Federal Communications (FCC) Chairman Ajit Pai has presented new net neutrality guidelines by reversing the FCC’s 2015 decision – earlier supported by President Barack Obama — to apply Title II utility regulation to broadband.

FCC has presented the new set of net neutrality guidelines to support the growth of broadband in the U.S. Telecom operators such as Verizon said it would support the new net neutrality guidelines by FCC.

Broadband sector suffered in two years

FCC in a note said broadband related infrastructure investment declined. Among 12 largest Internet service providers, domestic broadband capital expenditures decreased 5.6 percent, or $3.6 billion, between 2014 and 2016, the first two years of the Title II era. It is the first time that such investment has declined outside of a recession in the Internet era.

KWISP Internet, which serves 475 customers in rural northern Illinois, delayed its plans to upgrade its network and increase consumers’ speeds from 3 Mbps to 20 Mbps.

Wisper ISP, a provider that serves 8,000 customers around St. Louis, Missouri, also cut back its investments, resulting in slower speeds.

FCC said 22 small ISPs, each of which has about 1,000 broadband customers or fewer, told the FCC that the Title II Order had affected their ability to obtain financing.

Nonprofit Free State Foundation says Title II has cost $5.1 billion in broadband capital investment.  Title II has already cost approximately 75,000 to 100,000 jobs.

The FCC note did not talk whether big telecom / cable operators such as Comcast, DISH, AT&T, Verizon, among others reduced their broadband investment or not.

New net neutrality

Ajit Pai said his plan to restore Internet Freedom by repealing Obama-era Internet regulations will benefit all Americans.

# It will spur broadband deployment throughout the country and thus bring better, faster Internet service to more Americans

# It will create jobs by putting Americans to work deploying broadband networks and by creating the networks and online opportunities necessary for additional job growth

# It will boost competition and choice in the broadband marketplace

# It will secure online privacy by putting the FTC back in charge of broadband providers’ privacy practices

# It will restore Internet Freedom by ending government micromanagement and returning to the bipartisan regulatory framework that worked well for decades

Chairman Ajit Pai’s proposal will be made available for the public’s review before the FCC votes. In 2015, FCC kept the text of its 313-page regulatory plan secret until after the Commission had voted.

How FCC wants to fix net neutrality

First, FCC is proposing to return the classification of broadband service from a Title II telecommunications service to a Title I information service.

Second, FCC is proposing to eliminate the Internet conduct standard. This 2015 rule gives the FCC a roving mandate to micromanage the Internet.

Verizon comments

Verizon supports net neutrality policies that protect an open internet without discouraging competition and slowing job-generating investments.

“We support Chairman Pai’s proposal to roll back Title II utility regulation on broadband. Title II (or public utility regulation) is the wrong way to ensure net neutrality; it undermines investment, reduces jobs and stifles innovative new services,” said Kathy Grillo, Verizon senior vice president and deputy general counsel, public policy and government affairs.

Baburajan K
[email protected]