As Comcast Caps Expand, House Wants FCC Authority Gutted

Historically the FCC has steered clear of regulating broadband prices. In fact, for fifteen years the FCC has been hard pressed to even acknowledge that high broadband prices due to limited competition is a problem that needs fixing. Still, House Republicans floated several new legislative proposals this week, one of which apparently uses the menace of the FCC setting acceptable broadband rates as an excuse to broadly restrict FCC authority.

quote: "Notwithstanding any other provision of law, the Federal Communications Commission may not regulate the rates charged for broadband Internet access service."

The "No Rate Regulation of Broadband Internet Act" doesn't have too much to it so far, simply stating:Why this sudden interest in the FCC engaging in broadband rate regulation? Comcast and other broadband providers are increasingly expanding their practice of usage caps and overage fees , and as the cable giant begins pushing its luck ever harder (by say, exempting its own streaming service from the caps ), pressure is building for the FCC to actually do something about this.

As such, ISP allies in the House are pushing bills consumer advocates like Free Press claim hurt the FCC's ability to protect consumers.

"The bill could give companies like AT&T and Verizon carte blanche to gouge Internet users with punitive data caps, discriminatory exemptions, unjustified fees and penalties, outrageous overages, and even fraudulent charges," noted the group.

"As written, this legislation goes well beyond preserving broadband providers’ ability to set their prices. It would legalize monopoly abuse, barring the FCC’s efforts to protect consumers from the unfair practices of industry giants that face few to no competitors."

And indeed, the idea that the FCC intends to aggressively impose rate regulation seems unlikely. Again, this is an agency that can't even publicly admit high prices are a probem, and intentionally refuses to even publish broadband pricing data at ISP behest (that's why our $300 million broadband map omits price, lest somebody notice there's a problem). It's the same agency that has turned a blind eye to usage caps and unreliable meters for years, and most recently has argued that caps and zero rating are innovative ad competitive practices.

As such, any narrative that the FCC plans to break with tradition and suddenly protect consumers from high prices seems far fetched. What's far more likely is that the House (aided by a revolving door of regulators turned lobbyists like Robert McDowell , who testified at today's hearing for giant ISPs) are simply working tirelessly to ensure the FCC's ill equipped to take on the nation's broadband duopoly -- should the public demand it.