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Building broadband networks—especially wireline—requires large fixed and sunk investments.Consequently, the industry will probably always have a relatively small number of facilities-based competitors, at least for wireline service.
Congress recognized the need for change in the set-top box market when it enacted Section 629 of the Telecommunications Act, but FCC's attempts to meet Congress’s objectives have been unsuccessful.
Increased transparency will likely drive service providers to deliver better value to consumers through better services.
Third, it focuses on competition in the wholesale broadband market—including issues associated with high-capacity circuits, copper retirement, interconnection and data roaming.
Competition is crucial for promoting consumer welfare and spurring innovation and investment in broadband access networks.
Competition provides consumers the benefits of choice, better service and lower prices.
However, the importance of digital personal data is a common thread among current and emerging content and application services.
Personal data, often aggregated into “digital profiles,” are often used to provide consumers with personalized services and to target them with more relevant advertising.Today, innovations such as broadband and others like it drive the creation of a wide variety of products and services.The competitive forces that sparked these breakthroughs need to be nurtured so that the United States can continue to reap the benefits of its unrivaled culture of innovation.As video becomes an increasingly important element of broadband applications, driving usage and adoption, it is crucial that the FCC takes steps that will foster increased innovation in set-top boxes and video-navigation devices to bring more competition and choice for consumers.Section 4.3 addresses applications, focusing on the management of personal data and privacy.This chapter examines innovation and competition in the broadband ecosystem.