In a recent C-SPAN interview, FCC Commissioner Ajit Pai makes this clear, “Companies want to know that the rules of the road are certain and predictable—to the extent possible, we at the FCC can make the regulatory framework certain so they can take those risks.”
In sum, he points to a stable, predictable rule of law rather than some ever-changing rules sometimes applied to only one of the many marketplace actors. He adds, “…as a general premise, our regulations should take into account the current state of the marketplace. Our rules have to be consistent with the current realities of the marketplace. There is a general consensus that competition in this area has changed since 1992.”
Why do stable, contemporary rules rather than personal ideological pursuits matter in an environment of broad regulations of an industry? Stability brings investment, which means jobs, innovation, and better services for consumers.
Even in this longsuffering economy, the communications industry built out $66 billion in infrastructure last year, creating over 1 million jobs—nothing short of amazing. But so much more could be happening if companies could at least operate with regulatory certainty.
As has been widely reported, companies across the technology sector, including some in the communications industry, have billions of dollars sitting idle. This is money that will be invested in infrastructure, and hence people, via new jobs and better wages, if only the FCC would stick with clear, well-made rules, and only then when rules are absolutely necessary.
The FCC can no longer just extend into the future archaic regulations of what is a functionally different industry, nor set deadlines for application reviews and license transfers and then ignore them. Importantly, Congress needs to act by updating the Telecommunications Act.
A person’s political views influence how they see the world and what they find important. Each bears on the other. That is just as true of regulators as it is of legislators or the electorate. Regardless of the commissioners’ political views, they must establish and maintain an environment of certainty for the sake of the industry, to create jobs and for the benefit of consumers.
October 11, 2012