CTIA – The Wireless
Association released its Annual
Wireless Industry Survey on May 23, 2016. From the end of 2014 to the end
of 2015, wireless data usage increased by 138 percent, the number of wireless
subscribers increased by 6.3 percent, and wireless penetration increased by 5.7
percent. Also, wireless-only households slightly increased by 1.3 percent,
which is consistent with findings from a recent NTIA study and a Pew Research
report that consumers are substituting
mobile broadband for fixed broadband.
Most importantly,
CTIA’s annual survey finds that capital investment declined by 0.3 percent from
the end of 2014 to the end of 2015. This is not a huge drop, but after a 3.0
percent decline over the previous year, it seems as if capital investment is
trending in the wrong direction.
FSF scholars have often
stated that Internet regulation harms capital investment. This negative trend
in broadband
capital investment is consistent with the regulatory
uncertainty surrounding the FCC’s Open
Internet proceeding. The costly regulations levied on wireless providers
and the regulatory uncertainty regarding the legality of the Order (because it
is currently under appeal) likely has crowded out private investment leading to
a decline over the past two years. Hopefully, the D.C. Circuit Court will overturn
the FCC’s Open
Internet Order, freeing up resources for broadband providers to invest
and innovate and allowing consumers to enjoy more access and better
connections.
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