Comcast’s Cohen: Broadband capex has declined by $3.6B under Title II

Capital expenditures by US internet service providers have declined by $3.6 billion since the Federal Communications Commission adopted its Title II regime for internet regulation in 2015, Comcast regulatory chief David L. Cohen said. Cohen’s blog posting—and the associated comments made to the FCC—continued Comcast’s push to get the now-Republican-led agency to reverse its regulations.

The capex figure was quoted from economist Hal Singer, who said the top 12 ISPs invested 5.6% less in 2016 vs. 2014, before Title II was enacted. “A CTIA study found that capital expenditures declined for wireless providers by 17.4% from 2015-2016,” Cohen added. “A study by Dr. George S. Ford found that the threat of Title II regulation between 2011 and 2015 reduced broadband investment by about 20% to 30%, or about $30 to $40 billion annually. That reduction amounts to "about $150-$200 billion over the five-year period," or the equivalent of losing an entire year’s worth of investment. Those who say investment isn’t impacted by the Title II regime “aren’t living in the real world,” Cohen also said.