{"id":36835,"date":"2024-04-24T20:40:05","date_gmt":"2024-04-24T20:40:05","guid":{"rendered":"https:\/\/publicknowledge.org\/?p=36835"},"modified":"2024-04-30T21:07:03","modified_gmt":"2024-04-30T21:07:03","slug":"how-the-fcc-can-safeguard-broadband-affordability-initiatives-without-rate-regulation","status":"publish","type":"post","link":"https:\/\/publicknowledge.org\/how-the-fcc-can-safeguard-broadband-affordability-initiatives-without-rate-regulation\/","title":{"rendered":"How the FCC Can Safeguard Broadband Affordability Initiatives Without Rate Regulation"},"content":{"rendered":"\n

This week, the Federal Communications Commission will vote to reinstate the net neutrality rules<\/a> that were rescinded under former FCC Chairman Ajit Pai and resume real regulatory oversight over broadband. While this action has the potential to significantly narrow the digital divide and ensure internet service providers act in the public interest, it is critical that the text of this reinstated regulatory framework does not inadvertently undermine its own objectives in regards to broadband affordability. <\/p>\n\n\n\n

Like the 2015 Open Internet Order<\/a>, the draft text of the 2024 \u201cSafeguarding and Securing the Open Internet\u201d Order<\/a> is primarily concerned with the mechanics of reclassifying broadband as a Title II service and the regulations we\u2019ve come to associate with net neutrality \u2013 prohibiting blocking, throttling, and paid prioritization. These actions are essential to ensuring the internet is an open space for commerce, innovation, and speech. <\/p>\n\n\n\n

The draft Order also distances itself from \u201crate regulation.\u201d In the days of the monopoly telephone system, the FCC and state regulators reviewed and approved the rates that phone companies could charge, and the FCC has decided to \u201cforbear from\u201d \u2013 that is, not apply \u2013 any of the statutory provisions that would give it the authority to do this in the broadband context. In addition to forbearing from its own rate regulation authority, the draft Order also mentions that it finds the practice \u201cdetrimental,\u201d meaning it would be more likely to preempt states from imposing their own “rate regulation.”<\/p>\n\n\n\n

That’s fine as far as rate regulation goes; no one is seriously arguing that the FCC should directly set the rates that broadband providers can charge. But there are some potential ambiguities in the draft Order, which Public Knowledge has conveyed in discussions with the FCC<\/a>. First, \u201crate regulation\u201d has a specific meaning, but broadband providers have taken to labeling almost any form of regulation they don\u2019t like as \u201crate regulation.\u201d Second, the FCC\u2019s stance towards state laws that do not conflict with, but are different than, its own policies could be clarified, especially in this area.<\/p>\n\n\n\n

To be clear, \u201crate regulation\u201d does not mean any regulation that in some indirect way might affect customer billing. Consumer protection rules that guard against unfair overages and bill shock, or that mandate billing transparency, are not \u201crate regulation.\u201d Neither are programs designed to promote affordability or plans for low-income consumers. Congress has repeatedly, explicitly supported the creation and requirement of affordability programs and subsidy conditions. In the Infrastructure Investment and Jobs Act (IIJA), Congress stated<\/a> that \u201caccess to affordable, reliable\u201d broadband service has proven essential to participation in modern-day life. Public opinion<\/a> shows that most Americans concur with this opinion on the internet\u2019s importance, but this finding also draws on a strong body of current research, which shows that lagging adoption due to affordability<\/a> \u2013 not infrastructural access \u2013 is the chief barrier to broadband access for many consumers. <\/p>\n\n\n\n

However, industry advocates and their champions in Congress have consistently weaponized<\/a> overly broad interpretations of \u201crate regulation\u201d as a cudgel against such affordability programs and requirements. These claims have been voiced by industry groups through research reports<\/a> and by congressional members in U.S. House oversight hearings<\/a> and legislative proposals<\/a>. They\u2019ve also been echoed at the state level, such as when Virginia refused<\/a> to specify an \u201caffordable\u201d price as required by the National Telecommunications and Information Administration as part of the administration of Broadband Equity, Access, and Deployment (BEAD) funds, on the grounds that setting an affordable price would constitute rate regulation. These allegations are unfounded. The NTIA is not price setting, and conditions such as the low-income plan requirements provisioned by the NTIA are commonly woven into state subsidies \u2013 providers who are uninterested in offering a low-cost option can simply opt out of the application process. States need the authority to ensure that their subsidies are used judiciously and in a way that\u2019s beneficial to the public interest. If the NTIA is granting billions of dollars to the private sector, then the agency should ensure that these dollars are deployed effectively. <\/p>\n\n\n\n

Beyond BEAD, an overly broad characterization of rate regulation also jeopardizes the FCC\u2019s consumer protection and anti-discrimination work. Opponents of the Commission\u2019s anti-digital discrimination rules have characterized consideration of discriminatory pricing<\/a> as \u201crate regulation.\u201d Those opponents have also characterized the proposed requirement to ban early termination fees<\/a> and to require all-in pricing as \u201crate regulation,\u201d too.  <\/p>\n\n\n\n

There are obviously many problems with this. It is clear that the FCC choosing to forbear from directly regulating broadband rates has no bearing on congressionally mandated efforts like the Commission\u2019s new digital discrimination rules<\/a>, or other FCC consumer protection rulemakings. But it never hurts to state the obvious, so the Commission should clarify that its discussion of rate regulation is not about these kinds of programs.<\/p>\n\n\n\n

