More Evidence FCC Claims That Killing Net Neutrality Would Boost Broadband Investment Were Bullshit

from the someday-we-might-learn-something dept

Since the very beginning of the net neutrality debate, ISPs have repeatedly proclaimed that net neutrality rules (read: stopgap rules crafted in the absence of competition to stop giant monopolies from abusing their power) utterly demolished broadband sector investment. It was a primary talking point during the battle over the 2010 rules, and was foundational in the Ajit Pai FCC's arguments justifying their hugely unpopular and fraud prone repeal.

Time after time after time, big ISPs and the politicians paid to love them insisted that the rules had crushed sector investment, and repealing them would result in a massive spike in broadband investment. It was a line repeated again by Pai during an FCC oversight hearing in 2018 (for those interested he wasn't under oath, which applies only to Judiciary hearings):

"Under the heavy-handed regulations adopted by the prior Commission in 2015, network investment declined for two straight years, the first time that had happened outside of a recession in the broadband era...we now have a regulatory framework in place that is encouraging the private sector to make the investments necessary to bring better, faster, and cheaper broadband to more Americans."

The problem: a mountain of data continues to make it extremely clear that none of this was ever true.

Numerous studies, earnings reports, and CEO statements had already demolished the claim, yet like a relentless zombie, it simply refuses to die. To this day it remains a core talking point of the outgoing Ajit Pai FCC, most telecom lobbyists, and the absolute army of think tankers, consultants, and academics employed by incumbent telecom giants to pretend the U.S. broadband market is healthy and competitive.

This week, S&P Global took a closer look at U.S. network investment numbers and found, once again, that claims that repealing network neutrality boosted investment to be bullshit. In fact, the firm found that annual investment in fixed U.S. broadband networks is poised to have dropped 7 percent since 2016:

Granted the telecom sector has been in the U.S. government's driver's seat under the Trump administration. In just four short years the industry successfully had broadband privacy rules killed (thanks to GOP Senators), net neutrality rules killed, FCC authority over telecom monopolies kneecapped, and the sector received billions in tax breaks in exchange for doing absolutely nothing. The telecom sector even managed to convince most of DC that "big tech" monopolies are the only monopolies in tech worth worrying about. All in all, a pretty good four years for one of the least liked, least competitive sectors in U.S. industry.

All of this industry ass kissing would, to hear industry and loyal lawmakers tell it, boost network investment, increase employment, and drive more innovation and competition to market. None of that happened. Why? Because when you eliminate all meaningful oversight from a broken, monopolized sector, the companies involved simply double down on the same bad behaviors (layoffs, price hikes, less investment in infrastructure and customer support). Yet for whatever reason, we cling desperately to "free market" narratives that don't apply to a broken sector that sees little real competition and has an unrelenting political stranglehold on both state and federal leaders. No competition and no oversight means more of the same problems.

Of course the sagging investment, eroded regulatory authority, and tens of thousands of layoffs come just as a raging pandemic showcases how broadband (and objective federal leadership on broadband) is more essential than ever. And cocksure policy pundits or campaign-contribution-slathered lawmakers won't learn much of anything from the experience, because there will be absolutely no penalty whatsoever for pushing bullshit narratives or relentlessly kissing the ass of a broken, monopolized market.

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Filed Under: ajit pai, fcc, investment, net neutrality


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  • identicon
    Capt. Obvious, 20 Nov 2020 @ 6:40am

    ""Under the heavy-handed regulations adopted by the prior Commission in 2015, network investment declined for two straight years"

    and of course, said decline in investment is due solely to the aforementioned heavy handed regulations. There are absolutely no other factors that could have even remotely affected the investment activities of millions of investors worldwide.

    LOL, and you want to be my latex salesman.

    reply to this | link to this | view in chronology ]

  • icon
    Thad (profile), 20 Nov 2020 @ 7:44am

    Numerous studies, earnings reports, and CEO statements had already demolished the claim, yet like a relentless zombie, it simply refuses to die.

    "Truth isn't truth."
    - Rudy Giuliani

    reply to this | link to this | view in chronology ]

  • identicon
    Not THAT AC, 20 Nov 2020 @ 8:55am

    "Measuring direct investment isn't a good indicator, because we're spending the money more efficiently and getting much better value. you need to look at the improved outcomes to get the real picture.

    Oh ... wait"

    reply to this | link to this | view in chronology ]

  • identicon
    Anonymous Coward, 20 Nov 2020 @ 8:56am

    Pai is gone in 2 months. Like his orange sponsor and so many other absolutely worthless people. Their days, months, years of national skullfuckery are coming to an end. Hopefully some sanity will be restored to all of their offices and we can finally stop getting pissed off every time we read an article about the FCC or any other government organization.

    reply to this | link to this | view in chronology ]

  • icon
    Shel10 (profile), 20 Nov 2020 @ 8:58am

    Ajit Pai certainly has a lot to get out of his system. He must spend alot of money on toilet paper.

    reply to this | link to this | view in chronology ]

  • identicon
    Anonymous Coward, 20 Nov 2020 @ 9:05am

    Because telling the truth these days is highly overrated.

    Let's face it, the only telecom investment Pai is interested is the investment they make in...him.

    reply to this | link to this | view in chronology ]

  • identicon
    Anonymous Coward, 20 Nov 2020 @ 10:09am

    pai has to go to stand a chance of taking control of everything back from the bosses and friends to the people, where it not only should be but should stay for all time! however, from what i read just a few days ago, the person tipped to take his place is an even bigger advocate for removing everything from the people and giving industries, corporations, companies and rich/powerful individuals the right to do whatever the hell they want that is to their benefit in every way possible! that means 'watch your backs'!!

    reply to this | link to this | view in chronology ]

    • icon
      James Burkhardt (profile), 20 Nov 2020 @ 10:56am

      Re:

      And that person is? The FCC transition team was revealed a few days ago, but I see a lot of conflicting predictions as to who Biden will nominate to head the FCC.

      reply to this | link to this | view in chronology ]

  • identicon
    Anonymous Coward, 20 Nov 2020 @ 4:30pm

    So has anyone else noticed how quiet Richard Bennett has been, or was there an obituary I haven't heard about?

    reply to this | link to this | view in chronology ]

  • icon
    That Anonymous Coward (profile), 20 Nov 2020 @ 5:15pm

    Wait until someone pitches this the right way...
    Telling Conservatives that their poor followers are being censored in much worse ways by BigTelco.
    Its none thing to think Twitter is hiding posts, but how much more of a crime is it when BigTelco won't even let you have the seat at a table at any price, despite all citizens paying into a massive fund to connect everyone thats only ever paid for trips for BigTelco ownership.
    These BigTelco bastards are SILENCING the true americans in fly over country while enjoying handout from the government.

    reply to this | link to this | view in chronology ]

  • This comment has been flagged by the community. Click here to show it
    identicon
    Wutsinterweb, 22 Nov 2020 @ 7:28am

    No credibility

    I used to trust KB's articles. But after he false-flagged himself in the FCC net neutrality database comments for public attention a couple years ago he's lost all credibility with me. It's now just an obsession.

    reply to this | link to this | view in chronology ]

  • identicon
    Dave, 23 Nov 2020 @ 10:55am

    Does anyone have a definition of 'net neutrality' that is both meaningful and doesn't contradict the actuality of how the internet works?

    There doesn't seem to be any understanding of the relevant technologies. The internet isn't neutral, never has been neutral, and cannot be made neutral. It is literally impossible to prevent people having different connectivity or hosting capability.

    reply to this | link to this | view in chronology ]


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