In an effort to impose net neutrality regulations, the FCC is considering the reclassification of broadband services from an “information service” to a “telecommunications service.” However, reclassifying broadband services as a regulated telecommunications service would come at a major cost to consumers.
In my article, originally published in TechPolicyDaily, I explain that net neutrality regulations will unquestionably raise consumer prices, because state and local tax provisions currently allow higher tax rates on telecommunications services compared to Information services. As a result, net neutrality regulations that reclassify broadband services will unquestionably increase taxes on broadband services, which will raise consumer prices and chill network and technological investments. This is not speculation; this is a fact.
My article concludes: “If the goal of Congress and the FCC is to improve broadband affordability, adoption, access and network investment, as well as increase consumer welfare, reclassifying broadband services does the exact opposite.” Indeed, if the FCC reclassifies broadband services, Congress and the FCC would have woefully failed to meet its goal for a nationwide broadband plan.
You can read my entire article on the American Enterprise Institute’s website at AEIdeas.