A Review of the Internet Association’s Empirical Study on Network Neutrality and Investment

In a recent paper published by the Internet Association, a trade group representing Internet edge companies, Dr. Christopher Hooton commented on my earlier work on the investment effects of the Federal Communications Commission’s Open Internet regulations. In addition, Dr. Hooton presents his own empirical study of investment effects, concluding that his analysis indicates “no (negative) impact from either the 2010 or 2015 [Net Neutrality] actions.”

Dr. Hooton’s conclusions differ materially from my research, which finds large negative impacts on telecommunications infrastructure investment following the FCC’s regulatory actions in 2010 and 2015. As for Dr. Hooton’s criticism of my work, I demonstrate why they are invalid. Moreover, I will consider Dr. Hooton’s own empirical contribution on the investment effects of Net Neutrality regulation. While Dr. Hooton’s analysis is fatally flawed (as he admits), his work is important in a few respects.