Pai Wrong on Economic Effects of Net Neutrality Order, Free Press Says

“There is an acute need to put these public facts in the record in response to statements from Commissioner Pai, who has inaccurately suggested on several occasions that ‘growth in broadband investment has flatlined,’” Free Press said in the letter. “With 2015 results now available, we can say ISP capital expenditures were higher in 2015 than 2014 despite the completion of several major upgrades in 2014.” Pai repeated the comments in March 2 Senate testimony (see 1603020051), Free Press said. “We can take away different meanings from a set of data, but it is dangerous when a sworn representative of the people is willing to invent his own data in order to conform to his worldview,” the group said. “Free Press’s view is that in today’s weak-duopoly market -- where cable continues to enjoy insurmountable natural monopoly advantages -- the biggest issue facing the Commission is how to reduce consumer harms resulting from ISPs exercising market power.” The group also updated an earlier report, adding in recently reported financial data. Capital expenditures by publicly traded broadband ISPs increased by nearly $3 billion in 2015, 4 percent above 2014 levels, the report said. Investments by Verizon Wireless, Sprint and T-Mobile were up 12 percent, 42 percent and 9 percent respectively, it said. The letter and attached report were posted Wednesday in docket 14-28. “The claims made by Free Press are about as credible as Netflix’s assertions that it wasn’t throttling its own customers," responded Matthew Berry, Pai chief of staff. "For example, most of the supposed increase in capital investment comes from a year-to-year accounting change made by Sprint to its treatment of leased devices. This discredited report does nothing to change the fact that capital investment fell in the first year of the Title II era.”