NETW 584 Week 4 Midterm

NETW 584 Week 4 Midterm

Page 1

1. (TCO B) Which of the following statements is correct about the Structure of the 1934 Act?

2. (TCO D) Which of the following industries or companies is generally considered a natural monopoly according to Judge Posner’s opinion in the Omega Satellite case?

3. (TCO B) Choose the correct standard that the Communications Act directs the FCC to apply in a variety of settings, ranging from licensing to broadcasters to authorizing service operations by telecommunications carriers. This phrase appears throughout the 1934 Communications Act.

4. (TCO B) Which of the following terms below is known as: “a set of decisions regarding how radio spectrum will be used”? The______ for a given block of spectrum typically establishes (1) which services can be offered, (2) how the block will be divided both across and within geographical areas, and (3) the rules for assigning licenses to use that spectrum to specific parties.

5. (TCO F) Which of the following terms is known as a method of setting prices applicable in many situations, including situations where a single firm or entity must recover fixed costs and can do so by manipulating prices on more than one good? This form of pricing suggests that the most efficient way to recover those fixed costs is to set price levels for the goods such that, when comparing the goods, the good for which consumers are less sensitive to price is priced such that there is a greater difference between price and marginal cost than there is for the good for which consumers are more sensitive to price. The correct answer is_____

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1. (TCO A) Explain and discuss briefly the concept of why telecommunications technologies are to some degree substitutable.

NOTE: Answer may be between 10 to 15 lines (or two paragraphs)

2. (TCO A) What section of the 1934 Act gives the Commission (FCC) the right to regulate the spectrum in a broad manner? What does it state?

3. (TCO C) Why did the 1985 Report and the 1987 Order seem to lump together all broadcasters and all markets? But wouldn’t the case for retention be stronger in some markets than in others? For instance, isn’t the case for retaining the fairness doctrine stronger for VHF television than AM or FM radio? What is the significance of the fact that the FCC did not draw such a distinction? Would it have been wiser to retain the fairness doctrine for certain markets? If so, how should such markets be identified and defined? Discuss.

4. (TCO C) Explain the concept, theories, and implications of a public trustee. In other words, what exactly is a public trustee in a broadcast sense? Do you agree with the concept of a public trustee in the telecommunications industry, why or why not?

NOTE: Answer may be between 10 to 15 lines or more if you would like (or two paragraphs)

5. (TCO D) Evaluate the benefits and risks of Multichannel Video Programming Distribution (MVPD) regulation. Do you think there should be more or less regulation in the cable television market, why or why not?

6. (TCO E, F) The FCC generally seemed to regulate cable television with an eye toward protecting the pre-existing broadcast industry. Why did the FCC seem to favor broadcast? Discuss.

7. (TCO E, F) What was the fundamental problem of interconnection that involved Bell and the Independent Telephone Companies?

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