Tuesday, June 2, 2015

'Chaos' for Comcast, Verizon, Google in FCC power grab: report

Will Internet providers invest less if the FCC forces them to accept government regulation and share their networks?

'Chaos' for Comcast, Verizon, Google in FCC power grab: report

UPDATE: Cable stocks fell today on fears of new FCC regulation of the broadband business. Reuters story here. FCC issued a string of statements designed to clarify what the agency plans to do.  Statements here.

EARLIER: The Federal Communications Commission's plan to regulate broadband Internet service creates "chaos" and "uncertainty" that will likely lead to less investment by Comcast and other cable-based telecom companies, Verizon and other phone and wireless providers, and even Google and other Web-based services, Bernstein Research analyst Craig Moffett tells clients  in a new report. Expect legal challenges and more details in the days and months to come.

If the FCC wins, it's good news for DirecTV and Dish Network because it could hobble their competition. And maybe for small companies that can force the giants to carry their services cheaper.  What about consumers? FCC may control broadband charges; Moffett argues that's bad because it will lead to crowded, rundown networks.

About this blog

PhillyDeals posts drafts, transcripts and updates of Joseph N. DiStefano's columns and stories about Philly-area business, which he's been writing since 1989.

DiStefano studied economics, history and a little engineering at Penn and taught writing at St. Joseph's. He has written thousands of columns and articles for the Inquirer, Bloomberg and other media, wrote the book Comcasted, and raised six children with his wife, who is a saint.

Reach Joseph N. at JoeD@phillynews.com, distefano251@gmail.com, 215.854.5194 or 302.652.2004.

Reach Joseph N. at JoeD@phillynews.com or 215 854 5194.

Joseph N. DiStefano