Bills
| 3.23.22

Do More Small Internet Service Providers Need an Exemption From FCC Reporting Requirements? (H.R. 4596)

Do you support or oppose this bill?

What is H.R. 4596?

(Updated November 15, 2020)

This bill would exempt small broadband internet service providers with fewer than 250,000 subscribers from complying with transparency requirements imposed by the Federal Communications Commission’s (FCC) Open Internet Order for five years. Providers would also be exempt if they have fewer than 1,500 employees.

Under current law, providers with fewer than 100,000 subscribers are exempt from the regulations until December 16, 2016 when the FCC will finalize the reporting requirements for those providers. Among the information that is required to be reported is detailed network performance data, and fees to consumers or other services that use the internet.

The Open Internet Order (aka "net neutrality") requires people who are involved in providing broadband internet to disclose publicly disclose information about network management practices, performance, and commercial terms of its services to:

  • Help consumers make informed decisions regarding their use;

  • Enable content, application, service, and device providers to develop, market, and maintain internet offerings.

The FCC would be required to report to relevant congressional committees within 180 days of this bill’s enactment any recommendations and supporting data about whether:

  • The exception should be made permanent;

  • The definition of “small business” should be changed for this purpose.

Argument in favor

Small internet service providers with fewer than 250,000 subscribers should be temporarily exempt from transparency regulations that were meant to keep consumers informed about the performance of larger providers’ networks and how they are managed.

Argument opposed

The size of an internet service provider should not make any difference when it comes to compliance with an Federal Communications Commission regulation. Extending and raising the existing exemption from 100,000 subscribers to 250,000 is unnecessary.

Impact

Internet service providers with fewer than 250,000 subscribers or 1,500 employees; relevant congressional committees; and the FCC.

Cost of H.R. 4596

The CBO estimates that the cost of implementing this legislation would be negligible.

Additional Info

In-Depth: Sponsoring Rep. Greg Walden (R-OR) introduced this bill to ease regulatory requirements on small businesses that offer broadband internet services, and prevent consumers from losing access to broadband because of those regulations:

“Today, we put small businesses and consumers first with bipartisan support for this commonsense proposal. Two goals central to this committee’s mission were reached: relieving regulatory burdens for small businesses and protecting consumers.”

Originally this bill would have applied the exemption to providers with less than 500,000 subscribers, but a compromise between Walden — the Communications and Technology subcommittee chairman — and Rep. David Loebsack (D-IA) lowered the threshold to 250,000. Following the agreement, the entire House Energy and Commerce Committee passed this legislation by voice vote.



Media:

Summary by Eric Revell
(Photo Credit: Flickr user Sean MacEntee)