FCC Net Neutrality Plan Won’t Lead To Broadband Price Regulation – Analyst

Deadline

The vigorously argued case out this morning from Bernstein Research’s Paul de Sa goes to the heart of the debate over the FCC’s planned net neutrality rules — expected to be adopted on Thursday. Will the proposal built on reclassifying the Internet as a regulated communications service lead the FCC to control broadband rates, potentially chilling investment? FCC Chairman Tom Wheeler says his plan will specifically reject that power. But cable and telco broadband providers say that officials will inexorably end up going there. This week MoffettNathanson Research’s Craig Moffett said he didn’t buy Wheeler’s assurance, one reason why he stopped urging investors to buy stocks in Comcast, Time Warner Cable, and Charter.

But de Sa urges buyers to ignore what he calls “the increasingly alarmist statements made by broadband providers, their paid proxies, and other skeptics” who oppose reclassifying broadband under what are known as Title II rules. Current regulations that “carriers now…

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