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

[cdmagurus.com]

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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