The Slow Death of Affordable Broadband: How Corporate Power is Winning the Connectivity War
Nearly 40 million Americans – roughly 12% of the population – still lack access to high-speed internet. But the problem isn’t just access; it’s affordability. While the infrastructure buildout continues, a quiet battle is raging over who gets to control the price of connectivity, and increasingly, corporations are winning. A recent New York State law, requiring large ISPs to offer $15/month broadband to low-income residents, is just the latest skirmish in a decades-long war against meaningful consumer protection, and a chilling preview of what’s to come.
The New York Stand and the Supreme Court’s Silence
During the height of COVID-19 lockdowns, New York recognized the critical need for affordable internet access. The law, applying to ISPs with over 20,000 subscribers, wasn’t radical – a modest 25 Mbps for $15. For companies with existing fiber infrastructure, the marginal cost of providing this service is minimal. Yet, AT&T and Comcast immediately sued, arguing the law represented illegal “rate regulation.” The Supreme Court twice refused to hear their case, a seemingly small victory for consumers. However, the ISPs aren’t conceding defeat; they’re simply shifting tactics.
From Rate Regulation to “Illegal Interference”
The telecom giants are now framing the issue not as price control, but as government “interference” in a free market. Their latest filing with the Department of Justice (DOJ) echoes familiar arguments: state and federal efforts to protect consumers from monopolies “threaten competition” and are “inconsistent with federal law.” This claim is particularly galling given the demonstrable lack of competition in the U.S. fixed-line broadband market. For most Americans, the choice boils down to one or two providers – often with similar pricing and notoriously poor customer service.
The Erosion of Federal Oversight
The ISPs’ strategy is working, in large part because of a deliberate dismantling of consumer protection regulations. Telecom lobbyists, coupled with a conservative legal landscape, have systematically eroded the authority of federal agencies to regulate the industry. What remains is a patchwork of state-level initiatives, which are now the primary target of corporate legal challenges. As one observer noted, we’ve essentially built a corporatocracy while regulators were distracted. The result? Expensive, unreliable internet service for millions.
California and the Expanding Battleground
California is currently considering legislation similar to New York’s, prompting a renewed offensive from the telecom lobby. AT&T, Verizon, and Comcast are deploying the same playbook: threats of reduced investment, claims of economic hardship, and legal challenges. They’re betting that states, lacking the resources and political will to fight protracted legal battles, will back down. And, unfortunately, they have a strong track record of success.
The Future of Broadband: A Tale of Two Internets
The trajectory is clear: a future where access to affordable, high-speed internet is increasingly stratified. Those in states willing to challenge corporate power may benefit from lower prices and better service. But in most of the country, consumers will continue to be at the mercy of regional monopolies, paying a premium for subpar connectivity. This isn’t just an economic issue; it’s a matter of equity and opportunity. Reliable internet access is essential for education, healthcare, and participation in the modern economy.
The Role of Municipal Broadband
One potential solution lies in the expansion of municipal broadband networks. Cities and towns can build and operate their own internet infrastructure, providing a competitive alternative to private ISPs. However, many states have erected legal barriers to municipal broadband, often at the behest of the telecom lobby. Overcoming these obstacles will be crucial to ensuring affordable access for all. The Institute for Local Self-Reliance provides valuable resources on this topic.
The fight for affordable broadband is far from over. The Supreme Court’s silence isn’t a victory; it’s a deferral. The telecoms will continue to push the boundaries, seeking to eliminate any constraint on their pricing power. The question is whether states – and ultimately, the federal government – will finally stand up and protect consumers from predatory practices. What are your predictions for the future of broadband access in your state? Share your thoughts in the comments below!
