Why Telecom Rate Regulation is a Bad Idea – Progressive Policy Institute


House Subcommittee On Communications and Technology held a hearing on H.R. 2666, the “No Rate Regulation of Broadband Internet Access Act.”  The bill would bar the FCC from imposing rate regulation on the broadband industry. Without taking a position on the legislation itself, we note two points. First, there is literally no evidence that rate regulation is needed. Americans are getting far more telecom services than 15 years ago, while laying out roughly the same share of consumer spending. Second, in the rapidly-changing world of the tech-telecom-content sector, rate regulation is like putting a ball and chain on an Olympic runner.  Economic growth depends on the creation of new markets, products, and services. The need to get rate approval will slow some innovations, and deter others.

In the end, rate regulation is solving a problem that doesn’t exist

Thanks. God bless.



Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s