Our Co-Chairman Jamal Simmons has penned an op-ed for Forbes warning that reclassifying broadband under Title II would mean higher taxes for consumers. An excerpt:
A recent study by Progressive Policy Institute economists Robert Litan and Hal Singer is the first significant effort to quantify how much it could potentially cost consumers if broadband services are reclassified as “telecommunications services” under Title II of the Communications Act of 1934. By regulating broadband service under Title II, the Federal Communications Commission would essentially be required to treat this service under the same rules as the old telephone monopoly from decades ago. By switching from the current light-touch regime to Title II, broadband Internet services would be subjected to a panoply of requirements, such as for entry and exit. That also means broadband would likely become burdened with a host of new state and local taxes and fees, the kind we pay on our monthly home and/or wireless phone bills. These taxes and fees are normally passed on to consumers; when they rise, consumers end up paying more. Expect the same with broadband.
You can read Simmons’ full op-ed over at Forbes.
Today, AT&T (which, full disclosure, is one of IIA’s members) announced a new initiative aimed at bolstering the use of technology in America’s classrooms. The initiative, called the AT&T Aspire Accelerator, is calling on applicants to submit ideas and programs that are “game-changing solutions to real-world education problems.” From the press release announcing the program:
Unlike most other accelerators, the primary measure of success for the Aspire Accelerator is societal impact rather than monetary return. Participants will be selected based on their ability to drive students’ educational or career success. Special consideration will be given to solutions for students who are at-risk of dropping out of school.
“Technology is changing how teachers manage their classrooms, how students digest information, and how parents and administrators communicate,” said Charlene Lake, Chief Sustainability Officer, AT&T. “The AT&T Aspire Accelerator is designed to support and scale ed-tech ideas that make brighter futures—ideas from for-profits and non-profits that want to make a difference.”
More information on the AT&T Aspire Accelerator, including the application process, is available here.
Yesterday, the Washington Post published a must-read piece from Larry Downes breaking down why everyone who supports an open Internet should support the net neutrality bill making its way through Congress. An excerpt:
The proposed law is short and sweet. It grants the FCC authority to enforce tough new limits on how ISPs manage network traffic, directly addressing the kinds of practices both the agency and the White House have argued could, if implemented by ISPs in the future, threaten the continued success of the U.S. Internet.
At the same time, it would cleanly resolve the long-running conflict between the agency and the federal courts, who have rejected two earlier net neutrality efforts from the FCC on the ground that Congress never delegated oversight of broadband ISPs to the agency.
You can — and should — head on over to the Washington Post to read Downes’ full piece, but if you’re in a hurry we’ve put together an infographic highlighting the eight reasons he gives for supporting the bill.
Our Honorary Chairman Rick Boucher has taken to the pages of Roll Call to argue that Congress should act now to ensure net neutrality. An excerpt:
The coming month, before the FCC acts presents a timely opportunity for Congress to step in and resolve the debate on terms that would seemingly be agreeable to Democrats and Republicans, broadband providers and consumers seeking continued access to robust high-speed Internet services. The FCC promulgated its open Internet rule in 2010 against a backdrop of consensus that had been reached through lengthy discussions among the stakeholders. While not all of the parties were in agreement, a critical mass of consumer groups, broadband providers and policymakers created the consensus that resulted in the FCC’s open Internet framework. It’s notable that among broadband providers, AT&T publicly expressed support for the rule, and it was ultimately approved with the FCC’s Democratic members voting affirmatively. Even more noteworthy is that in the four years since the open Internet rule was adopted, broadband providers have integrated its requirements into daily operations, and high-speed Internet access service has expanded absent consumer complaints of violations.
Check out Boucher’s full op-ed over at Roll Call.
Our Honorary Chairman Rick Boucher recently penned an op-ed for Bloomberg on the critical need to reform Lifeline. An excerpt:
Each day brings new examples of how broadband-delivered Internet services are fundamentally changing the nature of communications. In the 1980’s, the wired telephone was the predominant communications platform for almost everyone. Today, just five percent of Americans rely exclusively on “plain old telephone service.” The rest use a variety of communications devices, a growing number of which are broadband-enabled.
So the question is not just whether to expand Lifeline to include broadband, an idea endorsed by two FCC commissioners and the chairman at the agency’s December open meeting; the question is how to incorporate broadband without exploding the cost of the program.
You can check out Boucher’s full op-ed over at Bloomberg.
It’s CES week, that annual techapalooza that goes down in Las Vegas. If you can’t make it to the show floor in person, sites like The Verge, Engadget, and Gizmodo will have you covered.
Of course, if anything major happens in our little technology-meets-regulation world, we’ll be all over it.
Now that 2015 is officially underway — and a new, Republican-controlled Congress is arriving in Washington — the FCC has announced its plan for net neutrality will be revealed in February. Via Brian Fung of the Washington Post:
The timing indicates Wheeler does not see the need for more public input on the benefits and drawbacks of using Title II, as earlier reports suggested. It also implies the FCC will not be able to avoid a showdown with Congress over net neutrality. Republican lawmakers are expected to introduce legislation this month to preempt any FCC rule on the subject.
