Changing How the Internet Is Regulated Probably Won't Kill It

[Commentary] One of the main arguments against reclassifying broadband as a telecommunications service is that companies facing stronger regulations will stop making capital investments in broadband. But when asked to provide evidence backing up those claims, Comcast said that it couldn’t because cable networks have never been regulated under Title II. Verizon declined to discuss the matter, saying that there is no data.

Scott Belcher, the chief executive officer of the Telecommunications Industry Association, issued a statement saying that “we saw a significant negative impact on investment the last time restrictive Title II regulation was in place, and no one will benefit from returning to that failed policy.” When a representative for the organization was asked to provide the numbers behind this claim, she sent a 2010 report forecasting lower infrastructure development if the Federal Communications Commission were to reclassify broadband under Title II at that time. (The commission decided against using Title II in its 2010 rules.) So while it’s clear that Title II legal reclassification will trigger all kinds of political and legal challenges, it’s less clear that it will cause big changes to the economics of the Internet.