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One of the reasons that the Internet is a great American success story is that it is accessible and affordable for most consumers. But the federal government is about to jeopardize this progress by imposing unprecedented regulation that will drive up the cost of Internet connections. The White House has called for the Federal Communications Commission (FCC) to implement strict Internet regulations called Title II. Under Title II regulation (originally written for the telephone monopoly in the 1930s), Internet service would be subject to a plethora of federal, state and local taxes and fees.  

According to a study by the Progressive Policy Institute (PPI), regulating the Internet as a public utility would cause consumer fees and taxes to skyrocket.

  • New state and local fees would increase by up to $11 billion per year. 
  • Federal Universal Service Fees on broadband services would increase to over $2 billion per year.  

Top 10 U.S. States by Wireline Fee:

  1. California (up to $167.09 per year)
  2. Alaska ($148.34)
  3. Pennsylvania ($144.90)
  4. Louisiana ($141.49)
  5. Illinois ($138.79)
  6. Oklahoma ($137.93)
  7. Maryland ($131.44)
  8. Washington ($126.91)
  9. Tennessee ($123.97)
  10. Kentucky ($118.97)

Top 10 U.S. States by Mobile Broadband Fee:

  1. California (up to $178.82 per year)
  2. Pennsylvania ($154.64)
  3. Alaska ($153.88)
  4. Louisiana ($153.12)
  5. Oklahoma ($149.80)
  6. Illinois ($145.39)
  7. Maryland ($137.46)
  8. Washington ($137.34)
  9. Tennessee ($130.29)
  10. Arkansas ($129.41)

Broadband Internet has thrived in the United States because policymakers have created an environment that promotes innovation without constrictive regulation or red tape. Instead of building upon this success, Title II will expand governmental control, create uncertainty and subject all broadband users to higher costs and fees.

By giving the government power to impose heavy-handed rules and levy fees on the Internet, we jeopardize the future potential of the Internet and the new technologies it will enable. Title II will slow Internet innovation and increase the cost for consumers to connect to the Internet.  

Please visit the links below to learn more about Title II and government Internet fees and taxes:

PPI Blog: No Guarantees When It Comes to Telecom Fees

PPI Policy Brief: Outdated Regulations Will Make Consumers Pay More for Broadband

BFA Factsheet: Title II and Investment

BFA Blog: President’s Plan Jeopardizes Internet Success

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