FCC Commissioner Pai Is Dead Wrong on Investment and Net Neutrality

[Commentary] In a speech on Feb 26, Commissioner Ajit Pai of the Federal Communications Commission claimed that investment by larger Internet service providers had “flatlined” since the agency passed its Open Internet Order protecting Network Neutrality in February 2015. Commissioner Pai cited an industry-funded economist’s tweet to support his claim. The tweet draws on selective data that excludes certain investments from the actual total reported by the companies in their regulatory filings. To show actual investment numbers, Free Press released analysis demonstrating that broadband-industry capital expenditures increased in 2015. Free Press’ analysis is based on a thorough review of these companies’ public statements as well as their quarterly and annual reports to the Securities and Exchange Commission.

Free Press Research Director S. Derek Turner made the following statement: “The broadband industry’s apocalyptic predictions about how the adoption of enforceable Net Neutrality rules would destroy the market have failed to materialize in the year since the FCC’s historic vote. Network investment is up. Revenues and profits are higher. And subscriber growth continues at a high level even as prices rise and the market nears saturation...Despite these facts, certain dead-enders like FCC Commissioner Ajit Pai are still peddling the false claim that broadband investment has flatlined and are still blaming the FCC’s Net Neutrality rules for this imaginary result."