The Federal Communications Commission’s new regulations for Internet service providers will cause private investment to decline, according to a study by Georgetown University’s Center for Business and Public Policy.
The report states that applying new regulation could raise the cost and price of most Internet communication, reduce efficiency, and devalue investments made in those platforms. "We found that Title II regulation of [Internet service providers] could reduce their future wireline investments by between 17.8 percent and 31.7 percent per year, and their future total wireline and wireless investments by between 12.8 percent and 20.8 percent per year," the study says.
Aside from the cost, the report states that regulation brings new hurdles to innovation and entrepreneurs for new services and can "introduce delay and uncertainty into the innovation cycles for Internet-related products and services."
Michael O’Rielly, one of the FCC’s five commissioners, discussed regulatory reform at a Free State Foundation event on Tuesday in Washington, D.C.
O’Rielly said that the process of reform should center on four main factors. Reform should improve functionality, lead to greater transparency, improve legitimacy, and not undermine the authority of the majority.
"If done correctly, improving FCC’s procedures can lead to a demonstrable advancement in the information in the communications sector, and thus the U.S. economy," said O’Rielly.
"Clarity, predictability, and fair play at the Commission matter very much to the outside world. Our process can lower cost for borrowing, impact deals and mergers and improve company bottom lines which is translated to advances in innovation, increased employment and a higher standard of living for all Americans."