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Consumer Bills Could Soar Under Title II

  • December 10, 2014
  • The Progressive Policy Institute

If the FCC decides to define broadband service as a telecommunications service, broadband services would become subject to state fees that apply to telecom services.  The attached report by PPI Senior Fellow Hal Singer and Brookings Institution Non-Resident Senior Fellow Bob Litan quantifies these new fees.

  • New State and Local Fees: Average annual increase of $67 for wireline broadband and $72 for mobile broadband. All told, American consumers could pay $15 billion in new state and local fees.
  • Real-World Example: For a Maryland household with one wireline and two wireless broadband connections, the monthly increase in state and local fees could be as much as $34; in California, the monthly increase for a comparable household could reach $44. These figures do not include any new federal charges, which would raise the monthly cost further.

Top 5 States by New Wireline Fees

  1. California (up to $167.09 per year)
  2. Alaska ($148.34)
  3. Pennsylvania ($144.90)
  4. Louisiana ($141.49)
  5. Illinois ($138.79)

Top 5 States by New Mobile Broadband Fees

  1. California (up to $178.82 per year)
  2. Pennsylvania ($154.64)
  3. Alaska ($153.88)
  4. Louisiana ($153.12)
  5. Oklahoma ($149.80)

Regulating Broadband as a Telecommunications Service Will Subject Consumers to Billions in New Fees

(Calculations Assume One Wireline and One Wireless Connection Per Consumer)

State Monthly Increase Range Annual Increase Range
Alabama $9.41 – $9.41 $112.95 – $112.95
Alaska $16.14 – $25.19 $193.66 – $302.22
Arizona $9.05 – $16.30 $108.63 – $195.62
Arkansas $6.65 – $20.68 $79.78 – $248.15
California $4.87 – $28.83 $58.49 – $345.91
Colorado $4.80 – $19.75 $57.63 – $236.95
Connecticut $7.40 – $7.40 $88.75 – $88.75
Delaware $1.36 – $1.36 $16.32 – $16.32
Florida $5.32 – $11.98 $63.81 – $143.72
Georgia $12.15 – $17.12 $145.79 – $205.49
Hawaii $11.94 – $11.94 $143.25 – $143.25
Idaho NA NA
Illinois $8.07 – $23.68 $96.84 – $284.18
Indiana $9.72 – $9.72 $116.61 – $116.61
Iowa $7.61 – $8.55 $91.36 – $102.57
Kansas $7.05 – $9.62 $84.56 – $115.43
Kentucky $9.14 – $20.31 $109.69 – $243.67
Louisiana $19.57 – $24.55 $234.83 – $294.61
Maine $6.23 – $6.23 $74.78 – $74.78
Maryland $18.01 – $22.41 $216.10 – $268.90
Massachusetts $7.51 – $7.51 $90.08 – $90.08
Michigan $6.97 – $14.37 $83.62 – $172.42
Minnesota $9.65 – $10.45 $115.81 – $125.36
Mississippi $10.55 – $10.95 $126.63 – $131.43
Missouri $4.11 – $17.02 $49.37 – $204.29
Montana $5.99 – $5.99 $71.86 – $71.86
Nebraska $7.06 – $14.90 $84.67 – $178.82
Nevada $5.56 – $10.24 $66.73 – $122.84
New Hampshire $7.81 – $7.81 $93.69 – $93.69
New Jersey $8.35 – $8.35 $100.17 – $100.17
New Mexico $11.08 – $17.17 $133.02 – $205.98
New York $13.04 – $19.93 $156.47 – $239.21
North Carolina $7.79 – $8.03 $93.53 – $96.33
North Dakota $10.04 – $15.61 $120.50 – $187.37
Ohio $6.89 – $8.52 $82.64 – $102.28
Oklahoma $5.50 – $23.98 $66.05 – $287.73
Oregon $6.63 – $8.50 $79.57 – $102.02
Pennsylvania $20.37 – $24.96 $244.39 – $299.54
Rhode Island $11.84 – $11.84 $142.13 – $142.13
South Carolina $10.16 – $18.44 $121.87 – $221.26
South Dakota $13.48 – $18.15 $161.72 – $217.85
Tennessee $16.13 – $21.19 $193.54 – $254.26
Texas $6.78 – $17.59 $81.33 – $211.06
Utah $7.04 – $11.57 $84.43 – $138.86
Vermont NA NA
Virginia $8.54 – $9.00 $102.46 – $107.98
Washington $8.45 – $22.02 $101.38 – $264.25
West Virginia $3.00 – $11.87 $35.94 – $142.45
Wisconsin $6.59 – $8.74 $79.09 – $104.86
Wyoming $5.72 – $7.15 $68.60 – $85.83

For more information, see Litan and Singer’s policy brief, “Outdated Regulations Will Make Consumers Pay More for Broadband.“

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