January 2016

New Bill Would Block ISP Rate Regulations

The House Communications Subcommittee will try to revive an effort through a new bill, the No Rate Regulation of Broadband Internet Access Act (HR 2666), to would prevent the Federal Communications Commission from using its new Open Internet rules to impose rate regulations on Internet service providers (ISPs). That is one of four bills the subcommittee will consider at a Jan 12 hearing to kick off the new year. A similar provision was initially targeted to ride the omnibus spending bill into law, but did not make it as a rider on the final bill that passed at the 11th hour in Dec.

The bill is essentially only one paragraph, as follows: "Notwithstanding any other provision of law, the Federal Communications Commission may not regulate the rates charged for broadband Internet access service." Reviving the bill is sponsor Rep Adam Kinzinger (R-IL). "The FCC’s Open Internet Order reclassified broadband under Title II, giving the FCC the ability to regulate rates in two distinct ways: tariffing and through declarations of what are 'reasonable' rates," Republican subcommittee leadership said in announcing the legislative hearing. The bill would make sure that the FCC couldn’t' regulate broadband rates--as it does some cable rates--by ensuring the prohibition in statute.

Is good broadband news for consumers bad news for the FCC?

[Commentary] The 2015 Measuring Fixed Broadband Report the Federal Communications Commission released Dec 30 contains much overwhelmingly positive data. One top result is that Internet service providers (ISP) in the United States deliver better average performance than advertised: that is, you pay for 20 Mbps per month, and your ISP gives you speeds of 25, 30, or even 50 Mbps instead. That’s a nice surprise for consumers — and it’s one that contradicts the pervasive perception that ISPs under-deliver on promised service.

FCC Chairman Wheeler’s aggressive plans are built on fears that the broadband market offers too few consumers too few options of too little quality for too much money. This report paints a very different picture: the market is consistently giving consumers increasingly better service at ever-lower prices. Importantly, the data for this report are from September 2014, so they predate the FCC’s recent efforts to “protect and promote” competition. Indeed, one of the most important — and underreported — developments in 2015 was AT&T’s deployment of 75 Mbps DSL service to its U-Verse customers in 70 markets around the country. Competition, it seems, is alive and well in the broadband market. Perhaps this is why the FCC chose to release the report on one of the slowest news days of the year. While the report is great news for the American consumer, it may not be so welcome for the FCC.

[Gus Hurwitz is an assistant professor at the University of Nebraska College of Law]

Report warns IRS's online plans could hurt taxpayers

The Internal Revenue Service is quietly moving toward a high-tech future that could end up hurting taxpayers and costing them more money, a new report warns. Since 2014, the IRS has invested millions of dollars on a plan to make better use of its limited resources by moving more of its work online, including plans to adopt online taxpayer accounts. But the plan, which has yet to be made fully public, could add to people's costs come tax season — and discourage them from paying their dues, warned the National Taxpayer Advocate in its annual report to Congress.

"I have significant concerns that the IRS is embarking on a path that will unintentionally undermine taxpayer rights rather than enhance them, thereby eroding taxpayer trust further," wrote Nina Olson in her report to Congress. Olson said she is not against the IRS becoming more technologically savvy. But she is worried that the IRS' is creating a "pay-to-play" system, wherein only people who can afford professional help will receive assistance filing their taxes. OIson called for the IRS to "immediately publish its plan and solicit public comments." She also asked that Congress hold hearings in the next few months on the IRS' plans to move more activity online.