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Ajit Pai plans to create Office of Economics and Data at FCC by the end of the year for better cost-benefit analysis of agency's regulations

New Office of Economics and Data could ease rollback of net-neutrality rules  —  WASHINGTON—Federal Communications Commission Chairman Ajit Pai …

Wall Street Journal John D. McKinnon

Context & Ripple Effects

The office announcement lands two months into Ajit Pai's chairmanship, after President Trump tapped the sitting GOP commissioner — a fierce net-neutrality critic — to lead the agency in January. In his first weeks Pai pledged to roll back what he called unnecessary commission regulations while declining to comment on net neutrality directly (his early rollback pledge).

The new Office of Economics and Data gives that agenda an institutional engine: by building cost-benefit analysis into rulemaking before year-end, Pai sets up the evidentiary groundwork for reversing the Title II rules he formally moved against later that month (the Title II rollback plan).

First-order effects

  • FCC rulemakings will now carry a formal economic-analysis layer, and the net-neutrality docket is the immediate beneficiary — the rollback gains a data-driven justification rather than resting on ideology alone.

Second-order effects

  • Broadband providers gain a regulator whose default analytical frame weighs compliance costs against benefits, shifting future disputes over ISP conduct toward the FTC's antitrust lane — the division of labor Pai himself later described when the rules came off (FTC as the anti-competitive-conduct backstop).

Third-order effects

  • If the pattern holds, cost-benefit infrastructure becomes the standard mechanism by which a deregulation-minded commission unwinds prior rules durably — embedding the shift in process so it survives beyond any single vote.

The trend: Under Pai, the FCC is converting a political mandate for deregulation into permanent analytical machinery, with net neutrality as the first and largest test case.