It's back...Net Neutrality

Today, FCC Chariman, Ajit Pai, spoke on "The Future of Internet Freedom" at the Newseum in Washington D.C.  In his remarks, he advocates reversing the 2015 classification of broadband providers as Title II common carriers back to the light-touch regulation of Title I information services.  Pai stated that "It's basic economics.  The more heavily you regulate something, the less of it you're likely to get."  The topic will be on the FCC's May 18th meeting's agenda.

Let the fireworks begin (again)!

http://transition.fcc.gov/Daily_Releases/Daily_Business/2017/db0426/DOC-344590A1.pdf

It Only Takes ONE to Tango

At today’s FCC meeting, the Commissioners voted along party lines to phase in the elimination of price caps on Business Data Services (BDS) provided by traditional phone companies if, within a county, 50% of the businesses are within a half mile of a location serviced by a competitive provider or if 75% of census blocks are served by a cable operator.  If the percent threshold is met, the market (the entire county) is deemed sufficiently competitive.

http://transition.fcc.gov/Daily_Releases/Daily_Business/2017/db0420/DOC-344487A1.pdf

The FCC Chairman, Ajit Pai, argued that “Price regulation—that is, the government setting the rates, terms, and conditions for special access services—is seductive.  Who can possibly resist the promise of forcing prices lower right now?  But, in reality, price regulation threatens competition and investment.”  Pai hopes the rule change will lure new entrants.  Opponents believe that the rule change will mean higher prices for a large number of businesses.

Let's Make a Deal

It’s looking more and more likely that the $85B AT&T-Time Warner deal will happen.  Why?  

First, President Trump seems to be less concerned about the deal than Candidate Trump did 6-months ago.  Second, the FCC, on Monday, approved Time Warner’s $70M preemptive sale of its Atlanta TV station to Meredith.  The broadcast station was the only one of Time Warner’s stations regulated by the FCC.  Had the FCC decided the review the merger, the requirement to transfer station licenses may have been an issue.  Third, the new head of the Antitrust Division of the DOJ, Maken Delrahim, does not see the merger “as a major antitrust problem” as it does not reduce the number of direct competitors in the marketplace.  This is in spite of the merger’s size and potential foreclosure issues.  

As the probability of this deal happening increases, could the announcement of others be far behind?