Headlines abounded when President Biden renominated former top Obama-era Federal Communications Commission (FCC) staffer Gigi Sohn in January to break the deadlock at the Commission. Now, with a hearing scheduled in February, the furor has climbed yet again. For an agency with such an innocuous sounding name, why is there such a raucous reception for their newest potential commissioner?
Part of the answer is the potential resurrection of the “net neutrality” debate. Net neutrality was the concept highlighted during the FCC under President Obama, which attempted to redefine the regulation of internet service providers (ISPs) into the Title II definition of “common carrier” under the 1934 Communications Act. Since Sohn was a member of Commissioner Tom Wheeler’s staff which promulgated the 2015 regulation on net neutrality, it’s easy to see why some observers are concerned about the resurgence of this misguided policy. Furthermore, President Biden has also called for new net neutrality regulations again.
The FCC’s 2017 Restoring Internet Freedom Order (RIFO), which rolled back the Obama net neutrality rules and returned to the long-standing regulation of broadband providers under Title I of the Communications Act, was met with harsh criticism. One of the primary criticisms was that it would drastically slow down internet speeds for consumers. It appears this fear was largely unfounded, as internet speeds have improved greatly since RIFO’s passage.
According to the Ookla Speedtest Index, the United States improved from 20th in fixed broadband, and 42nd in mobile broadband, to 7th in fixed, and 20th in wireless in 2022. Perhaps this can be attributed to the greater investment that a freer market and regulatory stability that RIFO currently allows in the United States. Recent academic research demonstrates that, across the globe, net neutrality rules definitively reduce investment in fiber, which is a major contributor to faster internet speeds. This makes sense, given that capital investments are determined by long-term budget processes and strategic planning. If regulators are empowered with net neutrality authorities, ISPs may fear arbitrary or unpredictable enforcement actions, and investment will be discouraged. If net neutrality rules return to the FCC, then the current trend of internet speed increases may slow down or reverse due to reduced investments.
This is even more concerning since China ranks well above the United States in both fixed wireless and mobile broadband speed measures. The United States must seek to enhance our competitive advantages over our biggest rival in technology on this front. As the demand for internet speed evolves with technological advances such as edge computing and virtual reality, dominance in this market will shift to the best environment to shepard the next generation of innovation. American innovators, small business owners, and everyday citizens deserve the best possible internet experience that will keep our country on pace with the technology of tomorrow.
The Senate should carefully examine and consider the strong possibility that confirming Gigi Sohn to the FCC would result in new net neutrality rules which will threaten American competitiveness and slow down investment in new internet infrastructure.