Senator Plans Internet Tax

WASHINGTON — Oregon Republican Sen. George Smith plans to introduce a bill that will force more Americans to pay taxes subsidizing broadband technology in areas that are not currently wired for the high-speed service.

This week Smith plans to introduce a bill called “The Broadband for America Act of 2006.” The streamlined bill delineates only four key points, which will allow it to pass through the halls of Congress quickly.

“The bigger it is, the more comprehensive it is, the more likely it is to get bogged down,” Smith said at a conference of the National Telecommunications Cooperative Association.

Part one of Smith’s bill would require that all companies “capable of supporting two-way voice communications,” contribute into the Universal Service Fund, which subsidizes telecommunications penetration into rural and other areas.

The 2nd part of the bill would give the Federal Communications Commission 180 days to license the use of dormant channels on broadband airwaves in the broadcast TV band. They are called “white spaces.” The broadcasting lobby is opposed to such development, claiming it would affect the quality of its broadcasts.

Historically a cable company must negotiate an exclusive franchise agreement with a specific city or region to offer its services. Smith’s 3rd provision would eliminate this practice for new companies in the video sector.

The 4th provision piggybacks a bipartisan bill introduced last summer, which would prevent states from blocking public-sector companies from entering the broadband market.

Smith's bill also mentions apportioning more than $500 million per year to supply service in underdeveloped areas where mostly low-income housing is located. These households would be exempt from any broadband development fees.

Interestingly, the bill does not mention net neutrality, which would charge heavy bandwidth content producers extra fees to deliver its services faster.

Copyright © 2025 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

New Pleasure Product Review Site 'ToyChats' Launches

ToyChats.com, a pleasure product review and discussion site, has officially launched.

AEBN Reveals Jade Venus as Top Trans Star for Q1 of 2025

AEBN has named its top trans stars for the first quarter of 2025, with Jade Venus landing atop the leaderboard.

SexLikeReal Debuts 'AI Passthrough' Feature

SexLikeReal has introduced an AI Passthrough for video editing during VR livestreaming.

Ron Jeremy's Accusers Reach Settlement With Rainbow Bar & Grill

The Rainbow Bar & Grill has reached confidential settlements with a group of women who filed a negligence lawsuit against the Sunset Strip restaurant over alleged sexual assaults committed by Ron Jeremy, according to Rolling Stone.

Cherry Kiss, Jordan Starr Top AEBN for Q1 of 2025

AEBN has announced its top-selling stars for the first quarter of 2025, with Cherry Kiss landing atop the leaderboard for straight theaters and Jordan Starr heading up the gay rankings.

Sportsheets Joins FSC as Gold Member

Sportsheets has joined Free Speech Coalition (FSC) as a Gold-level member.

Age Verification Watch: Two End Runs, Two Failed Bills

Industry stakeholders and free speech advocates have anxiously been awaiting the Supreme Court’s decision in Free Speech Coalition v. Paxton, which could significantly impact state age verification laws around the country. In the meantime, state legislatures continue to weigh and pass AV bills, AV tech providers continue to tout their services, and legal challenges continue to play out in the courts — with some cases on hold pending the SCOTUS ruling in Paxton.

FSC Helps Defeat Colorado AV Bill

Free Speech Coalition (FSC) has announced that, with its help, Colorado's recently introduced age verification bill has been defeated.

New AI Companion Platform 'Fantasy.AI' Launches

Fantasy.AI, a new AI companion platform, has officially launched.

XBIZ Amsterdam 2025 Show Dates, New Venue Announced

XBIZ is pleased to announce preliminary details for XBIZ Amsterdam, set to return Sept. 2-5 at an all-new host venue: the waterside Jakarta Hotel Amsterdam.

Show More