed incentives to broaden the participation of individuals in social, political and economic dimensions of life. However, utilization of ICT also involves access to technology and infrastructure, and acquisition of skills to deal with innovations and, thus, digital literacy is, primarily, a complementary good. The digital divide expresses inequalities in access and utilization of ICT among individuals and populations in different countries. The study adopts inequalities indexes of Internet access and mobile phone ownership to measure use of ICT goods, accounting for the digital divide in Brazil. The inequality indexes are also split according to main determinants using four nationally representative survey data from 2005 to 2013. Results indicate that the digital divide among individuals is decreasing quite fast among Brazilians over time. However, there is room for policies of mass access to ICT goods based on mobile Internet broadband access. In addition, digital illiteracy, evaluated by lack of education, is one of the main determinants of the digital divide in the country, especially among elderly individuals.

Highlights:
Zero rating/Sponsored data plans exempt specific content from metering or provide free access to limited content.
Opponents have concerns about effects on incentives for innovation while advocates consider subsidies a proven way to promote universal access.
Calibrated zero rating can promote positive spillover and free rider opportunities without extending incumbent market dominance.
If disputes arise, ex ante safeguards can provide flexible remedies.