FCC Chairman Pai Continues to Hide the Truth About Broadband Investment to Justify His Ideological Vendetta Against Net Neutrality

In filings about the Federal Communications Commission’s forthcoming wireless-competition report, Free Press called out FCC Chairman Ajit Pai for misrepresenting the state of broadband investment following the agency’s 2015 network neutrality ruling.

The FCC is required by statute to compile this annual report to Congress on the state of the wireless industry. The 20th annual report is the first edition to come due during Pai’s chairmanship. The report is on the docket for the FCC’s next monthly meeting, which will take place on Sept. 26. During that meeting, the commissioners will consider and then vote on adoption of the final report. Chairman Pai released the draft of this annual report earlier this month. In a recent speech at an industry conference, Chairman Pai claimed that this draft contains evidence that wireless-industry capital investment declined from 2015 to 2016. He suggested that this decline is due to the FCC’s February 2015 Title II reclassification decision and adoption of open-internet rules.

Free Press sent a letter to Pai condemning the chairman for misusing this report and “once again misleading the public” to advance his “irrational vendetta” against the Net Neutrality rules the FCC put in place during the Obama administration. “The easily verifiable truth is that wireless-industry investments peaked in 2013, as carriers completed the bulk of 4G LTE deployments,” the Free Press letter reads. “Both that peak, and the ongoing decline from it, predate the entire proceeding that led to the 2015 reclassification of broadband as a lightly regulated Title II service. What’s more, this is by no means the only years-long downturn for the wireless sector: Such periods of slower spending are natural — and, in the recent past, have likewise occurred outside of recessions.” The Free Press letter includes detailed analysis that proves that this fluctuating trend is part of a larger pattern of investment that has nothing to do with the rules the FCC adopted to prevent internet-access providers from blocking, throttling or otherwise discriminating against the online communications of internet users. The letter also notes that many previous agency reports on wireless competition specifically caution against misinterpretation of short-term investment data. Yet the draft of Pai’s report provides no such historical context — and no warnings about investment patterns.