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

Russian Lawmakers Call for Age Verification

Two Russian lawmakers have called on the country’s government to implement age verification for adult content.

British Documentary Spotlights XBIZ Amsterdam With Candid Conversations

British creator and host Josh Pieters traveled to XBIZ Amsterdam to film a documentary about the annual European adult industry conference.

XBIZ 2026 to Debut 'New Talent Go-See' Special Event

XBIZ 2026, North America’s premier adult industry conference, will debut a special event designed to help new talent jump-start their careers: the New Talent Go-See.

Penthouse Announces Digital Archive Launch

Penthouse Magazine has announced that it will launch a comprehensive digital archive in 2026.

Dreamcam Joins Pineapple Support as Supporter-Level Sponsor

Dreamcam has joined the ranks of over 70 adult businesses and organizations committing funds and resources to Pineapple Support.

AEBN Publishes Popular Searches by Country for August, September

AEBN has released the list of popular searches from its straight and gay theaters by country in August and September.

AV in Focus: A Guide to Unlocking Compliance With Clarity

The age verification era isn’t coming — it’s here. Laws are already on the books in numerous U.S. states, as well as in the U.K., France and beyond.

Canadian Privacy Commissioner Endorses National AV Bill

Philippe Dufresne, privacy commissioner of Canada, has voiced support for a bill that would impose fines of up to $500,000 on adult sites that do not implement age verification for Canadian viewers.

Ricky Johnson Launches 'Ricky's Resort' Through YourPaysitePartner

Ricky's Room studio honcho Ricky Johnson has launched his latest site, RickysResort.com, through YourPaysitePartner (YPP).

Industry Attorney Paul Cambria Retires After 50 Years of Practicing Law

After more than a half-century in practice, during which he provided the defense in some of the adult industry's most notable legal cases, attorney Paul Cambria has retired.

Show More