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February 24, 2019 06:18 pm

FCC Says Gutting ISP Oversight Was Great For Broadband

Earlier this week, the FCC proclaimed that broadband connectivity saw unprecedented growth last year thanks to the agency's policies like killing net neutrality. But, as Motherboard points out, that's not entirely true. The lion's share of improvements highlighted by the agency "are courtesy of DOCSIS 3.1 cable upgrades, most of which began before Pai even took office and have nothing to do with FCC policy," the report says. "Others are likely courtesy of build-out conditions affixed to AT&T's merger with DirecTV, again the result of policies enacted before Pai was appointed head of the current FCC." Also, last year's FCC report, which showcased data up to late 2016, "showed equal and in some instances faster growth in rural broadband deployment -- despite Pai having not been appointed yet." From the report: The broadband industry's biggest issue remains a lack of competition. That lack of competition results in Americans paying some of the highest prices for broadband in the developed world, something the agency routinely fails to mention and does so again here. [...] Still, Pai was quick to take a victory lap in the agency release. "For the past two years, closing the digital divide has been the FCC's top priority," Pai said in a press release. "We've been tackling this problem by removing barriers to infrastructure investment, promoting competition, and providing efficient, effective support for rural broadband expansion through our Connect America Fund. This report shows that our approach is working." One of those supposed "barriers to broadband investment" were the former FCC's net neutrality rules designed to keep natural monopolies like Comcast from behaving anti-competitively. "Overall, capital expenditures by broadband providers increased in 2017, reversing declines that occurred in both 2015 and 2016," the FCC claimed, again hinting that the repeal of net neutrality directly impacted CAPEX and broadband investment. A problem with that claim: the FCC's latest report only includes data up to June 2018, the same month net neutrality was formally repealed. As such the data couldn't possibly support the idea that the elimination of net neutrality was responsible for this otherwise modest growth. Another problem: that claim isn't supported by ISP earnings reports or the public statements of numerous telecom CEOs, who say net neutrality didn't meaningfully impact their investment decisions one way or another. Telecom experts tell Motherboard that's largely because such decisions are driven by a universe of other factors, including the level of competition (or lack thereof) in many markets.

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