As you may or may not know, there is a charge on your monthly cable TV bill called “franchise costs” or “PEG fee” that pays for the public, educational and government (PEG) access TV studio in your area.
There are 39 PEG access TV studios in Connecticut.
At the state Capitol this week, some legislators and PEG access supporters are pushing to expand this charge by adding it on to the internet portion of your bill as well.
It is unclear how this fee will be allocated to the PEG access TV studios. Based on PEG access reports, most PEG access TV studios are running a surplus, or are the recipient of additional annual grants from the state.
It raises the question of whether PEG access TV studios should be looking to expand their budget on the backs of internet customers, especially with the existence of competition that carries similar content available on online streaming platforms such as YouTube, Facebook Live, social media, mobile devices, in addition to ever more available access of news media content.
PEG access networks, many which run as independent nonprofit organizations, collectively already receive millions of dollars each year.
In fact, based on most recent data, New England Cable & Telecommunications Association (NECTA) members and their customers paid approximately $12 million in 2021 alone in PEG fees and property taxes.
While the cable industry is committed to continuing support for PEG access, this “internet tax” is simply not necessary, especially in a time when the state and federal government want to keep the price of internet affordable.
These nonprofit PEG access studios should look for other ways to raise funds if they need to supplement their budgets, not through an added fee on internet bills.
Throughout the pandemic, the cable industry has worked in concert with state and federal governments to lower the price of internet service, not raise it, and close the digital divide.
First, through their work with the Lamont administration, they participated in Everybody Learns, a program designed to bridge internet gaps by providing students in need with free Internet access and laptops. We are proud of these results, with over 60,000 internet connections and 50,000 laptops having been put in the hands of students through this program.
Second, coupled with President Biden’s Affordable Connectivity Program (ACP) and pandemic-relief efforts, the cable industry expanded their low cost and free internet programs to more people in Connecticut than ever.
While the state is working to expand broadband access to unserved and underserved areas, Senate Bill 278 erects barriers to broadband entry, driving up the cost especially for low-income subscribers and small businesses.
Our industry is doing its part to provide reliable, secure, and fast Internet to every citizen, business and school in Connecticut.
This new proposal to add a PEG access fee to internet service is the equivalent of a hidden tax, one they hope to tack on to your bill without you noticing.
As the residents of Connecticut emerge from the pandemic, now is not the time to make Connecticut the first state in the country with an Internet tax.
Tim Wilkerson is the president of the New England Cable & Telecommunications Association, a five-state regional trade association representing substantially all private cable telecommunications companies in Connecticut, Massachusetts, New Hampshire, Rhode Island, and Vermont.
