Congress recognized the need for change in the set-top box market when it enacted Section 629 of the Telecommunications Act, but FCC’s attempts to meet Congress’s objectives have been unsuccessful. market and have controlled comparable market shares for many years. Of the three main categories of broadband devices-mobile devices, personal computing devices and set-top boxes-set-top boxes is the category with the least competition: two manufacturers control more than 90% of the U.S. Section 4.2 addresses devices, with a particular focus on set-top boxes. All are crucial for enabling competition in the small business and enterprise customer segments, in mobile services and in deployment of services in high-cost areas. Third, it focuses on competition in the wholesale broadband market-including issues associated with high-capacity circuits, copper retirement, interconnection and data roaming.

Increased transparency will likely drive service providers to deliver better value to consumers through better services. Second, it makes recommendations intended to ensure that consumers have the information they need to make decisions that maximize benefits from these services. First, it addresses the state of competition in residential broadband and makes recommendations to bolster consumer benefits by developing data-driven competition policies for broadband services. Section 4.1 approaches network competition in three ways. Then it addresses competition for value across the ecosystem, the transition from a circuit-switched network to an all-Internet Protocol (IP) network and the leveraging of the benefits of innovation and investment internationally. First, it discusses each of the three elements of the broadband ecosystem-networks, devices and applications. This chapter examines innovation and competition in the broadband ecosystem.

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