Missouri Senator Eric Schmitt has condemned the Biden Administration’s perceived overreach in broadband regulation.
In a strongly worded letter addressed to the National Telecommunications and Information Administration (NTIA), the Senator has called out the agency’s alleged attempts to circumvent the law and impose unlawful price controls on internet service providers.
“Revealingly, NTIA’s latest feedback in its so called “curing process” seems to provide that meeting statutory requirement is in fact not satisfactory and that the only low-cost option acceptable must be established as “an exact price or formula” in order to receive funding. In requiring this, your agency is now conditioning BEAD funding on a set price, effectively rate regulating service providers and willfully violating the law,” reads the letter.
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“If you and Secretary Raimondo continue to pursue this strategy of double talk that NTIA is simply giving preference to states that agree to a specific price and not mandating a specific rate, please know that I along with fellow colleagues on the committee plan to use the fullest extent of our oversight authority to hold you accountable,” continues the letter.
The heart of the controversy lies in the BEAD program, a federal initiative aimed at expanding broadband access to underserved areas. As part of this program, states are required to submit proposals outlining their plans to improve connectivity.
However, according to Senator Schmitt, the NTIA has been using this process as a covert means to mandate pricing on these state proposals, effectively rate-regulating the service providers.
The Senator’s letter paints a disturbing picture of the NTIA’s tactics. He claims that the agency has been providing feedback to states, insisting that the “only low-cost option acceptable must be established as ‘an exact price or formula’ in order to receive funding.” This, he argues, is a clear violation of the law, as Congress expressly prohibited the NTIA from regulating broadband rates in the very legislation that created the BEAD program.
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Schmitt warns that the NTIA’s actions will have dire consequences for consumers. By mandating specific pricing structures, the agency is effectively stifling competition and limiting the ability of service providers to tailor their offerings to the unique needs of each state. This, in turn, could lead to fewer people being connected to high-speed internet, as providers may be discouraged from participating in the BEAD program altogether.
The battle over the BEAD program’s implementation extends beyond the immediate concerns raised by Senator Schmitt. It speaks to a larger debate about the role of government in regulating the telecommunications industry.
Advocates of a free market approach argue that heavy-handed intervention, such as mandating specific pricing, can stifle innovation, limit consumer choice, and undermine the competitive dynamics that drive progress in the broadband sector.
The NTIA’s alleged overreach has also put state governments in a challenging position. While they are tasked with developing BEAD proposals that meet the program’s requirements, they must now navigate the delicate balance between satisfying the NTIA’s demands and preserving their own autonomy in addressing the unique broadband needs of their constituents.
Schmitt’s letter is not an isolated voice in the chorus of criticism directed at the NTIA’s actions. Lawmakers from both sides of the aisle have expressed concerns about the agency’s perceived overreach, highlighting the bipartisan nature of the issue and the potential for broader political repercussions.
As the standoff between Senator Schmitt and the NTIA continues, the possibility of legal challenges to the agency’s tactics looms large. Should the NTIA persist in its efforts to mandate specific pricing structures, it may face legal scrutiny from aggrieved states or service providers who argue that the agency’s actions violate the letter and spirit of the law.
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