Deregulation

FOR IMMEDIATE RELEASE, March 23, 2017, Contact:  Scott Cleland 703-217-2407

FCC Chairman Pai’s Proposal to Deregulate Competitive Business Data Services Will Accelerate Private Investment and Deployment of Fiber & 5G Gigabit Mobile Broadband      

WASHINGTON D.C. – The following may be attributed to Scott Cleland, Chairman of NetCompetition:

“Kudos to FCC Chairman Pai for clearly understanding the business, economic, and investment, realities and challenges, of multi-billion dollar private investments in infrastructure; and purposefully organizing the FCC to better encourage broadband infrastructure deployment quickly to be part of the solution to America’s economic growth and job creation needs.

“Chairman Pai knows one of the best ways for the FCC to promote private investment in infrastructure and advance 5G broadband innovation is to encourage facilities-based broadband competition in the business market, by permanently stopping FCC rate regulation of the long, fully-competitive, fiber-based, business data market, and ending most all FCC rate regulation of the antiquated copper-based business data market, except in the minority of counties or areas where there still may be insufficient competition.”

“Let the investing, building, and deploying of the Nation’s next generation, fiber and 5G broadband networks begin -- soonest!”

NETCompetition.org is a pro-competition e-forum representing broadband interests.

Here is my latest The Hill op-ed on How “Outdated Telecom Law Poses a Challenge for Agit Pai’s FCC.”

• It explains what is NOT a modern FCC.
• It’s also part 26 of my Modernize Obsolete Communications Law Series. (See below.)

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Modernize Obsolete Communications Law Series

Please don’t miss my new The Hill op-ed: “Reason Will Eclipse Politics when GOP Takes Over FCC Jan. 20.”

In the wake of a generally-unexpected election outcome, most everyone in the Internet space is grasping to understand the implications of an all Republican-led government and a Trump FCC, on their key issues. 

The purpose of this analysis is to spotlight and explain the most predictable changes to expect. By design, it is not comprehensive, because some issues are naturally less predictable than others.

To be most accurate, this analysis will be high-level and strategic, not detailed and tactical, because the “what” and the “why” here are more predictable at this early stage than the specific “how,” “when,” and “who” -- for obvious practical reasons.

I. Why are some issues very predictable at this early stage?

First, the simple, hiding-in-plain-sight, premise here, is the process/values clarity and predictability that naturally flow from unified one-party control of the levers of government.

This is the fourth time in eighteen years there will be unified one-party control of government: the Democrats had it 1993-94 and 2009-10; and Republicans had it 2003-06 and now in 2017-18. History confirms the high-level strategic predictability of one-party control of the levers of government.

The FCC’s approach to special access is all wrong because they should be doing the exact opposite of what they are doing. The FCC should be price de-regulating special access, not signaling increased micro-regulation of special access rate terms and conditions.

Like an ostrich, the FCC has its head hidden in the sand on its approach to special access regulation, hoping that no one notices that the rest of its body is fully exposed.   

If the FCC can convince everyone to join them and put their heads in the sand too, and to look at special access regulation in the dark of self-defined isolation, and ignore the broader context of the competitive U.S. communications sector visible all around them, the FCC has a reasonable chance of sounding reasonable.

However, if anyone has their head out of the FCC’s regulatory sandpit and looks around for a moment at special access regulation in the broader context of the real world, more special access regulation looks ridiculous, just like the exposed back-end of an ostrich does when it hides its head in the sand.  

FCC staff just muffed an easy opportunity to advance the IP transition on the FCC’s timetable in the National Broadband Plan.

Apparently FCC staff missed the big picture here.

1. On November 25^th, AT&T proposed a baby step forward in the IP Transition.

AT&T did not propose any change in special access rates. AT&T simply proposed that its special access contract term-lengths, synch up with the FCC’s own goals for when the IP transition should be complete.

Instead of promoting investment certainty -- by respecting its own IP transition timetable that the private sector has come to rely on for infrastructure investment planning -- FCC staff announced an unnecessary five-month investigative delay.  

Please don’t miss my latest Daily Caller op-ed “Why Chairmen Upton/Walden Plan a Communications Act Update” – here.

The op-ed provides a foundational answer to both:

• Chairman Upton/Walden’s organizing question: “…is this working for today’s communications marketplace?” and
• Representative Dingell’s core question: What is the need for change?

This is Part 21 of my Obsolete Communications Law Series.

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FYI: See additional background below: two key PowerPoint presentations & my Obsolete Communications Law Series.

Please don’t miss my new white paper:  A Modern Vision for the FCC: How the FCC Can Modernize its Policy Approaches for the 21^st Century (here/PDF).

• It is the first comprehensive review of FCC policy and vision through the lens of what is modern vs. what is nostalgist.
• Please don’t miss the first slide, a chart that concisely defines modern vs. nostalgist FCC visions.
• My recommendation -- A Modern FCC Policy Agenda -- is near the end of this post.    

NetCompetition Capitol Hill Event:

Economic rationality, competition, and broadband pricing freedom are the big winners, and common carrier-like net neutrality was the big loser, if the Appeals Court panel decides Verizon v. FCC as expected.

Monday’s intense tag-team grilling of the FCC’s lawyer by Judges Tatel and Silberman left most observers thinking the Court will decide it is illegal for the FCC to impose common-carrier-like regulation on broadband providers -- regardless of what else they decide.  

For those who have been following my Obsolete Communications Law Series, and those interested in an outstanding and more in-depth free-market analysis of the many communications matters that demand modernization for the digital age, please don't miss: Communications Law and Policy in the Digital Age -- The Next Five Years, edited by Randy May of the Free State Foundation.

• One can get it on Amazon here.

The important work and views of Randy May, Rep. Marsha Blackburn, Seth Cooper, Christopher Yoo, James Speta, Michelle Connolly, Daniel Lyons, Ellen Goodman, and Bruce Owen are a must read for those who want to learn how we can vastly improve current obsolete and increasingly dysfunctional communications law and policy in the United States.

Kudos for an important book well done!