The Federal Communication Commission (FCC) is an independent agency, $350 million budget collected from regulatory fees, 2000 employees, 5 commissioners appointed by the president and it is charged with issuing communication licenses. If you broadcast something, somewhere, you likely need a license from, and hence you are regulated by the FCC. If they take your license away, or deny a new license in the case of a merger, you cease to be a broadcaster.
Foe example, when you turn your radio dial to 810 AM, the station needs a license form the FCC to operate. The FCC is a powerful agency, particularly now as we move toward total wireless communications. A license from the FCC to broadcast on a wireless spectrum, is a license to print money. Ostensibly the FCC is charged with issuing the license, and then regulating the profits and the competition in the industry so the consumers, that is you and me, get a fair shake.
The Department of Justice (DOJ)) is part of the executive branch and reports to Obama. It has a $25 billion budget and 110,000 employees. Among other things, It sues companies to protect citizens from monopolies or duopolies. DOJ is currently suing AT&T because it believes that based on the documents it has reviewed the purchase of T-Mobile by AT&T, currently under review by the FCC, will create a duopoly and American citizens will pay higher prices for communication services. Sprint agrees with the DOJ.
Part of American pedagogy is that monopolies are inherently bad. The DOJ is allegedly protecting Americans from insidious monopolies, which by the way the United States Patent Office grants thousands of times a year. These grants are called patents. Further, China has several monopolies and their economy seems to be doing just fine. Periodically, when the cost of asserting protection exceeds the value of the protected good, it warrants challenging your assumptions. The 110,000 DOJ employees are paid for with our money.
Follow this DOJ v FCC v AT&T saga on your TV and your local newspaper and watch your tax dollars fly by. If you are under 30, you may not recall that AT&T was once a regulated monopoly, and we had the best phone service in the world. Give this some thought next time your telcom provider drops a few of your wireless calls.
Part of American pedagogy is that monopolies are inherently bad. The DOJ is allegedly protecting Americans from insidious monopolies, which by the way the United States Patent Office grants thousands of times a year. These grants are called patents. Further, China has several monopolies and their economy seems to be doing just fine. Periodically, when the cost of asserting protection exceeds the value of the protected good, it warrants challenging your assumptions. The 110,000 DOJ employees are paid for with our money.
Follow this DOJ v FCC v AT&T saga on your TV and your local newspaper and watch your tax dollars fly by. If you are under 30, you may not recall that AT&T was once a regulated monopoly, and we had the best phone service in the world. Give this some thought next time your telcom provider drops a few of your wireless calls.
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