Broadband Roundup: Internet Tax Freedom Act, Report on Broadband Speeds, and AT&T on Gigabit Networks

WASHINGTON, June 19, 2014 – The House Judicary Committee on Wednesday approved the Permanent Internet Tax Freedom Act this week by a vote of 30-4, according to a press release from the committee. The act banned state-imposed taxation of internet access or discriminatory taxes on e-commerce.

Originally enacted in 1998, the bill had previously been renewed three times, with only two “no” votes ever being cast.

“The internet increasingly serves as a daily requisite for millions of Americans, businesses and schools. It has transformed our economy and how we conduct business, communicate, educate, and live our lives,” said the joint statement from members of Congress including committee Chairman Bob Goodlatte, R-Va..

“The Permanent Internet Tax Freedom Act passed by the Committee today permanently bans taxes on internet access. This broadly bipartisan bill ensures that access to the internet is not burdened by unnecessary costs and that Americans can continue to access the Internet tax free.

The bill might have trouble passing the Senate as Democratic members recently approved an online sales-tax measure, the Wall Street Journal reported.

Ranking Democrat John Conyers of Michigan, for instance, has argued that the internet no longer needs as much protection and that state finances would be hurt by the inability to tax online sales.

For the internet to remain tax-free from local and state governments, Congress must pass the measure by November 1.

The National Cable & Telecommunications Association wrote Wednesday that it was pleased with the FCC’s report on broadband speeds. The group said that the findings “refute the unsubstantiated allegations that cable operators routinely under-deliver and are solely responsible for any deficiencies in the performance experienced by consumers.”

More information is needed besides the information that has been revealed about access service provided by internet service providers, the association wrote. Other factors influencing the consumer experience beyond the control of ISPs include upstream congestion, performance limitations of computers or Wi-Fi routers.

In other news, AT&T has ratified a deal with a third city in North Carolina: Raleigh. As with Winston-Salem and Durham, AT&T will deploy “U-verse with GigaPower,” a 1 Gigabit per second-capable fiber platform, Multichannel News reported

The telecom giant is also pursuing Gigabit Networks in three other areas in North Carolina: Carrboro, Cary, and Chapel Hill. The telecom company is deploying Gigabit Networks to parts of Austin, Texas, with plans to expand to Dallas, Atlanta, Chicago, Houston, Kansas City, and Los Angeles.

Meanwhile, CenturyLink is trying to deploy its own Gigabit-capable broadband to Omaha and Las Vegas, according to Broadband Reports. The company sent postcards that it might consider service trials in Eagan, Minnesota.

Additionally, the company has told residents of Portland that they would receive guaranteed 1 Gbps service if they signed long-term contracts, which may be a competitive response to recent news that Google Fiber might be coming to Portland as well.