by John Thorne, Peter W. Huber, and Michael K. Kellogg
Chapter 1 Introduction 1.1 The Expanding Telecosm 1.2 The Technologies of Freedom 1.2.1 The Open Circuit 1.2.2 Closing the Loop 1.2.3 A Network Of Networks 1.2.4 Hybrid Services 1.3 Who Rules the Road? 1.3.1 The Legal Framework 1.3.2 Jurisdictional Maps 1.3.3 Broadband Implications 1.4 Entry 1.5 Carriage 1.6 Price Regulation 1.6.1 Carving the Bird 1.6.2 The Legal Framework 1.6.3 Broadband Implications 1.7 Structural Regulation 1.8 The Marketplace of Ideas 1.9 Free Speech 1.10 Universal Service 1.11 Rediscovering the Constitution 1.11.1 The First Amendment 1.11.2 Takings 1.11.3 Equal Protection 1.12 Visions of a New Society Chapter 2 Broadband Media 2.1 Introduction 2.2 Air and Land 2.3 In Search of Breadth 2.4 Broadband on Top 2.4.1 Relay Satellite 2.4.2 Glass 2.5 The Short Haul 2.5.1 Wireless 2.5.1.a Terrestrial Broadcast 2.5.1.b HDTV 2.5.1.c Direct Broadcast Satellite 2.5.1.d New Frequencies and Lower Power 2.5.1.e MDS 2.5.1.f MMDS 2.5.1.g LMDS 2.5.2 Wire 2.5.2.a Copper 2.5.2.b Coaxial Cable 2.5.2.c Glass 2.6 The Highway in a Box 2.6.1 Office and Box Office on the Desk 2.6.2 Compression 2.6.3 Scrambling 2.6.4 The Deregulated Terminal 2.7 Closing the Loop 2.7.1 Interactive Video Data Services 2.7.2 Copper Beside Coax 2.7.3 Integrated Digital Networks 2.7.4 Video Dialtone and Asymmetric Digital Subscriber Line (ADSL) 2.7.5 High Capacity Digital Networks 2.7.6 The Case for Asymmetry 2.8 A Network of Networks 2.9 Conclusion Chapter 3 The Powers of the FCC 3.1 Introduction 3.2 The Legal Framework 3.2.1 Common Carriage 3.2.1.a Common Carriage vs. Private Carriage 3.2.1.b Carriage vs. Broadcast 3.2.1.c Carriage vs. Cable 3.2.2 Broadcast 3.2.2.a Public Broadcast vs. Subscription Video Services 3.2.3 Cable 3.2.3.a Cable vs. Subscription Video Service 3.2.4 Satellite 3.2.4.a Satellite Carriers, Broadcasters, and Customer Programmers 3.3 Federal Powers 3.3.1 Equipment 3.3.1.a Telephone Terminal Equipment and Enhanced Services 3.3.1.b Radio Equipment 3.3.1.c Cable Equipment 3.3.1.d Satellite Equipment and SMATV 3.3.2 The Short Haul 3.3.2.a Wireline Carriage 3.3.2.b Wireless Carriage 3.3.2.c Video Channels and Video Dialtone 3.3.2.d Local Broadcast 3.3.2.e Cable Video 3.3.2.f Two-Way Cable Service 3.3.3 The Long Haul 3.3.3.a Interstate Common Carriage 3.3.3.b Broadcast Networks 3.3.3.c Cable Networks 3.3.3.d Satellite Carriage and Broadcast 3.3.4 Content 3.3.4.a Broadcast Content 3.3.4.b Cable Content 3.3.4.c Telephone Content 3.3.4.d Satellite Content 3.4 Conclusion Chapter 4 The Franchise 4.1 Introduction 4.2 Why License? 