Outdated Regulations Will Make Consumers Pay More for Broadband

[Commentary] Self-styled consumer advocates are pressuring federal regulators to “reclassify” access to the Internet as a public utility. If they get their way, US consumers will have to dig deeper into their pockets to pay for both residential fixed and wireless broadband services. How deep?

We have calculated that the average annual increase in state and local fees levied on US wireline and wireless broadband subscribers will be $67 and $72, respectively. And the annual increase in federal fees per household will be roughly $17. When you add it all up, reclassification could add a whopping $17 billion in new user fees on top of the planned $1.5 billion extra to fund the E-Rate program. The higher fees would come on top of the adverse impact on consumers of less investment and slower innovation that would result from reclassification.