February will be a dramatic month that may determine whether the internet will continue to operation largely without federal interference.
On February 26, the Federal Communications Commission is expected to vote on a far-reaching proposal that would allow the internet to be treated as a public utility, with all the power that implies for Washington. The measure is the result of a November 10, 2014 directive by Mr. Obama to reclassify the internet in such a manner. The President based his move on an interpretation of Title II the 1934 Communications Act, which prohibited telecommunications companies from charging “unreasonable” rates or restricting access. Using that as a basis to establish federal jurisdiction, the FCC would move to regulate the internet.
Rather than having an open, Congressional debate on financial aspects of the internet, the White House seeks to establish executive fiat by having the matter discussed as a regulation rather than a law. According to Senator Ben Sasse (R-Nebraska),
“Americans do not fully understand the implications of how far this could go because it’s all happening so fast. Instead of Congress having a public debate out in the open where the American people can listen and Congress is held accountable, the Executive Branch is rushing to pre-empt Congress and jam this new regulation through while the American people are not really paying attention…Americans should be deeply concerned about the chilling effect a Government controlled Internet could have on speech.”
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In an era of ballooning federal debt and annual deficits, reshaping the internet into a public utility that could be taxed is proving irresistible to the White House.
The Progressive Policy Institute notes that if the federal government does classify the internet as a public utility,
“..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 $15 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.”