Remarks of FCC Commissioner Pai at AEI on Decline in Investment following Title II Order

Capital expenditures by major wireline broadband providers plunged 12 percent in the first half of 2015 compared to the first half of 2014. Only twice before have broadband service providers' capital expenditures fallen on a year-over-year basis: following the dot.com bust in 2001 and the Great Recession in 2008. What's responsible for the recent drop in infrastructure investment? There's no disruption in the overall economy to blame. Instead, it's the Federal Communications Commission's decision to capitulate to President Barack Obama's demands and impose Title II public utility regulation upon the Internet that is playing a large role.

During the debate over imposing public utility regulation upon broadband providers, supporters of President Obama's plan repeatedly claimed that Title II regulation wouldn't harm infrastructure investment. And I have no doubt that they desperately hoped for their forecast to come true. The facts and evidence strongly indicate that the FCC's decision to impose public utility regulation upon the Internet is slowing infrastructure investment and broadband deployment. To many, this does not come as a surprise. We said as much then and we say so now. But it is nonetheless a disappointment for all Americans who want faster Internet speeds, more competition, and more digital innovation. And it is another reason why the United States should abandon this politically-driven scheme and return to the bipartisan consensus that helped make our Internet economy the envy of the world.