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.