Taxation Without Connection
The digital divide, the space between those who do and do not have access to fast and reliable internet, has proven to be a chasm. Overlapping federal programs and complicated bureaucracy have made it difficult to continue the important work of bringing all Americans connectivity. One of the latest obstacles to closing the digital divide is broadband taxes, which impose arbitrary costs on internet service providers (ISPs,) making broadband more expensive or even completely unavailable to those who need it most.
Some local governments are taking advantage of the state and federal investments in broadband by charging broadband providers a fee to use public utilities in order to deliver broadband. The fee is a kind of “right of way” that must be paid before ISPs can bring much needed fast and reliable internet to the area.
Because the fees are imposed on the local level, some ordinances will have them while others will allow broadband providers to operate as usual. As a result, areas without a fee are much more likely to receive interest and investment in broadband infrastructure. Case in point, AT&T recently paused fiber expansion in Lake Charles, Louisiana due to the arbitrary tax on broadband.
With billions of federal and state dollars dedicated to closing the digital divide, local governments should take every step necessary to ensure that this money is used efficiently and with their communities in mind. Unfortunately, a fee on broadband means that the ISPs receiving these funds will be forced to redirect valuable resources towards local taxes.
The offline residents of Lake Charles and other communities with these fees are the ones who ultimately pay the price.
Louisiana is currently ranked first in broadband initiatives. The state’s office of broadband has done well to balance the conditions of grants and the urgent need for increased connectivity in the state. Local governments can carry on the momentum of this leadership by making sure that ISPs and investors are not met with a collection of fees and red tape.
With developments in broadband technology, millions of dedicated dollars, and an increased understanding of how vital reliable internet is in the digital age, there has never been a better time to reject arbitrary fees and close the digital divide once and for all.