Remarks of FCC Commissioner Ajit Pai On “Reforming Communications Policy In The Digital Age: A View From The FCC”

The Internet has levelled the playing field so that consumers can access the best products for the cheapest price, and anyone who wants to compete for their business can do so quickly and easily. To borrow from Adam Thierer, broadband has made it easier for entrepreneurs to innovate without first asking the government’s permission.

What makes all this digital innovation possible? Broadband infrastructure -- and a lot of it. Since the Telecommunications Act of 1996, telephone companies, cable operators, and wireless providers have invested more than $1.2 trillion to deploy broadband to the American public, with more than $68 billion invested in 2012 alone. For those keeping score, that’s one trillion dollars more than the Universal Service Fund has ever distributed, and about $60 billion more than it distributed in 2013.

Aside from the mechanics of implementing Title II, we need to ask a more basic question. Where would Title II regulation lead? One good indication is to compare the results produced by the American regulatory model to those of a more intrusive regulatory model: Europe’s. Rather than taking a light-touch regulatory approach to broadband, the European model treats broadband as a public utility, imposes telephone-style regulation, and purports to focus on promoting service-based (rather than facilities-based) competition.

Why would we ever want to abandon our regulatory model for Europe’s? Those of us who support light-touch regulation of the Internet should engage in this debate and take our case to the American people. Should a carrier like T-Mobile be able to respond to consumer demand by offering free music to its customers? We say yes, but those who support Title II regulation say no. Is it good for competition when a carrier like T-Mobile is able to differentiate itself from its competitors and offer innovative service plans? Again, we say yes, but those who support Title II regulation say no.