FCC chairman backs Dish Network plan to compete with wireless giants
The chairman of the Federal Communications Commission on Tuesday proposed to greenlight Dish Network's long-fought plan to create a wireless service that would compete with those of giants AT&T and Verizon Wireless.
Context & Ripple Effects
The FCC had already put competition among major wireless carriers on its agenda through a 2009 inquiry into the wireless market. The chairman's backing turns that broad policy concern into a concrete test: whether Dish Network can become a new service provider alongside AT&T and Verizon Wireless.
First-order effects
- Dish Network gains chairman-level support for its requested wireless-service plan, moving the proposal closer to an FCC decision.
- AT&T and Verizon Wireless face the prospect of a new competitor in the wireless market if the commission approves Dish's plan.
Second-order effects
- The FCC's ruling becomes a practical test of whether its competition agenda can lower barriers to entry for a prospective carrier, rather than merely assess concentration among incumbents.
- A favorable decision would require AT&T and Verizon Wireless to account for Dish as a potential additional rival in wireless-service planning and positioning.
Third-order effects
- If the FCC uses its authority to enable Dish's entry, wireless competition policy would shift from monitoring dominant carriers toward actively creating conditions for new-carrier competition.
The trend: U.S. wireless policy is moving from scrutiny of incumbent-carrier competition toward using FCC decisions to enable potential new entrants.