Now that Net Neutrality is Dead, can I quit paying Universal Service Fund fees?

When a private company receives tax dollars to build their network, they shouldn’t get to restrict your access to content on it.

This isn’t some lofty policy debate. Consumers will suffer from the end of Net Neutrality.

It’s been trumpeted from the highest building in each city: net neutrality is dead! For those not up to speed on net neutrality, here’s a quick look at how this impacts you:

For the sake of example, let’s use Comcast. Comcast is the world’s largest mass media company, as well as the largest internet service provider (ISP) and cable company in the United States. Early in 2013, Comcast added NBC Universal to its business by purchasing it from GE. So now the largest ISP also owns a major news/cable network, movie studio, and a whole bunch of web properties. Under net neutrality, Comcast couldn’t slowdown or block your access to CNN.com in favor of their NBCNews.com website. Now that net neutrality is dead, expect things to change.

Are you an Xfinity subscriber who likes ESPN.com? Too bad — you’ll have to start using NBCSports.com. Like Netflix? Unfortunately, that detracts from Verizon FiOS’s On-demand service. Netflix can now be throttled to steer you toward your cable providers on-demand service. If Google wants to keep their services reliably flowing to your home, they’ll have to start paying big bucks to the ISPs. What if Google refuses? You might find it quicker to Bing your way around the Internet.

Finally, are you a GOP-loyalist thinking this amounts to nothing more than liberal whining? Think again. If you’re using Comcast you might find FoxNews.com being slowed down as Comcast encourages you to visit their MSNBC website for your news fix. HuffingtonPost isn’t immune from this behavior either.

Your Tax Dollars Working Against Your Interests

Missing from the conversation about the end of net neutrality is a discussion of how many tax dollars are flowing to the ISPs to support and expand their network infrastructure.

Each year the federal government disburses millions of dollars to telecoms and ISPs to build out our nation’s telecommunication, and increasingly, broadband infrastructure. Perhaps you’ve noticed the Universal Service Fund (USF) fee on your phone bill. The USF is one way the government supports the buildout and enhancement of broadband networks. Other programs include the Broadband Technologies Opportunity Program (BTOP) and the Broadband Initiatives Program (BIP). While each program is different, the end goal is the same: provide Americans access to broadband service.

The intent of this post isn’t to rail against government programs that support broadband deployment. I believe universal broadband access should be pursued with the same vigor as when we sought to electrify every house. However, I don’t believe companies should be able to access taxpayer funded programs and restrict access to content, applications, or services that directly compete with their parent company’s offering. When taxpayers are subsidizing the construction of broadband networks; taxpayers ought to be able to freely choose what content they access on those networks.

A Proposed Solution

Going forward, only companies that agree to abide by net neutrality principles should receive disbursements and grants from the government for broadband deployment. Any company that does not continue abiding by net neutrality principles should have their USF disbursements for broadband cut off. This really isn’t that radical of a notion. Government funding usually comes with a lot of strings attached — here’s a new set of strings.

One can argue that crafting rules in this way would leave unserved and under-served populations with no access to broadband service. I disagree. With those funds no longer obligated to a major ISP, it would open the door for broadband cooperatives to step in and fill the market demand. But that’s a whole different post for a later date.

One final note:

Comcast customers will get to enjoy net neutrality for the next six years. As a condition of acquiring NBC Universal, Comcast agreed to abide by the FCC’s Open Internet rules for seven years, regardless of modification to those rules by the courts. Those of us with a different ISP aren’t so lucky.

Additional Reading:

CNET’s FAQ to the District of Columbia Circuit Court’s Ruling

L.A. Times: Net neutrality is dead. Bow to Comcast and Verizon, your overlords

Forbes: With Its ‘Net Neutrality’ Case Against Verizon, The FCC Loses — Again