June 17, 2021

Far-left broadband bill is Big Tech welfare that invites corruption, stifles competition, and tramples on state sovereignty

Today CASE issued a statement in strong opposition to the BRIDGE Act, a $40 billion broadband infrastructure proposal with the intended goal of closing the “digital divide,” but is in fact little more than big government run amok over our amazingly successful and innovative tech sector.

Said CASE in their statement:

“The BRIDGE Act is a big-government internet bill that clicks all the wrong buttons. It is a sweetheart giveaway to Big Tech that adopts numerous failed policies, including rate regulation, squeezing out private competition, and funding of poor-performing municipal networks. It further promotes a lack of interstate compatibility, all while trampling on state sovereignty. This bill incentivizes handouts over innovation, which could not possibly be a more misguided policy and will only serve to undermine America’s tech leadership.

“While CASE has long advocated for helping close the digital divide, this legislation prioritizes enhancing broadband speeds in high population density areas at the expense of tens of millions of Americans who have zero access to broadband currently, a thorough injustice to any effort to close our nation’s digital divide.

“Even worse, it gives away billions in taxpayer dollars to fund municipal broadband that has an abysmal track record of performance and service compared to private plans, and makes the egregious decision to empower local politicians to control vital broadband infrastructure. Creating numerous municipal broadband fiefdoms to squeeze out the innovation of market investment is a recipe for greater cost, delay and inefficiency where we can least afford it.

“This legislative Titanic further promotes the very worst of government intervention into an economically critical technology sector that has always flourished best when left to free-market competition. It implements price controls that throttle innovation and investment, and preempts state laws seeking to keep government out of the broadband business. To make matters worse this plan allows an inconsistent patchwork of regulations on internet benchmarks that thwart compatibility with emerging technologies.

“The trillion-dollar Big Tech companies of course love this bill, as they can have government fund their projects without a competitive bidding process, needing only a mere “letter of endorsement” from local politicians to cash in. This is an invitation for further corruption, sweetheart deals, and will undermine providers who innovate based on consumer needs.

“In short, the BRIDGE Act is a rickety traverse of wasted money, government overreach, market intervention, corporate cronyism, and socialist price controls that could devastate a pillar of our modern economy. At a time when our nation should be doubling down on broadband investment this plan does little but weaken the signal. This legislation diverts the wondrous and steady ascent of technological progress we have achieved in our nation with the heavy foot of government and regulatory control. It must be defeated.”