IPI Urges FCC to Resist Price Controls and Supports Termination of Special Access Proceeding

The Institute for Policy Innovation (IPI) supports the closing of the FCC’s business data services proceeding, and thus supports a vote to terminate the proceeding at the Commission’s April 20^th meeting. The following statement can be attributed to IPI President Tom Giovanetti:

“Government price controls are almost always a bad idea. They inhibit markets by distorting critical price signals, and discourage innovation and investment. As a result, customers end up with a poorer availability of products and services. So if someone is going to make an argument for price controls, they should be expected to provide a compelling amount of data and evidence that consumers and markets are somehow being actively harmed by the status quo, and that there is reason to believe that price controls would improve outcomes.”

“For over a decade now, the special pleaders for Federal Communications Commission (FCC) price controls on business data services (sometimes called special access services) have tried but failed to make that case. In fact, in the intervening decade, the market for business data services has dramatically improved, with new entrants making large new investments and providing innovative new services. Today, there are more competitors offering more business data access services than ever before.”

“That’s why the FCC is correct to consider closing its business data services proceeding, which has been held open interminably long. The special pleaders have had abundant time, since 2005, to make their case. Indeed, during the time the proceeding has been open, the market itself has made a compelling case against the special pleaders. It’s time to close this ill-fated proceeding and eliminate this uncertainty, which will further contribute to more investment and a more dynamic market for business data services.”

“The Institute for Policy Innovation (IPI) is delighted to see this effort to clear out the underbrush of ill-advised and outdate FCC proceedings, and to get on with the business of fostering a dynamic and competitive broadband ecosystem.”