Trump, GOP Bringing Changes to 4 Major Telecom Areas, Levin Says

very competitive and the wired market as sufficiently competitive," benefiting AT&T and Verizon against smaller wireless players, CLECs and over-the-top edge providers. He expects a rollback of net neutrality and broadband regulatory oversight through "multidimensional chess" involving the FCC, Congress and the courts. "Rules will be rewritten around the principles of 'no blocking and no throttling,' with some forms of paid prioritization" and/or zero rating allowed, and interconnection regulation unlikely, he wrote. "The result is likely to be increased leverage in business negotiations for those with broadband distribution assets." Levin also expects "the center of gravity" to shift more toward Congress. He highlighted a potential tax bill, but noted companies could use extra after-tax income for various purposes, including broadband investment, acquisitions and rewarding investors. Lawmakers will look at a potential infrastructure bill, largely through investment tax breaks, and telecom policy legislation that could constrain regulation. Levin expects "a wave of mergers" and doesn't expect President Donald Trump to follow through on campaign threats to break up Comcast/NBC Universal and pursue Amazon on antitrust grounds. He's skeptical Trump will seek to block AT&T/Time Warner despite his campaign opposition, though he could try to influence the review. The problem is interference at the DOJ is politically dangerous and the transaction may avoid FCC jurisdiction, Levin said. "Trump may think he is going to negotiate the deal, but the way things are going, he’ll more likely end up sitting at a poker table with no cards, no chips, and no cash."