May 2017

[Commentary] Federal Communications Commission Chairman Ajit Pai stressed the importance that net neutrality protections come in the form of “light-touch regulation.” And his public notice leaves it up for tech and telecom companies to debate exactly how that might look. [To hell with broadband subscribers’ opinions.]

• What does “light touch” really mean? In short, “light touch” net neutrality could take a lot of forms, but here’s one of them: There’s a world in which the FCC doesn’t have any explicit, preemptive net neutrality rules on its books at all.
• What Pai really thinks about online fast lanes: “These don’t exist, and prior to 2015, they didn’t exist ... so we’re talking about something that’s entirely hypothetical,” he said of such deals. That means, to Chairman Pai, maybe the FCC doesn’t need to ban them outright.
• How Chairman Pai plans to approach public comments: What happens if a majority still thrashes Chairman Pai and his plan to roll back the Obama administration’s work? “Well, look, that’s part of the process. ... After that [public comment period] is over, the agency takes stock of what’s in the record.” While he said the FCC must have “substantial evidence” justifying its work, he said “there’s no numerical threshold the courts have applied” to evaluate if regulators act appropriately. And by the way, he stopped short of saying consumers’ fears are unfounded. Asked if public-interest groups had been disingenuous, he replied: “The parade of horribles trotted out have no resonance in fact.”

The Gigabit Opportunity Act, also known as the GO Act, aims to spur gigabit broadband deployment by using a range of tax breaks.

Sen Shelley Moore Capito (R–WV) said the GO Act “gives states flexibility, streamlines existing regulations and eliminates barriers to investment so we can better connect our low-income and rural communities.” The act calls for state governors to establish Gigabit Opportunity Zones that would be eligible for tax breaks including enabling companies to immediately expense the cost of gigabit-capable equipment and temporarily deferring capital gains for broadband investments and upgrades. It also directs the FCC to release a framework that encourages states, counties and cities to voluntarily adopt streamlined broadband laws, with which Gigabit Opportunity Zones would have to comply.

If this sounds familiar, that’s because the Gigabit Opportunity Act is based, in part, on a Gigabit Opportunity Zone proposal made by FCC Chairman Ajit Pai prior to his chairmanship. Not surprisingly, Chairman Pai issued a statement in support of the proposed legislation. The Gigabit Opportunity Act, he said, is “an important step toward closing the digital divide.” He added that “[w]ith targeted tax incentives and regulatory streamlining, the GO Act aims to remove the major barriers holding back internet access in economically challenged areas.” Some stakeholders argue, however, that while removing regulatory barriers and providing tax incentives can help spur broadband deployment, they are not a complete solution.