USHBC Comments on Net Neutrality for Broadband
Comments submitted on behalf of the United States Hispanic Business Council in response to the Notice of Proposed Rulemaking (NPRM) seeking comment on proposed rules for safeguarding and securing the open Internet (WC Docket No. 23-320). The proposed draft would reestablish the Commission’s authority over broadband Internet access service (BIAS) by classifying it as a telecommunications service under Title II of the Communications Act of 1934.
The Federal Communications Commission is proposing to reclassify broadband internet access from a Title I-Information Service to a Title II-Telecommunications Service. The difference between a Title I and a Title II service may seem minute, but it will have a significant impact on important goals like closing the digital divide to bring all Americans online.
In particular, one provision of Title II - specifically Section 214 - would require providers to go through a rigorous application process in order to provide domestic and international telecommunications services in the United States. It also imposes unnecessary government oversight and regulation regarding the operations of broadband networks.
As the Biden Administration races against the clock to roll out its broadband accessibility agenda, one should wonder why the FCC would create obstacles that go against its mission of “providing affordable, reliable, high-speed internet for everyone in America.”
Burdening the broadband industry with ill-conceived regulation that discourages investment and delays implementation will only exacerbate the discrepancy in internet access for rural communities and middle America, particularly as we fight to stay globally competitive in the 21st century.
While other core tenants of net neutrality pose less of a threat to broadband access, the FCC has already provided exemption for almost every other provision under Title II. The section the FCC is most intent on enforcing keeps their hand in the cookie jar and makes them the gatekeeper for the implementation of groundbreaking technology.
New technologies, powered by broadband networks, are opening up access and competition more than ever before. This is especially true for Hispanic owned businesses, 36% of which make most (or all) of our revenue online. Applying obstacles that will negatively impact operation, scalability, innovation and investment to these networks will in turn burden our businesses.
In the digital era, where technology is driving services like telehealth, education and e-commerce, the impact extends beyond just broadband. In fact, according to a Phoenix Center Economic Study, previous Title II regulatory approaches resulted in “reduced investment by $8.1 billion annually … and reduced total employment by about 195,600 jobs in a variety of industries.”
The European Union’s (EU) over regulation of broadband stifled innovation and choked off investment, serving irrefutable proof of the unintended consequences of this approach. One of these consequences was experienced during the COVID-19 pandemic, when EU countries had to compel European broadband providers to engage in stringent network management practices to preserve connectivity. In contrast, US networks flourished and were able to power work-from-home platforms, remote education, telehealth, and more with ease.
Our government should prioritize more pressing issues, especially when the pitfalls of this ill-fated pursuit are evident. The reclassification of broadband as a telecommunications service seems to be a solution in search of a problem. One that will significantly hinder small businesses and innovation, putting America at a disadvantage in global competitiveness.
Sincerely,
Javier Palomarez
President & CEO
United States Hispanic Business Council