7/8 OTI and Public Knowledge File Reply Comments on the State of Competition in the Communications Marketplace

The Open Technology Institute at New America and Public Knowledge filed joint reply comments to the Federal Communications Commission (FCC) in response to the FCC’s request for input into the 2024 Communications Marketplace Report. The comments argued that FCC policies that actively promote competition are essential to reduce consumer harm. Insufficient competition in the communications marketplace can saddle consumers with high prices and low service quality, and can render them unable to participate fully in today’s society.

Handset Unlocking: Competition in the wireless industry faces a number of barriers. Continued handset locking practices and lack of standardized number portability both reduce consumers’ ability to change carriers, disproportionately burdening smaller providers and lower-income consumers who may be more willing to switch plans to save money. Technological changes like increased adoption of eSIMs can increase competition, but only if accompanied by the right policies. Our groups applaud the FCC for voting 5-0 at its July Open Meeting to adopt the Notice of Proposed Rulemaking we proposed, with a tentative conclusion to adopt rules requiring automatic unlocking of smartphones and other mobile handsets within 60 days of signing up for service.

Video Marketplace: Similarly, the FCC must foster competition in the video marketplace to enable independent programmers to participate and ensure diversity in programming. These independent programmers are often prevented from participating fully due to the unfavorable conditions imposed by multichannel video programming distributors (e.g., cable or satellite TV providers), which control the market by buying up the majority of programming. Finally, the satellite marketplace is subject to various barriers to competition, like vehicle manufacturing, that would benefit from greater study and proactive competition-promoting policies.

Spectrum Policy: A balanced spectrum policy is a vital tool with which the FCC can promote competition. The FCC should continue its successful focus on allocating a balanced mix of unlicensed, shared, and licensed spectrum. As new spectrum has become available, the wireless and wireline industries have increasingly converged. Today, the three largest cable providers offer Wi-Fi first mobile service that rapidly enrolled 15 million subscribers. Similarly, the three largest mobile carriers offer a high-speed home broadband connection through fixed-wireless access. The Commission should move quickly to determine which bands are candidates for sharing rather than clearing.

Affordable Broadband: Affordability remains a key driver of the digital divide. Unfortunately, the Affordable Connectivity Program’s lapse has huge implications for households’ access to broadband and even major ongoing deployment programs. The FCC should continue to focus on addressing and measuring affordability concerns as a key aspect of digital inclusion. It should also look to better understand the benefits that broadband adoption confers on critical fields like education and healthcare.

The communications marketplace is complex and ever-changing, and the FCC needs to employ strong, data-driven policies that promote competition, benefit consumers, and adapt as technologies change.