Dive Brief:
- FCC chairman Ajit Pai called net neutrality a "mistake" and reiterated his plans to reduce FCC regulation during a speech at the Mobile World Congress Tuesday. Pai said net neutrality "injected tremendous uncertainty into the broadband market. And uncertainty is the enemy of growth."
- The U.S. saw the first decline in broadband investment following the Obama administration's implementation of net neutrality rules, Pai said. According to USTelecom's annual broadband investment research report, broadband providers' capital expenditures dropped $1 billion in 2015, though some experts downplay the significance of that number.
- President Donald Trump named Pai FCC chair in January. Pai has been an outspoken critic of net neutrality rules.
Dive Insight:
Net neutrality rules prevent internet access providers from slowing access to web content. Content companies such as Netflix and Google generally support net neutrality, while companies that offer the bandwidth generally don’t. But net neutrality rules also benefit cloud service providers and other organizations transferring large quantities of data.
A Spiceworks survey released last month found more than eight in 10 IT pros in the U.S. are in favor of keeping current net neutrality regulations in place. Additionally, 78% fear a repeal would give too much power to ISPs and 68% fear any changes could affect revenue at their organization.
Pai has not detailed his plans to reverse the rules, but getting rid of net neutrality would require an administrative process.
