April 22, 2008

The Honorable Daniel K. Inouye
United States Senate
722 Hart Senate Office Building
Washington, DC 20510-1102

ATTN: Telecommunications Legislative Aid

Dear Senator Inouye:

As the Senate Commerce Committee prepares to discuss Internet policy at today’s hearing on the “Future of the Internet,” I am writing on behalf of Consumers for Competitive Choice to urge the Committee to reject any change to broadband policy that would invite future regulatory interference along the lines of “net neutrality.” Rather, the Committee should seize this opportunity to discuss strategies that will deliver more broadband to more consumers.

American consumers have benefited tremendously because broadband providers have been allowed to compete and innovate in an open marketplace. The absence of overly restrictive “net neutrality” regulations and the increased consumer demand for new applications and faster networks has encouraged providers to deploy new technologies faster and more efficiently benefiting not only the everyday internet user but also our schools, health care system and the environment.

Government intervention in the wide-open, consumer dominated Internet market will lead to serial rent-seeking, with one branch of the sector looking for government help against its rivals. Regulatory compliance costs are never happily swallowed by businesses; they get passed along to consumers in the form of higher prices. Avoiding this pattern is what government has done right in the Internet – consumers, investors, Internet companies, and every other sector of the economy that benefits from the Internet’s productivity have benefited from the current policy.

To be sure, there is still work to be done as consumers in unserved and underserved areas still need access to broadband. With that goal in mind, Congress should focus its attention on legislative vehicles that will promote deployment and spur investment like the Connect America language in the pending Farm Bill instead of taking its collective eye off the ball by debating issues that will harm and not help consumers receive broadband.

Attached please find a packet of materials from a diverse group of influential organizations representing millions of consumers – that all have one thing in common – a strong opposition to “net neutrality.” The packet contains resolutions from the American Legislative Exchange Council (ALEC), the National Black Caucus of State Legislators and the National Hispanic Caucus of State Legislators opposing “net neutrality,” as well as a press account highlighting the fact that the Federal Trade Commission (FTC) has reached the same conclusion.

Consumers for Competitive Choice is an alliance of consumer organizations with one million members throughout the United States who are committed to the development of a competitive, vibrant consumer market in the communications, energy, financial and health sectors. On behalf of our members, I thank you for your time and dedication to this matter.

Respectfully,

Robert K. Johnson
President, Consumers for Competitive Choice