Biden's effort to reverse net neutrality will hurt New Jersey — especially rural counties
When it comes to internet services, the majority of consumers want faster speeds, greater access and lower costs. However, the Biden administration is proposing a return to controversial net neutrality regulations on Internet Service Providers, or ISPs, that would result in the exact opposite outcome.
In particular, the rule proposed by the administration’s FCC to classify the internet as a telecommunications service under Title II of the Communications Act of 1934 would enable price regulation by the government, which history shows is a surefire way to kill broadband investment. In fact, studies indicate that overburdensome, heavy-handed net neutrality regulation increases costs and will delay and disincentivize broadband deployment and investment.
A bad deal for New Jersey
Jersey 1st was founded with the mission of advocating for the working families and taxpayers of the Garden State. We strive to protect New Jersey taxpayers and look out for the best interests of consumers. Unfortunately, policies coming out of Washington, D.C., do not always benefit New Jersey residents, and a return to net neutrality is one of them.
In fact, we know from past experience that net neutrality is bad for consumers, as President Barack Obama implemented these misguided regulations in 2015. Fortunately, the policy was repealed by the Trump administration in 2018, and we now have the data available to study the impact of the internet, pre- and post-net neutrality.
According to Americans for Tax Reform’s Digital Liberty project, comparing Ookla speed test data from 2015-2018 (during net neutrality) to 2018-2021 (after the repeal), both fixed broadband and mobile download speeds skyrocketed after net neutrality’s repeal — a 287% increase in average fixed broadband download speeds and a 570% increase in average mobile download speeds. Meanwhile, U.S. broadband investment reached a reported 21-year high of $102.4 billion in 2022, a 19% increase from the previous year, according to USTelecom.
It is truly ironic that, at the same time the Biden administration wants to close the digital divide, it is seeking to impose draconian regulations on the very industry needed to close that divide. Classifying internet services under Title II will also hurt consumers because it will lead to the FCC imposing additional fees on broadband service, which will be directly passed on to consumers.
How net neutrality rules will hurt New Jersey
New Jersey residents currently benefit from a variety of internet service providers competing for their business. According to the most recent Ookla speed test, New Jersey is fourth in the nation for fastest download speeds, with 99% of households having access to download speeds of 250 Mbps or higher, according to the FCC. And the Affordable Connectivity Program is available for qualifying households, providing up to $30 a month for internet services.
Returning to the 2015 net neutrality regime will only result in higher internet prices for New Jersey consumers and decreased broadband investment in the rural areas that need it — places like Salem, Cumberland and Sussex counties.
The public now has an opportunity to comment on the Biden administration’s net neutrality proposal before the rule becomes final. Jersey 1st urges New Jersey consumers to contact the FCC and tell it to say no to net neutrality, which will increase costs, inhibit investment and slow internet speeds.
Rosemary Becchi is a tax policy attorney and the president and founder of Jersey1st, a grassroots organization advocating for New Jersey families and taxpayers.
This article originally appeared on NorthJersey.com: Biden net neutrality rule could badly hurt rural NJ
