Deregulation and The Wireless Boom That Benefited Consumers

 

The results are hard to ignore. Cutting telecom red tape has been a clear win for consumers.

While Washington often defaults to more rules and higher costs, the push to scale back regulation helped unleash competition, lower prices and improve service in ways bureaucrats rarely achieve.

It’s a reminder that when government steps aside, innovation and investment tend to do the heavy lifting.

 

Ajit Pai, the CEO of Cellular Telecommunications and Internet Association, recently highlighted just how dramatic those gains have been. Wireless service costs have fallen even as performance has surged — prices are down, speeds are up, and consumers are getting more value for their money. That kind of outcome doesn’t happen by accident; it’s what competition looks like when it isn’t smothered by excessive regulation.

 

The data backs it up. According to the Bureau of Labor Statistics, wireless service prices have dropped sharply over the last decade as most other goods have become more expensive. In an economy where better products usually come with higher price tags, wireless stands out as proof that a lighter regulatory touch can deliver exactly what consumers want: faster, cheaper and better service.

 

Wireless providers have invested more than $200 billion into American networks since President Trump promised to slash red tape and hold bureaucrats in check. Pai said that wireless is now the second-largest source of private investment in the U.S. economy, supporting millions of jobs and contributing hundreds of billions of dollars to the gross domestic product.

FCC Chairman Brendan Carr has proven to be in lockstep with the president and Pai in efforts to cut red tape in the telecom industry. The “Delete, Delete, Delete” initiative has eliminated dozens of outdated and unnecessary rules, and it continues. In spearheading the plan, Carr said that regulations are standing in the way of deployment and technological innovation.

 

“For too long, administrative agencies have added new regulatory requirements in excess of their authority or kept lawful regulations in place long after their shelf life had expired,” Carr said in a news release announcing “Delete, Delete, Delete.” “This only creates headwinds and slows down our country’s innovators, entrepreneurs and small businesses. The FCC is committed to ending all of the rules and regulations that are no longer necessary.” 

 

The Internet & Television Association pointed out in a news release that increased competition from multiple factors, including the cable industry, is helping to keep wireless prices lower.

 

The group representing cable and television operators said that nearly 90% of mobile data traffic runs over Wi-Fi, which reduces strain on traditional cellular infrastructure and lowers the cost of providing that service. The  Cellular Telecommunications and Internet Association said competition between traditional wireless providers and cable mobile providers is helping to keep consumers’ bills lower.

Pai noted that with the expected massive growth in wireless traffic driven by 5G, AI, and other emerging technologies, there is still plenty of work to do on the deregulation front.

 

“Enabling consumers to benefit from these innovations at affordable price points requires us to stand firm on the successful policies of the past,” including “modernizing permitting processes so tomorrow’s networks are not built with yesterday’s rules,” he wrote.

 

According to Pai, $1 out of every $4 spent on wireless services consists of taxes and fees.

 

“As providers compete to lower prices, public policy shouldn’t effectively raise them by adding surcharges,” he wrote.

Regulatory red tape and unfair tax structures only stymie efforts to connect Americans to high-speed internet. Continued efforts by the FCC to curb some of these stumbling blocks should benefit growth in wireless and wired broadband.