ISPs worry that killing FCC net neutrality rules will come back to haunt them

Enlarge (credit: Getty Images | Matt Anderson Photography)

ISPs asked the US Supreme Court to strike down a New York law that requires broadband providers to offer $15-per-month service to people with low incomes. On Monday, a Supreme Court petition challenging the state law was filed by six trade groups representing the cable, telecom, mobile, and satellite industries.

Although ISPs were recently able to block the FCC’s net neutrality rules, this week’s petition shows the firms are worried about states stepping into the regulatory vacuum with various kinds of laws targeting broadband prices and practices. A broadband-industry victory over federal regulation could bolster the authority of New York and other states to regulate broadband. To prevent that, ISPs said the Supreme Court should strike down both the New York law and the FCC’s broadband regulation, although the rulings would have to be made in two different cases.

A situation in which the New York law is upheld while federal rules are struck down “will likely lead to more rate regulation absent the Court’s intervention,” ISPs told the Supreme Court. “Other States are likely to copy New York once the Attorney General begins enforcing the ABA [Affordable Broadband Act] and New York consumers can buy broadband at below-market rates. As petitioners’ members have shown, New York’s price cap will require them to sell broadband at a loss and deter them from investing in expanding their broadband networks. As rate regulation proliferates, those harms will as well, stifling critical investment in bringing broadband to unserved and underserved areas.”