Phoenix Center, Free Press Continue Disagreement on Effect of Net Neutrality Rules
The fight between the Phoenix Center and Free Press intensified Tuesday, with a center paper refuting claims in a May Free Press study. Free Press said aggregate capital investments at publicly traded ISPs were 5 percent higher during the two-year…
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period after FCC commissioners' 2015 net neutrality vote than in the previous two years (see 1705150061). “Recent releases of data from USTelecom and CTIA both reveal very large reductions in capital spending by telecommunications firms in 2016,” said the report by George Ford, Phoenix chief economist. “Even a recent report by Free Press -- a zealous proponent of aggressive Internet regulation -- backs up FCC Chairman Ajit Pai’s claim that investment declined subsequent to reclassification.” Financial data “tells a consistent story about investment in 2016 -- capital spending is down, and way down,” Ford said. The center blames the 2015 order, which reclassified broadband as a Communications Act Title II service. Free Press Policy Director Matt Wood questioned in an email whether the Phoenix Center report makes sense. “Just look at their AT&T section,” Wood said. “They claim that we did not account for DirecTV, but in fact we did. Perhaps George didn't have the stamina or the brainpower to read our full report.” Free Press reported AT&T spending declined temporarily after the 2015 vote because the company completed a massive upgrade in 2014, Wood said. “We haven't accused the ISPs of misleading the FCC, because NONE OF THEM tell the FCC or their investors that Title II had any impact on their investment.” Free State Foundation submitted a filing Tuesday in docket 17-108 including recent papers by FSF Senior Fellow Theodore Bolema: “Too Much Unnecessary Regulation Is Impeding Telecom Investment” and "Allow Paid Prioritization on the Internet for More, Not Less, Capital Investment."