4.2.1 Physical Scarcity and Spectrum 4.2.2 Physical Scarcity and Wires 4.2.3 Natural Monopoly 4.2.4 Price Averaging and Universal Service 4.3 Private Property 4.4 Telephone 4.4.1 Basic Telephone Service 4.4.2 Interstate Services 4.4.3 Interstate Access 4.4.4 Intrastate Services 4.4.5 Telco-supplied Cable Service 4.4.6 Video Dialtone 4.4.7 Carriage by Contract 4.4.8 Taxes and Franchise Fees 4.5 Cable 4.5.1 Exclusive Franchises 4.5.2 Transfers of Ownership 4.5.3 Franchise Fees and Taxes 4.5.4 Limits 4.6 Broadcast 4.6.1 Homesteading: 1912-1927 4.6.2 The Radio Act of 1927 4.6.3 Spectrum Assignment 4.6.4 Localism 4.6.5 Licensing Procedures and Standards 4.6.6 Property Rights 4.6.7 Auctions 4.6.8 Franchise Fees and Taxes 4.7 Satellite 4.7.1 Orbital Slots and Spectrum 4.7.2 The Exclusive Franchise: International Service 4.7.3 The Inclusive Franchise: Domestic Service 4.7.4 Receiving Equipment 4.8 Antitrust Limits 4.8.1 Liability of Franchisors 4.8.2 Liability of Franchisees 4.9 First Amendment Limits 4.9.1 Broadcast 4.9.2 Cable 4.9.3 Carriers 4.9.4 Franchise Fees 4.10 Equal Protection 4.11 Takings 4.12 Conclusion Chapter 5 Common Carriage 5.1 Introduction 5.2 The Legal Framework 5.3 Telephone 5.3.1 Video Dialtone 5.3.2 Specialized Wireless Services 5.3.3 Carrier Duties 5.3.4 Carrying Other Carriers 5.3.5 Contract Services 5.4 Broadcast 5.4.1 Program Format Regulation 5.4.2 Time Brokering 5.4.3 The Fairness Doctrine 5.4.4 The Equal Time Rule 5.4.5 Public Television 5.5 Cable 5.5.1 Must Carry: Origins 5.5.2 Must Carry: The 1972 Rules 5.5.3 Must Carry: 1985-1992 5.5.4 Must Carry: The 1992 Cable Act 5.5.5 Public Access Channels 5.5.6 Leased Channels 5.5.7 Capacity Requirements 5.5.8 The Fairness Doctrine and Political Broadcasting Rules 5.6 Satellite 5.6.1 Common Carriage 5.6.2 Private Carriage 5.6.3 Direct Broadcast 5.7 Other Media 5.8 Private Premises 5.9 Constitutional Limits 5.9.1 Broadcast 5.9.2 Cable 5.9.3 Telephony and Common Carriage 5.9.4 Private Premises 5.9.5 Public Forums 5.10 Conclusion Chapter 6 Pricing 6.1 Introduction 6.2 Carving the Bird 6.3 Terminal Equipment 6.3.1 Telephone and Broadcast Terminating Equipment 6.3.2 Cable Terminating Equipment 6.3.3 Copying Equipment 6.3.4 Equipment and Conduit 6.4 Telephone 6.4.1 Forbearance 6.4.2 Long Distance 6.4.3 Local Transport: High-Capacity Lines 6.4.4 Local Transport: Video Dialtone 6.5 Broadcast 6.5.1 Free Television 6.5.2 Interactive Video: The Wireless Back Channel 6.6 Cable Television 6.6.1 Rate Regulation of Cable Television Before 1984 6.6.2 The 1984 Cable Act 6.6.3 The 1992 Cable Act 6.6.3.a FCC Implementation 6.6.3.b Effective Competition 6.6.3.c Rate Rollback 6.6.3.d Price Caps 6.6.3.e Evasion 6.6.4 Leased Channels 6.6.5 Interactive Cable: The Back Channel 6.6.6 Private and Wireless Cable 6.7 Satellite 6.7.1 Satellite Common Carriers 6.7.2 Direct Broadcast Satellite (DBS) 6.8 Practical Limits 6.8.1 Defining Services 6.8.2 