ISP deregulation discourages competition

JOSH MAASBERG, Evergreen columnist

Americans are increasingly paying more money for slower internet service because of a lack of competitive choices in the consumer broadband market.

Before Time Warner Cable and Charter Communications merged and became Spectrum, my roommates and I were paying about $60 month for 50 MB/s speeds here in Pullman.

When we moved, we were forced to choose a new plan. The options were 30 MB/s for $45 a month, or 100MB/s for $99.

These may seem like reasonable rates, but they are designed to deceive. For five people living in a home, 50 MB/s was perfect. The 30 MB/s plan is not enough.

But Spectrum doesn’t offer a 50 MB/s plan. Conveniently for us, they do offer a 100 MB/s plan, if you’re willing to pay a $200 installation fee. Keep in mind, all these rates don’t include their hidden fees either.

This is essentially extortion. We’re being forced to “upgrade” and pay exorbitant fees simply because there aren’t other options.

According to PBS, New Yorkers pay nearly double that of what residents in London and Seoul do, while receiving connections up to eight times slower.

The United States Department of Defense invented the internet. Now, the U.S. is home to world-leading technology companies like Microsoft, Apple and Google — yet it ranks a pathetic 31st place in the world in terms of average download speed and 42nd in average upload speed.

Deregulation has encouraged telecommunication companies to divide markets and eradicate competition, giving them no incentive to invest in faster speeds or lower prices.

Public utilities like power, water and gas provide essential services within a regulatory structure that sets standards to benefit consumers by controlling pricing and mandating accessibility.

Without similar protections in the telecommunication industry, Internet Service Providers (ISP) will continue vertically integrating their products by forcing bundles and packages on consumers regardless of demand. Additionally, they impose invisible data caps on your plan, throttle your connection and sell your metadata — all while failing to invest in internet infrastructure like the rest of the world.

Murrow College of Communication senior Chris Ryder, who interned in Washington D.C. at the New America Open Technology Institute, offered his perspective.

“It’s appalling to see internet freedom being slowly eroded,” he said. “Competition and freedom of choice are being chipped away to maximize profits.”

Deregulation has culminated in 90 percent of all major media companies in the United States being owned by six super-massive corporations — Comcast, Walt Disney, Time Warner, CBS, Viacom and News-Corp.

Unsurprisingly, the broadband market continues to be less competitive than ever.

According to the Federal Communications Commission (FCC), nearly one in three American households have no choice when it comes to their internet service providers thanks to regional monopolies.

At standard prices around $3.50 per megabit, the U.S. is lagging behind countries like Russia ($0.98) and Ukraine ($0.90) due to this lack of competition.

Government regulation has become a dirty word in politics, twisted to be synonymous with stifling economic growth and a burden for consumers.

In actuality, regulatory capture is responsible for the lack of competition.

This is the process by which members of a regulatory agency prioritize the deregulatory agendas of interest groups over the public. In simpler terms, these agencies are bought and paid for by the corporations they are tasked with regulating.

It is up to consumers to pressure our elected officials to represent us properly, and not the highest bidder.

The FCC needs to label ISPs as a utility and tighten control so that thoughtful, evidence-based regulations can protect American consumers and encourage investment in the internet infrastructure of tomorrow, instead of limiting choice and charging ever-increasing prices.