Telecom Heats Up the Summer Months
In March 2014, Citizens Against Government Waste (CAGW) released “Telecom Unplugged: Unleashing a New Digital Era,” which highlighted topical telecommunications issues. Now that summer is in full swing, politicians and bureaucrats are feverously pitching to finish their work on telecommunications legislation and regulations before the glorious August recess, when only the tourists trudge their way down the scorching hot Mall.
Chapter one of “Telecom Unplugged” covered Internet taxation. On June 18, 2014, the House Committee on the Judiciary ordered H.R. 3086, the Permanent Internet Tax Freedom Act, reported favorably to the full House. This is the first step toward achieving a permanent ban on duplicate or discriminatory taxes on Internet services, as well as a tax on Internet access. The Council for Citizens Against Government Waste (CCAGW), CAGW’s lobbying arm, had expressed support to the committee on the legislation asking for its quick consideration before the August recess. Passage of this legislation is critical in order provide certainty to Internet subscribers and providers that access to the Internet remains tax-free.
Chapter two of the report discussed broadband initiatives by the federal government. On April 30, 2014, Federal Communications Commission (FCC) Chairman Tom Wheeler announced his plans for the future of broadband Internet at the 2014 Cable Show. He made certain that there would be no question he would be putting forth new rules stemming from the January 14, 2014 court decision on Verizon v. FCC, against the Open Internet Order. Wheeler outlined his basic tenets. He said slow lanes and fast lanes on the Internet were not acceptable and that people should get what they pay for. He then proceeded to announce that he had the power and authority to overturn state laws that regulate municipal broadband. This was an astounding declaration by the chairman of an independent federal agency, and an overly broad interpretation of the FCC’s authority.
On June 20, 2014, CAGW President Tom Schatz and Utah Taxpayers Association Vice President Royce Van Tassell wrote in a Wall Street Journal op-ed about the failures of municipal broadband networks and explained why Chairman Wheeler should not usurp state laws. Schatz and Van Tassell noted,
The record of these projects is decidedly mixed ….. No wonder, 21 states have taken action to prevent much of this wasteful spending by restricting municipal broadband build out. Their laws range from requiring a taxpayer referendum or mandate and evidence the system can be self-sustaining, to complete prohibitions on telecommunications services if a private company or companies already provides such services.
Mr. Wheeler would have the FCC overturn these laws and stop the other 29 states from adopting similar restrictions. He should reconsider. Otherwise, taxpayers will all be living in states of dystopia.
Chairman Wheeler’s plans should raise warning flags to all Americans. His proposed increased intervention and control over the Internet and attempt to usurp state laws are examples of the worst kind of government overreach.
As noted in a June 2014 WasteWatcher article, Chairman Wheeler kept the promise he made at the Cable Show and issued a notice of proposed rulemaking, marking the agency’s third attempt to gain control over the Internet. The agency will be accepting public comments until July 15, 2014, and CAGW will certainly meet that deadline. In the meantime, the House Energy and Commerce Committee is considering how to modernize the Communications Act of 1934. But, rather than waiting for Congress to take a deliberative and thoughtful approach to modernizing the law, Wheeler is seeking to undermine the legislative process.
Interestingly, the NPRM asks how it can best regulate the Internet using either Section 706 authority or Title II common carrier rules. So, not only is Wheeler thinking about increasing government regulation over the Internet, he is also considering using an 80 year-old law originally taken from railroad regulations of the 1880s and applying it to a modern, innovative, and constantly evolving means of communications. He is also considering extending the new rules to wireless services.
Chapter four of CAGW’s report covered international governance of the Internet. On March 14, 2014, the U.S. Department of Commerce announced that the National Telecommunications and Information Administration (NTIA) would not renew its contract to oversee the Internet Corporation for Assigned Names and Numbers (ICANN). The announcement calls into question what governing body would provide the necessary oversight of the organization in order to prevent another government from taking control of the Internet.
ICANN assigns the Internet numbers and naming conventions used around the world, including the generic top level domain names (gTLD). These are the .com, .biz, .edu, .org, individuals see when they are looking for websites. Some countries such as France have been unhappy with the new gTLDs assigned by ICANN this past year, and are seeking increased state supervision of the organization’s day-to-day operations. Without appropriate oversight of ICANN, other nations that have sought to control the Internet and already censor its content could have greater ability to insert themselves into the Internet governance process.
H.R. 4342, the Domain Openness Through Continued Oversight Matters Act of 2014 (DOTCOM Act of 2014), would require a study by the Government Accountability Office to review the procedures for a planned withdrawal from ICANN governance by the U.S. prior to the NTIA relinquishing control. This is a critical step, as it will afford the opportunity to review NTIA’s exit strategy in order to ensure that U.S. involvement continues, and that the Internet is allowed to provide uncensored access to lawful content.
While spring has sprung forth a great deal of movement in the legislative and regulatory front in the telecommunications landscape, this summer offers the opportunity for several of these issues to heat up.
