Stricter regulations approved by the Federal Communications Commission could mean higher Internet bills for consumers, federal officials warn.
When the FCC passed its Open Internet order in February, the agency “put broadband in the same regulatory category as phone service, opening the door for the charges,” which consumers already pay on their phone bills, The Los Angeles Times reported Thursday.
The average household pays about $3 per month toward the Universal Service Fund, which is tasked with expanding telecommunications services to schools and underserved areas, cumulatively providing the fund with just under $9 billion last year.
The Times says, “It’s not clear yet” whether the reclassification will result in higher overall fees for consumers, because the FCC only establishes the overall size of the USF, leaving the telecoms to apportion the fees among their customers.
FCC Chairman Tom Wheeler assured a skeptical Congress the agency has no plans to raise the USF’s funding level, meaning most customers would see the new broadband fees offset by reduced fees on their phone bills. “You would have a reduction in one area that may be accompanied by an increase in another that should end up washing out because the gross number is the same,” he explained.
Critics of the FCC’s new rules, however, predict the agency will be unable to resist the urge to raise the fee, with so many new contributors available.
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