Verizon Gives Consumers More Options for Unlimited Data

Earlier this week, Verizon unveiled three new options for unlimited data plans: Go Unlimited, Beyond Unlimited, and Business Unlimited. Go Unlimited starts at $75 per month and video is “DVD-quality” – standard-definition on phones (480p) and high-definition (HD) on tablets (720p). Beyond Unlimited starts at $85 per month and supports HD for phones and tablets (720p for phones and 1080p for tablets). Go Unlimited and Beyond Unlimited both provide monthly discounts for each additional line, but the Business Unlimited plan gives customers flat monthly rates. Verizon is also introducing an unlimited option for customers on prepaid plans. (See the chart below.)

Some people are criticizing Verizon for limiting the video quality in some of the new plans, but Verizon is upfront and transparent about the details of each offering. In response to pro-regulatory advocates who state that Verizon’s new plans violate net neutrality principles, Free State Foundation President Randolph May stated:

"Whether the new plans violate 'net neutrality' depends of course on who defines how strictly and in what context the plans are offered. Aside from definitional constructs, I'd say that this type of differentiation is good for consumers, considered overall, and what is expected in a competitive marketplace. This is also a good example of why the FTC should handle these issues that really relate to how plans are marketed to consumers."

Many pro-regulatory advocates also have criticized mobile providers for offering free data services instead of offering unlimited data plans. But as I stated in a February 2017 blog, it was not until FCC Chairman Ajit Pai ended the investigation of free data services and established an environment of permissionless innovation that mobile providers were willing to offer unlimited data plans. Of course, with permissionless innovation in a dynamically competitive marketplace, Verizon has tripled its consumer-friendly options for unlimited data plans.

In general, more options for unlimited data plans, as well as free data services, give consumers the freedom to choose the option which best fits their preferences and cost allocations. This type of marketplace freedom spurs consumer demand for online content and encourages additional innovation and investment in broadband networks.

Senator Cruz Asks FTC To Not Regulate the Sharing Economy

On Friday, July 17^th, Senator Ted Cruz sent a letter to FTC Chairwoman Edith Ramirez asking the Commission to reject requests from Members of Congress and incumbent businesses to apply regulations to the sharing economy. Senator Cruz stated that burdensome regulations would restrict competition in the sharing economy which “offers consumers enormous freedom and economic potential.” He also declared the following: “In a number of instances, and in a number of states, pre-existing regulatory regimes have been extended to new entrants in ways that may ultimately deprive consumers of significant cost savings and convenience that would otherwise accompany an expanded sharing economy.”

Free State Foundation Scholars submitted comments to the FTC before its June 9^th workshop regarding the sharing economy. (See this Perspectives from FSF Scholars on the 8 takeaways from the workshop.) We commend Senator Cruz for encouraging the FTC to promote permissionless innovation, marketplace freedom, and consumer choice within the sharing economy.

FSF Scholars Submit Comments Regarding FTC’s Sharing Economy Workshop

On May 26, 2015, Free State Foundation (FSF) Scholars submitted comments to the Federal Trade Commission (FTC) for its upcoming June 9^th workshop regarding competition, consumer protection, and economic issues raised by the “sharing economy.” FSF Scholars make several key points about the sharing economy’s positive impact and what the government’s ultimate role should be.

First, the sharing economy’s positive impact is one of fostering innovation, creating value, and providing cost savings options for consumers. From a recent PWC survey, 86 percent of U.S. adults who are familiar with the sharing economy agree that it makes life more affordable and 83 percent agree that it makes life more convenient and efficient. Further, the sharing economy is particularly beneficial for low-income consumers. As stated in a FSF blog, the sharing economy has shifted consumer preferences from owning to renting, and the additional benefits and savings low-income consumers accumulate from this shift has a substantial impact on their standard of living.

Second, as discussed in a Perspectives from FSF Scholars entitled “The Sharing Economy: A Positive Shared Vision for the Future,” the emergence and success of the sharing economy is unequivocally due to marketplace freedom and “permissionless innovation.” The lack of barriers to market entry (such as regulatory costs, licenses, and start-up fees) has enabled companies like Airbnb and Uber to quickly emerge and provide their services in many cities and towns throughout the world.

Third, fear of competition is not a valid basis for regulation. Traditional legacy businesses (such as hotel companies or taxicab commissions), which compete with sharing economy applications, argue that such emerging companies should be subjected to the same level of regulations and taxes. FSF Scholars argue that the best way to “level the playing field” is to deregulate down by eliminating old and unnecessary regulations, not regulate up. Unnecessary regulations can often be captured by well-established companies or applied in a discriminatory way by policymakers, leading to government picking winners and losers instead of consumers.

Lastly, sharing economy markets have efficient self-regulating mechanisms. Many sharing applications have online rating systems and feedback information in order to keep both buyers and sellers accountable and transparent. Other things like insurance policies and immediate payment systems help mitigate risk. FSF Scholars believe that by allowing for free-market innovation to flourish, competition - which we believe is the best form of regulation - will thrive. In competitive markets, sharing economy applications and its users have the incentive to provide friendly, safe, and healthy environments, because consumers will choose better alternatives if they do not.

FSF Scholars are very optimistic about the future of the sharing economy and all that it could possibly accomplish. Much of it is unknown and yet to be discovered, so we hope that policymakers at the FTC and at state and local levels presumably favor marketplace freedom over regulation.

Permissionless Innovation - Adam Thierer's Newest Book

Adam Thierer's latest book is titled, "Permissionless Innovation," a subject about which Adam has written knowledgeably for years.

In his book, Adam contrasts public policy shaped by “precautionary principle” reasoning, which he says poses a serious threat to technological progress, economic entrepreneurialism, and long-run prosperity, with “permissionless innovation." According to Adam,  permissionless innovation has been the secret sauce that fueled the success of the Internet and much of the modern tech economy in recent years, and it is set to power the next great industrial revolution—if we let it.

I  heartily recommend this book to you, despite two "disclaimers." First, Adam is a former colleague of mine and present friend. Second, I haven't even had a chance to read the book yet.

No matter, really. I know Adam well enough -- and I know he knows the subject matter well enough -- that I am confident it will be a worthwhile read. Even more than worthwhile.

So, again, here is the link to the book.