LA Times: Net Neutrality may lead to higher broadband costs for consumers

The Los Angeles Times has revealed in a Thursday report, the implementation of the Federal Communications Commission (FCC)'s new Net Neutrality regulations could lead to an increase in broadband costs for consumers.

According to the LA Times report, broadband providers would apparently face a tax increase because of the newly implemented Net Neutrality regulations; and would, thus, result in increased Internet prices for consumers.

The report has further elaborated that broadband bills of consumers will apparently include the fee which funds the Universal Service Fund (USF) program --- a program which has been established to subsidize telephone service in low-income and rural areas. The USF is overseen by a board which includes FCC commissioners, state utility commissioners, and a consumer advocate representative.

With Internet having been reclassified under the new Net Neutrality regulations as a public utility, like telecom service, the LA Times report has revealed that the USF-funding fee will not only appear on consumer's telephone bills, but also their Internet bills.

Meanwhile, with the implementation of the USF to broadband having been delayed, for a few weeks, until the USF board reaches a decision on the matter, FCC Chairman Tom Wheeler recently told House members: "I think it is incorrect. to say anything in what we have done will lead to an increase in [USF] fee contributions."

Los Angeles
Tom Wheeler