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Who’s making money on the Internet?

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Who’s making money on the Internet?

One of the background questions in Internet policy debates concerns what and who contributes value to the overall system and who extracts profits. In a perfectly functioning market, profits will reward innovation, investment, and the creation of value for users; but there are very few perfect markets. A number of things distort market efficiency: government policy is certainly one such thing, and market power is another. Return on Invested Capital (ROIC) is one very good way to evaluate competition, profitability, and leverage in capital-intensive businesses. The Morningstar Investor’s Classroom explains its significance in the following terms: The best way to determine whether or not a company has a moat is to measure its return on invested capital (ROIC). This is […]

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Happy Net Neutrality Day

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Happy Net Neutrality Day

Once again, we’ve come to another deadline for the filing of comments to the FCC on net neutrality, possibly the most mystifying subject in the history of technology policy. This deadline applies to the FCC’s third attempt to impose regulations on Internet Service Providers, the firms who connect our homes, offices, and smart phones to the rest of the Internet; […]

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AT&T and Verizon Again Named Top “Investment Heroes”

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For the third year in a row, the Progressive Policy Institute published their “Investment Heroes” report, and for the third year in a row AT&T and Verizon topped the list of firms making the greatest domestic capital investments in the previous year.   AT&T invested an estimated $20.9 billion in the United States in 2013, and Verizon an estimated $15.4, both numbers […]

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Bret Swanson: How Title II Would Harm Web Video

September 5th, 2014 by | Comments Off

Bret Swanson has a don’t-miss piece in Forbes today.   Amazon, Twitch and the Title II Threat to Web Video. Swanson points to Amazon’s planned acquisition of Twitch, “an online streamer of video games and the gamers who play them,” to illustrate […]

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Improving Federal Spectrum Systems

April 30th, 2014 by | Comments Off
Improving Federal Spectrum Systems

Last Friday, the Information Economy Project (a project of the George Mason University School of Law and Clemson University) held the best little spectrum conference Washington has seen this year. The discussion, Spectrum Beyond Incentive Auctions, featured a keynote by […]

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Paid Peering and the Internet of Video Things

March 28th, 2014 by | Comments Off
Paid Peering and the Internet of Video Things

The controversy over the deal between Comcast and Netflix for paid access to the Comcast residential network is heating up, and that’s just inside Netflix. Immediately after the two firms agreed on a business relationship that gave the Netflix Content […]

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What is Masa Son talking about? (Part 1: Device-Limited LTE speed)

March 12th, 2014 by | 4 Comments »
What is Masa Son talking about? (Part 1: Device-Limited LTE speed)

On Tuesday, March 11th, Sprint Chairman Masa Son gave an interesting and exciting speech on the benefits of merging Sprint with T-Mobile that relied on some rather dramatic empirical claims. While the speech covered a lot of ground – it […]

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The New Spectrum Caucus (and a new High Tech Forum project)

February 27th, 2014 by | Comments Off

The new Congressional Spectrum Caucus announced today by U.S. Representatives Doris Matsui (D- CA) and Brett Guthrie (R-KY) is a most welcome development.  In his statement, Representative Guthrie said,”The caucus will attempt to educate our colleagues on the importance of […]

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Netflix and Comcast Declare Peace

February 23rd, 2014 by | 2 Comments »
Netflix and Comcast Declare Peace

Netflix and Comcast announced today that they’ve come to terms on an interconnection agreement that they’ve been working out since their CEOs and technical teams met in Las Vegas during the Consumer Electronics Show. The details of the deal aren’t […]

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Europeans Envy U.S. Broadband

February 19th, 2014 by | 1 Comment »

Why do some persist in negatively comparing U.S. broadband to Europe’s?   Roslyn Layton, a visiting fellow at AEI’s Center for Internet, Communications and Technology Policy (where our fair editor is also a visiting fellow) penned a good piece on the […]

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A Broader Vision for Wireless 9-1-1

February 12th, 2014 by | Comments Off

Before working in public policy, I was a Silicon Valley technology developer. When they learn this, people often ask me if I’m frustrated by the slow pace of policy. I usually say speed is only desirable when you’re moving in […]

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Presenting the Technical Facts – High-Band vs. Low-Band Spectrum Deployment in Today’s Spectrum-Constrained Environment

February 5th, 2014 by | 5 Comments »

It’s said so often that many have accepted it as a truism: “Low-band spectrum is inherently superior.  High-band is inferior, undesirable and expensive.” This is one of things that everybody just knows, right?  Not so fast. This claim fails to […]

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Wall St. Journal: Time to Give Up the Net Neutrality Quest

February 4th, 2014 by | Comments Off

My op-ed in Wednesday’s Wall St. Journal brims with advice (put the title “Time to Give Up the Net-Neutrality Quest” into Google if you’re not a subscriber) for FCC Chairman Tom Wheeler on net neutrality. Here’s the nut: Even with […]

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