I was CEO of the Wireless Industry Association and I was proud of the job that I did. But the least proud moment of my public policy life was when I opposed the commission’s efforts to allow people to take their phone numbers with them when they switched from, say, AT&T to T-Mobile. [When arguing against this policy], I couldn’t go out and say, “We think it’s a really bad idea because in the current situation consumers are trapped with their carrier and can’t leave us without giving up their phone numbers.” That’s not a real winner. So the argument I made was, “This is going to take money that should be spent on infrastructure and expanding connectivity.” I regret that argument. Saying, “It is going to slow down our incentive to invest,” is everybody’s first line of defense. It’s balderdash. The reason you invest is to get a return. Companies don’t say, “Well, I’m not going to invest because I might trigger some regulations.” Their question is: “Am I going to make a return off of this?” Broadband is a high-margin operation. You can make a return off of it. The facts speak for themselves. Since the Open Internet rule was put in place, broadband investment is up, fiber connections are up, usage of broadband is up, investment in companies that use broadband is up, and revenues in the broadband providers are up, because people are using it more.
– Tom Wheeler
There’s two good points here:
1. When people have a high churn rate between services, it may be annoying from a “lazy”/predictable perspective, but it means there’s more chances to sell old and new things to them when they switch.
2. Complaints from companies that amount to “this new regulation/tax/etc. will make us not want to invest” are largely crap. Companies have to invest in new businesses or they die. Whatever the friction, they’ll figure it out, and if they can’t, they can die so that new players can have a go. Businesses don’t need to be eternal.