FCC helps AT&T and Verizon charge more by ending broadband price caps

The Federal Communications Commission today voted to eliminate price caps in much of the business broadband market by imposing a new standard that deems certain local markets competitive even when there’s only one broadband provider.

“What this order does is open the door to immediate price hikes for small business broadband service in rural areas and hundreds of communities across the country,” FCC Commissioner Mignon Clyburn, a Democrat, said in a detailed dissent. “Cash-strapped hospitals, schools, libraries, and police departments will pay even more for vital connectivity.”

While there are no price caps on home Internet service, the FCC does limit the prices of so-called Business Data Services (BDS) provided by incumbent¬†phone companies like AT&T, Verizon, and CenturyLink. The services are delivered over copper-based TDM networks and are commonly used for “connecting bank ATM networks and retail credit-card readers [and]¬†providing enterprise business networks with access to branch offices, the Internet, or the cloud,” the FCC said.

One ISP choice counts as competition

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