For years now, local governments have turned to Internet services as a way to raise revenue. To do this, they have been imposing fees on Internet services similar to the fees you see on cable TV. Now the FCC has voted to block local governments from imposing fees on home Internet. Local governments cannot use FCC rules meant for cable TV to impose fees on other cable company services like internet.
“In order to rein in overreach by local franchising authorities, and thereby facilitate the deployment of broadband infrastructure, the Commission concluded today that, under the Act, cable-related, non-monetary contributions required by a local franchise are franchise fees subject to the statutory five percent cap with limited exceptions, including an exemption for certain capital costs related to public, educational, and governmental access channels,” the FCC said in a statement on their website.
This all comes after a recent court ruling said the current version of the franchising authority rules did allow local governments to impose fees and rules on internet like they do with TV. This rule change closes the loophole.
The good news for cord cutters is this will help new Internet providers to be able expand as it prevents local governments from using the same franchise system to create cable TV monopolies.
What do you think of the new FCC rules blocking local governments from pushing up the cost of internet with fees? Leave us a comment and let us know what you think.
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