Net Neutrality And Your Internet Service Provider: An Investment Story

Net Neutrality And Your Internet Service Provider: An Investment Story


Here at Internet Association we believe in enforceable net neutrality rules —like the ones currently on the books— that let consumers —not ISPs— decide which services are best. What are ISPs saying about net neutrality? Well it depends who they’re talking to. In 2014 AT&T told the FCC that the net neutrality rules we currently have in place would “abruptly stall the virtuous circle of investment.” But in January AT&T played a different tune. “Moving to cash flows we had
more than $39 billion in cash from operations for the full year. That’s a record for us. This allowed us to return substantial value to the shareholders through dividends. While also investing more in capital than we ever had before.” And he added: “Our fiber buildout continues to be a great story. So as our fiber deployment
accelerates, we’re excited about this growth opportunity.” And Comcast? In 2014 they told the FCC that net neutrality will “stifle capital investment” and “deter network investment and innovation” But this year Comcast had a sunnier story for investors. “Through consistent investment and innovation we offer the best broadband product on the market. We double the capacity of our network every 18 to 24 months…” “…these investments enhance our competitive position, allowing us to continue to take advantage of opportunities to grow penetration and marketshare…” That doesn’t exactly sound like network investment has been stifled. And what about Verizon? In 2014 they told the FCC “inflexible net neutrality rules would undercut the innovation and investment that characterized today’s internet.” But this year? They announced a billion dollar long term investment in fiber. “Earlier this week we announced a strategic agreement with Corning with whom we have a long relationship to supply optical fiber and hardware solutions of at least $1.05 billion dollars from 2018 to 2020.” ISPs are legally obligated to tell their investors the truth— —so which story should we believe?

Danny Hutson

4 thoughts on “Net Neutrality And Your Internet Service Provider: An Investment Story

  1. Nicely done. For more on the comments of ISP executives this is a recommended read (yes. I work for Free Press): https://www.freepress.net/press-release/108079/its-working-free-press-documents-historic-levels-investment-and-innovation-fccs

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