Commissioner Notes Lack of Broadband Investment

FCC Commissioner Ajit Pai this week noted that investment in broadband infrastructure is down in 2015, and he pointed to the FCC’s net neutrality order as a significant culprit.  In a speech at the American Enterprise Institute, Commissioner Pai highlighted research showing a 12 percent drop in capital expenditures by wireline broadband providers in the first half of 2015.  He commented, “This decrease represents billions of dollars in lost investment and tens of thousands of lost jobs. And it is quite atypical. Only twice before have broadband service providers’ capital expenditures fallen on a year-over-year basis: following the dot-com bust in 2001 and the Great Recession in 2008.”  Commissioner Pai suggested that this should come as no surprise, and cited the example of Europe as it delved into regulating the Internet.  He concluded, “I worry that a wave of meddlesome and heavy-handed FCC intervention into the marketplace, of which Title II is just one crest, is impeding investment and innovation.”

NRB opposed the partisan FCC vote imposing new heavy-handed regulations on the Internet. In February, Dr. Jerry A. Johnson, President & CEO of NRB, stated, “Bigger government is not fertile ground for the flourishing of free speech and innovation. This is a power grab, and NRB opposes it.” 

By Aaron Mercer, Vice President of Government Relations

Published: September 11, 2015

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