Allocating Costs 6.8.3 Encircling the Market 6.9 Constitutional Limits 6.9.1 Due Process/Takings 6.9.2 Equal Protection 6.9.3 First Amendment 6.10 Conclusion Chapter 7 Cross-Ownership 7.1 Introduction 7.2 Newspapers 7.3 Broadcast 7.4 Telephone 7.4.1 Telephone/Telephone 7.4.2 Telephone/Broadcast 7.4.3 Telephone/Satellite 7.4.4 Telephone/Cable 7.5 Cable 7.5.1 Cable/Broadcast 7.5.2 Cable/Telephone 7.5.3 Cable/Satellite 7.5.4 Cable/SMATV 7.5.5 Cable/MMDS 7.5.6 Cable/Other 7.6 First Amendment Considerations 7.7 Conclusion Chapter 8 Vertical Integration 8.1 Introduction 8.2 Costs and Benefits 8.3 Leveraging Content 8.3.1 Newswires and Newspapers 8.3.2 Film Studios 8.3.3 Broadcast Networks and Affiliates 8.3.4 Broadcast Networks and Cable Television 8.3.5 Cable Programming and Distribution 8.3.6 The Primestar Decrees 8.3.7 Computer Databases 8.3.8 Operating Systems and Applications 8.4 Leveraging Conduit 8.4.1 Broadcast 8.4.2 Cable 8.4.3 Satellite 8.4.4 Telephone 8.4.5 Enhanced Services 8.4.6 Video Programming 8.4.6.a The 1970 FCC Rules 8.4.6.b The 1984 Cable Act 8.4.6.c Developments 1984-1992 8.5 First Amendment Limits 8.6 Conclusion Chapter 9 Leviathan 9.1 Introduction 9.2 Broadcast 9.2.1 Chain Broadcasting 9.2.2 National Ownership Limits 9.2.3 The Top 50 Rules 9.2.4 The Regional Concentration of Control Rule 9.3 Cable 9.3.1 Multiple Ownership Limits 9.4 Telephone 9.4.1 Video Dialtone 9.4.2 Wireless Telephone 9.5 Satellite 9.6 The End of the Line 9.6.1 Patent Pools 9.6.1.a The Motion Picture Patent Pool 9.6.1.b The Audion Patent Pool 9.6.1.c Patents and the 1956 AT&T Consent Decree 9.6.2 Computers, Terminal Equipment, and Software 9.7 A First Amendment Right to be Huge? 9.8 Convergence Chapter 10 Copyright and Piracy 10.1 Introduction 10.2 Information As a Public Good 10.3 Rights and Limits 10.3.1 Requirements For Copyright Protection 10.3.2 Rights Granted 10.3.3 Exceptions to Liability 10.3.4 Time Limits on Exclusivity 10.3.5 First Sale 10.3.6 Compulsory License 10.3.7 Ideas 10.3.8 Fair Use 10.3.9 Recording and Fair Use: Sony Corp. v. Universal Studios 10.3.10 Carriage 10.3.11 First Amendment Limits 10.3.12 Summary 10.4 Passive Carriers 10.4.1 Passive Secondary Transmissions 10.4.2 Intermediate Carriers 10.4.3 Would-be "Carriers" Who Aren't 10.4.4 Summary 10.5 Broadcasters 10.5.1 Jukeboxes and Movies 10.5.2 Private Pipes 10.5.3 Radio 10.5.4 Television 10.6 Cable Television 10.6.1 Pseudo-copyright Before Fortnightly: Non-duplication, Distant Signals, and Anti-Leapfrogging 10.6.2 Fortnightly and Teleprompter 10.6.3 Retransmission Consent After Fortnightly 10.6.4 Syndex, Non-duplication, and Distant Signal Rules Again 10.6.5 The Copyright Act of 1976 10.6.6 Performance 10.6.7 Compulsory License 10.6.8 Distribution of Royalties 10.6.9 FCC