Study Shows Negative Effects of Net Regulation February 16th, 2010
Jon Banks

As policy makers discuss the possibility of increasing government regulation of the Internet, many experts are expressing deep concern over so-called “net neutrality,” and the adverse consequences this policy change could unleash.  Now, a study conducted by the American Consumer Institute reveals the negative effects of net regulation on the U.S. economy and jobs – in a time when stimulus is an urgent national priority.

In particular, the study discusses how net neutrality would undermine job creation, investment, and innovation taking place across the Internet ecosystem.  How so?  First, consider the success of today’s broadband and IT sectors, which created nearly half of all new American jobs in 2008.  What does the future hold?  Over the next 10 years, broadband, information, communications and technology-enabled occupations are projected to be the fastest-growing U.S. professions.  Given this success, the study recommends identifying sectors, such as technology, that are aiding the economy and jobs – and not encumbering them with regulatory burdens that slow their economic performance.

To this point, the study found:

• Dollar for dollar, network companies (like AT&T and Verizon) create approximately twice the jobs that non-network companies create.
• For every $1 billion in revenue, network companies provided 2,329 jobs, while non-network companies provided 1,199 jobs.
• These network jobs are high-paying jobs, paying at twice the rate of other nonfarm jobs, and they are more likely to be green jobs.
• Network companies invest a much higher percentage of cash flow back into the economy.

The ultimate takeaway?  As ACI President Steve Pociask said: “Regulations that needlessly restrict the business opportunities of the companies that lead in job creation will discourage investment, slow the expansion of critical Internet infrastructure, and undermine efforts to put Americans back to work.”  To learn more, watch as the ACI discusses the study in this video featured on NextGenWeb.

This entry was posted on Tuesday, February 16th, 2010 at 11:22 am and is filed under Net Regulation. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.