Monday, July 27, 2015

FCC Republican: Here comes 'rate regulation'

The Hill reports:
One Republican on the Federal Communications Commission warned that rate regulation of broadband companies is already happening, judging by the conditions imposed on the merger of AT&T and DirecTV.

“These conditions are the forced tribute that the company must offer to mollify the Capitol,” GOP Commissioner Ajit Pai said, referencing The Hunger Games. "In this regard, I dissent.”


As part of the approval announced Friday, the FCC is requiring AT&T to offer 10 Mbps Internet speeds for $10 per month to low-income customers. Ahead of the merger, AT&T had vowed to offer 5 Mbps speeds for $10, then rising to $20 for those who qualified.

But Pai said that condition appeared to violate FCC Chairman Tom Wheeler’s repeated assertion during the net neutrality debate that the commission had no interest in regulating commercial broadband rates.

“When the Commission instructs a regulated entity that it must offer a particular service for no more than a particular price, there is a name for that. It is called rate regulation,” Pai said.
Just another scam to redistribute wealth.