Outline for Affirmative Position

(Force cable companies to open up to ISPs)

 
  1. Policy Goals for Maximizing Public Benefit
    1. Lower Prices
    2. Broader Access
    3. Variety of Services
    4. Quality of Service

  2. Why competition important
    1. Monopolies traditionally charge relatively high prices and serve only a portion of the potential market.
    2. Competition among ISPs will reduce prices for Internet access service closer to cost.
    3. Lower prices will enable a broader section of the population to purchase service.
    4. Historical Example of mandated competition driving down prices:
      1. ‘96 Telecommunications Act allows for new CLECs to offer intra-state long distance.
      2. Price of intra-state phone calls has dropped

  3. DSL vs. Cable Competition
    1. The two solutions tend to develop in isolated pockets so consumers rarely have both.
      1. $40 per month vs. $60
      2. Therefore, likely to become dominant technology for the "masses"
    2. Cable Industry has large momentum
      1. AT&T planning to spend $5.7bn on TCI network upgrades
      2. Industry planning to spend $10bn in ‘99 on upgrades

  4. Pace of Infrastructure Build-out will actually be hastened
    1. Cable company and largely owned ISP partner assumes both the marketing and build-out costs (and hence risks) when introducing service to an area.
      1. Risk of not getting high enough number of subscriptions to cover investment
    2. Cable company manages this risk by building out slowly
    3. In new model, ISPs will assume the cost of marketing
      1. ISPs have a stake in subscription rate
      2. ISPs are famous for their aggressive marketing
    4. Result: Primary demand nationwide stimulated
    5. Assured of strong demand, Cable companies will rapidly expand service to new areas

  5. Variety
    1. AT&T wants to be your big brother
      1. $57 billion to buy TCI
      2. $54 billion to buy Media One
      3. Danger of having one monolithic content provider
    2. Multiple ISPs will give consumers choice of content
      1. Picture the world with one TV station!
    3. Competition will spur innovation in Internet services
      1. Video telephony
      2. Video on demand
    4. ISP Competition will lead to Higher Quality Service
      1. CATV monopolies infamous for providing bad service.
      2. Pre-Telecommunications Act telecos (RBOCs) notorious for providing bad service and high price.

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