The FCC Says Net Neutrality Cripples Investment. That's Not True

Federal Communications Commission Chairman Ajit Pai says the agency's net-neutrality rules are discouraging investment, leaving consumers with fewer, and less robust, choices for internet service, and potentially widening the digital divide. Broadband providers' own financial reports tell a different story. The nation's largest internet provider actually increased its spending during 2015 and 2016, as did several other companies. Others cut spending, but said the drops stemmed from completion of longer-term plans. The shifts highlight the challenge of determining the cause and effect of spending changes, which reflect corporate need, technological change, cost-saving innovation, and shareholder pressures, as well as regulations. There’s another consideration as well. The FCC says repealing the net-neutrality rules will remove “regulatory uncertainty” for broadband providers, and encourage them to boost spending. But the proposal will increase uncertainty for other internet companies, most notably small content providers, who may face stiff fees to distribute their work—and in some cases may not even try.