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Net Neutrality and Competition Scott Wallsten Senior Fellow

Net Neutrality and Competition Scott Wallsten Senior Fellow Director, Communications Policy Studies Progress & Freedom Foundation scott@wallsten.net. The Internet. Multi-sided market. merchants. consumers. The Internet. Multi-sided market. + network effects. Infrastructure. Consumers

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Net Neutrality and Competition Scott Wallsten Senior Fellow

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  1. Net Neutrality and Competition Scott Wallsten Senior Fellow Director, Communications Policy Studies Progress & Freedom Foundation scott@wallsten.net

  2. The Internet Multi-sided market merchants consumers

  3. The Internet Multi-sided market + network effects Infrastructure Consumers (demand) Content

  4. Mandatory net neutrality = price regulation

  5. Discrimination? Not with adequate competition. Infrastructure Consumers (demand) Content

  6. Share of zip codes with multiple broadband providers 100% 90% 80% 1 or more 70% 60% 50% 4 or more 40% 30% 20% 10% 0% Dec 1999 Dec 2000 Dec 2001 Dec 2002 Dec 2003 Dec 2004 Dec 2005 Competition

  7. Competition - encourage entry Spectrum Spectrum still scarce Continue moving it to market Lobby for firms that don’t exist yet

  8. Conclusions Content AND infrastructure important Optimal pricing of parts unknown Net neutrality = price regulation Focus on competition Don’t drop spectrum reforms

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