Wall Street Keeps Up Drumbeat Against Broadband Reclassification

摘要

FCC proposals to reclassify broadband transmission under Title II of the Communications Act nand impose net neutrality rules could chill investment in broadband, analysts and an ninvestor said. Telecom companies look at whether there is the "commercial opportunity" nfor adding profits by increasing investment in broadband, Citigroup Managing Director Mike nRollins said on a panel at a New York Law School. "Investors like certainty and visibility of npolicy," he said. "The reason it's so important in telecom is, these investments are very nlong-term." A future FCC could roll back forbearance from most Title II requirements, Rollins nsaid. "When investors are looking at policy decisions they’re not just looking at what the FCC nwants to accomplish today but what those policies can do over time." n nHeight Analytics Managing Director Tom Seitz agreed the FCC may be holding back ninvestment. "Investors hate uncertainty and clearly what is being created right now is nuncertainty in the marketplace," he said. If broadband is reclassified under Title II, the ncommission could eventually become convinced that prices are unreasonable, Seitz nsaid. "That is not a good outcome for the industry. They have to know with some certainty nthat they can price appropriately, be able to make a return."