FCC Boss Falsely Claims His Attacks On Net Neutrality Have Already Made The Wireless Sector More Competitive
from the up-is-down-black-is-white dept
Last week we watched as Verizon, a company that spent years telling users they didn't want or need unlimited data, was forced to bring back unlimited data. AT&T quickly followed suit with similar plans of its own, despite having spent years waging a not so subtle war on grandfathered unlimited connection customers. The reason for this sudden collective about-face? The continued rise of T-Mobile, which has increasingly brought something vaguely resembling competition to the wireless sector (even if non-price, often superficial competition remains the predominant law of the land).
While this was happening, we've been noting how new FCC boss Ajit Pai has been taking an axe to consumer protections, moving to gut broadband privacy rules, making it easier for prison telco monopolies to rip off inmate families, and killing efforts to bring competition to the cable box. Pai also recently killed off the FCC's inquiry into zero rating, after the former FCC stated Verizon and AT&T were using usage caps to give their own content an unfair market advantage.
If you ask industry lobbyists, this behavior makes Pai an incredible consumer champion. Apparently that narrative is very much alive in Pai's head as well. In a speech this week at the Mobile World Congress in Barcelona, Pai was quick to proclaim that he's simply returning to an era of "light-touch" regulation of telecom, one that will result in massive, unspecified benefits to all:
"We are confident in the decades-long, cross-party consensus on light-touch Internet regulation—one that helped America’s digital economy thrive. And we are on track to returning to that successful approach.
In telecom, "light-touch regulation" is code for letting AT&T, Verizon, Comcast and Charter do whatever the hell they'd like. The narrative usually goes something like this: if you free giant ISPs from the burdens of "onerous federal regulation" (like net neutrality), Utopia magically springs from the sidewalks. But as we saw during Michael Powell's tenure, this narrative is flimsy, and the blind federal deregulation of telecom only makes things worse. Why? When you let revolving door regulators like Pai and Powell run the show, their breathless dedication to industry means they intentionally overlook the lack of competition in the sector.
Eliminate functional regulatory oversight and refuse to address limited competition? The end result is... Comcast Corporation and its record-shatteringly-bad customer service, high prices, and usage caps.
But Pai took things further in his speech, actually claiming that his refusal to enforce the agency's net neutrality rules somehow resulted in a flurry of competition and a return to unlimited data:
"Earlier this month, for example, we ended the FCC’s investigation into so-called “zero-rating,” or free-data offerings. Free-data plans have proven to be popular among consumers, particularly those with low incomes, because they allow consumers to enjoy content without data limits or charges. They have also enhanced competition. Nonetheless, the FCC had put these plans under the regulatory microscope. It claimed that they were anticompetitive, would lead to the end of unlimited data plans, or otherwise limit online access. But the truth is that consumers like getting something for free, and they want their providers to compete by introducing innovative offerings. Our recent decision simply respected consumers’ preference.
The best evidence of the wisdom of our new approach is what happened afterward. In the days following our decision, all four national wireless providers in the United States announced new unlimited data plans or expanded their existing ones. Consumers are now benefiting from these offers—offers made possible by a competitive marketplace. And remember: Preemptive government regulation did not produce that result. The free market did.
That's an incredible load of nonsense. T-Mobile only still exists because federal regulators blocked AT&T from acquiring it. So in reality, it was government intervention that allowed T-Mobile to continue to exist, with the resulting competition driving AT&T and Verizon to adopt all manner of more consumer-friendly positions. It's hard work, but one needs to weigh each instance of government regulation on its merits. Insisting all regulation is good or bad is just lazy thinking, and the idea that gutting all consumer protections magically results in the telecom equivalent of Smurf village is utterly nonsensical given the industry's history.
We've also noted how zero rating has nothing to do with giving consumers "free data," though carriers have certainly conditioned consumers to think as much. Usage caps are entirely arbitrary, and are completely untethered to real-world network congestion or financial necessity. Caps and overage fees are simply glorified price hikes, and they exist as a symptom of limited competition. As competition increased, it became untenable for AT&T and Verizon to continue ignoring consumer demands, especially once T-Mobile began adding significantly more mobile subscribers than any other carrier every quarter.
