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ISPs Ask FCC For Tax On Big Tech To Fund Broadband Networks and Discounts (arstechnica.com) 9
Postedby BeauHD from the would-you-look-at-that dept.
An anonymous reader quotes a report from Ars Technica: Internet service providers are again urging the Federal Communications Commission to impose new fees on Big Tech firms and use the money to subsidize broadband network deployment and affordability programs. If approved, the request would force Big Tech firms to pay into the FCC's Universal Service Fund (USF), which in turn distributes money to broadband providers. The request was made on June 6 by USTelecom, a lobby group for AT&T, Verizon, CenturyLink/Lumen, and smaller telcos. USTelecom has made similar arguments before, but its latest request to the FCC argues that the recent death of a broadband discount program should spur the FCC to start extracting money from Big Tech.
"Through focusing on the Big Tech companies who benefit most from broadband connectivity, the Commission will fairly allocate the burden of sustaining USF," USTelecom wrote in the FCC filing last week. The USF spends about $8 billion a year. Phone companies must pay a percentage of their revenue into the fund, and telcos generally pass those fees on to consumers with a "Universal Service" line item on telephone bills. The money is directed back to the telco industry with programs like the Connect America Fund and Rural Digital Opportunity Fund, which subsidize network construction in unserved and underserved areas. The USF also funds Lifeline program discounts for people with low incomes.
FCC Chairwoman Jessica Rosenworcel hasn't stated any intention to expand USF contributions to Big Tech. Separately, she rejected calls to impose Universal Service fees on broadband, leaving phone service as the only source of USF revenue. The USTelecom filing came in response to the FCC asking for input on its latest analysis of competition in the communications marketplace. USTelecom says the USF is relevant to the proceeding because "the Universal Service Fund is critical for maintaining a competitive marketplace and an expanded contributions base is necessary to sustain the fund." No changes to the USF would be made in this proceeding, though USTelecom's comments could be addressed in the FCC's final report.
ISPs Ask FCC For Tax On Big Tech To Fund Broadband Networks and Discounts More| ReplyLogin
Just what is an ISP Business Plan? (Score:2)
by awwsh*t ( 6214476 )
ISPs have a business plan, it involves charging customers for service. ISPs should look to the very customers that are asking to connect to "big tech" and then charge them accordingly. This is really straight forward, unless you've lost your mind because you have an artificial monopoly.
Re: (Score:2)
by JDShewey ( 1060926 )
It's also worth remembering that for all-big-tech not named "Google", they are *also* customers of those same ISPs - paying for connection. Even then, Google probably still pays for some internet service in many places - Google Fiber isn't ubiquitous.
Re: Just what is an ISP Business Plan? (Score:2)
by LordofWinterfell ( 90845 )
Google, AWS, Microsoft all pay telcos 10a if not hundreds of millions for leasing connectivity and dark fiber.
This is a joke. I canâ(TM)t even come up with a workable analogy. This is the private developer charging tolls and taxes to use a private road, and then saying that your grocery should pay them more to build more private toll roads since they get more grocery customers.
They arenâ(TM)t a government entity, they canâ(TM)t tax 3rd parties.
Of Course They Are (Score:2)
by rsmith-mac ( 639075 )
But of course they are. Who doesn't like free money?
Re: (Score:2)
by postbigbang ( 761081 )
You're right. ISPs can charge for transport. That's allowed and necessary. If they want to make revenue on other parts of the stack, then build other parts of the stack.
Verizon tried this with lots of FAILED purchases. They own significant parts of the transport layer. They can charge for that, subject to the market. The market has many competitors.
Competition is good, and not what monopolies like to face. Instead, they charge lots of hidden fees, some of them not quite legal, and no longer face state-level
I pay my ISP for connection (Score:2)
by jfdavis668 ( 1414919 )
So I can access products of the Big Tech companies. That is how it is supposed to work.
TELCO != ISP (Score:1)
by gavron ( 1300111 )
Headline: s/ISP/Telco/g.
ISP is an Internet Service Provider. Everyone from AOL to Hurricane Electric to Your Neigbor's Dog is an ISP.
TELCOs are telecommunication companies. They have EXTENSIVE regional or multiregional hardware, distribution, and access.AT&T - Telco
Verzion - Telco
Centurylink (nee Lumen nee Qwest) - Telco
"Smaller telcos" - TelcoISPs are companies that spend their time serving customers.
Telcos are companies that lobby government officials and spend their time f*cking over customers.Do Telcos pay Netflix for making them necessary? (Score:2)
by LordofWinterfell ( 90845 )
If telcos complain that people subscribing to software makes them want and use more bandwidth (and therefore software companies should pay a surcharge), telcos use software to run their services, and thanks to Netflix everyone is upgrading.
Seems that they should get a piece of telco subscription feesâ¦
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