Sara Kamal

Small but Powerful: Despite Objections, Small ISPs Need Net Neutrality Too

As we gear up to defend and protect the net neutrality rules, parties on both sides are speaking up. One particular group, small Internet Service Providers, claim that the Federal Communication Commission’s 2015 Open Internet Order has been a death sentence for them, hindering their ability to invest and compete in the market. These small ISPs have taken to advocating against net neutrality rules but there is something missing from their claims: substance.

Usually represented by trade groups like the Competitive Carriers Association, US Telecom Association, and the American Cable Association, to name a few, small ISPs generally serve a customer base in the hundreds or thousands. Compare that to the likes of Comcast, Verizon, Charter, and AT&T, which control 70 percent of the market, with consumer counts in the millions. Given their comparatively small size, these small ISPs don’t believe the net neutrality rules should apply to them. Citing regulatory burdens of complying with the Open Internet Order and the uncertainty of the newly minted rules, they believe the rules put them in a high cost/low benefit situation because they don’t have the same market power or incentive to make deals with edge providers. But these claims are hollow. First, the idea that these companies don't have "market power" is wrong. Additionally, none of the small ISPs or trade associations that represent them actually point to or identify the particular regulations that are oh-so-burdensome to their businesses.

The Truth About Net Neutrality and Infrastructure Investment

It’s essential to the future of network neutrality that we shed some light (and truth) on the baseless arguments being made regarding Title II and broadband investment.

Fact: Internet service providers have no plans to decrease investment in their infrastructure. ISPs have been reporting to investors that investment is up, up, up! Verizon’s CFO, Fancis Shammo, told investors that reclassification to Title II “does not influence the way we invest.” Similarly, Sprint stated that it would “continue to invest in data networks regardless of whether they are regulated by Title II, Section 706, or some other light touch regulatory regime.” In 2016, AT&T reassured their investors that they would “remain one of the largest investors in the United States.” As technologies change and reliance on the internet only continues to strengthen, ISPs know the value in continued investment.
Fact: Investment has actually increased since the adoption of the Open Internet Order.