Week ahead: GOP weighs net neutrality fallout

by Mario Trujillo and David McCabe - 10/26/15 6:00 AM ET

House Republicans are on the lookout for any economic fallout from Internet regulations that took effect this summer.

The House Energy and Commerce subcommittee on communications and technology will hear from four economists Tuesday on the “investment impacts” of the Federal Communications Commission’s net neutrality rules. The rules treat Internet providers like public utilities and require them to treat all online traffic the same.

{mosads}Internet service providers have taken legal action to try to block the regulations, which Republicans universally oppose.

Groups such as the Progressive Policy Institute have pointed to a drop off in second-quarter capital expenditures from some Internet providers as evidence that the regulators are tipping the scale against broadband investment.

“We’re already seeing the ripple effect of economic harm,” subcommittee Chairman Greg Walden (R-Ore.) said, noting that the regulations are still new.

But the FCC and its defenders disagree. The commission has argued that if its rules discouraged investment at all, that would be “outweighed” by their positive effects and the promotion of investment in other areas online.

The agency also pointed to comments by Sprint and T-Mobile, which said the rules would not hamper their business plans. It even cited a Verizon executive who “recently assured investors” that the changes “would not influence Verizon’s investment decisions,” though the company clarified the comments after they were picked up in the media.

Researchers and economists from Raymond James Financial, the Progressive Policy Institute, Sonecon and New York University are slated to testify at the Tuesday hearing.

Then, on Wednesday, the subcommittee will examine obstacles to broadband deployment. Expect lots of talk about the “dig once” bill, co-sponsored by subcommittee ranking member Anna Eshoo (D-Calif.) and Walden, that mandates federal highway projects to include laying conduit for fiber cables. Other possible topics include the difficulties associated with placing cell towers on federal land and wireless infrastructure on utility poles.

“With breakneck innovation has come a nearly insatiable demand for broadband access,” Walden said in a statement. “This subcommittee has long worked across party lines to make sure wired and mobile broadband access is available for consumers and job creators. That work continues next week.”

Witnesses include representatives from CTIA, CenturyLink, Next Century Cities and Fiber to the Home Council Americas.

Also on Wednesday, the Senate Commerce Committee takes up the nomination of Jessica Rosenworcel for another five-year term on the Federal Communications Commission. Her current term is already up, but she’s allowed to serve for a year after it expires.