Gigabit Opportunity Zones Idea Garnering Lawmaker Support, Pai Says

Creation of gigabit opportunity zones got tentative bipartisan support from some lawmakers, FCC Chairman Ajit Pai said at American Cable Association event Thursday, adding he hopes to see such zones incorporated into any national infrastructure spending plan or as a stand-alone. He has pushed the idea for these zones -- featuring tax breaks to encourage private-sector gigabit broadband deployment -- for months (see 1609130061). Pai said that with infrastructure investment being a top national priority, the agency is particularly focused on looking at rules to see what can be eliminated or revised so as to encourage infrastructure-related investments. He said the agency is reviewing options for how to revisit Communications Act Title II classification of broadband. "We want every consumer … to have that open internet experience," Pai said. "But networks need incentive to invest and innovate." He said he had no idea of the status of the draft order on circulation removing the network overbuild condition on Charter Communications (see 1702240029). Pai said he hasn't talked with other commissioners about it, though he supports the revamping because the overbuild requirement "accentuates the digital divide." The cable industry crowd repeatedly applauded Pai, a marked contrast from the frost between the industry and previous Chairman Tom Wheeler (see 1605200037). "We don't view you as an enemy," Pai said, because Washington “recognizes this is the challenge of our time -- building a digital infrastructure across this country" -- and cable ISPs need incentives to make those investments. The FCC now has more focus on cable industry economic freedom, Macquarie analyst Amy Yong wrote investors Thursday. Commissioner Mike O'Rielly, speaking before the ACA this week, was clear that some previous FCC rulings could be reopened and amended, such as the Title II ban on paid prioritization by ISPs (see 1703290026), Macquarie said. With net neutrality rules likely to be rolled back, providers will have more options for favoring or prioritizing content, but removing such barriers benefits consumers by letting providers enhance their services, Macquarie said. Asked about future video regulation issues, Pai said the current independent programming NPRM has keyed up some of these issues and will "hopefully ... give us a better sense of what's going on in the marketplace." He said the commission is "trying to figure out the appropriate role for the FCC ... in this space."