Furthermore, the Commission has rightly decided to not preempt state law unless there is a true conflict \u2013 that is, when it\u2019s not possible to follow state law and federal law at the same time. In such instances, federal law takes priority. Otherwise, as the draft Order states, the Commission is \u201cleaving room for states to experiment and explore their own approaches.\u201d This is good: It means, for example, that California can have specific rules banning certain forms of zero-rating, even if those would only be covered by the FCC\u2019s catchall \u201cgeneral conduct\u201d rule. But the potential ambiguity around the term \u201crate regulation\u201d raises its head here, as well. While in the preemption context, the draft Order states that the Commission finds rate regulation \u201cdetrimental,\u201d this statement should not be read to imply that the FCC has preempted states from imposing rules that might be called \u201crate regulation\u201d \u2013 only that, in the right circumstance, it might. But more pertinently, beyond the question of whether the Order\u2019s text actually does preempt \u201cdetrimental\u201d state laws, is that many of the state initiatives that could be challenged as rate regulation are not \u201crate regulation\u201d to begin with.<\/p>\n\n\n\n

To preclude these kinds of attacks, the FCC should clarify that forbearance from \u201crate regulation\u201d does not impede the authority of the agency itself, state agencies, or other federal agencies to require providers to offer discounted affordability programs for qualifying subscribers. For example, the Commission should affirm its authority to impose and enforce low-cost offerings to qualifying individuals as merger conditions, or as conditions on subsidies. Even more concretely, the draft Order characterizes state affordability programs like the state of New York\u2019s as a form of permissible state oversight \u2013 yet New York\u2019s affordability program is currently being challenged as \u201crate regulation\u201d and could therefore be interpreted as preempted under the current ambiguous text of the Order. The Order should explicitly clarify that states are free to require such affordability programs and that they do not<\/em> constitute \u201crate regulation.\u201d<\/p>\n\n\n\n

Broadband affordability programs and provisions not only move us closer to the FCC\u2019s objective of providing universal service, but also facilitate a wide range of downstream benefits. Since weak demand in nascent and underserved broadband markets makes it difficult for the government to secure investment in such areas, policies designed to shore up demand can remedy this issue by directly stimulating economic activity. Affordability policies demonstrate a shrewd understanding of the realities of broadband markets by acknowledging the need for a dual approach to broadband that builds up supply and corresponding demand. Subsidized demand, in turn, leads to enhanced access to education, jobs, e-commerce, and online communities.<\/p>\n\n\n\n

In clarifying their Order, the FCC can preserve these gains and clarify areas of potential confusion over the agency\u2019s authority, thereby ensuring that it has a full range of tools at its disposal for furthering broadband connectivity.<\/p>\n","protected":false},"excerpt":{"rendered":"

The FCC should clarify their draft Order’s comments on rate regulations to avoid impeding efforts to ensure broadband affordability for all.<\/p>\n","protected":false},"author":219,"featured_media":36836,"parent":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[5],"tags":[13],"class_list":["post-36835","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-insights","tag-net-neutrality"],"acf":[],"yoast_head":"\nHow the FCC Can Safeguard Broadband Affordability Initiatives Without Rate Regulation - Public Knowledge<\/title>\n<meta name=\"description\" content=\"The FCC should clarify their draft Order's comments on rate regulations to avoid impeding efforts to ensure broadband affordability for all.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/publicknowledge.org\/how-the-fcc-can-safeguard-broadband-affordability-initiatives-without-rate-regulation\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How the FCC Can Safeguard Broadband Affordability Initiatives Without Rate Regulation\" \/>\n<meta property=\"og:description\" content=\"The FCC should clarify their draft Order's comments on rate regulations to avoid impeding efforts to ensure broadband affordability for all.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/publicknowledge.org\/how-the-fcc-can-safeguard-broadband-affordability-initiatives-without-rate-regulation\/\" \/>\n<meta property=\"og:site_name\" content=\"Public Knowledge\" \/>\n<meta property=\"article:published_time\" content=\"2024-04-24T20:40:05+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-04-30T21:07:03+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/publicknowledge.org\/wp-content\/uploads\/2024\/04\/Website-Pictures-1.png\" \/>\n\t<meta property=\"og:image:width\" content=\"2000\" \/>\n\t<meta property=\"og:image:height\" content=\"1000\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Nat Purser\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Nat Purser\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/publicknowledge.org\/how-the-fcc-can-safeguard-broadband-affordability-initiatives-without-rate-regulation\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/publicknowledge.org\/how-the-fcc-can-safeguard-broadband-affordability-initiatives-without-rate-regulation\/\"},\"author\":{\"name\":\"Nat Purser\",\"@id\":\"https:\/\/publicknowledge.org\/#\/schema\/person\/8e0dfcd91cac8e82ec4150c4e737126b\"},\"headline\":\"How the FCC Can Safeguard Broadband Affordability Initiatives Without Rate Regulation\",\"datePublished\":\"2024-04-24T20:40:05+00:00\",\"dateModified\":\"2024-04-30T21:07:03+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/publicknowledge.org\/how-the-fcc-can-safeguard-broadband-affordability-initiatives-without-rate-regulation\/\"},\"wordCount\":1296,\"publisher\":{\"@id\":\"https:\/\/publicknowledge.org\/#organization\"},\"image\":{\"@id\":\"https:\/\/publicknowledge.org\/how-the-fcc-can-safeguard-broadband-affordability-initiatives-without-rate-regulation\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/publicknowledge.org\/wp-content\/uploads\/2024\/04\/Website-Pictures-1.png\",\"keywords\":[\"Net Neutrality\"],\"articleSection\":[\"Insights\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/publicknowledge.org\/how-the-fcc-can-safeguard-broadband-affordability-initiatives-without-rate-regulation\/\",\"url\":\"https:\/\/publicknowledge.org\/how-the-fcc-can-safeguard-broadband-affordability-initiatives-without-rate-regulation\/\",\"name\":\"How the FCC Can Safeguard Broadband Affordability Initiatives Without Rate Regulation - 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