When Trump FCC Chairman Ajit Pai cheated his way to a repeal of Net Neutrality, he justified allowing ISPs to decide to slow down the services you want to use by saying that doing so would encourage investment in network buildout, saving America from its sad status as one of the most expensive, slowest places to use the internet in the rich world.
But after a full year of neutracide, Comcast has made a liar out of Ajit Pai, reducing infrastructure spending by 3% in 2018, according to the company's latest earnings report.
Charter and Verizon are also expected to announce lowered capital expenditures for 2018.
Comcast's network spending should have risen in 2018 if predictions from Federal Communications Commission Chairman Ajit Pai and Comcast had been correct. Pai's net neutrality repeal took effect in June 2018. But the vote to repeal net neutrality rules was in December 2017, and Pai claimed in February 2018 that the repeal was already causing increased broadband investment.
Broadband industry lobby group USTelecom also claimed that network investment grew in 2017 because of the anticipated net neutrality repeal and other deregulatory moves. In December 2017, Comcast said the net neutrality repeal would allow for "more competition in the marketplace and increased investment and innovation."
Yet Comcast cable capital expenditures dropped year over year in each of the first three quarters of 2018. The expenditures did rise year over year in the fourth quarter, from $2.15 billion to $2.32 billion, but it wasn't enough to offset the full-year decline.
Sorry, Ajit: Comcast lowered cable investment despite net neutrality repeal [Jon Brodkin/Ars Technica]
(Image: Ildar Sagdejev, CC-BY-SA)
When Trump FCC Chairman Ajit Pai used fraud and skullduggery to kill net neutrality, he promised that clearing away the allegedly burdensome regulation of delivering the data your customers request would finally spur investment in America's worst-of-bread, ancient network infrastructure.
Frontier is the bottom-rung of the top-tier of US ISPs, serving customers in 29 states. Despite enjoying monopoly control over its customers' online lives, and despite massive government handouts and a lackadaisical approach to maintenance, and despite out-and-out theft from customers, the company is filing for bankruptcy, having accumulated $16.3b in debt through mismanagement.
Comments filed with the FCC by AT&T, Frontier, Windstream and Ustelcom (an industry group representing telcoms companies) have asked the FCC to change the rules for its next, $20.4 billion/10 year rural broadband subsidy fund to allow them to offer slower service than the (already low) speeds the FCC has proposed.
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