Reactions to the 1976 Act 10.6.10 The 1992 Cable Act: Must Carry or Retransmission Consent 10.7 Satellite 10.7.1 Passive Carriers 10.7.2 Satellite Carriers Subject to Copyright Liability 10.7.3 Compulsory License 10.7.4 Retransmission Consent 10.8 Copyright on Private Premises 10.8.1 Private Viewing 10.8.2 Commercial Establishments 10.8.3 Satellite Master Antenna TV 10.9 Piracy and "Public" Signals 10.9.1 Misappropriation 10.9.2 Unauthorized Interception 10.9.3 Subscription Television 10.9.4 Satellite Distribution 10.10 "Private" (Scrambled) Satellite Signals 10.10.1 Unauthorized Decoders 10.10.2 Cable Piracy 10.10.3 Descrambler Monopolies 10.11 Conclusion Chapter 11 Free Speech 11.1 Introduction 11.2 Gutenberg, Marconi, and Bell 11.2.1 Print 11.2.2 Movies 11.2.3 Broadcast 11.2.4 Cable 11.2.5 Carriers 11.2.5.a Publicly-Owned Carriers 11.2.5.b Privately-Owned Carriers 11.2.6 On-line Carrier-Broadcasters 11.2.7 Private Self-Censorship and State Action 11.3 The Mandatory Audience 11.4 The Audience's Veto 11.5 Programming Requirements 11.5.1 Broadcast 11.5.2 Public Broadcasting 11.5.3 Cable 11.5.4 Direct Broadcast Satellite 11.5.5 Other Media 11.5.6 Carriers 11.6 Allocating Content 11.7 Editorials 11.8 Advertising 11.8.1 Reserving Advertising for Favored Media 11.8.2 Fraud 11.8.3 Sponsorship Identification 11.8.4 Lotteries 11.8.5 Tobacco 11.8.6 Liquor 11.8.7 Commercialization 11.8.8 Children's Advertising 11.8.9 Advertising over Narrowcast Media 11.9 Indecency 11.9.1 Broadcast 11.9.2 Indecency and Cable 11.9.3 Other Mass Media 11.9.4 Carriers 11.9.4.a Indecency on Leased and Public-Access Cable Channels 11.9.4.b Dial-It Indecency by Telephone 11.10 Violence 11.10.1 Broadcast and Cable 11.10.2 The V-Chip 11.11 Political Speech 11.12 Conclusion Chapter 12 Universal Service 12.1 Introduction 12.1.1 Universal Service 12.1.2 The Case for More 12.1.3 The Case for Less 12.2 Universal Broadcast 12.2.1 Universal Coverage 12.2.2 Free Programming 12.2.3 Public Broadcasting 12.2.4 The Threat of Pay TV 12.2.5 The Threat of Cable 12.3 Universal Cable 12.3.1 FCC Regulation Before 1984 12.3.2 The 1984 Cable Act 12.3.3 The Threat of More Cable 12.3.4 The Threat of MATV and SMATV 12.3.5 The Threat of Satellite 12.4 Universal Satellite 12.5 Universal Broadband Carriage 12.5.1 "Universal Service:" The First Generation 12.5.2 Suppressing Broadband: Subsidy and Quarantine 12.5.3 Broadband Telephony 12.5.4 Video Dialtone 12.5.5 Internet and the National Information Infrastructure 12.6 Universal Broadband 12.6.1 Collecting Subsidies 12.6.2 Targeting Subsidies 12.6.3 Unleashing Content 12.7 Practical Limits 12.7.1 Service Territories 12.7.2 Service Packages 12.7.3 Price Averaging 12.7.4 The Threat of Competition 12.8 First Amendment Limits 12.9 Conclusion