OPINION:
Small businesses are the driving force of economic growth across the country, and reliable high-speed broadband service is essential for their ability to grow, thrive and compete. But as we near the midterm elections, some congressional candidates and members of Congress are stepping up efforts to re-impose outdated Internet rules that would limit broadband expansion and prevent rural businesses from engaging in the digital economy.
Today, online tools are helping the 90 percent of American businesses with fewer than 20 employees become more efficient, competitive and successful. An array of digital platforms help small firms do everything from track financial goals, reach new markets and customers, and manage personnel — but only if these businesses have access to reliable, high-speed Internet.
With small businesses now responsible for two-thirds of the country’s new jobs, these tools are increasingly vital for enabling smaller companies to grow and remain competitive. In fact, small businesses that integrate these tools grow 26 percent faster than those that do not. And as the gig economy allows more people to use digital platforms to find jobs, these tools will be even more essential in the 21st century economy.
But these services require a strong broadband connection that too many rural communities across the country still do not have. In fact, the Pew Research Center recently found that almost 60 percent of rural Americans had problems accessing high-speed Internet where they live.
Unfortunately, some federal policies governing the Internet have only exacerbated this problem. For example, when the Federal Communications Commission (FCC) in 2015 imposed Depression-era regulations originally designed for phone companies — called “Title II” — on Internet service providers (ISP), billions of dollars for broadband expansion were lost. While Title II was seen as a way to promote net neutrality, it instead resulted in reduced funds for broadband infrastructure investment that is necessary to connect more rural communities to high-speed Internet.
While the good news is that the FCC reversed course in 2017 and removed these Title II regulations, some in Congress are now campaigning to reinstate the rules. In May, the Senate narrowly passed what’s known as a Congressional Review Act (CRA), which would reinstate Title II’s red tape on the Internet. Now, with the midterm elections around the corner, some congressional candidates and advocacy groups are making the CRA a political football in an attempt to force a House vote later this year — which would have virtually no chance of succeeding.
But broadband is too important for our nation’s small businesses and our entire economy to be playing these kinds of political games. High-speed broadband are the highways and railroads of the 21st century economy. In 2016, digital commerce accounted for $1.2 trillion of America’s growth, and studies have shown greater access to the Internet leads to increased entrepreneurship and start-up activity. Rather than stunts like the CRA, Congress and political candidates should be championing the need for comprehensive legislation that both protects consumers and promotes broadband infrastructure investment.
What’s clear is that bringing back government regulations devised during the 1930s is not the answer for expand high-speed Internet access. Instead, Congress and candidates for office must look to the future by passing legislation that encourages more private investment to expand broadband to rural communities and ensures that small business owners can continue to grow and help drive America’s economy in the Digital Age.
• Hector V. Barreto, chairman of The Latino Coalition (TLC), formerly served as the administrator of the U.S. Small Business Administration.
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