Pai Cites Evidence That Net Neutrality Is Harming Small Broadband Operators
FCC Commissioner Ajit Pai said the FCC's net neutrality order to "adopt President [Barack] Obama's plan to regulate the Internet" is having unintended consequences by harming small broadband providers and rural broadband deployment. He said the FCC should stay its…
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own order but doubts it will happen. In a Thursday release, Pai noted that in his dissent he had predicted that thousands of small ISPs lacked the means "to withstand a regulatory onslaught," with smaller rural competitors to be particularly affected. "Just last week," he said, "many small broadband operators declared under penalty of perjury that this is in fact the case -- that they are cutting back on investments because of the FCC's decision." He cited six examples, including KWISP Internet, which has 475 customers in northern Illinois. Because of the regulatory uncertainty and costs arising from the FCC decision, KWISP was delaying a network upgrade from 3 Mbps to 20 Mbps, other capacity upgrades to reduce congestion, and new tower construction, he said. Pai also said Wisper ISP with 8,000 customers around St. Louis estimates that its compliance costs will be equal to 10 percent of its operating revenue, and has put plans for new base stations on hold. The Small Business Administration has warned that small businesses would be unduly burdened, he said, "The FCC still has a chance to heed these calls and stay the effect of President Obama’s plan to regulate the Internet. But I doubt this will happen. That’s because moving forward with this plan isn’t about logic, the law, or marketplace facts. It’s about fulfilling a political imperative."