The FCC Proposes A Wi-Fi Tax — For Real This Time

In October 2021, the Federal Communications Commission officially sought comment on an honest-to-God Wi-Fi tax proposed by the National Association of Broadcasters (NAB). The NAB proposal would assess regulatory fees on “unlicensed spectrum users,” a category that includes users of Wi-Fi, Bluetooth and other consumer wireless devices. Technically, this would be a “regulatory fee” and not a “Wi-Fi Tax,” but if approved the result would be the same. The FCC has the power to impose this tax because, as part of the Communications Act, Congress requires the FCC to collect regulatory fees to offset its costs. The FCC collects these fees from entities it regulates that receive special benefits from its regulations, as distinct from the general benefits of a working communications system. The same law prevents the FCC from charging regulatory fees for things that confer a “general benefit” to the public as opposed to a specific benefit to a licensee. Anyone who uses Wi-Fi, Bluetooth or any other connected device needs to make it clear to the FCC and Congress that everyone benefits from unlicensed spectrum. Unless public backlash makes this proposal toxic, broadcasters will continue to push their retaliatory agenda. Unlicensed spectrum is the one part of the public airwaves that genuinely belongs to the public. The FCC needs to keep it that way.

[Harold Feld is Senior Vice President at Public Knowledge.]