The idea that the federal government would with a “light touch” portrays a benevolent picture.
The Federal Communications Commission would use only a few of the levers available under a new regulatory scheme designed for old-style telephone utilities.
The aim would be to ensure everyone who uses the Internet has access to .
And that all sounds great. But there is no guarantee that the “light touch” won’t morph into a heavier hand in the future.
That’s certainly possible if FCC Chairman Tom Wheeler’s plan to reclassify high-speed Internet as a telecommunications service, not an information service, moves forward.
Sure, there are no plans at this point to include price controls in the regulatory scheme, which the new classification allows. But who’s to say that won’t change if a single broadband provider does something outlandish, or a new administration decides pricing ought to look differently?
Our concern is, that heavier regulation under Title II of the Communications Act, which originated during Franklin Roosevelt’s first term, would needlessly hamper a successful platform for commerce and communication. And even though the act was substantially updated in 1996, that too was a different era when it comes to the Internet.
Cramming broadband into a regulatory structure meant for other forms of communication could stifle innovation and hold back investment.
A broadband provider should be able to build faster delivery options and charge more to use them. Without that ability to recoup investment, what incentive is there to create new systems?
The puzzling element to this idea of increased regulation, pushed by President Obama, is that there has been precious little in the way of bad behavior on the part of broadband providers to prompt intervention. Meddling in this success story is unwarranted and economically perilous.
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