Regulatory predictability, not just “certainty,” is key to investment in...
Regulatory predictability, not just “certainty,” is key to investment in broadband, the Phoenix Center says in a new study (http://xrl.us/bnqmqi). “The effective stimulus of broadband investment requires regulators not only to make prudent decisions today, but also to signal to…
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investors that the future is a favorable investment climate and, if possible, to make inter-temporal commitments to particular regulatory paradigms,” the paper said. “The FCC frequently claims that reducing regulatory uncertainty improves investment incentives, but the agency is wrong,” said center Chief Economist George Ford. “The question is not just about certainty, but what are providers more certain about? If providers become more certain that regulation will reduce future profitability on network infrastructure, then regulation reduces investment incentives. Unquestionably, the FCC’s aggressive regulatory approach has signaled an unfavorable climate for network investments."