President Biden’s bid to inject government deeper into the private sector is getting its first big test in the broadband industry. The $1 trillion infrastructure bill would wire communities across the country that companies haven’t reached and subsidize bills for low-income households. Private companies would be required to publish details about their products, much like nutrition labels, and offer low-cost service plans if they take federal funds to help build networks. For the broadband industry, which has flourished for decades without strict governmental oversight, the initiative set off alarm bells. Some aspects of the legislation have drawn industry complaints, at least privately, including provisions that empower federal and state officials to direct how new subsidies are spent, regulate pricing disclosures and authorize new rules preventing “digital discrimination.” The legislation stops short of turning broadband into a public utility. In the short run, it will funnel cash to cable and fiber-optic companies that will help them build networks and acquire new customers. It also boosts Washington’s involvement, including through greater subsidies for both providers and customers, and a variety of new rules. At the same time, President Biden is separately directing agencies to write a plan to boost oversight of internet service providers.

“It’s an absolute sea change, a significant increase in the involvement of the federal and state government in the broadband market,” said Gigi Sohn, an FCC official in the Obama administration who advised Biden officials and Democrats on the legislation. “Is it everything I would have wanted? No. But it’s a major step forward and can be supplemented with action from the FCC and other agencies,” said Ms. Sohn.

Full article at The Wall Street Journal.