The Myth of Broadband Investment "Disincentivization"

[Commentary] Some people, who really should know better, have combined one questionable statistic with an absolutely unreasonable inference. Ostensibly to bolster their argument that the Federal Communications Commission’s Open Internet Order will either enslave or impoverish carriers, sponsored researchers and one or two easily-persuaded FCC Commissioners make this unsustainable leap of faith: Wireline broadband providers have reduced plant investment following the FCC’s Open Internet Order. Therefore, the entire cause of this diminution investment results from the Order. Might there be alternative statistics that identify where the money is going and what, if anything, has caused this sudden conservation of capital?

It bears repeating time after time: competitive necessity constitutes the major catalyst for capital expenditures, including next generation network plant. Verizon knows it has to enhance the value proposition for wireless broadband. And it surely knows the lack of competition means it does not have to extend its FiOS plant, or rush to add funds to wireline technologies about which it does not care.