Rural states are losers in new FCC Internet regulation

Montana is just beginning to see the makings of a legitimate technology sector in our state. It’s not just in Bozeman and Missoula — the potential for technology startups exists anywhere in the state with a decent Internet connection.

The upside is that Montanans in smaller communities have opportunities to connect to education, start businesses and reach global audiences like never before.

It’s because that potential opportunity is so important that the new proposal by the Federal Communications Commission to impose heavy, top-down regulations on Internet connectivity should have Montanans concerned.

The FCC proposes to begin regulating the Internet just as they regulated telephone companies in the 1930s (in fact, they’re using the same “Title II” statute that was implemented more than 80 years ago). They want Internet providers to be considered “common carriers,” with a one-size-fits-all business model mandated for all interactions between providers and consumers.

Those regulations didn’t serve well for telephone service, as evidenced by the innovation and explosion in consumer choice that followed the breakup of Ma Bell. They won’t serve Internet consumers or entrepreneurs well either.

The FCC’s ruling has created many unfortunate victims throughout American society. In this case, rural states like Montana will be the losers.

Under the FCC’s rule, Internet companies will find it much more difficult to invest in new infrastructure. The first investments to go will be the most marginalized ones — specifically rural areas with low population density. When the FCC’s rule goes into effect in June, we can expect that rural Montana will be treated as second-class citizens with subpar access to the Internet.

Worse, as Internet investment potentially dries up in rural areas and new technology is deployed in more populous states, the gap between the Internet haves and have-nots could only widen.

The frustrating part is that the FCC’s proposal for increasing their regulatory authority over the Internet isn’t even necessary. Over the past 30 years, we’ve had nothing but amazing growth in Internet availability — all accomplished without the intervention of the FCC.

Why now, after the existing model has proven itself time and time again, would we suddenly scrap it and try something else — especially when that switch is a move from the free and open market to a Big Government central planning?

Montanans deserve the same Internet accessibility as the rest of the country and all the education and economic opportunity that goes with it. Please join with me in encouraging our delegation — Sens. Jon Tester and Steve Daines — to support bipartisan legislation that will keep the Internet free and open.

Sen. Doug Kary, R-Billings, is a member of the Montana Senate Energy & Telecommunications Committee.