A federal solution to a federal problem

Now that the dust has settled from the midterm elections and Congress gets back to legislating, several issues are moving toward the top of the agenda. One issue particularly important to African-American-owned small businesses is modernizing the country’s communications laws.

{mosads}The last time Congress passed legislation regarding our communications networks was in 1996, when cellphones were a luxury — not a necessity — and most Americans experienced the loud screeching sound of dial-up Internet. According to a report released by National Telecommunications and Information Administration in October, 99 percent of Americans have access to some form of broadband, compared to the only 3 percent of Americans in 2000 that had access to broadband.

Times have changed.

For small businesses in African-American communities to stay competitive in the global economy, cutting-edge technology enabled by high-speed broadband is paramount. Broadband-enabled technology increases the efficiency and productivity of businesses, opening doors to increased market opportunities. According to the U.S. Census, African-American small businesses are growing at the rate of 45 percent — one of the highest and fastest-growing segments of the U.S. economy. Part of the reason for this growth is the fact that technology levels the playing field for minority-owned businesses, keeping them competitive and efficient.

The reality is, the laws governing our dynamic communications networks stem from 1934 monopoly phone regulations. Clearly, we have moved past the era of the old rotary telephone and the Ma Bell system that our grandparents relied on to a vibrant hyper-connected world. Because these laws are rooted in monopoly-era regulations, they are restrictive to innovation — potentially leaving us behind on the next technological breakthrough.

Thankfully, members of the House Energy and Commerce Committee have recognized this challenge and have sought input — which the National Black Chamber of Commerce provided — from interested parties on designing a new Communications Act that will foster in the next wave of technological breakthroughs.

In our comments to the House Energy and Commerce Committee, the National Black Chamber of Commerce outlined three key principles the committee should consider when modernizing our communications laws.

First, level the playing field. The current law has an archaic division of services ranging from wireless to fiber to satellite, creating regulatory silos for services that compete with one another. This arbitrary set of regulatory schemes based on technology platforms is holding back competition and innovative service offerings for consumers.

Second, before government regulators intervene in a market, there must be well-documented consumer harm or market failure before any regulatory action occurs. For the last decade, the tech community has been entrenched in the battle over net neutrality precisely because the Federal Communications Commission has been searching for ways to force preventative rules in an outdated statute and without demonstrating real examples of harm to consumers or a market failure.

Finally, a new Communications Act should be a federal solution. The new law needs to preempt state and local municipalities from imposing barriers or patchwork laws and regulations that place heavy burdens on minority-owned small businesses.

This type of reform is no small task and will require both Democrats and Republicans to work together to push our laws into the 21st century. Just as in 1996, when Democrats and Republicans worked together to pass the 1996 Telecommunications Act, so too can this new crop of legislators.

Alford is the president and CEO of the National Black Chamber of Commerce.