NETW 584 Midterm Exam

Ramsey Pricing
Rate-of Return Regulation
Cream Skimming
1. Question : (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. Question : (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. Question : (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. Question : (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. Question : (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. Question : (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. Question : (TCO E, F) What was the fundamental problem of interconnection that involved Bell and
the Independent Telephone Companies?
DeVry NETW 584 Midterm Exam
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