Several sponsored researchers have floated the notion that network neutrality and Title II common carrier regulation constitute the major reason why U.S. broadband carriers apparently have reduced capital expenditure in new and replacement physical plant. Does this pass the smell test? Is there any empirical data proving causality? Would these allegation pass muster under appropriate peer review? Let’s get one principle straight: capex in most industries primarily correlates with competitive necessity and the life cycle of sunk investments. In the U.S., wireless cellular radio companies bear the burden of streamlined Title II common carrier regulation. Such regulation has not dissuaded these carriers from sinking billion in spectrum auctions and in plant investment. The FCC swears that broadband access providers will…
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