The irony, of course, is that Pai was in favor of the AT&T and T-Mobile merger, which would have killed off T-Mobile's disruption entirely. He's also never seen an incumbent ISP policy idea he didn't like, and his voting history suggests he'll happily vote to approve what many expect is a looming Sprint acquisition of T-Mobile. When the resulting diminished competition from that deal results in higher prices, what's the over/under on Pai blaming himself or his love of a "light touch?"
Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.
Techdirt is one of the few remaining truly independent media outlets. We do not have a giant corporation behind us, and we rely heavily on our community to support us, in an age when advertisers are increasingly uninterested in sponsoring small, independent sites — especially a site like ours that is unwilling to pull punches in its reporting and analysis.
While other websites have resorted to paywalls, registration requirements, and increasingly annoying/intrusive advertising, we have always kept Techdirt open and available to anyone. But in order to continue doing so, we need your support. We offer a variety of ways for our readers to support us, from direct donations to special subscriptions and cool merchandise — and every little bit helps. Thank you.
–The Techdirt Team
Filed Under: ajit pai, data caps, fcc, net neutrality, unlimited data, zero rating
Reader Comments
Subscribe: RSS
View by: Time | Thread
[ link to this | view in thread ]
FCC is such a beauty...
I just cannot get over how much you guys work to get what you didn't want.
yes yes, I know... no one like being told "i told ya so!"
[ link to this | view in thread ]
[ link to this | view in thread ]
It's true that his comment briefly made the wireless sector more competitive. Unfortunately for everyone, this comment made the wireless market less competitive by the same amount, thus exactly counteracting his comment!
[ link to this | view in thread ]
[ link to this | view in thread ]
conflating different types
[ link to this | view in thread ]
Re: conflating different types
They have long included wireless (capped, expensive) and satellite (capped, expensive) as examples of the incredible wave of competition in the sector, ignoring, intentionally, the high price of both.
[ link to this | view in thread ]
Re: conflating different types
[ link to this | view in thread ]
Wrong word
[ link to this | view in thread ]
https://www.aclu.org/
https://www.eff.org/
https://www.freepress.net/
also you can set them as your charity on https://smile.amazon.com/
also write to your House Representative and senators
http://www.house.gov/representatives/find/
https://www.senate.gov/general/contact_information /senators_cfm.cfm?OrderBy=state
and the FCC
https://www.fcc.gov/about/contact
[ link to this | view in thread ]
[ link to this | view in thread ]
What....
[ link to this | view in thread ]
Re: problem
Consider that about 60% of the USA has very little expendable cash..Credit or much else..
How do we support the things we like?
It dont matter if its Jerry's kids, the Jewish foundation, ISIS, or many other things that would HELP us and make us feel good..
IF we aint got money, we cant SUPPORT MOST OF THIS..
the people that HAVE MONEY,
support the things we dont want, and have the EXCESS of money to do it, 10 times over..
Our best way is to get others to START writing letters and sending Emails..
GET people to understand, that OUR REPRESENTATIVES ARE EMPLOYEES.. And if they were PAID hourly...they would be getting MIN WAGE..
[ link to this | view in thread ]
Any one?
I think its time to SCARE them and place all of them on the CLOCK...If they arnt sitting at a desk doing SOMETHING they are NOT being PAID..
IF they arnt doing the JOB we wish, they are getting FIRED..
[ link to this | view in thread ]
[ link to this | view in thread ]
[ link to this | view in thread ]
Of course he's lying, he's a saboteur. He's not there to make the FCC work.
[ link to this | view in thread ]
pAY COMENSURTATE With??
Experience??
Knowledge??
The Subject they are in charge of??
PLEASE..
Someone tell me HOW to get this job..
High pay for WHAT??
[ link to this | view in thread ]