This guest post by BC Law Professor and Associate Dean of Academic Affairs Daniel Lyons first appeared in the AEIdeas Blog.
I recently discussed the Sixth Circuit decision classifying broadband as a Title I information service and effectively eliminating the Federal Communications Commission’s (FCC) general power to regulate broadband. But like nature, regulators abhor a vacuum. While closing the door to federal regulators, the decision also creates opportunities for states to act. This post examines the present and potential future of state-level broadband regulation.
Historically, state regulators were key players in the telecommunications space. The Communications Act of 1934 divided the telecommunications world into two neat hemispheres: The FCC regulated interstate long-distance service, while state commissions regulated local and intrastate long distance. This division of authority made sense in a world where 98 percent of calls were local, and long-distance calls were a luxury. But the Telecommunications Act of 1996 dramatically rearranged the balance of power between the federal government and the states. Meanwhile, local telephone service largely disappeared as a separate market, before communication shifted from the telephone to broadband networks. As a result, most states shuttered their telecommunications regulators early in the 21st century.
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