The New York Times reported on Wednesday that the U.S. has sunk to 25th in a global ranking of Internet speeds, just behind Romania.
Why? Because our nation's regulators abandoned an earlier commitment to foster competition in the marketplace for Internet access providers.
In the years that followed the signing of the 1996 Telecommunications Act, lobbyists working for powerful providers like AT&T, Comcast and Verizon pressured a compliant FCC to tear down all of the important safeguards established by Congress.
Under the Bush administration, the FCC tossed out competitive broadband safeguards such as open-access requirements, which opened lines to other providers. In 2002 the agency declared that high-speed cable Internet access would no longer be considered a telecommunications service that opened the network to competitors, but rather an “information service” that did not. Following a 2005 court decision, the FCC also reclassified broadband delivered by the phone companies as an “information service.”
These were radical policy shifts that went against the long-held assumption that open communications in competitive markets were essential to economic growth and innovation.
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