Washington, D.C. - Citizens Against Government Waste (CAGW) today released a new report on four critical telecommunications issues, urging the government to refrain from interfering with innovation and allowing the private sector to provide the best value and services for taxpayers and consumers.  The publication addresses cable a la carte programming, the Internet tax moratorium, network neutrality, and spectrum sales.

CAGW President Tom Schatz said, “Over-regulating the telecommunications industry will have detrimental effects on the diversity of goods and services provided while wasting billions of tax dollars.  The newest innovations will come about because of less – not more – government intervention.”

CAGW’s report cites current telecommunications debates and the federal government’s temptation to regulate the industry as symptoms of larger problems.  While the private sector speeds ahead with more innovation in response to consumer demand, the federal government lags behind trying to play catch up and fails to see the impact of its policies on taxpayers and consumers.

Government mandated a la carte programming for cable operators is a classic case of government meddling in the private sector that will ultimately mean less choice and more expense for cable television subscribers.  The cable television industry has thrived and consumers have benefited from tiered programming, from basic to premium, and there is no basis to change that successful system.  As the November 1 expiration of the Internet tax moratorium approaches, Congress can either continue to allow the Internet to flourish and grow or impose unnecessary taxes.  While a permanent ban on taxes on Internet access and electronic commerce would be the best solution, an extension of the moratorium for six years is the minimum that would be acceptable for consumers and taxpayers.

Network neutrality, which would force Internet service providers to provide all content without making any one type more important or more expensive than any other content, would stifle innovation and consumer choice and cost taxpayers millions of dollars in unneeded bureaucracy.  Finally, pursuant to the Digital Television Act of 2005, the federal government will be putting up billions of dollars in spectrum for auction in January 2008.  Due to the Federal Communications Commission’s proposal to require “open access” for some of that spectrum, taxpayers are not likely to receive the best price for a valuable asset.

The report can be found at www.cagw.org.

Citizens Against Government Waste is a nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, abuse, and mismanagement in government.