US Senate Commerce Committee

Sen John Thune (R-SD), Ranking Member of the Senate Commerce Committee and member of the Senate Finance Committee, took to the Senate floor to call on Congress to pass his Internet Tax Freedom Forever (ITFA) Act, which would make permanent the expiring provision preventing Internet access from being taxed, which would discourage and reduce deployment and investment.

Sen Thune made the following remarks on the Senate Floor, “…the Internet provides unprecedented economic and social benefits. Mom and pop businesses in South Dakota, Oregon, and across America have found access to consumers and new business opportunities that are only possible through the Internet…the moratorium on Internet access taxes has contributed to the Internet now being accessed by hundreds of millions of Americans every day.

"Thanks to this 16-year ban, consumer access to the Internet is free from state and local taxation for nearly all Americans…The moratorium also benefits consumers by prohibiting multiple and discriminatory taxes on goods and services sold over the Internet…My bill with Finance Committee Chairman Wyden provides for a permanent extension of the moratorium. By passing a permanent extension, we’ll provide certainty to Internet consumers in every state.”

The potential merger of AT&T and DirecTV is part of an accelerating trend of consolidation in the video marketplace. It deserves careful examination. In particular, I want to understand the impact this transaction will have on rural America. I welcome the commitments made by the two companies to enhance service to rural America, but those commitments must be real and quantifiable, and the companies have to live up to their promises.

More broadly, consumers throughout the country are clamoring for more programming choice and lower-cost video options. Both companies must prove that the creation of yet another video and broadband conglomerate can be responsive to those demands and the broader public interest. And as consumers increasingly turn online for their programming, this continued upheaval in the video market means that Congress needs to look closely at how to foster more video competition, particularly through online video distribution platforms.

US Senate Republican leaders, including Leader Mitch McConnell (R-KY), Whip John Cornyn (R-TX), Conference Chairman and Ranking Member of the Commerce Committee John Thune (R-SD), Policy Chairman John Barrasso (R-WY), Conference Vice Chairman Roy Blunt (R-MO), and National Republican Senatorial Committee Chairman Jerry Moran (R-KS), sent a letter to Federal Communications Commission (FCC) Chairman Tom Wheeler urging the Commission to abandon any efforts to impose so-called “net neutrality” regulations on the Internet.

In their letter, the senators underscore the “politically corrosive” nature of the FCC’s contemplated regulations, and urge the FCC to reject calls to impose Title II regulations on “the nation’s competitive and dynamic broadband economy.” The letter highlights the danger to the Internet of treating it as a government-regulated utility. The Senate leaders say, “Rather than attempting further legal contortions to encumber modern communications networks with last century’s rules, the Commission should work with the Congress to develop clear statutory authority and direction for the agency so that it can be a productive regulator for the 21st century marketplace.”

Sens John Thune (R-SD) and Marco Rubio (R-FL) and 33 of their Senate Republican colleagues sent a letter to Assistant Secretary of Commerce Larry Strickling, head of the National Telecommunications and Information Administration (NTIA), seeking clarification regarding the recent announcement that NTIA intends to relinquish responsibility of the Internet Assigned Numbers Authority (IANA) functions to the global multistakeholder community.

The letter expresses strong support for “the existing bottom-up, multistakeholder approach to the Internet governance,” and cautions: “We must not allow the IANA functions to fall under the control of repressive governments, America’s enemies, or unaccountable bureaucrats.”

The letter goes on to say: “The global community of Internet stakeholders should act deliberately and transparently as it formulates a possible proposal to transition the IANA functions to a nongovernmental entity. The multistakeholder model of Internet governance and the IANA functions are far too important for this process to be rushed or to be done behind closed doors.” Among other things, the letter asks the administration to “explain why it is in our national interest to transition the IANA functions,” and how NTIA will ensure “the IANA functions do not end up being controlled, directly or indirectly, by a government or inter-governmental entity.”

Chairman John D. (Jay) Rockefeller (D-WV) issued a subpoena to Mobile Messenger, a telephone “billing aggregator”, that has failed to provide information to the Commerce Committee related to wireless “cramming”, a practice where unauthorized third-party chargers are placed on consumers’ telephone bills.

Chairman Rockefeller initially wrote Mobile Messenger in March 2013 and again in November 2013, but noted in a new letter yesterday that “major gaps” remain in the company’s response. This action continues the Committee’s investigation into how consumers have been affected by wireless cramming, and whether the wireless industry’s voluntary procedures and practices adequately protect consumers from this practice.

“I am deeply disappointed that, nearly one full year after my initial request, Mobile Messenger has failed to produce key responsive information,” said Chairman Rockefeller. “It is also troubling that the company for many months has refused to provide information the Committee requested concerning the cramming scheme alleged by the Texas Attorney General in a November 2013 action against the company.”