The Internet’s “Virtuous Circle of Innovation” Is Starting to Look Like a Spiral of Rate Increases

When the Federal Communications Commission overturned the network neutrality rules in December 2017, it gave the green light to cable and other Internet Service Providers (ISPs) to make the internet start looking more like cable TV. Given this lack of oversight, not only may new price schemes emerge that were previously illegal under the net neutrality rules, but with the FCC’s hands off the wheel, cable companies may feel emboldened to spread the pernicious below-the-line fees we see in our monthly cable bills to our internet service bills, too. With virtually no competition or public oversight, cable companies have been raising prices 2-3 times the rate of inflation for over 20 years. Price hikes are added and hidden as new fees, like the regional sports fee, the broadcast fee, and HD technology fee. Price hikes have spread to items that cost much less than they charge, such as fees for set-top boxes, and connecting multiple TVs within one home. Hidden or not, these fees are deceptive and try to keep you from understanding the overall price you pay. Is this the model we want for the internet?