CAGW to FCC: Consider the Consequences of Broadband Regulation
September 30, 2009
by: Erica Gordon

Government WasteWatch, Fall 2009

Citizens Against Government Waste (CAGW) has been a long time proponent of an open and competitive Internet, as limited regulation has afforded its unprecedented growth and development. 

The American Recovery and Reinvestment Act of 2009 requires the Federal Communications Commission (FCC) to produce a national broadband plan that would stimulate growth in providing broadband access across the United States.  On July 21, 2009, CAGW sent a letter to the FCC cautioning government intervention in this private industry.  Irresponsible or hastily planned policy toward universal broadband service could have a detrimental effect on Internet innovation.  The letter reads, in part:

“Any successful plan for stimulating broadband growth through the nation must include cooperation with the private industry.  The advancements in current widespread availability of diverse connectivity options have been spurred by private capital through the free market.  The FCC can adopt policies to enhance the current offerings by reducing barriers to entry and allowing more competition in the telecommunications marketplace.

By reducing burdensome price and contract regulations, the Commission could spur a deregulatory stimulus in the broadband market.  With more availability of pricing and contract options, more private capital would flow into investing in new markets and technologies, thus lowering costs and increasing competition and coverage.  With more regional contract and pricing possibilities open, existing telecommunications companies may find it profitable to enter markets that were previously uncovered.”