Trump’s FCC boss calls Net Neutrality a mistake

FCC chairman Ajit Pai said today that net neutrality was “a mistake” and the Commission was taking steps to turn it into a telco’s wet dream.

Pai said that net neutrality injected tremendous uncertainty into the broadband market and uncertainty was the enemy of growth.

To be fair Pai has always been opposed to net neutrality and voted against the proposal when it came up in 2015. He had been widely expected to dismantle net neutrality to allow telos to charge people what they like. Basically, Pai’s thinks that internet providers were doing just fine under the old rules and that the new ones have hurt investment.

Both of those points have been discounted. There’s little competition in the wired broadband market, and Consumerist investigated the investment claims in early 2016 and found that internet providers were estimated to spend more in the coming year.

“Today, the torch at the FCC has been passed to a new generation, dedicated to renewal as well as change. We are confident in the decades-long, cross-party consensus on light-touch internet regulation … and we are on track to returning to that successful approach,” Pai said.

He cites the commission’s approval of zero-rating schemes — this, he says, is exactly why all four carriers are now offering unlimited data plans.

This is also rubbish as zero rating isn’t involved in these plans at all. Telcos offer highly competitive unlimited data plans because the last FCC chairman kept them in a competitive environment, leaving four nationwide wireless providers and a clear set of rules for them to follow.

Pai seems to think that the FCC should do nothing unless there’s a huge market failure and that competition can preserve an open internet even without rules.

The fact that the US telcos are hardly in competition and well just use their quasi-monopoly powers to double charge heavy web users is no part of Pai’s reality.