Since Republicans have made clear they are opposed to regulating broadband providers under Title II, it’s looking increasingly doubtful that the issue will be put to rest anytime soon.
In a letter to Members of Congress and the FCC, 60 companies — including IBM, Cisco, Intel, and others — have warned that reclassifying broadband under Title II will reduce investment and threaten the very health of the thriving Internet ecosystem. An excerpt:
Reversing course now by shifting to Title II means that instead of billions of broadband investment driving other sectors of the economy forward, any reduction in this spending will stifle growth across the entire economy.
This is not idle speculation or fear mongering. And as some have already warned, Title II is going to lead to a slowdown, if not a hold, in broadband build out, because if you don’t know that you can recover on your investment, you won’t make it. One study estimates that capital investment by certain broadband providers could be between $28.1 and $45.4 billion lower than expected over the next five years if wireline broadband reclassification occurs. If even half of the ISPs decide to pull back investment to this degree, the impact on the tech equipment sector will be immediate and severe, and the impact would be even greater if wireless broadband is reclassified.
The investment shortfall would then flow downstream, landing first and squarely on technology companies like ours, and then working its way through the economy overall. Just a few years removed from the worst recession in memory, that’s a risk no policymaker should accept, let alone promote.
You can read the letter, submitted by the Telecommunications Industry Association, here.
As with most heated debates, the current net neutrality kerfuffle has been heavy on rhetoric and light on facts.
Sure, those of us who believe the Internet has thrived — and will continue to thrive — without the heavy mitts of regulation point to study after study after article (most recently from the Progressive Policy Institute, of all places) warning that Title II reclassification would do much more harm than good for the open Internet, but facts and research aren’t nearly as effective as facetious cries about a “two-tiered Internet!” and “They are coming for your Netflix!”
That being said, since I’m a glutton for punishment I’m going to highlight yet another article, this one penned by economist (and IIA friend) Bret Swanson for the Wall Street Journal.
Swanson’s piece has a blunt title — “The U.S. Leads the World in Broadband” — and rather than shouting about the Internet sky falling, he crunches some numbers to show that… well, just what the title says.
From his piece (which is behind a paywall):
Mr. Obama recently called on the FCC to impose “the strongest possible rules” on Internet service providers to make sure they don’t “limit your access to a website” or “decide which online stores you should shop at or which streaming services you can use.”
Neither of these rationales for regulatory intervention is true, however, and there’s a simple way to show it. An international comparison of Internet traffic can tell us about the quality of broadband networks and the vibrancy and openness of content markets. Traffic represents all the bits flowing over our networks—email, websites, texts, chats, photos, digital books and movies, video clips, social feeds, searches, transactions, cloud interactions, phone and video calls, interactive maps and apps, software downloads, and much more.
And just what did the numbers tell Swanson?
What I found was that at 18.6 exabytes (18.6 billion gigabytes) a month, the U.S. generates far more traffic per capita and per Internet user than any other major nation save South Korea, which is a vertical metropolis and thus easy to wire with fiber optics. U.S. traffic per capita is 2.1 times that of Japan and 2.7 times that of Western Europe. Several years ago, U.S. and Canadian traffic measures were similar, but today the U.S. has raced ahead by 25%.
The U.S. lead is similar in traffic per Internet user, which tends to reflect how intensely people use broadband and mobile connections. The U.S. outdoes its closest European rival, the U.K., by 57%. The U.S. outdoes all of Western Europe—the best comparison in terms of geography, population and economic development—by a factor of 2.5.
All due respect to my friends and colleagues on the other side of the Title II debate, but does that look like the U.S. broadband market is hurting? Is the Internet really in need of saving by the unelected officials at the FCC?
Perhaps the most exacerbating thing about the Title II argument is the fact that both sides want essentially the same thing — for the Internet to stay open and thriving. What we disagree on is which tool, if any, the FCC should use.
Given the very real threats of reduced private investment in, and increased prices for, broadband that Title II could usher in, the choice should be simple. As Swanson writes:
The U.S., with 4% of the world’s population, has 10% of its Internet users, 25% of its broadband investment and 32% of its consumer Internet traffic. The U.S. policy of Internet freedom has worked. Why does Washington want to intervene in a thriving market?
As the FCC continues to mull its path toward ensuring net neutrality, none other than the Progressive Policy Institute has published new research highlighting just how much damage Title II reclassification could mean for consumers. An excerpt:
Self-styled consumer advocates are pressuring federal regulators to “reclassify” access to the Internet as a public utility. If they get their way, U.S. consumers will have to dig deeper into their pockets to pay for both residential fixed and wireless broadband services.
How deep? We have calculated that the average annual increase in state and local fees levied on U.S. wireline and wireless broadband subscribers will be $67 and $72, respectively. And the annual increase in federal fees per household will be roughly $17. When you add it all up, reclassification could add a whopping $17 billion in new user fees on top of the planned $1.5 billion extra to fund the E-Rate program. The higher fees would come on top of the adverse impact on consumers of less investment and slower innovation that would result from reclassification.
We can all agree that the Internet must continue to be open, but as the Title II debate shows, not everyone seems to understand just what reclassifying Internet service would mean. Hopefully, research from the likes of the Progressive Policy Institute will help bring everyone up to speed. You can check out their full report here.