Bridge Span 15-1: Comments Filed With FCC Regarding the Massive Regulatory Shift to Regulate the Internet

Progressives are cheering today as the rest of us receive yet another indication that the size of government continues to grow substantially.  Earlier today the FCC voted to replace the innovation and technological advance of the internet with the heavy hand of government. To be fair, not all progressives agree with what was done by the FCC or how it was done. The Progressive Policy Institute (PPI) said, “There is nothing ‘progressive’ about the FCC’s backsliding to common carrier rules dating back to the 1930s. Also troubling is its lack of transparency — the 317-page rule it approved has not yet been made public. Decisions this important to U.S. jobs, growth, and competitiveness ought to be made by Congress, following open democratic deliberation and debate.”

Because of the intense media reporting that in fact the FCC did not follow an open, democratic, and legal procedure, Madery Bridge filed comments with the FCC, writing in part, “Recent reports indicate that the Commission is poised to reverse more than 15 years’ worth of precedent holding that broadband Internet access is an integrated “information service” – and that it will do so based not on the record compiled during an open rulemaking process satisfying the requirements of the Administrative Procedure Act (“APA”), but rather on the results of a secret process conducted by senior White House staff hidden from scrutiny or dissent, and an effort by those staff to force the Commission to change course. This approach would be flatly unlawful. Moreover, even absent this procedural irregularity, the Commission may not use its interpretive role to effectuate sweeping policy changes of the sort that would result from broadband reclassification. ”

In addition, there are also very real questions as to whether the FCC even has the legal authority to use its interpretive authority to effectuate a massive shift in the regulatory framework as it has now voted to do.  These serious questions were ignored and the predetermined outcome went forward today without a hitch.

But it is the people who the FCC and the White House are choosing to ignore. According to a recent survey by PPI 73 percent of Americans want greater disclosure of the details of the FCC’s proposal to regulate the Internet with 79 percent favoring public disclosure of the exact wording and details of the FCC’s proposal to regulate the Internet before the FCC votes on it.  For that matter only a mere one in three believes that regulating the Internet like telephone service will be helpful in the first place. Not only did Chairman Wheeler decide to keep the details secret he moved the FCC to regulate the internet.  The backroom secret deal making is only one early step on the partisan political path that the public already rejects.  A recent Rasmussen Reports poll revealed that 68 percent of those surveyed were concerned that FCC regulatory control over the internet is merely the entry point for content and politically motivated control online.

We deserve better from our leaders and those who regulate us. We should all hope that one day soon the FCC will turn away from politics and secret deals and turn back to light touch regulatory actions to preserve an open Internet for all of us, not just the political class.

September 25th, 2015 | Category: Communications policy | Comments are closed

Bridge Span 15-2: Public Challenges, Private Solutions

The promise of broadband is being realized across the country, in urban and rural communities, including all demographics, amongst the middle class and the poor. While access to, and adoption of, broadband have not necessarily spread evenly, they do in fact continue to spread. Years ago the country set out a goal to have broadband in more places for more people, and while the news has been full of reasons to be concerned whether such success will continue, one effort shines brightly.

Comcast announced a great success in that its Internet Essentials program has now brought the benefit of broadband to 1.8 million people across 450,000 low income families. Comcast began Internet Essentials to get more students and families online by offering broadband and a home computer at drastically reduced prices for those who could least afford broadband. And to make sure that all that new access was leveraged the company invested “more than $225 million in cash and in-kind support to help fund digital literacy and readiness training and education, reaching more than 3.1 million people through our national and local non-profit community partners.”

The program is proving successful. Eighty five percent of Internet Essentials’ customers indicate that they use the Internet every day, most (a huge 98 percent) often for homework — the most popular use. But importantly, these low income families have also been using the online connection to try to better their economic situation. Fifty four percent of the customers report that they have been using the broadband service to search and apply for employment with 65 percent indicating that access to the Internet has helped them in that effort

While there is still some gap in broadband adoption (most commonly because some people have indicated in various surveys that they would not adopt broadband at home regardless of price) these sorts of private efforts are leading the way in reaching those wanting broadband access. So, at no expense to taxpayers the Internet Essentials program has improved the education, employment situation, and opportunities for nearly two million citizens.  These sorts of efforts should be given the acclaim that they deserve.

September 25th, 2015 | Category: Communications policy | Comments are closed

Bridge Span 15-3: Putting Mobile Out of Reach in PG County

According to the Pew Research Center, minorities use mobile technologies more than whites. While African-Americans and Hispanics were much less likely to own a desktop computer, they owned laptops in equal numbers with whites, and are more likely than whites to own a mobile device. Importantly, minority groups use mobile “phone” capabilities to greater effect than other users. Whether for operating a business, research, games, watching video, communicating or listening to music those devices keep them plugged in to the world.

Essentially a suburb Washington, D.C., Prince George’s (PG) county is overwhelmingly non-white. According to the Census Bureau the county is approximately 70% African American or Hispanic, and those groups own more than 63% of the businesses. No one would be surprised to find mobile devices being deployed in virtually every aspect of life, improving business, education and communications.

These facts seem to have escaped the notice of PG’s County Executive Rushern Baker who has produced a proposed budget that would radically increase the county’s telecommunications tax. At an enormous 50 percent tax increase his proposal would make the county’s tax the second highest wireless tax burden of any jurisdiction in the country. The tax would also apply to cable service and wireline, effectively taxing every possible means of communications for citizens and business.

Citizens of the county already face a steep tax bill outside of the new expanded discriminatory tax. They pay a 6 percent state sales tax, a $0.25 monthly state 911 tax, a $0.75 monthly county 911 tax, as well as a 5.82 percent Universal Service Fund tax. All of this already amounts to $300 per year and now would increase to $360 per year and fall most heavily on those least able to pay. These are the sorts of reasons that led the people to have already rejected one attempted tax increase, with 71 percent of county voters voted against a wireless tax hike.

So why is the County Executive trying again to raise the very taxes that were already rejected? Reading motives is tough but clearly this path for a massive tax increase seemed the easiest. But why saddle an industry that is so vital for education, safety, communications and commerce with a tax rate that ends up at 26 perfect, well more than four times the amount of tax paid on other items?

Fortunately, there is still an opportunity to be heard and to ask questions. Tomorrow, a hearing is scheduled for 7pm and the Council is still accepting names to testify. To sign up, one only needs to contact Vanessa Valasco at 301-952-3600 and provide name, address and phone number. Each person will have up to 3 minutes to speak.

At a time when economic development experts are encouraging telecommunications companies to invest in broadband deployment and as wireless companies are the fastest growing providers of broadband service, what sense does a 50 percent tax increase make? What a poor plan for the future of PG county.

September 25th, 2015 | Category: Uncategorized | Comments are closed
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