CEO Randall Stephenson seemed to fire a noisy warning shot at the FCC this morning as regulators consider President Obama’s appeal for them to adopt tough net neutrality rules. “We can’t go out and invest that kind of money deploying fiber to 100 cities not knowing under what rules those investments will be governed,” the AT&T chief told investors at the Wells Fargo Technology, Media and Telecom Conference according to a Reuters account.
Is this an example of the chilling effect on investment that broadband companies warned would follow if the government claims the power to oversee Web practices?
Possibly not. “AT&T’s fiber investments weren’t particularly impressive to begin with,” Broadband DSL Reports’ Karl Bode notes. What’s more, AT&T “has used network investment as carrot on a stick with regulators for most of the last decade, promising to withhold or accelerate network infrastructure investment only if government does their bidding.” AT&T and DirecTV promised in May — when they announced their merger plan — that “AT&T will use the merger synergies to expand its plans to build and enhance high-speed broadband service to 15 million customer locations, mostly in rural areas where AT&T does not provide high-speed broadband service today.” (The deal is being reviewed by the FCC and Justice Department.)
Source & More at deadline.com
Is this an example of the chilling effect on investment that broadband companies warned would follow if the government claims the power to oversee Web practices?
Possibly not. “AT&T’s fiber investments weren’t particularly impressive to begin with,” Broadband DSL Reports’ Karl Bode notes. What’s more, AT&T “has used network investment as carrot on a stick with regulators for most of the last decade, promising to withhold or accelerate network infrastructure investment only if government does their bidding.” AT&T and DirecTV promised in May — when they announced their merger plan — that “AT&T will use the merger synergies to expand its plans to build and enhance high-speed broadband service to 15 million customer locations, mostly in rural areas where AT&T does not provide high-speed broadband service today.” (The deal is being reviewed by the FCC and Justice Department.)
Source & More at deadline.com