PRESIDENT BUSH'S PLAN FOR AFFORDABLE BROADBAND ACCESS FAILS TO DEAL WITH REAL ISSUES: "HIDDEN TAX, LACK OF CHOICE

[Dave Farber <dave () farber net>]

Delivered-To: dfarber+ () ux13 sp cs cmu edu
Date: Tue, 27 Apr 2004 21:13:42 -0700
From: Dewayne Hendricks <dewayne () warpspeed com>

PRESIDENT BUSH'S PLAN FOR AFFORDABLE BROADBAND ACCESS FAILS TO DEAL
WITH REAL ISSUES: "HIDDEN TAX, LACK OF CHOICE

President Bush’s plan unveiled today to provide affordable high-speed
Internet access to all Americans by 2007 fails to address a primary
hurdle cited by consumer groups to achieving that goal: a “hidden tax”
the administration allows cable operators to impose on customers by
forcing them to buy the services or packages they create to get access
to the Internet. “We are encouraged to hear the President set a
national goal of affordable high-speed Internet for all, but
unfortunately, he is not focusing on the most important policy change
necessary to achieve that goal ­ eliminating the hidden tax the
administration allows cable operators to impose on consumers for
broadband access,” said Gene Kimmelman, public policy director of
Consumers Union. Kimmelman is referring to the FCC’s policy of allowing
cable operators to charge customers $55 to $75 a month if customers
want to use their own Internet Service Provider (ISP), rather than the
provider selected by the cable company in their broadband cable
package. About 13.7 million consumers currently receive their service
from cable companies. Since 2001, the cost of buying the services that
connect a cable customer to high-speed Internet access have increased
three times the rate of inflation. “This policy of allowing cable
operators to force consumers to buy their services is absolutely
contrary to the President’s goal of offering consumers affordable
Internet access,” Kimmelman said. “This Administration policy produces
neither genuine consumer choice nor dynamic innovation, both of which
are necessary to ensure affordable access to the Internet for all
Americans.”

[SOURCE: Consumers Union Press Release]
<http://www.consumersunion.org/pub/core_telecom_and_utilities/ 
001013.html#more>
<http://www.consumersunion.org/pub/ 0330%20bush%20broadband%20response%202.pdf>

Archives at: <http://Wireless.Com/Dewayne-Net>
Weblog at: <http://weblog.warpspeed.com>

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