IV: What problems/issues need to be discussed? 1. Whose subsidies are unfair? • Low-income, homeless are subsidized - Low-income house- holds get special low phone rates, and homeless persons are being provided with cell phones to help them connect to employment and housing. • Subsidies for schools, libraries, hospitals • Telecommunication Relay Service – hearing- and speech-impaired persons • “Old” AT&T subsidized local service; now 7 percent to 12 percent surcharge. -> unfair -> Reason: In the period before 1984, AT&T was a single company holding a large market share in the telecommunications market in the US. During this time, AT&T has paid a subsidy for local phone services through the transfer of revenue from international calls to local phone services. This means that customers who use international phone services will have to pay more to compensate for this turnover, while customers using local phone services will benefit from the subsidy. Grant without paying extra costs. 2 .Who controls the airwaves? I. Historical process for controlling airwaves Competitive licensing awarded by FCC to companies in the public interest II. Current process for controlling airwaves Auctions have replaced competitive licensing Auction proceeds go to public treasury, reducing tax burden Proceeds from auctions are unpredictable and subject to speculation III. Government intervention in controlling airwaves FCC intervening to achieve important social goals Auctions have meant less government influence in achieving important social goals FCC auctioned broadcast TV channels to wireless providers in 2016 to free up spectrum space
