13 June 2008

Mobile termination fees and regulation

This item is interesting, and supports one Robert Horwitz's points about the regulated industry seeking regulation. The rationale in this case is:
The FCC held a full hearing to consider a wireless industry proposal that would essentially federalize the regulation of ETFs. Big Wireless would give consumers a break on these fees, which sometimes go as high as $200. In exchange, the FCC would send a note to the judges overseeing various state-level trials recommending that they shut them down, potentially saving wireless giants billions of dollars.

The economic motivation in this case is quite clear!

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