The Internet Ecosystem and Net Neutrality Regulation: Taking it to the Edge

Abstract

The FCCs decision to repeal Net Neutrality governance of Internet traffic has not ended the debate over whether such protections are needed. This paper investigates the effects of changes in Net Neutrality regulation through an event study that estimates the market model with event dummies. The results are striking: the biggest impact of Net Neutrality policy changes is on shareholders in the New Media grouping of firms, rather than the ISPs. Our policy conclusion is that the repeal of Net Neutrality regulation is not associated with changes in investor expectations that signal increases in total investment across the Internet ecosystem.

Keywords: Net Neutrality, Regulation, FCC, Broadband Internet Service Providers, Edge Providers, Investment

JEL Classification: L51, L86, L96