COMM 132 MIDTERM EXAM STUDY SET WITH COMPLETE
SOLUTIONS!!
What do regulations essentially do to corporations? - ANSWER Cut profits by directing
them away from what they'd do naturally
How does competition impact content or technological development? (what the right
claims) - ANSWER The political right would claim that if an organization publishes
content that is unsavory, the public will naturally punish them. Gov intervention is NOT
needed.
Ex: "Bad Apples" If 3 people sell apples and 2 of them are found to be selling bad apples,
consumers will naturally turn to the person selling good apples
Is most FCC policy nowadays "content regulation"? - ANSWER NO. It is mostly
distribution and infrastructure oriented.
What regulation surrounded the wire telegraph, wire phone, and radio telegraph in the
1800's? - ANSWER 1. technical standards (how items function with one another without
interference)
2. Wavelength Allocation (which frequencies you can use and how much power you can
use)
3. Government related use (making sure those signals are available and secure)
"Public Utility" model of regulation - ANSWER People began moving to the cities, where
space got very cramped. No longer is it feasible to be able to choose your energy
provider, because there would be power lines everywhere.
So..each provider was alotted a certain area...prices went up and service sucked
,These are the issues that arose: How Gov should:
1. Regulate finite resources
2. That are publicly owned
**This model is a great metaphor for the telecom industry...especially cable, where
there would only be one provider in a region and you would have no choice.
*In this circumstance, DirecTV came along in 1996 and gave people competition and
choice again.
What is the "toolkit" that Gov uses to manage competition? - ANSWER Anti-Trust Law.
*Gov may shut down large mergers
There must be some regulation, but not too much. Allow competition to do its thing, and
protect it with minor regulation.
Common Carriers - ANSWER Institutions that the gov deems Common Carriers cannot
choose which messages to transmit on the basis of content.
This began when AT&T set up telegraph lines across the country and refused to let the
Associated Press send their messages along it because they were competitors. Gov.
shut that down, declaring AT&T a common carrier.
Another example: AMTRAK
What is the perk to being declared a "common carrier"? - ANSWER The government will
subsidize your endeavors as they see fit to enlarge your reach and infrastructure.
ex: gov wants Amtrak to build rail lines into rural Montana...AMTRAK would never
, naturally do that because they would lose millions...there's nothing profitable up there.
BUT, if gov. wants it, they can pay Amtrak to make it happen.
The Evolution of Radio - ANSWER 1920's...hardware manufacturers created stations for
people to listed to so that they had incentive to buy a radio (cause who wants a device
with nothing to listen to)
BUT then...everyone has a radio...so how will you make money?
NEW RADIO that is incompatible with the old systems AND advertising (for the first time)
To monetize a system that was now stagnant.
Why was the FCC born? - ANSWER 1934, TV, FM and Radio showed the need for more
regulation.
Radio waves are finite and publicly owned.
Note that the gov does not own radio and censor everything (like many other places on
earth), rather, a system was created to manage ownership by private individuals
*today the FCC regulates pretty much anything that emits an electronic pulse
Communication Act of 1934 - ANSWER Required broadcasters to serve "public interest,
convenience, and necessity"
Essentially, this gave the FCC power over them. Note that cable is not this way...only
waves that travel through the air.
2 Views on "Public Interest" - ANSWER 1. The public interest is what interests the public
SOLUTIONS!!
What do regulations essentially do to corporations? - ANSWER Cut profits by directing
them away from what they'd do naturally
How does competition impact content or technological development? (what the right
claims) - ANSWER The political right would claim that if an organization publishes
content that is unsavory, the public will naturally punish them. Gov intervention is NOT
needed.
Ex: "Bad Apples" If 3 people sell apples and 2 of them are found to be selling bad apples,
consumers will naturally turn to the person selling good apples
Is most FCC policy nowadays "content regulation"? - ANSWER NO. It is mostly
distribution and infrastructure oriented.
What regulation surrounded the wire telegraph, wire phone, and radio telegraph in the
1800's? - ANSWER 1. technical standards (how items function with one another without
interference)
2. Wavelength Allocation (which frequencies you can use and how much power you can
use)
3. Government related use (making sure those signals are available and secure)
"Public Utility" model of regulation - ANSWER People began moving to the cities, where
space got very cramped. No longer is it feasible to be able to choose your energy
provider, because there would be power lines everywhere.
So..each provider was alotted a certain area...prices went up and service sucked
,These are the issues that arose: How Gov should:
1. Regulate finite resources
2. That are publicly owned
**This model is a great metaphor for the telecom industry...especially cable, where
there would only be one provider in a region and you would have no choice.
*In this circumstance, DirecTV came along in 1996 and gave people competition and
choice again.
What is the "toolkit" that Gov uses to manage competition? - ANSWER Anti-Trust Law.
*Gov may shut down large mergers
There must be some regulation, but not too much. Allow competition to do its thing, and
protect it with minor regulation.
Common Carriers - ANSWER Institutions that the gov deems Common Carriers cannot
choose which messages to transmit on the basis of content.
This began when AT&T set up telegraph lines across the country and refused to let the
Associated Press send their messages along it because they were competitors. Gov.
shut that down, declaring AT&T a common carrier.
Another example: AMTRAK
What is the perk to being declared a "common carrier"? - ANSWER The government will
subsidize your endeavors as they see fit to enlarge your reach and infrastructure.
ex: gov wants Amtrak to build rail lines into rural Montana...AMTRAK would never
, naturally do that because they would lose millions...there's nothing profitable up there.
BUT, if gov. wants it, they can pay Amtrak to make it happen.
The Evolution of Radio - ANSWER 1920's...hardware manufacturers created stations for
people to listed to so that they had incentive to buy a radio (cause who wants a device
with nothing to listen to)
BUT then...everyone has a radio...so how will you make money?
NEW RADIO that is incompatible with the old systems AND advertising (for the first time)
To monetize a system that was now stagnant.
Why was the FCC born? - ANSWER 1934, TV, FM and Radio showed the need for more
regulation.
Radio waves are finite and publicly owned.
Note that the gov does not own radio and censor everything (like many other places on
earth), rather, a system was created to manage ownership by private individuals
*today the FCC regulates pretty much anything that emits an electronic pulse
Communication Act of 1934 - ANSWER Required broadcasters to serve "public interest,
convenience, and necessity"
Essentially, this gave the FCC power over them. Note that cable is not this way...only
waves that travel through the air.
2 Views on "Public Interest" - ANSWER 1. The public interest is what interests the public
