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CEI Rejects New Broadband Price Control Bill

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CEI Rejects New Broadband Price Control Bill

New Bill Allows Government Controls Over Broadband Pricing

 

Washington, D.C., June 22, 2009—Rep. Eric Massa (D-N.Y.) recently announced legislation to place government control over fees on broadband usage.  With the introduction HR 2902 - the "Broadband Internet Fairness Act” - which would mandate government control of pricing for broadband, Massa asserts: “safeguards must be put in place when a business has a monopoly on a specific region.” 

Translation: Government will dictate broadband rates and force providers to cut rates if politicians deem them “too high.”

The Competitive Enterprise Institute believes this policy will ultimately hurt consumers, and opposes its provisions.  It will discourage firms from investing in faster broadband networks at a time when network infrastructure is becoming a crucial driver of the U.S. economy. 

CEI Information Policy Analyst Ryan Radia asks, “Who would want to invest in a market in which price hikes must be justified to government overseers?”  Mr. Radia added, “We all want broadband prices to come down. But the best way to make this happen is through innovation driven by competition, not government fiat.” 

The federal government is already exerting control over the auto and banking industries, the broadband industry could be next.  For more info on broadband policy go to cei.org/Tech and Telecom

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