TPA Reacts to President Obama Statement Calling for Net Neutrality

The Taxpayers Protection Alliance (TPA), a national taxpayer watchdog group representing concerned citizens all across the country, is deeply troubled by statements made from President Obama today that call on the Federal Communications Commission (FCC) to move forward with new rule making regarding net neutrality and reclassification under Title II. The fundamental debate about the best public policy to ensure that the Internet remains open is extremely important.  The White House and FCC Chairman Wheeler continue to get it wrong.

There is no justification to adopt an aggressive regulatory approach to keep the Internet open.  Of late, the country has seen an unprecedented amount of innovation and investment from the private sector.  In fact, a report out early last year by Charles Davidson and Michael Santorelli at the New York University Law School noted that, “Broadband providers have invested more than $1 trillion in broadband between 1996 and 2010, and $66 billion in 2011.”

Any reclassification of the Internet could open the flood gates for new taxes. If the FCC decided to regulate broadband as a Title II telecommunications service, customers would see the Universal Service Fund (USF) contribution fee assessed on broadband bills.  Telecommunications taxes are already too high and consumers can’t afford to be burdened with more taxes.

A reclassification of the Internet under Title II as a utility may have a negative impact on upcoming spectrum incentive auctions that the FCC has set for 2015. The regulatory approach of the FCC under reclassification would devalue the spectrum that is being auctioned off which in the end would harm taxpayers, and make it more difficult to sell.

There should be no infringement on check and balances that this reclassification would trigger. Congress has a role to play and as they work to update Communications Act, the FCC must respect the authority that Congress has by allowing elected officials to finish the important work they have started.

TPA has warned against “net neutrality” and increased regulatory measures on the Internet, and the statement made today by President Obama only adds to our dismay with the Administration’s approach on the issue of an “open internet.”  The Internet has thrived as the regulatory arm of the government has been minimal.

Having a reclassification under Title II would add new regulations that in turn would harm taxpayers, innovation, and ultimately change the way the Internet is utilized by everyone. There is no need to reclassify the Internet under Title II.  The government should continue its light regulatory approach to the Internet.