Regulatory burdens plus normal market uncertainties may keep inve...

new technologies, but it’s also an extremely dynamic environment that can change direction quickly,” he said. Telecom companies are investing to bring broadband into every home, Notebaert said: “It’s an enormous capital outlay, and investors are doubting whether we can ever achieve a reasonable return.” Two regulatory areas heighten investor doubt -- video franchising and network neutrality, he said: “Video competition requires an enormous capital investment, but the need to negotiate franchises with hundreds of municipalities has led the investor community to wonder if there will be a return,” especially with some of the onerous conditions cities have tried on new entrants. Chances of Internet regulation in the name of network neutrality also are affecting capital deployment, Notebaert said: “Network neutrality is a solution for a problem that doesn’t exist.” Should anticompetitive Internet bias arise, existing FCC rules and laws can address it, he said: “There are enough natural market risks to broadband investment, so why add an artificial layer of uncertainty?” It’s high time to revisit universal service policy in the broadband age, he said: “Universal voice service has been accomplished. We won. We don’t need voice subsidies anymore. Why subsidize voice overbuilds when so many rural areas lack broadband access? Universal broadband service is what the fund should be supporting now.”