Facing Cable Cord-Cutting, Cities Fight to Tax Broadband

This guest post by BC Law Professor and Associate Dean of Academic Affairs Daniel Lyons first appeared in the AEIdeas Blog.

Broadband has been a bright spot in America’s grim inflationary landscape. While consumer prices rose 4.9 percent last year, two recent reports show that consumer broadband prices fell, both in absolute terms and cost per gigabyte. But where many see a victory, some cities sense an opportunity. Stung by declining cable franchise fees, local governments are pushing to tax broadband. This effort faces severe regulatory headwinds, but if successful could erode consumer gains and drive broadband prices higher.

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