FCC Regulation of Broadband Rates Bad News for Jobs and the Economy

Despite past promises not to regulate broadband rates for Internet Service Providers (ISPs), Federal Communications Commission Chairman Tom Wheeler admitted in a March 2016 hearing that he believed the FCC should have the authority to regulate broadband rates. On April 15, the House will consider the No Rate Regulation of Broadband Internet Access Act (HR 2666), authored by Rep Adam Kinzinger (R-IL) that seeks to codify into law Chairman Wheeler’s and President Barack Obama’s initial promises. HR 2666 prevents the FCC from regulating rates charged for broadband Internet.

A recent study commissioned by the United States Telecom Association reveals, “An expansion of FCC rules regulating the broadband market could lead to the elimination of as many as 43,560 jobs over a five-year period, while economic output would decline by $3.4 billion during the same time period in the US”. Saving jobs, keeping rates affordable for consumers, and providing certainty for ISPs are promises HR 2666 seeks to keep.