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keep” system (“under which carriers split equally those costs
that are solely incremental to interconnection, and recover all
remaining costs from their own customers,” according to the
report, id. at ii). Unlike the articles cited, it does address
variations in quality of service, but only to argue that the
ability of one provider to lower its quality doesn’t undermine
the case for “bill and keep” because the quality-lowering
provider will bear “the main impact itself.” Id. at 20. This is
an interesting proposition, but, assuming its truth, it doesn’t
connect in any obvious way to a flat ban on paid
prioritization; if the Commission knows a way to make that
connection, it hasn’t revealed it.
The second, Gerald W. Brock, Telephone Pricing to
Promote Universal Service and Economic Freedom, OPP
Working Paper Series, No. 18 (1986), is an interesting
consideration of the possible welfare losses that may follow
from pricing that collects a high proportion of fixed costs
from usage fees. As with the Atkinson & Barnekov paper, its
connection to paid prioritization is unclear, and the
Commission’s opinion writers have made no effort even to
identify a connection, much less explain it. In discussing a
possible anti-discrimination rule, the paper posits one under
which a firm may adopt “any combination of two-part tariffs,
volume discounts, and so forth but is required to offer the
same set of prices to all customers.” Id. at 44. Although it
isn’t clear that the paper gives an endorsement to such a rule,
such an endorsement would not support the Commission’s
ban on quality-of-service based differentials.
I apologize for taking the reader through this parade of
irrelevancies. But it is on these that the Commission has
staked its claim to analytical support for the idea that paid
prioritization poses a serious risk to broadband deployment.
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