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Sprint Calls AT&T, Verizon's Bluff on Telecom Investment

Feb 11, 2015, 8:40 AM by Eric M. Zeman

Sprint CTO Stephen Bye says the FCC's move to reclassify broadband under Title II won't stifle telecom companies' investment in building new networks. AT&T and Verizon have warned the FCC that strict regulation of broadband is likely to decrease investment and harm consumers in the long term. Sprint sees things differently. "Our competitors are going to continue to invest so they are representing a situation that won't play out," said Bye in an interview with Reuters. "The notion that some of our competitors are suggesting that they will stop investing if Title II is brought into effect... That's something we've refused." Bye points to the recent FCC spectrum auction as proof. AT&T spent $18 billion to purchase AWS-3 spectrum licenses, Dish spent $13 billion, and Verizon spent $10.3 billion. All three companies made those investments while fully aware of the FCC's plans for regulating broadband. Sprint does not see Title II reclassification as a problem. "It's one of those topics that is highly charged, highly politicized and we took a step back and said it works in the interest of our customers, our consumers and the industry and we frankly found some of the arguments (of our competitors) to be less than compelling."

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algorithmplus

Feb 11, 2015, 11:19 AM

AT&T and Verizon will continue to invest in networks

No matter what the outcome will be, AT&T and Verizon will continue to invest in their networks. They will not simply let their entire business decay with attrition leaving their shareholders with a bankrupt company. Those companies are simply trying to stack the deck in their favor to try and find a new revenue stream.

If you ask most companies who are not network operators if data is a utility or a luxury for the company, and how successful the company could be if that resource was not available, they would definitely say it is a utility. If you ask a 911 dispatch center if VoIP is important for public safety (as many phone options are now), they will confirm that data is a utility, taking over where POTS was discontinued and integrat...
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cainthecavebear

algorithmplus said:
No matter what the outcome will be, AT&T and Verizon will continue to invest in their networks. They will not simply let their entire business decay with attrition leaving their shareholders with a bankrupt com

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amarryat

Feb 11, 2015, 8:46 AM
edited

Politics

"Sprint does not see Title II reclassification as a problem. "

I bet if the political makeup of Congress was different, Sprint may not be singing this song.

cainthecavebear

Agreed. Sprint sees any blow to its larger competition as a good thing.

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