Commissioners Rosenworcel, Clyburn slam FCC Wireless Competition Report

The Federal Communications Commission voted to publish its 20th Wireless Competition Report, which found, for the first time in almost a decade, that there is effective competition in the mobile wireless services marketplace. But not all of the agency’s commissioners agree with the finding. Commissioners Rosenworcel and Clyburn have serious issues with the report – from the basic definition of “effective competition,” to the analysis, to the looming risks of market consolidation.

“We are told that upstream and downstream market segments involving network equipment, operating systems, and applications are outside the scope, and yet the core of what is ‘effective competition’ remains undefined,” Commissioner Rosenworcel wrote in her dissent. “In short, it’s hard. Well, tough. Congress creates new terms in legislation all the time and it’s up to expert agencies like this one to define them. But our failure to do so is inexcusable if the Commission wants desperately to conclude, as it does here, that ‘effective competition’ exists.”

“This Twentieth Report,” Commissioner Clyburn wrote, “takes a decidedly myopic view of the [wireless] ecosystem, and instead focuses only on ‘competition in the provision of mobile wireless services.’ This is like a doctor looking at one organ and pronouncing a patient fit as a fiddle.”

Commissioner Rosenworcel concluded her dissent by warning of likely wireless company mergers, which would reduce competition for consumers. “Like everyone else, I read reports of mergers waiting in the wings,” she said. “So while this report celebrates the presence of four nationwide wireless providers, let’s be mindful that a transaction may soon be announced that seeks to combine two of these four. While the Commission should not prejudge what is not yet before us, I think this agency sticks its collective head in the sand by issuing this report and implying move along, there is nothing to see here.”

Links:

20th Wireless Competition Report (FCC, Sept. 26, 2017)

FCC new release on 20th Wireless Competition Report (FCC, Sept. 26, 2017)

Commissioner Rosenworcel dissent (FCC, Sept. 26, 2017)

Commissioner Clyburn dissent (FCC, Sept. 26, 2017)